Funds

MAVCAP set to hit $50m first close for Meranti Fund, Elixir-partnered Islamic #Fund

Malaysia Venture Capital Management (MAVCAP) plans to announce a $50 million first close for two of its funds that will be launched this year, Asean Growth Fund and Global Islamic Economy Fund. The combined size of the two vehicles will be about $450 million. MAVCAP CEO Jamaludin Bujang said the Asean Growth Fund is $200 million vehicle, which is jointly launched with China-based Gobi Partners. This vehicle will be termed Meranti and will focus on later stage funding for technology related companies in Malaysia and Southeast Asia. In fact, MAVCAP is weighing options for the Islamic fund that is looking to invest in Shariah compliant and Halal sectors. Apart from the Asean Growth Fund and the Islamic fund, MAVCAP is also working on a clean-tech fund that will invest in companies that help reduce environmental stress. Bujang said the clean-tech fund could have a targeted corpus of anywhere between $50-$100 million.

#NCB Capital #launches Pan European #Real #Estate #Fund

NCB Capital, Saudi Arabia’s leading provider of wealth management and investment services, and the Kingdom’s largest asset manager, has announced the launch of its Pan European Real Estate Fund with more than $150 million raised through a private placement.
NCB Capital has partnered with Fidelity International, a leading global asset manager, to invest in commercial properties, including office, retail, logistics/industrial and mixed use, located in key European property markets including France, Germany, Benelux and the United Kingdom. Favorable currency conversion rates, robust legal and regulatory environments, coupled with consistent growth expectations of the core European economies make this an opportune time to invest in a solid real estate market.

QInvest’s income-generating #Ijara #fund oversubscribed

#Qatar’s QInvest has successfully launched its QInvest SQN Income Fund. It aims to pay out a net yield of 7% per annum on a monthly basis and has a targeted IRR of between 8-9%, with a tenure of 5 years. The Fund invests in the leasing and financing of business-essential, long-life, revenue producing equipment across developed markets. Industries include health care, manufacturing and agriculture. QInvest plans to launch another fund in the same series later this year. QInvest CEO Tamim Hamad Al Kawari said the new fund provides investors with concentrated portfolios with means of diversification and risk mitigation. It provides attractive returns and a regular income distribution, all within a relatively conservative investment profile.

KBW Investments launches Islamic #fund

In this interview HRH Prince Khaled bin Alwaleed bin Talal reveals the full story behind his investment firm’s jump into the Shari’ah space. He founded KBW Investments four years ago and launched in mid-January his newest company, ARADA, in partnership with Basma Group. KBW’s first movement in the Shari’ah-compliant investment space is called Crestmount Capital. Prince Khaled found the fairness of Islamic finance most appealing, the extensive work in preparation of launching Crestmount Capital with Amanie Advisors has been really educational. The projects that Crestmount Fund will invest in will be delivered by PietyTHP Developments, which is a joint venture between Piety and the property arm of Lembaga Tabung Haji of Malaysia. Crestmount Fund I, a Shari’ah-compliant real estate private equity fund, is structured as a Cayman Islands entity. It will fund five identified under-development residential projects in Sydney, Australia, through Shari'ah-compliant commodity Murabahah agreements.

#Turkey's SWF to focus on securitization

The first act of business by the Turkish Sovereign Wealth Fund (SWF) will be the issuance of securities, while it will also focus on Islamic finance products in securitization. The fund will contact local and foreign investors for securitization over the next few months. Even though the Treasury announced that the transferred asset size was approximately worth $160 billion with an equity size of $35 billion last Friday, an endeavor is currently underway concerning the valuation and auditing of the transferred assets by the fund. According to a Turkish daily, Dünya, the fund is exploring various types of instrument models, especially in Islamic finance. For this reason, the issuance of sukuk is a major focus of the agenda for the fund.

Massive gold-backed #ETF certified as sharia compliant

US-based State Street Global Advisors announced that a huge exchange-traded fund for investment in gold has been certified as being sharia compliant. The question of whether ETFs themselves comply with Islamic law has not been addressed. The fund, called SPDR Gold Shares, is one of the world's largest ETFs, having a net asset balance of more than $30 billion. Managed and marketed by State Street Global, it is listed on the New York Stock Exchange. The World Gold Council paved the way for certification by asking the Accounting and Auditing Organization for Islamic Financial Institutions to determine criteria for gold trading. The AAOIFI announced standards for gold trading in December 2016. Joseph Cavatoni, who is in charge of ETFs at the World Gold Council, said the certification is an important step toward meeting demand for gold in the Islamic financial market.

QInvest successfully exits a prime London residential #real-estate #fund

Qatar Islamic Bank's QInvest is exiting the St. Edmund’s Terrace LP Fund. The Shari'ah compliant fund was jointly owned by QInvest and a range of GCC institutional and retail investors. It invested GBP 50 million into developing a new, prime residential project through a real estate development company. The Fund was created to provide investors with the opportunity to invest in London’s prime residential market. At completion, the Fund generated 22% net returns to investors. Craig Cowie, Head of Real Estate at QInvest said the returns exceeded expectations and added a notable asset to the luxury real estate market in London. The project, 50 St. Edmund’s Terrace, completed in June 2015 and comprises of three residential blocks and 37 units. It delivered an average selling price in excess of GBP 2,600 per square foot.

#Iran's Sovereign #Fund Eying International Markets

The National Development Fund of Iran (NDFI) plans to make investments in international money and financial markets. According to the fund's director, Ahmad Doust-Hosseini, the fund is also ready to support foreign investors as well as Iranian exporters by extending loans. Doust-Hosseini said from the next Iranian year (March 21, 2017), 30% of revenues from the sale of oil, gas and their related products will be deposited with the NDFI. He added that the fund belongs to the private sector and non-government enterprises, so state-owned entities will not receive any loans. Ali Salehabadi, CEO of the Export Development Bank of Iran (EBDI), said his bank will allocate working capital to export projects in the form of foreign exchange and rial loans in partnership with NDFI.

#Zurich: #Responsible #Finance & Investment Summit 3-4 May 2017

Summit will explore intersection of #fintech, #ESG and #Islamicfinance. #RFISummit17

January 24, 2017, Zurich, Switzerland –

Bringing together a diversity of perspectives is critical for continuing the growth occurring within responsible finance. On this premise, the Responsible Finance & Investment Summit 2017 will convene in Zurich, Switzerland from 3-4 May 2017 around the theme “Building Bridges, Expanding Impact”.

Recent estimates from industry stakeholders show continued growth in responsible finance assets in many geographies and sectors. Responsible investment in Europe grew by 42% during the past 2 years, while in the U.S., assets grew by 33%. In Islamic finance, which has a global presence with a significant presence in Europe, the Middle East and Asia, growth in the last 2 years has been 21%. Identifying actionable areas for collaboration will support continued growth towards a more sustainable financial system.

#Fund to spur foreign investment in Islamic finance

#Malaysia’s securities regulator has proposed establishing a fund to invest in the country’s Islamic finance funds and make them more attractive to institutional and foreign investors. The proposed fund is part of an Islamic fund and wealth management blueprint launched on Thursday. It would invest in multi-currency Islamic investment products managed by Malaysian-based asset managers. The fund could address challenges that Islamic funds have faced so far. Few Malaysian-managed funds are offered overseas but this is starting to change. CIMB Islamic Asset Management, for example, this week launched an Ireland-domiciled dollar-denominated sukuk fund. The Employees Provident Fund is launching a RM111.45 billion shariah-compliant retirement fund this month, which could serve as a boon to asset managers in the field.

IDB #Infrastructure #Fund II takes equity stake in Utico

ASMA Capital owned by the Islamic Development Bank (IDB), Saudi Arabia’s Public Investment Fund (PIF) and Public Pension Agency (PPA), Ministry of Finance of Bahrain and Ministry of Finance of Brunei has signed a deal with Utico for a significant minority stake. The deal with Utico for a stake in its water business is done through Asma Capital managed IDB Infrastructure Fund II. The deal is valued overall at $ 147 million in equity and project finance and will be completed in the first quarter of 2017. Ernst & Young, Hatch USA, ILFS, GU Advisory UAE, Latham and Watkins, Trowers and Hamlins and Taylor Wessing are advisers to the deal. Utico is making significant investments in the UAE and expanding its infrastructure assets in water, power, transmission and distribution, storage, billing and collection. Richard Menezes, Utico’s Managing Director stated that its model of development has saved the governments billions of dirhams in capital expenditure and subsidies.

#MICROCAPITAL BRIEF: #IDBank #Dragon #Capital to Develop Sharia-compliant #Investment “Silk-way Growth Fund” for SMEs in #Kazakhstan

The Islamic Corporation for the Development of the Private Sector (ICD), a development finance institution of the Saudi Arabia-based Islamic Development Bank (IDB), and Dragon Capital Partners, the venture capital and private equity arm of Ukraine-based Dragon Capital Group, recently announced the intention to develop the Silk-way Growth Fund, a Sharia-compliant investment fund benefitting “high growth” small and medium-sized enterprises (SMEs) involved in manufacturing in Kazakhstan. The fund is slated to address the “financing gap created due to difficulty of accessing capital at sustainable market rates and the banking sub-sector’s lack of confidence in SME entrepreneurs.” According to ICD, SMEs make up 96 percent of all businesses in Kazakhstan and 25 percent of the country’s GDP.
ICD will act as fund advisor to Silk-way as part of its SME Platform, an initiative aimed at building Sharia-compliant investment management capacities in ICD’s 52 member countries, and it will consider investing capital in the fund as plans for the fund are finalized.

#New major #sources of #capital #emerge #from the #Middle #East

Middle Eastern syndicate and real estate asset management platforms are emerging as major and increasing sources of outbound capital from the region with new figures showing an increase in volumes.
“Typically, they exist to pool equity from multiple private and medium-size institutional investors to real estate assets on a deal-by-deal basis,” said Fadi Moussalli head of JLL’s International Capital Group, MENA. “In the first three quarters of 2016 the volume has already reached $5.1bn and we expect the end-year figure to reach around 7bn.”

Mutual #funds and Islamic funds have huge potential in #Pakistan: Saqib Saleem

In this interview CEO of MCB-Arif Habib Savings and Investments (MCBAH) Saqib Saleem gives advice to new individual investors who want to save a portion of their money. He recommends increasing purchasing power over a period of time and seeking reliable investment advice. For this reason, MCBAH has 14 types of mutual funds, two voluntary pension schemes and different investments plans in its product portfolio. The mutual funds industry in Pakistan is still in its infancy stage standing at mere 1.6% of GDP. Saleem believes that an increase in awareness and introduction of innovative products to reach out to general public will provide an impetus to growth. As the Pakistani economy is entering the growth phase, he expects young investors to enter the market and increase their investment profile.

#MICROCAPITAL #BRIEF: Islamic Development Bank’s ICD, #Gabon’s #CDC to #Launch #Fund #Aimed at #Growing #SMEs in #Central #Africa

The Islamic Corporation for the Development of the Private Sector (ICD), a development finance institution of the Saudi Arabia-based Islamic Development Bank (IsDB) and the Caisse des Dépôts et Consignations Deposit (CDC), a financial institution backed by the government of Gabon, recently announced that they have signed a memorandum of understanding for the creation of a private equity fund to support small and medium-sized enterprises (SMEs) in Gabon and elsewhere in Central Africa.The goal of the fund is to foster the growth of SMEs that have been ill-served by banks and thus to grow the region’s economy as a whole.
As of October 13, 2015, ICD reported total assets of USD 1.7 billion and annual income of USD 97 million. No financial information for CDC is available. CDC has a balance sheet of XAF 195 billion (approximately USD 315 million).

Mirae Asset Global Investments Launches New Sharia-Compliant Asian Equity UCITS #Fund

Mirae Asset Global Investments has launched its inaugural sharia-compliant Asian equities fund that will invest in sharia-compliant companies in Asia. Mirae established the new UCITS-compliant fund to address demand from Islamic investors in the Middle East and Southeast Asia and thereby also widen its client base in the region. The new fund will be domiciled in Luxembourg as part of Mirae’s Global Discovery Fund SICAV and will be registered in a number of selected countries. Mirae Asset Financial Group was founded in 1997 and has expanded in recent years to include a global asset management capability with offices in 12 countries on 5 continents.

HSBC Said to Advise #Saudi Pension Fund on Financial Hub Sale

The local unit of HSBC Holdings is advising Saudi Arabia’s Public Pension Agency on the sale of its struggling financial hub to the country’s sovereign wealth fund. The Public Investment Fund is offering to acquire the Riyadh district for less than the pension fund’s 30 billion riyals ($8 billion) investment. The wealth fund is being advised by JPMorgan Chase, but a deal hasn’t been reached yet. The King Abdullah Financial District (KAFD) is about 70% complete and is failing to attract its target clientele, banks, auditors and lawyers. The sale is meant to rehabilitate the 1.6 million square-meter district which includes over 70 buildings. The district will become a special economic zone with looser visa rules and direct links to Riyadh airport as part of plans to restructure the development.

#China Islamic Bond Push Renews as Global-Focused #Funds Quadruple

China plans its first dollar sukuk issuance to tap a four-fold increase in Chinese funds that can invest in bonds overseas. Sichuan Development Financial Leasing plans to sell $300 million of Islamic bonds via Singapore-based special purpose vehicle, Silk Routes Capital. According to investment manager Hasif Murad, the predominant interest for this issuance will remain from yield-hungry domestic Chinese investors. Silk Routes Capital hired Standard Chartered, CIMB Group Holdings, Bank of China and Bank of China International to help to arrange investor meetings. In a sign that the traditional Silk Road is coming back to life, Chinese companies are building roads, railways and ports along the route to the Middle East, Africa and Europe.

#China Islamic Bond Push Renews as Global-Focused #Funds Quadruple

China plans its first dollar sukuk issuance to tap a four-fold increase in Chinese funds that can invest in bonds overseas. Sichuan Development Financial Leasing plans to sell $300 million of Islamic bonds via Singapore-based special purpose vehicle, Silk Routes Capital. According to investment manager Hasif Murad, the predominant interest for this issuance will remain from yield-hungry domestic Chinese investors. Silk Routes Capital hired Standard Chartered, CIMB Group Holdings, Bank of China and Bank of China International to help to arrange investor meetings. In a sign that the traditional Silk Road is coming back to life, Chinese companies are building roads, railways and ports along the route to the Middle East, Africa and Europe.

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