The Islamic Development Bank is looking to resource-rich Kazakhstan and Central Asia as a fertile ground for investment, with the launch of a $50 million renewable energy fund Monday and plans to finance agricultural projects, an official said.
The Saudi Arabia-based multilateral bank’s private sector arm, the Islamic Corporation for the Development of the Private Sector (ICD), said it was considering financing farming projects in Kazakhstan from its $600 million agribusiness fund………………………………………..Full Article: Source

Al Hilal Global Sukuk Fund has delivered a performance of 4.3 per cent in the six months since its launch in March 2012. The fund invests in a diversified portfolio of Shari’ah-compliant Sukuk issued by sovereign, quasi-sovereign and corporations and aims to generate regular income as well as capital appreciation.
Global Sukuk issuances have topped $36 billion while total GCC Sukuk issuances have reached $17.7 billion compared to only $7.3 billion during 2011. Several regional and global issuers have increasingly tapped the Sukuk market to take advantage of the prevailing low interest rate environment while debt refinancing needs support a healthy pipeline of new issues………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

An Islamic Sovereign Wealth Fund of the GCC states that would focus on high-priority, capital deficit sectors is the need of the hour, a leading banker has said. Bahrain-based Shariah-compliant Khaleeji Commercial Bank (KHCB)’s Chairman Dr. Fuad Al Omar told DT that such a fund would not only be helpful to banks and financial institutions by providing them financial cushioning but also boost domestic industries growth through capital injection.
“The surplus revenue available due to the boom in oil prices needs to be mobilised in the form of capital for asset development,” he added………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

The Waqf Fund, the Bahrain-based special fund to support Islamic finance training, education and research, has enhanced its role by supporting the industry in various ways during the last year. That was the message from fund chairman and Central Bank of Bahrain executive director of banking supervision Khalid Hamad at the annual Waqf meeting.
“We are supporting Bahrain University in their Bachelor of Arts in Sharia for banking and finance, a recently launched four-year bilingual programme aimed at producing capable human resources for the Islamic finance industry who are well-versed in Sharia as well as banking, finance, accounting and business,” he said………………………………………..Full Article: Source

The Philippine Stock Exchange (PSE) is hoping to tap into a potential market of more than 1.5 billion Muslims worldwide with an estimated $1.4 trillion in investible funds by offering shariah-compliant stocks, the bourse’s top executive said.
Shariah-compliant equities follow the Islamic law which does not allow investors to put money into firms that benefit from interest or the sale of goods such as alcohol, tobacco or firearms. They also steer clear of companies with large amounts of debt on their balance sheets and those whose business is related to gambling, meat and conventional financial services such as banking and insurance………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

An investment fund which meets all of the requirements of Shariah law and the principles articulated for “Islamic finance.” Shariah-Compliant Funds must follow a variety of rules, including investing only in Shariah-compliant companies, appointing a Shariah board, carrying out an annual Shariah audit and purifying certain prohibited types of income, such as interest, by donating them to a charity.
Shariah-Compliant Funds have expanded in popularity only recently, even though the concept was first developed in the late 1960s………………………………………..Full Article: Source

Managing Director of Jaiz Bank Plc, Alhaji Mustapha Bintube told stakeholders in the Islamic finance industry to embark on initiatives that will enable the country contribute to the growth of the sector and top the list of countries that will generate $4 trillion Islamic fund in 2020.
Abuja said that Standards & Poor’s among other reputable rating agencies, have forecasted that the Islamic fund will hit $4 trillion, adding that Nigeria stands the chance to contribute to such exponential growth………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

ASM Investment Services Bhd is charting its way to become a fully syariah-compliant fund management company by 2014, said its chief executive officer, Ameer Ali Mohamed. He said by next year, ASM Investment would convert all its units trust funds into syariah-compliant.
ASM Investment currently manages 13 unit trust funds — seven conventional and six syariah-compliant……………………………………….Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Emirates NBD Asset Management Limited, the asset management arm of Emirates NBD, a leading bank in the region, announced today that its Emirates MENA Fixed Income Fund and its Emirates Global Sukuk Fund have both been awarded a Silver grading by global ratings agency Standard and Poor’s (S&P) Capital IQ Fund Services.
The Emirates MENA Fixed Income Fund holds assets of US$86 million, and offers daily liquidity in US dollars, UK pounds and UAE dirhams. It is the only S&P graded fund in the MENA fixed income space. The Emirates Global Sukuk Fund also offers daily liquidity, in US dollars and Euros, and is US$55 million in size………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Emirates NBD Asset Management, the asset management arm of Emirates NBD announced that its Emirates MENA Fixed Income Fund and its Emirates Global Sukuk Fund have both been awarded a Silver grading by global ratings agency Standard and Poor’s (S&P) Capital IQ Fund Services.
The Emirates MENA Fixed Income Fund holds assets of $86 million, and offers daily liquidity in US dollars, UK pounds and UAE dirhams. It is the only S&P graded fund in the MENA fixed income space. The Emirates Global Sukuk Fund also offers daily liquidity, in US dollars and Euros, and is $55 million in size………………………………………..Full Article: Source

Kuwait International Bank has recently announced that it has provided financial contribution to the Islamic Economics Higher Studies fund which is a part of the College of Science Administration at Kuwait University.
The contribution comes as part of the bank’s objective to strengthen ties with different social organizations in order to help them fulfill their missions that go in parallel with the values of KIB and its social responsibility. President of the Board of Trustees of the Fund Dr. Khaled Al Mathkoor received the check from Acting Chief Executive Loay Maqamis at Kuwait International Bank………………………………………..Full Article: Source

HSBC Saudi Arabia has launched its new HSBC Amanah GCC Equity Income Fund. The fund is an open-ended Islamic Shariah compliant fund which aims to achieve capital growth and providing income, by investing in sharia compliant equities listed on GCC markets that offer sustainable dividend yields and with potential dividend growth over the long term.
The performance of the Fund is measured against the benchmark of S&P GCC Shariah Composite Index………………………………………..Full Article: Source

Kuwait International Bank has recently announced that it has provided financial contribution to the Islamic Economics Higher Studies fund which is a part of the College of Science Administration at Kuwait University.
The contribution comes as part of the bank’s objective to strengthen ties with different social organisations in order to help them fulfill their missions that go in parallel with the values of KID and its social responsibility………………………………………..Full Article: Source

A new Islamic endowment fund to be used specifically to finance Islamic education was launched on Tuesday, the first to accept cash donations with no minimum amount.
This collection of donations or properties willed by Muslims towards religious or charitable purposes, called a wakaf, was launched by Minister-in-charge of Muslim Affairs Yaacob Ibrahim. It will be named Wakaf Ilmu, which means “knowledge”……………………………………..Full Article: Source

Bahrain-based Gulf Finance House (GFH) is looking to acquire stakes in asset management and real estate firms and increase ownership in its portfolio companies, it said in a statement on Tuesday.
The sharia-compliant investment house, heavily impacted by the global debt crisis, is assessing various opportunities to acquire new stakes and is also looking to increase the stake in its group companies subject to regulatory approval, it said in a regulatory filing in Dubai………………………………………Full Article: Source

The Irish fund industry has welcomed its first Malaysian fund promoter guest CIMB-Principal Islamic, which has listed its Ucits fund range in Dublin.
The chief executive of CIMB-Principal Islamic Noripah Kamso said: “Branching out to Ireland internationalises our presence, and we see our funds here as a passport for us to access investors beyond Europe.”……………………………………….Full Article: Source

Aberdeen Asset Management Plc plans to start its first syariah-compliant stock funds targeted at Asian individuals as regional economies expand at more than 30 times the pace of the United Kingdom.
The company, headquartered in Scotland and overseeing US$286.5bil, will run the investments out of Malaysia once it gets regulatory approval, Abdul Jalil Abdul Rasheed, chief executive officer of Aberdeen Islamic Asset Management Sdn Bhd in Kuala Lumpur, said……………………………………….Full Article: Source

Kuala Lumpur-based CIMB-Principal Islamic Asset Management (CIMB-Principal Islamic), a joint venture between the CIMB Group and Principal Global Investors (PGI), has set the stage for other Islamic fund managers in their bids to penetrate the overseas markets.
Its three UCITS-compliant Islamic equity funds – which it launched early this year and which invest in global emerging markets, the Asia-Pacific ex Japan and the Asean region, respectively – are designed for cross-border distribution within Asia………………………………………..Full Article: Source

Fajr Capital Limited has announced its acquisition of Dubai International Capital’s stake in the MENA Infrastructure Fund. Fajr Capital will take its place alongside the two other general partners and co-sponsors of the fund, HSBC Bank Middle East and Abu Dhabi-based Waha Capital, and will also be a limited partner with other regional and international investors.
Fajr Capital is an international Islamic investment firm with a focus on financial services and other strategic sectors in key Muslim markets. It is backed by the Abu Dhabi Investment Council, the Alsubeaei Group, the Government of Brunei Darussalam, the HSBC Group and Khazanah Nasional. The MENA Infrastructure Fund is its second investment this year………………………………………..Full Article: Source

The first Malaysian funds promoter has set up in the Irish financial services sector with the arrival of the CIMB-Principal Islamic Asset Management in Ireland, according to the Irish Funds Industry Association.
The Malaysian company is setting up a range of investment schemes that can operate throughout the European Union, authorised from Ireland. Pat Lardner, chief executive of the association, welcomed the establishment of Irish funds or Ucits (Undertakings for Collective Investment in Transferable Securities) by CIMB-Principal Islamic Asset Management………………………………………..Full Article: Source

Dubai International Capital (DIC), the private equity arm of Dubai Holding which restructured $2.5 billion debt in April, sold its stake in a $300 million Middle East North Africa infrastructure fund to Islamic investment firm Fajr Capital.
Fajr, which is backed by prominent investors such as Abu Dhabi Investment Council and Malaysia’s state investor Khazanah Nasional Berhad, will manage the fund along with its two other partners HSBC Holdings and Waha Capital, it said in a statement on Monday………………………………………..Full Article: Source

Research released today from BLME, the Islamic asset manager, has shown that 61% of UK investment advisers surveyed admitted their limited knowledge of Islamic fund providers has prevented them from recommending their products. This is despite the fact that nearly a fifth of respondents believed their clients would be interested in learning about Islamic funds.
The independent survey of 200 UK advisers was conducted by Core Data and commissioned by BLME to explore advisor attitudes to non-traditional investments. (Press Release)

Globally, fund management industry is going through a rough patch after the 2008 financial crisis. As markets exhibit higher volatility and with no easy fixes in sight to solve the problems of the developed world, fund managers are struggling to adapt and clients are increasingly turning restless. The situation in the GCC is no different. Companies continue to struggle in growing their assets under management (AUM) and making ends meet.
According to a study by Kuwait Financial Center (Markaz) released Monday, the GCC asset management industry with roughly 100 companies, manage about $26.5 billion in assets in 328 funds at the end of 2011………………………………………..Full Article: Source

UK-based Aberdeen, an asset manager with presence in both the conventional and Islamic finance space, plans to introduce two Syariah compliant unit trust funds to break into the local retail funds market.
It is understood that it was now in advanced stage of its application with the Securities Commission (SC) to launch the two funds, which industry sources familiar with the process said would be an another addition to the Islamic Malaysia’s rich Islamic finance landscape……………………………………….Full Article: Source

Bullish on the country’s economic resilience, CIMBPrincipal Asset Management Bhd (CIMB-Principal) has launched the CIMB Islamic Al-Azzam Equity Fund, a syariah-compliant equity fund which aims to achieve consistent capital growth over the medium to longterm period.
The open-ended fund will invest 70-98% of its net asset value in syariah-compliant Malaysian equities listed on Bursa Malaysia, made suitable for those seeking to have a portfolio of investments that adhere to syariah principles………………………………………..Full Article: Source

Regulatory experts from the international law firm Clifford Chance have reviewed the eagerly awaited Investment Funds Regulation (Regulation) which has been implemented by the UAE Securities and Commodities Authority (SCA) this week.
The Regulation applies to all matters relating to domestic investment funds and to the promotion and offering of foreign funds in the UAE, with particular implications for DIFC funds or funds marketed by DIFC firms………………………………………..Full Article: Source

JP Morgan Asset Management is closing its first fund investing in line with the tenets of Catholicism, after it failed to obtain the blessing of enough investors. The fund manager is liquidating the Global Catholic Ethical Balanced Fund it launched just over a year ago, according to a notice in the Financial Times this week.
The Luxembourg-based fund invested in global equities and bonds that met ethical criteria developed in line with Catholic principles. As of May 31, the fund had raised $5.3m, a little more than one sixth of the $30m threshold outlined in the prospectus………………………………………..Full Article: Source

The Securities Commission’s (SC) prediction of a RM3.3 billion to RM7.7 billion inflow into syariah funds via the Private Retirement Scheme (PRS) will mean a richer treasury for the nation.
Asian Strategic Leadership Institute’s (Asli) Centre for Public Policy Studies chairman and economist Tan Sri Ramon Navaratnam told The Malay Mail that with such a fund available domestically, there was no need for Malaysia to borrow money from abroad………………………………………..Full Article: Source

AmIslamic Funds Management (AIFM) has launched a new global sukuk fund called AmDynamic Sukuk1, which is denominated in ringgit and aims to provide capital appreciation by investing primarily in Islamic bonds, both locally and globally.
The fund’s approved size is 100 million units and its initial and additional investments are RM1,000 and RM500, respectively………………………………………..Full Article: Source

Islamic exchange-traded funds (ETFs) are struggling to attract fresh investors, in contrast to a move by Western investors into conventional ETFs - a difference due to the Gulf’s plain-vanilla investment culture and the way in which institutions choose financial products.
Plain vanilla is the most basic or standard version of a financial instrument, usually options, bonds, futures and swaps. Plain vanilla is the opposite of an exotic instrument, which alters the components of a traditional financial instrument, resulting in a more complex security………………………………………..Full Article: Source

Islamic exchange-traded funds (ETFs) are struggling to attract fresh investors, in contrast to a move by Western investors into conventional ETFs - a difference due to the Gulf’s plain-vanilla investment culture and the way in which institutions choose financial products.
ETFs are funds which track indexes of shares, bonds or commodities and are traded like stocks. Their sharia-compliant versions follow religious principles such as bans on interest and gambling………………………………………..Full Article: Source

The Securities Commission’s (SC) prediction of a RM3.3 billion to RM7.7 billion inflow into syariah funds via the Private Retirement Scheme (PRS) will mean a richer treasury for the nation.
Asian Strategic Leadership Institute’s (Asli) Centre for Public Policy Studies chairman and economist Tan Sri Ramon Navaratnam told The Malay Mail that with such a fund available domestically, there was no need for Malaysia to borrow money from abroad………………………………………..Full Article: Source

Malaysians will have more room to allocate part of their retirement contributions to Islamic investments under sweeping government reforms to the pension system.
At present, the Employees Provident Fund (EPF) receives public pension contributions and invests the money. Some of that investment is in sharia-compliant areas such as sukuk and halal stocks, but contributors have limited scope to ensure the money is being used that way. A maximum 20 percent of savings can be placed through the EPF into a single mutual fund………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

The government plans to reallocate dormant hajj funds from the Finance Ministry into project-based sukuk in order to help raise money for urgently needed infrastructure development. Project-based sukuk are Shariah-compliant government bonds backed by infrastructure projects.
“Now [the money] is merely entrusted to the Finance Ministry. But it would be better if it generated revenue from projects,” said Anggito Abimanyu, director general of hajj pilgrimage management at the Religious Affairs Ministry, adding that his institution managed Rp 44 trillion ($4.7 billion) in pilgrimage funds………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

The continuing negative prospects for the eurozone and mixed macroeconomic indicators for emerging markets will fuel growth in shariah-compliant funds, as investors turn to Islamic finance to diversify their exposures.
As the Islamic world marks the start of Ramadan, Western investors are increasingly turning their eye to various financial products and services run in line with its religious precepts………………………………………..Full Article: Source

Luxembourg-based Sustainable Capital has announced the launch of a sharia-compliant forestry fund, part of a trend toward crossover products that appeal to Islamic investors as well as those interested in green investment.
The firm aims to raise $100 million in the open-ended fund, which starts its offering period next Monday and will invest in the agricultural, biomass and forestry sectors. Islamic finance adheres to religious principles but the industry has only recently begun to stress the theme of wider social responsibility………………………………………..Full Article: Source

A spectacular rally in Dubai-linked Islamic bonds is pushing yields to record lows and influencing prices in the entire Gulf debt market. Some investors think the rally has reached excessive proportions, potentially setting bonds up for a partial pull-back when the euphoria starts to fade.
Dubai’s $1.25bn sovereign sukuk, issued at a profit rate of 6.396% in November 2009 and maturing in 2014, was yielding just 3.2% yesterday, for example………………………………………..Full Article: Source

Al Meezan Investment Management Ltd (Al Meezan) declared final dividend for its four open end funds Meezan Islamic Fund (MIF), Al Meezan Mutual Fund (AMMF), Meezan Islamic Income Fund (MIIF) and Meezan Capital Protected Fund-II (MCPF-II) for the period ending June 30, 2012 while for KSE Meezan Index Fund (KMIF), no payout was announced.
Total amount of final dividends declared worth over Rs 1,247 million. Interim payouts that were made during the year for open-end funds amounted to Rs 2,603 million thus taking the total dividend distribution for all funds to over Rs 3,850 million for the fiscal year 2012………………………………………..Full Article: Source

European investors withdrew €13.1bn from equity funds in May, while bond funds hit their lowest monthly total inflows of the year at €6.6bn, according to Lipper.
European investors withdrew €13.1bn from equity funds in May, while bond funds hit their lowest monthly total inflows of the year at €6.6bn, according to Lipper………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

The Board of Directors of Al Meezan Investment Management Ltd. (Al Meezan) in its meeting held on July 09, 2012 declared final dividend for its four open-end funds for the period ending June 30, 2012 ie, Meezan Islamic Fund (MIF), Al Meezan Mutual Fund (AMMF), Meezan Islamic Income Fund (MIIF) and Meezan Capital Protected Fund-II (MCPF-II) while for KSE Meezan Index Fund (KMIF), no payout was announced.
For fiscal year 2012, the total amount of final dividends declared worth over Rs 1,247 million. Interim payouts that were made during the year for open-end funds amounted to Rs 2,603 million thus taking the total dividend distribution for all funds to over Rs 3,850 million for the fiscal year 2012………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Recently concluded 2012 Global Finance Conference in Chicago, the USA had a Saudi Arabian participant researcher Dr. Dawood Ashraf, an Assistant Professor in Prince Mohammad Bin Fahd University (PMU).
“The economic downturn caused due to excess of leverage in the financial system hardly impacts Islamic Mutual Funds (IMF),” said the PMU researcher after analyzing relative performance of IMFs with the conventional funds in Saudi Arabia that constitutes for more than 20% of world’s Islamic capital market………………………………………..Full Article: Source

Oasis Crescent United Kingdom, a subsidiary of South African firm Oasis Crescent Global Group Holdings opened for business in London on 30 June 2012. The company had taken offices in Knightsbridge in March and its unit Oasis Crescent Advisory Services (UK) Ltd had obtained its license to provide financial services advice from Financial Services Authority in May.
The company will advise on both retail and institutional investment products through Oasis Crescent Advisory Services UK. Oasis Crescent UK will provide Shari’ah-compliant investment products and services………………………………………..Full Article: Source

Recently concluded 2012 Global Finance Conference in Chicago, the USA had a Saudi Arabian participant researcher Dr. Dawood Ashraf, an Assistant Professor in Prince Mohammad Bin Fahd University (PMU).
“The economic downturn caused due to excess of leverage in the financial system hardly impacts Islamic Mutual Funds (IMF),” said the PMU researcher after analyzing relative performance of IMFs with the conventional funds in Saudi Arabia that constitutes for more than 20% of world’s Islamic capital market. (Press Release)

S&P Capital IQ Fund Research announced today that it has assigned a Silver fund grading to Mashreq Al Islami Income Fund, the first Islamic fixed-income fund in the MENA region to be graded by S&P Capital IQ.
The UAE-domiciled product is run by Abdul Hussain, Mashreq Capital’s experienced CIO of fixed income and group CEO. Mashreq Capital is part of Mashreq Bank, the largest retail bank in the UAE. (Press Release)

Iran will withdraw $5 billion next week from the National Development Fund to push through several oil projects, Iranian Oil Minister Rostam Qasemi said. The fund will allocate $14 billion to energy projects, Qasemi said, according to the oil ministry’s news agency, Shana.
Iran has sufficient financial resources despite sanctions in place, Qasemi said in the report published today………………………………………..Full Article: Source

Alkhabeer Capital, a Saudi Arabian Shariah-compliant investment company, will launch a SAR1.5bn (US$400m) investment fund targeting assets in Saudi Arabia and Europe, the firm said in a statement.
The Jeddah-based firm will raise three funds over two years targeting a total of SAR525m, including SAR125m for a residential development fund in the UK………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

The first Tunisian mutual fund complying with Islamic sharia law was established.General Director of the Fund of Deposits and Consignment (CDC) Jamel Belhaj announced the creation of “Theemar” as the first Islamic product of its kind in the market of alternative finance in Tunisia.
Capitalized at around 50 million dinars ($30 million), Theemar’s mission is to finance small and medium-sized enterprises with a priority on those located in Tunisia’s interior. “During the first phase, we aim to create up to 30 enterprises providing at least 1,000 jobs,” Belhaj said………………………………………..Full Article: Source

Play - Download this article

|

Play - Download Full Briefing

|

Subscribe to the Podcast Feed

Australian fund manager Crescent Wealth plans to launch the country’s first Islamic pension fund by December and allocate between 15 to 30 percent of it in property, its managing director said.
Talal Yassine said Crescent Wealth hopes to build the fund to between A$4 billion ($4.03 billion) and A$6 billion in five years. Crescent Wealth, which was established last year, currently has less than A$5 million under management and advice but Yassine expects strong growth for his fund due to a lack of available Shariah-compliant financial products in Australia………………………………………..Full Article: Source

The draft Reit regulations 2012 published by the Capital Markets Authority (CMA) allow for creation of Shariah-compliant Reit products. Besides complying with requirements for development and construction Reits (D-Reits) and income investment Reits (I-Reits), proposed Islamic Reit funds will have to appoint Shariah advisers.
Shariah advisers will guide Reit managers on Shariah principles applicable in Kenya and conduct Shariah-compliant assessments of the terms of Reit schemes and Reit securities………………………………………..Full Article: Source

A new fund house has launched in London offering Shariah compliant funds in a Ucits structure to UK investors. Oasis Crescent, which has its new office in the Knightsbridge area of London, has been managing Islamic and conventional funds for more than 15 years, with £2.5bn (€3bn, $4bn) of assets under management, and operating within Europe for more than ten.
The company said the Islamic investment market in the UK is currently “under £1bn” but has the “potential to be between £120bn and £160bn”………………………………………..Full Article: Source