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Two new funds on the block

Like London buses, you wait for a Sukuk fund for ages and then two come along at once.

Nearly new kid on the block Al Hilal Bank, wholly-owned by the Abu Dhabi Investment Council, has roped CIMB Principal Islamic Asset Management of Kuala Lumpur into the launch of its first Sukuk fund, the fixed-income Al Hilal Global Sukuk Fund. The fund will invest in Sukuk issued by sovereign, quasi-sovereign and corporates around the world.

Mohamed JamilBerro, Al Hilal’s CEO, said at the launch that the fund offered an alternative to other investment options with comparable risk profiles while investment banking group head Lim Say Cheong said the fund would appeal to investors who preferred low-risk investments with stable returns and regular income.
The fund is open-ended and the initial offering period will last for one month from February 19 with a minimum subscription of $10,000. Al Hilal is the fund sponsor and CIMB is the investment advisor.

Meanwhile HSBC Saudi Arabia has launched its new HSBC Amanah Sukuk Fund to invest in Saudi and international Sukuk as well as Shari’ah compliant money market funds, term deposits and certificates. Income from the fund will be distributed to investors on a quarterly basis.

Osamah Shaker, MD and head of financial markets at HSBC Saudi Arabia, was quoted as saying: “Among our broad spectrum of investment products, we are pleased to offer customers the ability to invest in local and international sukuks (sic) through our new fund. We believe investment in sukuks (sic) is essential for any comprehensive Shari’ah compliant investment portfolio.”