Shari’ah compliant real estate securities solution launched

La Française Forum Securities has launched its first Shari’ah compliant real estate securities separately managed account on behalf of an Islamic banking and investment services provider, based in Kuwait.

La Française Forum Securities, a La Française group member firm, is one of the few listed real estate investment specialists to offer an investment solution that associates the firm’s cycle-tested expertise in global real estate securities with the Shari’ah screening capabilities of IdealRatings.

IdealRatings covers over 40,000 listed companies or securities, including 2,000 real estate securities in over 150 countries. The IdealRatings solution screens global listed securities for Shari’ah compliance.

La Française Forum Securities helps define the global real estate securities universe and will select securities with an above average risk adjusted total return, from a Shari’ah-screened pool of about 150 securities. The portfolio has between 30-50 stocks.

La Française Forum Securities managing director Jana Sehnalova said, “We have worked on developing this unique investment strategy for a few years and are very pleased to be able to bring it to life and offer institutional investors with an Islamic finance focus, from the Middle East and South East Asia or elsewhere, an opportunity to diversify their asset allocation with Shari’ah compliant real estate securities; this asset class is starting to be attractively valued again, with double digit discounts to NAV, and an ability to identify and exploit mispricing between public and private real estate markets globally. Recognizing the potential interest in this strategy, we are also investigating with Groupe La Francaise the viability of developing a fund as part of the existing product line managed by Groupe La Francaise.”

IdealRatings CEO Mohammad Donia said, “We are excited to partner with a global leader like La Francaise, who strategised with us to break the barriers and create a new, innovative product solution for the Islamic asset management industry and Islamic capital markets.”

Leave a Reply