CIMB-Principal launches Global Sukuk UCITS Fund
KUALA LUMPUR: CIMB-Principal Islamic Asset Management (Ireland) PLC has obtained approval from the central bank of Ireland to launch its Global Sukuk UCITS Fund, Malaysia’s first global sukuk fund under the Undertakings for Collective Investment in Transferable Securities (UCITS) structure.
CIMB-Principal Islamic Asset Management Sdn Bhd will act as the investment manager and master distributor of the fund.
The US dollar-denominated fund seeks to maximise total returns over the medium to long term through a combination of capital growth and income by investing primarily in a diversified portfolio of syariah-compliant fixed income securities (sukuk) issued by government and government-related entities, corporates or supranational entities, based mainly in the Middle East and Asia.
CIMB-Principal Islamic CEO Datin Seri Norashikin Mohd Kassim said the fund will appeal to investors looking for ethical investments with stable returns in major currencies, for example, US dollar, by tapping into the sukuk of leading issuers, predominantly sovereign and sovereign-related credits in the Middle East and Asia.
The fund will be offered to investors for a minimum investment of US$1,000 (RM4,144) and is ideal for investors who seek a diversified portfolio and capital appreciation over the long term. The fund has an initial offer price of US$10 per share. The syariah adviser for the fund is CIMB Islamic Bank Bhd. The fund offers an option for fixed income asset managers to hold investment exposure to Middle East and Asian economies.
Since the establishment of the new Islamic fund range in Ireland in 2011, CIMB-Principal Islamic has built up a good asset management track record, attracting both institutional and retail investors for UCITS funds, as well as for syariah-compliant discretionary mandates. As at July 31, 2016, CIMB-Principal Islamic managed a total of US$608 million in global sukuk mandates.