CIMB-Prin­ci­pal launches Global Sukuk UCITS Fund

The Sun (Malaysia) - - SUNBIZ -

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.

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