In response to the growing demand for Shariah compliant financial instruments, Mashreq Capital DIFC Ltd, which is regulated by the DFSA, has launched the Badr Al-Islami Income Fund in partnership with Badr Al-Islami, the Islamic banking division of Mashreqbank psc.
The fund is one of the first regional Islamic Fixed Income funds and all investments in the Fund are approved by its Shariah Supervisory Board that consist of esteemed members; Sh. Abdalla Al Manei, Sh. Nizam Yaqouby and Sh. Dr. Mohamed Al-Gari. The objective of the fund is to generate long term returns in the 7% range without excessive volatility. The Fund is currently available only to Professional Clients. Professional Clients refers to a client category as defined by the DFSA Rules, and can include, amongst others, high net worth individuals, institutions and sophisticated investors.
“The demand from investors for Shariah compliant fixed income securities has grown exponentially over the last five years,” commented Abdul Kadir Hussein, CEO, Mashreq Capital. “To satisfy this demand the market has witnessed a rapidly expanding list of issuers of Shariah Compliant fixed income securities. Currently there are at least $500 billion worth of Islamic financial assets worldwide. Badr Al-Islami Income Fund will cater to demand from investors for an investment vehicle that provides Shariah compliant returns by investing in Shariah compliant financial instruments.” “ Any efficiently managed portfolio will require some exposure to the fixed income asset class and this Fund hopes to provide that exposure in a transparent, low cost and efficient manner.”
The fund will primarily invest in public Sukuk’s from the MENA region but will have the ability to undertake a broader array of Income instruments as long as they are approved by the fund’s Shariah Supervisory Board.
Mubashar Khokhar CEO of Badr Al-Islami said “Badr Al-Islami’s credentials in structuring ‘pure & premium’ Islamic products together with Mashreq Capitals’ investment expertise makes this investment fund ‘one of the few of its kind’ in the market. Innovatively structured, to yield high returns the Badr Al-Islami Sukuk fund is designed for the market-savvy investor. The highlight of this fund remains its simple & straightforward shariah structure. Backed by a Shariah Supervisory Board consisting of eminent Islamic banking scholars, Investors can also have complete peace of mind that their investments are fully shariah compliant . ”
Badr Al-Islami Income fund is an open ended fund with weekly quoted NAV. The fund requires a minimum investment of $10,000 with additional investment in lots of $1,000. The fund is part of an Umbrella Funds Company that is registered in the DIFC under the name Mashreq Capital Shariah Compliant Funds (OEIC) Ltd.