Al Hilal Global Sukuk Fund has delivered a strong performance of 4.3 percent in only six months since its launch in March 2012. The fund invests in a diversified portfolio of Sharia-compliant sukuk issued by sovereign, quasi-sovereign and corporations and aims to generate regular income as well as capital appreciation.
The global sukuk market has proven resilient amidst the ongoing uncertainty in world markets and we have seen record performance in both primary and secondary issues. Global sukuk issuances have topped US$ 36bn while total GCC sukuk issuances have reached $17.7 bn compared to only US$ 7.3 bn during 2011. Several regional and global issuers have increasingly tapped the sukuk market to take advantage of the prevailing low interest rate environment while debt refinancing needs support a healthy pipeline of new issues. In the secondary market, scarcity value and abundant liquidity has bolstered sukuk prices. These factors along with the fund manager’s superior sukuk selection capabilities have contributed to the strong performance returns of Al Hilal Global Sukuk Fund. The fund is also well positioned to capitalize on the future upside potential of sukuk.
Al Hilal Global Sukuk offers an extremely competitive fee structure with subscription fees of 0.75% and management fees of 0.85%. Furthermore, a low minimum subscription amount of US$10,000 makes the fund attractive for retail investors.
“We believe through prudent investment strategy and good timing for the fund launch has contributed to the fund’s success and has attracted strong investor demand. The fund has more than doubled in size from US$ 16m at inception to US$ 40m” says Lim Say Cheong, EVP of Investment Banking Group of Al Hilal Bank.