Al Hilal Global Sukuk Fund has delivered a strong performance of 4.3 per cent 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 $36 billion while total GCC sukuk issuances have reached $17.7 billion compared to only $7.3 billion 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 capitalise on the future upside potential of sukuk.
Al Hilal Global Sukuk offers an extremely competitive fee structure with subscription fees of 0.75 per cent and management fees of 0.85 per cent. Furthermore, a low minimum subscription amount of $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 $16 million at inception to $40 million,” says Lim Say Cheong, EVP of Investment Banking Group of Al Hilal Bank.
Al Hilal Bank is owned in full by the Abu Dhabi Investment Council, which is the investment authority of the Government of Abu Dhabi. The bank is working with an authorised capital of Dhs4 billion, and is authorised to operate as an Islamic trading bank. Al Hilal Bank aims to become the leading financial institution in the region and to increase the growth of Islamic banking with a new direction, towards new technologies and special services.