SHUAA launches three Sharia-compliant funds in ADGM and secures USD 75 million of commitments.
SHUAA Capital psc (DFM: SHUAA), the principal asset management and investment banking programs in the country, has started three Sharia-compliant stocks and already obtained USD 75 million of devotions.
The SHUAA High Yield Sukuk Fund, Nujoom Aggressive Fund and Nujoom Balanced Fund the first Sharia-compliant funds within an ICC umbrella to launch in the Abu Dhabi Global Market (ADGM) are crushing ground as part of SHUAAs fund program rolled out in ADGM. The funds' platform is anticipated to be the biggest of its kind to be domiciled in ADGM. The funds, and SHUAAs fund platform within ADGM, are built and maintained by SHUAA GMC Limited, a wholly-owned subsidiary, which is controlled by the ADGM Financial Services Regulatory Authority (FSRA).
The SHUAA High Yield Sukuk Fund will spend in a diversified selection of sukuk instruments, including high yield sukuk, Sharia-compliant fixed-income investments and other collective investment funds maintained by the Sharia advisors. The Nujoom Aggressive Fund and the Nujoom Balanced Fund will invest in a global portfolio of Sharia-compliant equities, fixed income investments and money market devices.
With the three funds, SHUAA aims to serve institutional clients and their associates in the insurance industry. The funds, which are available to qualify institutional investors only, are administered through Allfunds Bank platform, the worlds largest fund distribution network, and will widen the options available to insurance and pension institutional investors with a long-term investment horizon.
Under the ICC framework, each fund has its excluded assets, and distinct property strategies and mandates. Consequently, the assets of each fund will be spent for the shareholders of the similar fund and the assets of a specific fund are completely accountable for the liabilities, commitments and obligations of that fund.
Commenting on the launch of the funds, Jassim Alseddiqi, Chief Executive Officer of SHUAA Capital, said: The number of Sharia funds available to investors is yet to match the growing demand for Islamic finance products across the world. This is because not sufficient fund managers offer options in the much sought after Sharia space, and even the funds available either have small AUMs or are close-ended. As a result, the choice of strategies remains limited. The current climate of risk amid the COVID-19 pandemic has disrupted the global markets, giving our funds with investment opportunities that would not have been available under normal market conditions. Our pioneering funds, which are the first Sharia-compliant funds to launch under an ICC umbrella in the Abu Dhabi Global Market, are intended to give insurance and reward institutional investors more options while also helping the Islamic investment industry.
Ajit Joshi, Head of Public & Private markets at SHUAA Capital, added: The ICC funds program will serve as Qualified Investor Fund primarily targeting insurance and pension institutional investors with a long-term loan horizon. Our umbrella fund gives investors the security and comfort of investing in a managed fund structure that is diversified, achieves cost-efficiencies and economies of scale, and creates consistent and long-term value. We continue to be bound to the Islamic investment industry and look forward to launching more funds to address the increasing demand for Sharia-compliant investment funds.
SHUAAs group practice in managing several Sharia-compliant investments also drives additional faith and opportunities for the ICC funds. The new funds will work as a platform for its investors to deploy capital, generate stable returns and further diversify their investments.
Dar Al Sharia Limited acts as Sharia advisor to the funds. FAB Custody is appointed as the custodian, while Apex Fund Services serves as the administrator.
