EIIB-Rasmala expands Islamic funds offering

19/11/2013 13:46 AST

Investment bank EIIB-Rasmala has broadened its product range with the launch of the Rasmala Trade Finance Fund. This follows a series of new fund launches in 2013, including the Rasmala Global Sukuk Fund, the Rasmala Leasing Fund and the Rasmala GCC Islamic Equity Income Fund.

EIIB-Rasmala comprises the AIM-listed European Islamic Investment Bank plc (EIIB) and Rasmala Group (Rasmala). Last month the bank announced plans to target more than $2 billion of capital and investment funds from global investors and clients across its range of Shari’ah-compliant asset management and investment banking products.

Eric Swats, Head of Asset Management, said, “We are delighted to announce the launch of our latest fund, which will cater to the increasing demand for low risk, income-orientated Sharia-compliant investment products. The Rasmala Trade Finance Fund will provide investors with a low-risk alternative investment opportunity to obtain attractive and stable returns. We expect the new fund to be well-received in the market.”

The Rasmala Trade Finance Fund offers a diversified portfolio of trade finance transactions exposed to different geographies, industry groups and individual companies in order to lower exposure to rising interest rates. The fund will obtain enhanced investment returns from assets that can often be undervalued due to lack of recognition of their intrinsic payment capabilities. The overall strategy of the fund is expected to provide it with a means to achieve global diversification in both the primary and secondary trade finance markets.

Swats said, “This fund launch follows closely on the heels of the Rasmala GCC Equity Income Fund which we recently launched following high client demand. This fund provides investors with a conservative investment approach which focuses on dividends and price stability and has gotten off to a great start having now paid a distribution of 1.55 per cent for the first half year to its investors. The fund has also generated returns of 5.88 per cent since its inception.”

EIIB-Rasmala’s flagship Arabian Markets Growth Equity Fund has registered an annualised return in excess of 22 per cent per annum over the last two years.

CPI Financial