Amanah launches Sukuk fund for UAE investors

02/06/2009 00:00 AST

HSBC is to launch the HSBC Amanah Sukuk Fund to investors in the UAE, to provide Muslim and non-Muslim investors with the income potential of a portfolio of Sukuk within an HSBC mutual fund wrapper.

Managed by HSBC Global Asset Management, the HSBC Amanah Sukuk Fund aims to deliver a competitive income in addition to capital appreciation, from a select number of regional and international Sukuk.

The HSBC Amanah Sukuk Fund provides investors with the income potential of a portfolio of Sukuk within an HSBC mutual fund wrapper.

The fund will be structured as a fixed-term investment over four years, at which point capital is returned to investors. Income will be paid quarterly over the life of the fund.

A six-week offering period will start on 1st June 2009. Application details of the fund are available from HSBC branches throughout the UAE.

The fund will invest in Sukuk issued primarily by sovereigns, quasi sovereigns and

corporates in the GCC region. Each Sukuk within the fund will be screened and approved by the HSBC Amanah Shari’ah Central Committee. HSBC Amanah is a recognised leader in the Sukuk market, and HSBC Global Asset Management manages assets of $354.56 billion.

Mukhtar Hussain, Global CEO of HSBC Amanah, said, “This fund is another important step towards building a broad and deep product portfolio for Shari’ah-compliant investors. The growing market in Sukuk, and the growing popularity of Islamic finance generally, means we anticipate strong demand for this fund from Muslim and non-Muslim investors alike.”

The fund is available via HSBC bank branches in the United Arab Emirates, with a minimum subscription of $10,000. An annual management charge of 1 per cent is charged on the fund.

CPIFINANCIAL