ⓘ Featured image: Jassim Alseddiqi, CEO, Shuaa Capital
Dubai-based Shuaa Capital, an asset management and investment banking firm, on Friday, 9 October 2020, announced that it has launched three Sharia-compliant funds as Shuaa High Yield Sukuk Fund, Nujoom Aggressive Fund, and Nujoom Balanced Fund.
The funds have been launched in the Abu Dhabi Global Market (ADGM) to serve institutional clients and its partners in the insurance industry. The firm says that $75 million of commitments already secured.
ADGM in a statement quoted that the said Sharia-compliant funds launched by Shuaa are expected to be the largest of its kind to be domiciled in the ADGM.
Speaking of the launch of the three Sharia-compliant funds, Jassim Alseddiqi, CEO 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 enough 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 uncertainty amid the Covid-19 pandemic has created disruption in the global markets, presenting our funds with investment opportunities that would not have been available under normal market conditions. Our pioneering fund. are designed to give insurance and pension institutional investors more options while also supporting the Islamic investment industry.”
The Shuaa High Yield Sukuk Fund will invest in a diversified portfolio of sukuk instruments, including high yield sukuk, Sharia-compliant fixed income investments and other collective investment funds approved 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 instruments.
Ajit Joshi, head of public & private markets at Shuaa Capital, said,
“We remain committed to the Islamic investment industry and look forward to launching more funds to address the growing demand for Sharia-compliant investment funds.”