Funds

IDB #Infrastructure #Fund II takes equity stake in Utico

ASMA Capital owned by the Islamic Development Bank (IDB), Saudi Arabia’s Public Investment Fund (PIF) and Public Pension Agency (PPA), Ministry of Finance of Bahrain and Ministry of Finance of Brunei has signed a deal with Utico for a significant minority stake. The deal with Utico for a stake in its water business is done through Asma Capital managed IDB Infrastructure Fund II. The deal is valued overall at $ 147 million in equity and project finance and will be completed in the first quarter of 2017. Ernst & Young, Hatch USA, ILFS, GU Advisory UAE, Latham and Watkins, Trowers and Hamlins and Taylor Wessing are advisers to the deal. Utico is making significant investments in the UAE and expanding its infrastructure assets in water, power, transmission and distribution, storage, billing and collection. Richard Menezes, Utico’s Managing Director stated that its model of development has saved the governments billions of dirhams in capital expenditure and subsidies.

#MICROCAPITAL BRIEF: #IDBank #Dragon #Capital to Develop Sharia-compliant #Investment “Silk-way Growth Fund” for SMEs in #Kazakhstan

The Islamic Corporation for the Development of the Private Sector (ICD), a development finance institution of the Saudi Arabia-based Islamic Development Bank (IDB), and Dragon Capital Partners, the venture capital and private equity arm of Ukraine-based Dragon Capital Group, recently announced the intention to develop the Silk-way Growth Fund, a Sharia-compliant investment fund benefitting “high growth” small and medium-sized enterprises (SMEs) involved in manufacturing in Kazakhstan. The fund is slated to address the “financing gap created due to difficulty of accessing capital at sustainable market rates and the banking sub-sector’s lack of confidence in SME entrepreneurs.” According to ICD, SMEs make up 96 percent of all businesses in Kazakhstan and 25 percent of the country’s GDP.
ICD will act as fund advisor to Silk-way as part of its SME Platform, an initiative aimed at building Sharia-compliant investment management capacities in ICD’s 52 member countries, and it will consider investing capital in the fund as plans for the fund are finalized.

#New major #sources of #capital #emerge #from the #Middle #East

Middle Eastern syndicate and real estate asset management platforms are emerging as major and increasing sources of outbound capital from the region with new figures showing an increase in volumes.
“Typically, they exist to pool equity from multiple private and medium-size institutional investors to real estate assets on a deal-by-deal basis,” said Fadi Moussalli head of JLL’s International Capital Group, MENA. “In the first three quarters of 2016 the volume has already reached $5.1bn and we expect the end-year figure to reach around 7bn.”

Mutual #funds and Islamic funds have huge potential in #Pakistan: Saqib Saleem

In this interview CEO of MCB-Arif Habib Savings and Investments (MCBAH) Saqib Saleem gives advice to new individual investors who want to save a portion of their money. He recommends increasing purchasing power over a period of time and seeking reliable investment advice. For this reason, MCBAH has 14 types of mutual funds, two voluntary pension schemes and different investments plans in its product portfolio. The mutual funds industry in Pakistan is still in its infancy stage standing at mere 1.6% of GDP. Saleem believes that an increase in awareness and introduction of innovative products to reach out to general public will provide an impetus to growth. As the Pakistani economy is entering the growth phase, he expects young investors to enter the market and increase their investment profile.

#MICROCAPITAL #BRIEF: Islamic Development Bank’s ICD, #Gabon’s #CDC to #Launch #Fund #Aimed at #Growing #SMEs in #Central #Africa

The Islamic Corporation for the Development of the Private Sector (ICD), a development finance institution of the Saudi Arabia-based Islamic Development Bank (IsDB) and the Caisse des Dépôts et Consignations Deposit (CDC), a financial institution backed by the government of Gabon, recently announced that they have signed a memorandum of understanding for the creation of a private equity fund to support small and medium-sized enterprises (SMEs) in Gabon and elsewhere in Central Africa.The goal of the fund is to foster the growth of SMEs that have been ill-served by banks and thus to grow the region’s economy as a whole.
As of October 13, 2015, ICD reported total assets of USD 1.7 billion and annual income of USD 97 million. No financial information for CDC is available. CDC has a balance sheet of XAF 195 billion (approximately USD 315 million).

Mirae Asset Global Investments Launches New Sharia-Compliant Asian Equity UCITS #Fund

Mirae Asset Global Investments has launched its inaugural sharia-compliant Asian equities fund that will invest in sharia-compliant companies in Asia. Mirae established the new UCITS-compliant fund to address demand from Islamic investors in the Middle East and Southeast Asia and thereby also widen its client base in the region. The new fund will be domiciled in Luxembourg as part of Mirae’s Global Discovery Fund SICAV and will be registered in a number of selected countries. Mirae Asset Financial Group was founded in 1997 and has expanded in recent years to include a global asset management capability with offices in 12 countries on 5 continents.

HSBC Said to Advise #Saudi Pension Fund on Financial Hub Sale

The local unit of HSBC Holdings is advising Saudi Arabia’s Public Pension Agency on the sale of its struggling financial hub to the country’s sovereign wealth fund. The Public Investment Fund is offering to acquire the Riyadh district for less than the pension fund’s 30 billion riyals ($8 billion) investment. The wealth fund is being advised by JPMorgan Chase, but a deal hasn’t been reached yet. The King Abdullah Financial District (KAFD) is about 70% complete and is failing to attract its target clientele, banks, auditors and lawyers. The sale is meant to rehabilitate the 1.6 million square-meter district which includes over 70 buildings. The district will become a special economic zone with looser visa rules and direct links to Riyadh airport as part of plans to restructure the development.

#China Islamic Bond Push Renews as Global-Focused #Funds Quadruple

China plans its first dollar sukuk issuance to tap a four-fold increase in Chinese funds that can invest in bonds overseas. Sichuan Development Financial Leasing plans to sell $300 million of Islamic bonds via Singapore-based special purpose vehicle, Silk Routes Capital. According to investment manager Hasif Murad, the predominant interest for this issuance will remain from yield-hungry domestic Chinese investors. Silk Routes Capital hired Standard Chartered, CIMB Group Holdings, Bank of China and Bank of China International to help to arrange investor meetings. In a sign that the traditional Silk Road is coming back to life, Chinese companies are building roads, railways and ports along the route to the Middle East, Africa and Europe.

#China Islamic Bond Push Renews as Global-Focused #Funds Quadruple

China plans its first dollar sukuk issuance to tap a four-fold increase in Chinese funds that can invest in bonds overseas. Sichuan Development Financial Leasing plans to sell $300 million of Islamic bonds via Singapore-based special purpose vehicle, Silk Routes Capital. According to investment manager Hasif Murad, the predominant interest for this issuance will remain from yield-hungry domestic Chinese investors. Silk Routes Capital hired Standard Chartered, CIMB Group Holdings, Bank of China and Bank of China International to help to arrange investor meetings. In a sign that the traditional Silk Road is coming back to life, Chinese companies are building roads, railways and ports along the route to the Middle East, Africa and Europe.

ICD, Dragon Capital Partners (DCP) develop Shari'ah-compliant investment #fund in #Kazakhstan

Dragon Capital Partners (DCP) has mandated the Islamic Corporation for the Development of the Private Sector (ICD) as a strategic advisor for developing a joint investment fund to raise $100 million for Kazakhstani SMEs. The purpose of the fund will be to co-invest with foreign investors in Kazakhstan and unlock growth potential in key sectors of the country. The Silk-Way Growth Fund initiative aims to attract international equity funds to invest in Kazakhstani SMEs. The Fund will invest in high-growth Kazakhstani industrial and manufacturing SMEs that enjoy competitive advantages and strong export potential and capacity. The Fund will help reviving the Silk Road on Kazakhstani territory.

We intend to make use of the interest in Shariah-compliant products: Secura Investment Management MD

Two successful investment funds have facilitated the Secura Investment Management, the first SEBI registered and Shariah compliant venture capital fund, to come out with a third fund – Realty AIF – with a target to raise 200 crore. The first scheme Secura India Real Estate fund Domestic Scheme 1 has completed with a pay back record of 18%, while the second fund is in the investment stage and its tenure will be over next year. Managing Director M.A.Mahaboob said funds will be invested in equity modes, quasi-equity and equity related instruments, investment in a co-investment capacity with development companies and other promoters. The minimum investment under the scheme is 1 crore which is to be paid in instalments in three years with a down payment of 10% of the capital commitment.

Al Meezan launches MSAP-I

Al Meezan Investment Management (Al Meezan) announced the launch of Meezan Strategic Allocation Plan-I (MSAP-I), an allocation plan under the newly launched fund of funds scheme, Meezan Strategic Allocation Fund. According to Al Meezan CEO Mohammad Shoaib, the plan has an initial term of two years and is now open for subscription. He added that the previous plan with two years duration was very well received by the investors as it gained a cumulative return of 26.21% since its inception. He said the new MSAP-I plan was an ideal investment for those who wished an active asset allocation between Shariah-compliant equity and money market schemes. Al Meezan is the largest private sector asset management company in Pakistan with total assets under management of Rs 86.96 billion in 11 funds and has investor base of 47,000 clients.

Emirates NBD and UTI International to launch Islamic #funds in #India

Emirates NBD Asset Management (Emirates NBD) has entered into a partnership agreement with UTI International (UTI) to launch the Emirates Islamic India Equity Fund. The fund will expand Emirates NBD’s global portfolio and offer investors exposure to Shariah compliant Indian equities. Emirates NBD is looking to develop a portfolio of global funds with leading international partners, and its latest collaboration with UTI forms part of this strategy. Leo Puri, managing director of UTI, said the new fund presents an excellent opportunity for GCC investors to realise strong returns on Shariah compliant Indian equities. The rationale for the agreement is driven by Emirates NBD’s strong interest in India as a growth market. According to a recent McKinsey report, India is expected to rank in the top five global economies by 2020 and to reach the top three by 2030.

First Sharia-compliant #fund to focus on #realestate

#India’s first fully Sharia-compliant fund launched its third investment fund, Realty AIF 1 (Alternative Investment Fund). The fund is meant for the real estate sector with IL&FS Trust Company acting as trustee for the fund and Secura Investment Management as promoter. According to managing director Mehaboob, the fund will raise 200 crore and the minimum investment under the scheme is 1 crore. The tenure of the fund is seven years from the final closing. Mehaboob added that an annualised RoI of 15-20% is expected, with a profit share post hurdle of 80:20 with catch-up. Company officials said the investments under the fund will be made in the modes of investment in equity, quasi-equity and equity-related instruments. Other modes include investment in a co-investment capacity with development companies or other promoters of a portfolio company, and investment in special purpose vehicles created by the company.

Windfall for startups? #Saudi Arabia backs new $100 billion tech #fund

Saudi Arabia is joining forces with Japanese telecom firm Softbank (SFTBF) to form a tech investment fund worth as much as $100 billion, making it one of the largest on the planet. Softbank CEO Masayoshi Son said that over the next decade the fund would be the biggest investor in the technology sector. Saudi Arabia's sovereign wealth fund will put up as much as $45 billion of the money, with Softbank throwing in at least $25 billion. Neither partner appears to be deterred by warnings of potential bubbles in the valuations of big startups and established tech companies in the US. Funding for startups has also plunged recently in India. Earlier this year, Saudi Arabia announced an ambitious plan to create a huge sovereign wealth fund that would be worth 7 trillion riyals ($1.9 trillion) by 2030, which would make it by far the biggest in the world.

IDB’s endowment fund to boost NGOs in #India

Muslim NGOs in India will be able to make use of Islamic Development Bank’s Awqaf Properties Investment Fund (APIF) to develop their endowments and generate funds for their various community development projects. According to Zafar Javeed, IDB’s national convener for India, APIF is in the process of identifying viable endowment projects. Javeed commended IDB group for financing about 300 educational and health-related projects across India over the past three decades. He said that the IDB was a big blessing for the Muslim community in India and there were many projects in the pipeline awaiting IDB aid. Referring to ongoing efforts to introduce interest-free banking in India, Javeed said former RBI governor Reghuram Rajan had hinted at introducing the system to achieve inclusive development.

Khazanah Said to Weigh $500 Million Exchangeable #Sukuk Sale

Khazanah Nasional, the Malaysian sovereign fund, is considering selling as much as $500 million of exchangeable sukuk. The state-owned firm is currently choosing banks for the potential offering. Khazanah has been reducing stakes in listed Malaysian companies through Islamic debt offerings that can be converted into shares. The fund last sold $500 million sukuk that can be exchanged into shares of Tenaga Nasional, the country’s biggest power producer, in 2014. It is also the largest shareholder of IHH Healthcare, Asia’s biggest hospital operator. Sales of Islamic bonds in Malaysia surged 60% this year to 45.8 billion ringgit ($11.4 billion), while offerings of global sukuk climbed 19% to $28.1 billion.

KAF launches Islamic property fund in #Malaysia

Australian Islamic investment company Crescent Wealth and KAF Investment Funds have jointly launched the KAF Australian Islamic Property Fund (KAIPF). Crescent Wealth corporate strategy director Omar Khan said the fund would achieve 9-10% annual return to investors, a target driven by the appetite of Malaysian investors for Australian property. The KAIPF is Malaysia’s first fund that provides non-institutional investors direct access to Australian commercial property. The launch of KAIPF brings the total number of funds under KAF to 18, with close to RM2.3 billion worth of assets under management.

#Malaysia’s $30b fund goes long as Islamic plan progresses

Malaysia’s second-largest pension fund plans to buy more bonds to hedge against another interest-rate cut as it moves further toward becoming a full-fledged Islamic entity. CEO of Kumpulan Wang Persaraan, Wan Kamaruzaman Wan Ahmad said the fund is considering lowering its 5% minimum return target because of the uncertainty in global markets. He also added that this low interest-rate environment, low corporate returns, lower dividend yields will prevail for a much longer period. KWAP bought 30-year Malaysian government bonds at a yield of 4.613% on June 29, days after the UK voted to leave the European Union. Wan Kamaruzaman said the fund will likely keep its 2% allocation to UK assets, despite the results of the referendum, because it adds diversification to the portfolio.

New #Islamic# fund a second wind for #shariah #stocks?

It would be interesting to see just how large the actual appetite is for the Employees Provident Fund’s new shariah-compliant fund, EPF-i, which does not have the minimum 2.5% annual return guarantee and is relying only on the EPF’s track record.
The demand factor from the 6.8 million active and contributing EPF members could well determine just how big a mover EPF-i will have on the local market, experts say. According to a recent survey by the EPF, 71% of members surveyed agreed there should be a shariah-compliant option for their retirement savings. And among the 71% who agree, 46.1% say they would choose to switch to a shariah fund if given the choice, 33.2% have yet to decide and the remaining 21.7% would not switch out of the conventional savings.
It is not known how much EPF savings the 46.1% have but at parity, their asset base would be about RM224 billion — double the intended initial fund size of EPF-i, which is slated to be launched in January next year. The other wild card for actual demand are the fence-sitters (see accompanying story).

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New #Islamic# fund a second wind for #shariah #stocks?

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