bulletEDITOR'S PICKS

 

QROPS to receive same flexibility as UK pensions

From Retirement Oct 23 2014 @ 12:33

The Taxation of Pensions Bill, debated in Parliament last week, will ensure additional benefits...
view article

EEA accused of 'deliberately' withholding information

From Products Oct 22 2014 @ 16:57

EEA has been accused of “deliberately” withholding information after an action group discovered...
view article


bulletRELATED ARTICLES

 

bulletNEWS

 

LATEST NEWS

14% sales increase for Axa Wealth Int’l

14% sales increase for Axa Wealth Int’lSales increased by 14% during the third quarter for Axa Wealth International...
view article

Holborn IFA faces ban and £290k fine in UK

From Tax & Regulation Oct 24 2014 @ 11:30

SLI to close ‘economically unviable’ China Fund

From Products Oct 24 2014 @ 11:09

MORE FROM Life

LATEST NEWS

Fund manager profile: Coupland Cardiff's Jonathan Dobson

Fund manager profile: Coupland CardiffOne of the first things you discover upon meeting Yorkshire native and Coupland...
view article

Coral adds to management team following GSA...

From People Oct 23 2014 @ 17:05

Credit Suisse returns from slow half year with...

From Europe Oct 23 2014 @ 16:45

MORE FROM Profiles

LATEST NEWS

QROPS to receive same flexibility as UK pensions

QROPS to receive same flexibility as UK pensionsThe Taxation of Pensions Bill, debated in Parliament last week, will ensure...
view article

HMRC tax demands total £250m

From Tax & Regulation Oct 23 2014 @ 10:57

Manulife Singapore seals deal with RHB Bank...

From Asia Oct 23 2014 @ 10:30

MORE FROM Retirement



Simon Danaher

HSBC Saudi offers Shariah-compliant fund

From Products May 8 2012 BY: Simon Danaher , Online Editor , International Adviser

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


HSBC Saudi Arabia has launched its first sukuk fund, a Shariah-compliant fixed-income product, for the country’s retail market.

Described as having a “medium to high” risk profile, the HSBC Amanah Sukuk Fund, which launched last month, is the first open-ended sukuk fund to be offered by HSBC Group.

Managed by the asset management division of HSBC Saudi Arabia, the fund will invest in a concentrated portfolio of between 15 to 20 sukuks primarily issued from within Gulf Cooperation Council countries, although there are no geographical constraints.

HSBC said the fund would aim to have an average duration of five years or less, with an average risk rating of A-.

The portfolio will be drawn from an investment universe of sukuks approved by the Shariah Supervisory Committee of HSBC Saudi Arabia, money market funds approved by Saudi Arabia’s Capital Markets Authority and Islamic Certificates approved by the Shariah Supervisory Committee.

HSBC said a sukuk “can be classified as the Shariah-compliant equivalent of bonds” and “represent the credit obligation of the underlying issuer”.

The Shariah nature of the product places certain limitations on the fund manager. These restrictions include bans on “conventional” leveraging or hedging, short-selling, securities lending and the use of investment derivatives such as CDS.

The fund has a minimum initial investment of $25,000 (£15,000, aed92,000) and charges an annual management fee of 0.75%, which is reinvested into the fund.

Add to My News Comments (0)

Add to My News Print

Add to My News

add to twitter

add to linkedin


COMMENTS


Have your say

(Be the first to) Have your say!

Please sign in or register here to leave a comment. Registration is free and only takes a few moments.






Share us on Twitter

SHARE US ON TWITTER
Join the community

Join us on Linked In

SHARE ON LINKED IN
Inform your colleagues

Switch to our mobile site

SWITCH TO MOBILE SITE
News on the go

Back tot he top of the page

BACK TO TOP OF PAGE
Just click here...