London-Based QIB Affiliate, European Finance House, Offers Wide Market Access and Diversification Through Global Sukuk Plus Fund
Doha, Qatar - QIB, the world's first global Islamic banking network, announced its London-based affiliate, European Finance House (EFH), has initiated a European-based platform designed to originate Sharia'-compliant investment products. The first of its products is the Global Sukuk Plus Fund. EFH is a primary Sharia'-compliant financial institution in Europe and a leading force in the growing Islamic banking market. EFH is regulated by the UK's Financial Services Authority.
The EFH-managed Global Sukuk Plus Fund is a weekly dealing mutual fund which invests in global sukuk markets. The QIB and EFH joint-effort Fund's assets will be invested in sukuk issued by sovereign, quasi-sovereign and corporate issuers and sourced globally. Value can be added through investment in Sharia'-compliant debt of credit investments such as syndicated Murabaha, trade finance and structured investments, where appropriate. Eventually, additional new investment products will be introduced per the decision of the QIB Investment Committee.
This Luxembourg Investment Platform-based and guided fund is open to institutional, private and corporate clients seeking investment opportunities managed by an expert Sharia'-compliant bank. The Fund's benchmark is US$ three month Libor +200 basis point.
EFH's Global Sukuk Plus Fund is supported by a global marketing campaign and offers a range of key benefits as compared to fixed income investment, featuring greater liquidity, better diversification and, therefore, enhanced yield and return. The Fund's active management approach ensures continual credit analysis of both new and existing issues, minimizing the possibility of loss due to default or credit deterioration. Wider market access is available to this globally-sourced Fund, as EFH links to Sharia'-compliant institutions not only in Europe, but also in the GCC, Asia and the wider MENA regions. The Fund's simplicity, clear objective, well-defined strategy and transparent structure allow for efficient performance and ease of use.
Jean-Marc Riegel, QIB's General Manager, Investment Banking and Development, said of the EFH sukuk fund launch, "The growing interest in the Islamic financial market has demanded that we draw upon the innovation of the QIB network to develop investment products which will thrive within the current environment. The Global Sukuk Plus Fund is a very forward-looking product for the Sharia'-compliant market and a strong option for clients thanks to the London-based bank fund's robust investment guidelines. The Fund's geographic and sector diversification take advantage of multiple sources, while the Fund's active management maximizes yield and return. The investment range of this sukuk Fund spans across six major Islamic financial markets and is easily accessed via each of QIB's affiliates in addition to EFH, including Arab Finance House (AFH) in Lebanon and Asian Finance Bank (AFB) in Malaysia. Global Sukuk Plus Fund clients in Qatar will, of course, be serviced by QIB."
EFH Head of Asset Management, Mark Watts, noted the Fund's depth and breadth, saying, "EFH's Global Sukuk Plus Fund is a dynamic product for Sharia'-compliant investment. It is a simple, highly-regulated, yet flexible investment product that takes advantage of current market opportunities and long-term expectations to leverage clear advantages and secure investment options for clients."
"The sukuk market is now a global phenomenon," he continued. "The Global Sukuk Plus Fund allows investors to tap into returns and profits not previously available, as the scale and diversification of investments have increased."
In addition to fund management, EFH also serves the market by providing Islamic financing options for corporations and institutional customers, development and placement of Sharia'-compliant real estate and equity funds, corporate financing and advisory services, financing for real estate investment and development and project and trade finance.
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© Press Release 2009
