QIB has launched a new sukuk product that will be invested predominantly in global sukuk markets and designed to keep risk exposure under control.
The new investment product - International Sukuk Portfolio will be QIB’s new “flagship product”, which aims to introduce investors to the long-neglected sukuk asset class.
QIB capitalises on the Group’s “strong expertise” in the fixed income market to offer customers the opportunity to diversify into sukuk. The product will be managed on a discretionary basis by a team of experts from QIB-UK.
QIB said it believes that “aligning the investment manager’s approach with investor interest” is key to creating a mutually rewarding long-term relationship.
“The product’s philosophy is therefore designed to pay close attention to this belief ensuring that client objectives are met at every stage- income generation, downside protection and upside participation,” QIB said.
The portfolio will be managed by QIB’s subsidiary in the United Kingdom QIB-UK, which has a long experience in asset management with a very successful track record in the Islamic fixed income space.
QIB-UK currently manages one of the largest Shariah-compliant sukuk funds with $220mn of assets under management (AUM) giving 30% returns since inception in 2009 and beating the benchmark by 20% over the same period.
The International Sukuk Portfolio invests predominantly in global sukuks issued by sovereign, quasi-sovereign and corporate issuers using well defined investment guidelines, designed to keep risk exposure under control.
The portfolio aims to provide investors with returns by investing predominantly in global sukuk markets — with the exception of the Qatari market.
Emphasis will be on income, with an additional prospect of capital appreciation.
The product will cater to any investor’s basic needs such as liquidity, diversification and profit distribution.
Since International Sukuk Portfolio is priced and available for trading on a weekly basis, liquidity will be ensured.
To ensure diversification the portfolio will be diversified across sukuk issuers, a wide sector split and a broad geographic allocation.
Part of the profits will be distributed to investors on a quarterly basis, QIB said.
