Wednesday, 6th May 2015
S&P 500 Shariah
Dow Jones Islamic World
FTSE Shariah All World
Russell - IdealRatings Islamic Global
1,835.12
2,977.92
2,107.81
1,929.82
▼ -22.11 ( -1.19%)
▼ -29.86 ( -0.99%)
▼ -18.01 ( -0.85%)
▼ -15.37 ( -0.79%)
HIGHLIGHTS: Maybank launches first Shariah fund under ASEAN passport scheme – Nairobi International Financial Center to be established in the next few months – Riyad Bank to strengthen capital base with Sukuk – Saudi Arabia adopts new rules on QFIs
This week's poll question: Should Islamic finance be recognized as just another asset class in the greater banking industry, or as an entirely separate system?
Islamic funds industry to gain from ASEAN advantage
Daily Cover
GLOBAL: IFN previously discussed the potential seismic change the implementation of the ASEAN CIS Framework – a fund passporting scheme similar to Europe’s UCITS platform – could bring to the Islamic funds industry (See IFN Report: ‘ASEAN CIS: A much-needed impetus for regional Islamic cross-border fund activities’) during which we highlighted Malaysia’s prime position to lead the development and internationalization of the Shariah funds segment. True enough to our predictions, the country, which is also the world’s largest market for Islamic funds (along with Saudi Arabia), is the first among its neighbors to further the Islamic finance agenda by leveraging this infrastructure to tap not only the ASEAN region but also that of Greater China.
Maybank Asset Management (Maybank AM) and Maybank Islamic Asset Management has launched the Maybank Bosera Greater China ASEAN Equity-i Fund, the first Shariah compliant fund to be introduced under the ASEAN passport scheme. Offering investment opportunities across three different classes in two different currencies (Malaysian ringgit and US dollar), the open-ended fund gains both retail and institutional investors exposure to the emerging markets of Southeast Asia and China.
“We will maintain a minimum of 35% of the fund’s net asset value each to Greater China and ASEAN equities markets, while between 2% to 30% will be invested in Islamic liquid assets including Islamic money market instruments as well as placement in Islamic deposits for liquidity purposes,” explained Nor’ Azamin Salleh, CEO of Maybank AM Group, on the fund’s investment strategy.
The fund is a culmination of the partnership between Maybank AM and Hong Kong’s Bosera International, a subsidiary of Shenzen-based Bosera Asset Management, and is expected to realize 7-12% in annual returns on a three-year rolling basis.
With an estimated Muslim population of over 23 million, which is bigger than that of Malaysia and the UAE combined, and paired with the fact that it is the world’s fastest-growing major economy (and largest after the US), China presents a compelling and lucrative proposition for Islamic investments; and the economic giant in recent years have taken note of its own potential and the opportunities Shariah dollar would bring. Apart from the landmark sovereign Sukuk issued by Hong Kong last year (with another one in the making), Chinese brokerage Southwest Securities also forged a partnership with Qatar International Islamic Bank through which the bank will mobilize efforts (including designing an Islamic finance framework) to develop the Shariah financial industry in China.
Kenya: An IFN Correspondent Report
Kenya partners with Qatar and the KCB officially launches its Islamic banking products
Banks in Kenya are opening Islamic banking windows to capture their market share in the Islamic finance sector. In April, Kenya Commercial Bank (KCB) launched KCB Sahl Banking, its Islamic banking unit in Kenya. The KCB plans to roll out its Islamic banking unit in Uganda, Rwanda and Burundi as it seeks to tap into the increasing demand for Islamic financial products across the region.
Case Study
Inaugural Sukuk: Noor Bank
Noor Bank last week successfully completed the issuance of its debut US$500 million Sukuk Wakalah. With the order book closing in excess of US$2.1 billion, representing an oversubscription of 4.3 times, the issuance was one that was well received by the industry, particularly from international investors. Speaking to Noor Bank and Latham & Watkins, legal advisor to the deal, NABILAH ANNUAR provides a detailed account of this historical transaction.
Today's IFN Alerts
INDONESIA: Bank Danamon Indonesia's auto financing unit to sell IDR500 billion (US$38.05 million) Sukuk next month
SAUDI ARABIA: Riyad Bank plans SAR4 billion (US$1.06 billion) Sukuk to expand its credit activities
INDONESIA: Indonesia's latest Sukuk auction receives overwhelming demand with over IDR3.6 trillion (US$276.48 million) in incoming bids
GLOBAL: Gulf Finance House taps booming Saudi Arabian retail sector with acquisition of mall
SAUDI ARABIA: Capital Market Authority adopts Rules for Qualified Foreign Financial Institutions Investment in Listed Shares
GLOBAL: Asian Development Bank and IFSB launch joint publication to increase awareness of Islamic finance among member countries
MALAYSIA: Bank Negara Malaysia's new guideline will boost banking system, says RAM
MALAYSIA: Manulife Asset Management Services declares income distribution for Manulife Investment Shariah Progress Fund
SAUDI ARABIA: Tadawul begins the first subscription period and tradable rights trading for Saudi United Cooperative Insurance Company; ends tomorrow
INDONESIA: Anderson Mori & Tomotsune establishes Jakarta Desk in collaboration with Roosdiono & Partners to meet needs of Japanese companies
MALAYSIA: RAM reaffirms Etiqa Takaful's claims-paying ability and Sukuk Musharakah ratings
QATAR: Industry players discuss Islamic finance opportunities at IFN Qatar Forum 2015
SAUDI ARABIA: Saudi British Bank supports IFN Saudi Forum 2015 as lead partner
GLOBAL: Qatar International Islamic Bank takes on lead partner role for regulator-backed IFN Qatar Forum 2015
MALAYSIA: Labuan IBFC to host a breakout session on its international Waqf foundation at the IFN Asia Forum 2015
IFN Asia Forum 2015
25th-26th May 2015 (Kuala Lumpur)
IFN Europe Forum 2015
10th June 2015 (Luxembourg)
IFN Issuers Forum 2015
13th September 2015 (Dubai)
13th September 2015 (Dubai)
IFN Kuwait Forum 2015
5th October 2015 (Kuwait City)
IFN Egypt Forum 2015
27th October 2015 (Cairo)
IFN Turkey Forum 2015
17th November 2015 (Istanbul)
IFN Saudi Arabia Forum 2015
30th November 2015 (Riyadh)
Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues
7th - 8th May 2015 (Kuala Lumpur)
Islamic Treasury & Risk Management Products
10th - 12th May 2015 (Dubai)
Structuring Islamic Trade Finance Solutions
27th - 29th May 2015 (Kuala Lumpur)
Islamic Financial Products: Current Trends, Regulation & Practices
27th - 28th May 2015 (Kuala Lumpur)
Understanding & Applying Structured Products
3rd - 5th June 2015 (Kuala Lumpur)
Advanced Sukuk & Islamic Securitization
7th - 9th June 2015 (Riyadh)
Funds Transfer Pricing
8th - 10th June 2015 (Istanbul)
Asset Liability Management
9th - 11th June 2015 (Kuala Lumpur)
International Best Practices & Regional Standards in Regulation, Corporate Governance, AML, Sanctions & Compliance
10th - 11th June 2015 (Dubai)
Fixed Income Products & Bond Markets
11th - 12th June 2015 (Istanbul)
Accounting & Reporting for Islamic Financial Products
14th - 15th June 2015 (Dubai)
Funds Transfer Pricing
6th - 8th July 2015 (Hong Kong)
Managing Counterparty Credit Risk, Basel III and Recent Regulatory Issues
9th - 10th July 2015 (Hong Kong)
Understanding Islamic Contracts: Structuring & Legal Issues
17th - 19th August 2015 (Dubai)
Advanced Sukuk & Islamic Securitization
24th - 26th August 2015 (Istanbul)
Undertaking Effective Litigation & Recovery in Islamic Finance Facilities
7th - 8th September 2015 (Kuala Lumpur)
Sharia’a Compliance & Audit for Islamic Banks
10th - 11th September 2015 (Dubai)
Islamic Finance Qualification
5th - 7th October 2015 (Kuala Lumpur)
Funds Transfer Pricing
5th - 7th October 2015 (Kuala Lumpur)
Trading Book Market Risk Management for Financial Institutions
8th - 9th October 2015 (Kuala Lumpur)
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