Finance & Capital Market

Mashreq sukuk fund surpasses $150m in AUM

Dubai-based Mashreq Capital said that its Mashreq Al Islami Income Fund (Sukuk Fund) has surpassed $150 million in assets under management (AUM), and is now one of the top five largest public global Sukuk funds in the region.

Mashreq Capital is the fund manager and investment manager of Mashreq Al Islami Income Fund, which was established in 2009 as one of the first Shari’ah compliant global Sukuk funds in the Middle East. With over a decade of strong performance, the Fund has one of the longest track- records of success in the region. As July 30, 2020, the fund has delivered a cumulative net return north of 87% since inception.

Issam El Hourani, Head of Business Development and Marketing, Mashreq, said: “Mashreq Al Islami Income Fund has delivered an exceptional track-record of consistent returns since it was launched over 10 years ago.

“Reflecting this success, the Fund has now crossed $150 million in assets under management, a major achievement that is testament to Mashreq Capital’s deep market experience and the confidence investors have in our underlying philosophy and vision. We are delighted to have reached this significant milestone, and look forward to building on our success over the coming months and years by creating further financial value for our clients through our expertise in the fixed income space.”

The Fund invests in USD denominated Shari’ah compliant fixed income securities, whilst a new AED share class was launched at the end of last year to give investors the opportunity to invest in AED. An annual distribution of 5% was paid out to investors from the income-paying share class in 2019 and a distribution target of 5% is on track for 2020. Since the Fund’s inception 11 years ago, investors have never experienced a negative calendar year and the Fund is consistently a top performer when compared to direct peers. The Fund has a daily Net Asset Value and an investment grade internal rating.

“As COVID-19 continues to reshape the investment landscape globally, Mashreq Capital remains committed to working with investors to manage the current economic and market challenges confronting them. Our team of professionals have a wealth of experience in delivering sustainable income opportunities for investors across international and regional markets, and will continue to provide comprehensive, diversified solutions and strategies that meet their specific requirements as we enter a post-pandemic world,” added El Hourani.

The Fund is supervised by a Shari’ah Supervisory Board which consists of globally renowned and esteemed Shari’ah scholars, coupled with an in-house Islamic Finance, Advisory and Shari’ah Governance division. – TradeArabia News Service