HSBC Saudi Arabia said it has launched an open-end Shariah compliant fund that aims to provide investors with income stabilizing and potential growth over medium-to-long term by investing in local and international sukuks.

The new Amanah sukuk fund will also invest in Shariah compliant money market funds, term deposits and certificates, the HSBC said in a statement.

The performance of the fund is measured against a composite benchmark which includes HSBC/Nasdaq Dubai Amanah US Dollar Sukuk Index.

One of the main features of the fund is the income distribution, whereby earned income will be distributed to customers on a quarterly basis.

Osamah Shaker, MD and head of Financial Markets at HSBC Saudi Arabia said, "Among our broad spectrum of investment products, we are pleased to offer customers the ability to invest in local and international Sukuks through our new fund."

"We believe investment in Sukuks is essential for any comprehensive Shariah compliant investment portfolio," Shaker added.-TradeArabia News Service