Islamic Global Technology Fund launched in Malaysia

Eastspring Investments has launched the Eastspring Investments Islamic Global Technology Fund, a shari'ah‑compliant equity fund designed to provide investors with access to long‑term growth opportunities arising from global technology and AI innovation.

The fund seeks to invest in high‑quality, shari'ah‑compliant technology companies that are shaping the future of the global economy - spanning sectors such as semiconductors, AI hardware and software, cloud infrastructure, digital platforms, healthcare innovation and advanced manufacturing. These technology leaders are increasingly embedded across industries, driving productivity, efficiency and earnings growth.

While timing technology cycles perfectly can be challenging, history has consistently shown that long-term under-exposure to technology can come at a significant opportunity cost, Eastspring Investments said. Unlike earlier technology cycles, today's AI and technology wave is supported by real earnings, strong free cash flows and sustained capital expenditure from large, profitable global companies, the company noted, calling technology a structural growth opportunity, rather than a short‑term trend.

A key differentiator of the fund is its investment advisory collaboration with Eastspring Investments Taiwan, which has managed global and US technology strategies since 1994. This enables Malaysian investors to access seasoned technology investment capabilities.

Based in Taiwan, the epicentre of the global semiconductor and AI hardware supply chain, the investment team brings first-hand, on-the-ground insights into the industries that power artificial intelligence. Much of the world's most advanced chips are designed and manufactured in this region, making proximity a critical advantage in identifying emerging trends and inflection points within the global tech ecosystem.

This expertise is reinforced by Eastspring's broader regional platform, drawing on insights from investment professionals across Asia to develop a more holistic, forward-looking view of technology innovation. Together, this combination of local depth, regional insights and global perspective enhances the Fund's ability to capture opportunities across the global AI value chain.

The fund is managed with shari'ah oversight and governance in collaboration with Eastspring Al‑Wara' Investments, Eastspring's dedicated Islamic asset management subsidiary. The portfolio construction adheres to shari'ah principles, ensuring investments are ethically aligned while maintaining diversification across global technology subsectors.

Yap Siok Hoon, CEO, Eastspring Investments said: "Technology is no longer optional - it is embedded in how economies function and how companies create value. With the launch of this fund, we are offering investors a way to participate in this powerful, long‑term growth story through a shari'ah‑compliant solution, backed by deep technology expertise and global reach. Our collaboration with Eastspring Investments Taiwan provides a unique advantage by anchoring investment insights where global AI and semiconductor innovation is truly built."

Anouk Hanafiah, CEO of Eastspring Al‑Wara' Investments added: "This fund reflects our commitment to delivering global shari'ah investment solutions that are grounded in principle yet forward-looking. We believe technology and innovation can be powerful drivers of positive progress when aligned with shari'ah principles."

Saturna Sdn Bhd appoints new president

Saturna in Malaysia, a wholly-owned subsidiary of US-based Saturna Capital Corporation, has announced the appointment of Shahariah Shaharudin as its new president.

Shaharudin replaces Monem Salam, who has returned to Saturna’s US office. “I am deeply honoured to be a part of this dynamic organisation and take Saturna Malaysia into its next phase of growth, while making sure we’re well positioned for the future challenges of the global asset management industry,” said Shaharudin.

A tenured professional with over 30 years of experience in commercial banking, fund management, and stock-broking, Shaharudin previously served as the CEO/Executive Director of Kenanga Islamic Investors Berhad (KIIB). She holds a Master of Arts in Economics from the University of Illinois, and a Bachelor of Business Administration and Economics degree from Knox College.

Said Salam, Executive VP and fund manager of Saturna Capital: “Her deep experience in this market will ensure that Saturna continues to innovate and remain on the cutting edge of both Islamic and sustainable investing, proving, over the long run, that the combination of these two styles is a win-win for investors.”

Saturna is based in Kuala Lumpur, Malaysia and specialises in Islamic-compliant investment advisory services for individuals and institutions. The company is a licensed Islamic fund manager under the Securities Commission of Malaysia, and is adviser to the ASEAN Equity Fund, and the ICD Global Sustainable Fund.

Nearly half of EPF investments are in shari'ah-compliant assets

The Employees Provident Fund (EPF), Malaysia’s premier retirement savings fund, has reported an increase in quarterly investment income to RM11.51 billion for Q217 ended 30 June 2017, a year-on-year increase of 36.36% from RM8.44 billion during the same period last year.

CEO Datuk Shahril Ridza Ridzuan said, “Market conditions have improved from a year ago and all asset classes in our portfolio have recorded healthy year-on-year growth, with equities continuing as the main profit driver for the quarter under review.”

A total of RM820.71 million out of the total investment income of RM11.51 billion was generated for simpanan shari'ah (shari'ah-compliant deposits), while RM10.69 billion was generated for simpanan konvensional (conventional deposits). Simpanan shari'ah derives its income solely from its portion of shari'ah assets while income for simpanan konvensional is generated by its share of both shari'ah and non-shari'ah assets.

The value of EPF investment assets reached RM759.78 billion, a 3.92% or RM28.67 billion increase from RM731.11 billion, as at 31 December 2016. Out of the total investment assets, RM362.50 billion, or 47.71%, were in shari'ah-compliant investments.

Lives and Livelihoods Fund approves US$243 million for anti-poverty projects

Source: Islamic Development Bank. Second Lives and Livelihoods Fund meeting in Riyadh, KSA.

Representatives from KSA, Qatar, the UAE, the Bill & Melinda Gates Foundation, the Islamic Solidarity Fund for Development, and the Islamic Development Bank (IsDB) have approved several development projects for 2017 under the US$2.5 billion Lives and Livelihoods Fund (LLF). The fund is the largest multilateral development initiative in the Middle East and North Africa for poverty alleviation in member countries of the Organization for Islamic Cooperation (OIC).

Major donors to the LLF include the KSA-based King Salman Relief and Humanitarian Aid Center (KS Relief), the Qatar Fund for Development (QFFD), Abu Dhabi Fund for Development (ADFD), the Bill & Melinda Gates Foundation, and the Islamic Solidarity Fund for Development (ISFD).

US$242.6 million was approved in financing for health, agriculture, and rural infrastructure development projects in eight member countries of the IsDB. The projects are scheduled to be implemented in Tajikistan among other countries.

Maher Al Hadhrawi, Assistant Supervisor General for Operations and Programs at KS Relief, and Chair of the LLF for its first year of operations, commented: “The second meeting of the Lives and Livelihoods Fund Impact Committee marks an important milestone in the fund’s progress.


“Over the next five years, the Lives and Livelihoods Fund will make US$2.5 billion available for anti-poverty projects in health, agriculture and rural infrastructure in Islamic Development Bank member countries. US$363 million has been approved for the Fund’s first operational year, and all the donors are working closely together to ensure that it is allocated most effectively.”

HE Dr Bandar Hajjar, President of the IsDB, commented: “The Lives and Livelihoods Fund is now making progress in its mission to help the poorest people in the Muslim world live healthier, more productive lives through investments in health, agriculture, and rural infrastructure. By innovatively combining grants from donors with loans from the Islamic Development Bank, we are able to leverage more funding than grants can alone to fight disease and poverty across the Muslim world.”

Dr Waleed Alwohaib, Director General, ISFD, said: “Through the grant contributions of the LLF, our aim is to protect communities from the risk of preventable diseases, improving reproductive, maternal and child health, increasing access to sanitation and primary healthcare, and supporting rural
development, we are empowering some of the poorest people in the world, and giving them the chance to live healthy and productive lives.”

Khalifa bin Jassim Al-Kuwari, Director General of QFFD, added, “The Lives and Livelihoods Fund is the first multilateral partnership of its kind in this region, and demonstrates the benefit of partnering with other donor organisations and regional governments. By pooling our resources together, and combining grants with finance from the IsDB, we are able to increase our impact and ultimately save more lives. At Qatar Fund for Development, we are proud to contribute to an initiative that is going to have such a massive impact on the lives of millions of people across the Islamic world.”

HE Mohammed Saif Al Suwaidi, Director General of ADFD, said: “Our contribution to the Fund articulates the development agenda pursued by the UAE government that aims to promote inclusive social and economic development through working with our partners from other development agencies to ensure the effectiveness of our aid programs. We are proud to be a founding member of the largest multilateral development initiative in the Middle East and look forward to devoting all our resources and expertise to ensuring improved livelihoods for the people of developing countries. This approach aligns well with Abu Dhabi Fund for Development’s aim to use innovative finance to support developing countries achieve their own development goals.”

Hassan Al-Damluji, Head of Middle East Relations for the Bill & Melinda Gates Foundation, noted: “Of the more than 1 billion people in the world facing extreme poverty, 400 million are living in the Islamic Development Bank’s member countries. These countries urgently need access to finance for development projects that eradicate disease, provide basic healthcare, and invest in agriculture and critical infrastructure. The Lives and Livelihoods Fund was only established in late 2016, but already it is filling this gap by supporting projects that will enable people to lift themselves out of
poverty.”

The Lives and Livelihoods Fund will make US$2.5 billion available over the next five years on projects that help the poorest people in 30 of the poorest Muslim countries lead healthy and productive lives. Administered by the IsDB, the fund combines US$2 billion of IsDB financing with US$500 million in grants from donors. So far, US$400 million in grants have been committed by the Bill & Melinda Gates Foundation (20% of the total up to US$100 million), the Islamic Solidarity Fund for Development (US$100 million), the Qatar Fund for Development (US$50 million), the King Salman Relief and Humanitarian Aid Center (US$100 million), and the Abu Dhabi Fund for Development (US$50 million).

In September 2016, the Lives and Livelihoods Fund’s Impact Committee approved projects worth US$363 million for the first of the five years that the fund will be operational.

Indonesia government sukuk breaks Dubai sukuk value record

+Milestone reflects the channelling of global Islamic finance activity and knowhow into Dubai

+Asian and MENA issuers choose Nasdaq Dubai for worldwide visibility and ease of listing

The government of Indonesia has listed two sukuk with a total value of US$3 billion on Nasdaq Dubai. The listings raised the total nominal value of all sukuk listed in Dubai above US$50 billion for the first time, to a global record high of US$52.06 billion. Indonesia’s latest sukuk listings comprise one issuance of US$2 billion and another of US$1 billion.


Of Dubai’s US$52.06 billion in listings, US$49.3 billion are listed on Nasdaq Dubai and US$2.75 billion are listed on Dubai Financial Market (DFM). Nasdaq Dubai announced in July 2015 that it had become the largest exchange for sukuk in the world and has since maintained that position.

MENA region sukuk issuers with Dubai listings include government and private sector entities active in a variety of industries including property, education, leisure, transport, finance, and infrastructure development. Among UAE issuers, Dubai Islamic Bank has the largest sukuk listings, totalling US$4.25 billion.

The Indonesian government is the largest issuer on Nasdaq Dubai, with a total value of US$11.5 billion from eight listings. Other leading issuers include Saudi-based Islamic Development Bank with US$8.5 billion and the government of Hong Kong with US$3 billion.

Dr Robert Pakpahan, Director General of Budget Financing and Risk Management, Ministry of Finance, Indonesia, said: “The channelling of sukuk listings into Dubai reflects the growing collaboration between Islamic finance practitioners based in different parts of the world. By pooling our knowhow and respective traditions, we are creating a more dynamic global industry that better meets the commercial and social needs of everyone who seeks the growth and development of sharia’ah-compliant finance.”

Hamed Ali, Chief Executive of Nasdaq Dubai, said: “The rapid expansion of Dubai’s sukuk market is based on intellectual as well as financial input from a wide range of issuers, investors and market participants based in dozens of countries. There is a common desire to come together to achieve new standards of excellence and efficiency and Dubai will further strengthen its role as a facilitator of this process.”

Nasdaq Dubai’s activities to promote the expansion of the sukuk sector include working with IdealRatings, with which it launched benchmark indices that track the performance of global sukuk in October 2016.

Dubai’s growth as the world’s largest sukuk listing centre supports the initiative announced in 2013 by Sheikh Mohammed Bin Rashid Al Maktoum, VP and PM of the UAE and Ruler of Dubai, for the Emirate to become the global capital of the Islamic economy.

Global sukuk issuances reached US$72.9 billion globally in 2016 according to RAM Ratings Services, with Islamic finance assets as a whole valued at more than US$2 trillion. 

Eastspring Investments announces income distribution for three Islamic funds

Asset manager Eastspring Investments, a Prudential subsidiary, has announced the income distribution for three of its existing shari'ah-compliant unit trust funds, the Eastspring Investments Dana al-Ilham, Eastspring Investments Dana al-Islah and Eastspring Investments Dana Wafi (collectively referred to as “funds”). All three ended the financial year on 31 March.

• Eastspring Investments Dana al-Ilham has a gross distribution of RM0.0357 per unit, corresponding to a dividend yield of 5% as of 15 February 2017; 
• Eastspring Investments Dana al-Islah has a gross distribution of RM0.0292 per unit, corresponding to a dividend yield of 4% as of 15 February 2017; 
• Eastspring Investments Dana Wafi has a gross distribution of RM0.0230 per unit, corresponding to a dividend yield of 4% as of 15 February 2017.

All unit holders who have maintained their unit holdings in the Funds as of 23 March 2017 are entitled to the income distribution.

“We are seeing more buying opportunities for both equities and bonds as compared to a year ago. Our appetite for equities has increased but as always, with our bottom-up approach, we continue to be on the look-out for attractively valued stocks with good long-term growth potential.” says Rudie Chan, Chief Investment Officer, Eastspring Investments.

Singapore mosques participate in fundraiser for Syrian refugees

The “Blessings-To-All” Mosque Committee, representing all mosques in Singapore, is organising a special fund-raising effort in collaboration with the Rahmatan Lil Alamin Foundation (RLAF) to offer winter relief for Syrian refugees.

The committee notes that more than 4 million Syrians have fled the country and sought refuge in other countries,and that Jordan alone is hosting 650,000 refugees.

"The high concentration of refugees in the country has placed a tremendous strain on the resources of the nation which is also struggling to meet the demands of its own population. Our hearts are with the refugees and the nation that has so kindly accepted to host them," said the committee and the RLAF in a statement from the Islamic Religious Council of Singapore (Muis).

With severe winter conditions currently affecting the Middle East, the RLAF is working closely with mosques in Singapore to conduct a special winter collection to extend aid to Syrian refugees in the region.

The RLAF will further be working with the UN Refugee Agency (UNHCR) and the Singaporean student body in Jordan to assist in the winter aid programme as well as education programmes for Syrian children.

In 2014, the RLAF and mosques in Singapore raised more than S$400,000 through two collections for the Syrian refugees. The funds collected were used to hand out cooked food, household rations to over 4,000 Syrian families, school packs for young children in three schools for Syrian refugees in Turkey, as well as medical kits for clinics treating injured and disabled refugees.

Interested?

RLAF donation boxes will be placed at all 70 mosques till 9 February 2017. All boxes will be marked Special Winter Collection in Aid of Syrian Refugees.

Members of the public can also donate cash or by cheque. All cheques should be made payable to RLAF with Special Winter Collection in Aid of Syrian Refugees written on the back. Cash and cheques can be delivered to the Muis Building at the Singapore Islamic Hub, 273, Braddell Road, Singapore 579702.

Online donations are accepted at the Muis website

posted from Bloggeroid

TH announces annual grant percentages for deposits in 2016

Source: TH. The announcement ceremony was officiated by YB Major General Dato' Seri Jamil Khir bin Haji Baharom (B), Minister in the Prime Minister's Office, YB Senator Dato 'Dr. Ashraf Wajdi Bin Dato' Dusuki, Deputy Minister in the Prime Minister's Office, the Honourable Datuk Seri Panglima Abdul Azeez Abdul Rahim, Chairman of TH, the Honourable Datuk Seri Johan Abdullah, Group MD and CEO of TH, members of the Board and the investment panel of TH.

Lembaga Tabung Haji (TH, the Pilgrims Fund Board) has announced that a 4.25% annual grant for deposits, and an additional 1.5% to depositors who have not performed the Hajj in 2016.

TH was established as an economics-based Islamic financial institution to help provide investment services and opportunities to grow funds for the Hajj while managing pilgrimage activities for the Malaysian Muslim community.


There are a number of similar arrangements to help Muslims save for the Hajj. Indonesian bank Mandiri Syariah has a BSM Mabrur Saving rupiah-denominated savings account whose funds can only be withfrawn to pay for a Hajj or umrah. Based on the mudarabah mutlaqah (editor's note: مطلق mutlaq means 'unrestricted') scheme, the minimum deposit is Rp100,000 while the next deposit should also be Rp100,000.

According to the bank's website, the minimum balance for registration in the directly-connected SISKOHAT haj pilgrimage management system registration is Rp25,500,000.

Malaysia Debt Ventures launches shari'ah-compliant Bumiputera Technology Fund

Malaysia Debt Ventures (MDV), a wholly-owned subsidiary of the Minister of Finance Inc., in collaboration with Unit Peneraju Agenda Bumiputera (TERAJU), has launched the Bumiputera Technology Fund (BTF) for technology-based companies in an effort to facilitate their business expansion through shari'ah-compliant working capital and asset financing facilities.

The development of the new BTF programme is a step forward in the collaboration between MDV and TERAJU, which has helped to create a pipeline of quality and sustainable bumiputera* entrepreneurs. MDV and TERAJU are continuing the momentum with the new fund, totalling RM100 million. Bumiputera technology-based companies that are listed under TERAJU’s SUPERB and Syarikat Bumiputera Berprestasi Tinggi (TERAS) programmes are eligible for BTF funding..

Nizam Mohamed Nadzri, MDV’s Senior Vice President of Corporate Services said, “The BTF is envisaged to ensure a more comprehensive financing ecosystem for bumiputera companies, in particular, technology-based companies. The fund also targets to fill in the funding gap that exists for startups under SUPERB, as a follow-on funding programme to the grants received from TERAJU.”

He further explained that the BTF is a progressive proposition for MDV from the perspective of MDV’s dual mandate to provide development financing and nurturing to technology SMEs in a sustainable manner, particularly as the fund will fund graduates of the SUPERB programme who may require nurturing to achieve their goals.

Apart from improving access to finance, particularly for startups in the technology sector, the shari'ah-compliant fund also serves to fulfill customer demand for more diverse Islamic facilities.

“The BTF will intensify MDV’s contribution in further strengthening the Malaysian Government’s commitment to develop the Bumiputera Economic Community as well as to establish the country as an Islamic financing hub in the region,” said Nizam.

To be eligible for financing under the BTF programme, TERAS and SUPERB companies must be incorporated in Malaysia with a minimum paid-up capital of RM100,000 and possess viable projects that are within the technology space. Financing facilities offered will be from a minimum of RM500,000 to a maximum of RM5 million. All applications made for financing under the fund will be subject to assessment based on MDV’s credit risk criteria as well as risk assessment processes, which are geared towards financing technology companies and projects.

MDV was established by the government of Malaysia in 2002 to provide flexible, innovative credit financing to developing high-impact and technology-driven sectors of the economy, identified and prioritised by the government as future engines of growth. As one of the agencies in Malaysia solely focusing on technology-related sectors, MDV aims to be the leading technology financier in the country. Since its establishment more than a decade ago, MDV has financed numerous technology projects in various sectors as it strives to fulfil its mandate and developmental role in the technology industry.

*Also spelt 'bumiputra', the term typically refers to people of indigenous Malay ethnicity.

Singapore to raise contributions to mosque building fund

With an expanding Muslim population, coupled with the escalating costs of education and construction, Singapore's Mosque Building and Mendaki Fund (MBMF) contribution rates are to be revised to support the growing socio-religious needs of the community.

This is particularly true for the building of new mosques and rejuvenation of older mosques in order to meet needs for more prayer space. For madrasahs, the revised rates will still be insufficient to cover the sector’s projected needs over the next five years. These institutions will still need to find other means to meet the shortfall, such as through a gradual increase in school fees and zakat collections.

Every working Muslim in Singapore, including foreign workers and permanent residents, contribute to the community fund. The fund was originally set up to build a mosque in every new town and evolved in 1984, with the establishment of the MENDAKI Foundation, to support Yayasan MENDAKI's educational and social programmes for the community. It was further refined in 2009 to support religious education initiatives, as well as to include upgrading and revitalising older mosques.

MBMF rates were introduced in 1975, and last reviewed in 2009. Twenty-four mosques have been built in neighbourhoods across Singapore since 1975. To date, approximately S$297 million has been spent on building and upgrading mosques across Singapore through the Mosque Building Programme (MBP) and Mosque Upgrading Programme (MUP). Two more mosques will be completed by 2017, Maarof Mosque in Jurong West, Yusof Ishak Mosque in Woodlands. A new mosque will also be built in Tampines North. In the next three years, Muis will also be completing Phase 2 of the MUP, which will add 2,000 more prayer spaces.

For madrasahs, over S$3 million has been spent on teacher training to expand their capacity, with 193 teachers graduating from the National Institute of Education, Edith Cowen University and Republic Polytechnic.

MENDAKI spends about S$27 million annually on education programmes, including S$8 million on its flagship MENDAKI Tuition Scheme (MTS) which is highly subsidised. MTS has benefitted close to 200,000 students in the past 34 years. The number of students in MTS is currently almost 10,000 in 50 centres. MENDAKI has also expanded its outreach so that MTS centres operate out of mosques and help those staying near the mosques’ vicinity.

The new monthly MBMF contribution rates will take effect on 1 June 2016, and cover raises of S$1 to S$10 depending on the total monthly wage of the employee.

Interested?

View the new rates

posted from Bloggeroid

Singapore mosques and RLAF hold fund raiser for Chennai flood victims

All 69 mosques in Singapore, in collaboration with the Rahmatan Lil AlaminFoundation (RLAF), are organising a fundraising effort in aid of the victims of the floods in Chennai, Tamil Nadu, India. The Tamil Nadu and Andhra Pradesh regions in South India have suffered severe loss of assets – homes, farm land and farming equipment.

Source: Mercy Relief, via MUIS. The
hardest hit areas in South India are the Tamil
Nadu and Andhra Pradesh regions.

Approximately 3 million people are cut off from basic services and are facing a shortage of emergency supplies according to official sources. Mercy Relief responded to an appeal for aid from its ground partner in India and has launched a public fundraising appeal. According to the humanitarian
relief agency, flood waters have subsided but communities in affected regions still face an acute shortage of relief supplies. They run the risk of waterborne diseases as most homes are ruined.

Funds collected will be handed over to Mercy Relief which has already initiated its first distribution of relief supplies, benefitting 300 low income families in Kulathumadu, Chennai.

Interested?

Donation boxes will be placed at all 69 mosques from 18 to 24 December 2015. The boxes will be marked Special Collection in Aid of Victims of South Indian Floods.

Members of the public can also offer donations in cash or by cheque. All cheques should be made payable to RLAF with the words Special Collection in Aid of Victims of South Indian Floods written on the back. Cash and cheques can be delivered to the Muis Building at the Singapore Islamic Hub, No 273, Braddell Road Singapore 579702.

The public can also make contributions online up to 24 December 2015.

posted from Bloggeroid

TRA's ICT Fund presents initiatives to encourage the use of Arabic online

The ICT Fund, the funding arm of the General Authority for Regulating the Telecommunications Sector (TRA) of the UAE, has participated in the Living Arabic- Go Digital event that was launched by the Knowledge and Human Development Authority (KHDA). The fund is tasked to enrich digital Arabic content and empower its presence on the digital platforms.

Engineer Omar Mahmoud, Acting CEO, ICT Fund said: “ICT Fund launched the Arabic digital content initiative to empower the researches and the initiatives that aim at fortifying the presence of the Arabic content on the digital platforms in an innovative way. The fund also invests in developing tools and supporting initiatives that can achieve a quantum leap in the Arabic digital content quality. 

"This event marked an ideal venue for us to introduce the educational field to this initiative as numerous teachers and experts who are concerned with the Arabic language attended the event. Teachers are role models and they are the ones who lay the foundation for the next generations’ knowledge. In light of this, raising the awareness of teachers is equal to raising the awareness of the next generations as they are considered our messengers to them.”

At the event, the ICT Fund presented its vision to fortify the presence of the Arabic content on digital platforms, encourage the use of the language in everyday life and adopting it in all governmental entities. The fund's activities include encouraging creative minds to write and blog in Arabic with the aim of encouraging Arabic content digital publishing, in addition to launching awareness campaigns through media and supporting the Arabic localisation of software. Research proposals on the development of software and content management systems, operating systems and Arabic translation tools were also presented.

Living Arabic is a programme launched by the KHDA that shares the successful experience of Arabic teachers in Dubai private schools. These experiences are related to teaching the Arabic language in a way that suits students’ demands and passion. The programme also focuses on empowering effective communication between the authority and parents through launching a smart platform named My Family which enables the authority to communicate directly with parents and benefit from their experiences. The platform also grants parents and schools with access to information related to education in Dubai.

Thomson Reuters launches Islamic Agribusiness Index for Asia Pacific excluding Japan

Thomson Reuters has launched the Islamic Asia Pacific Ex-Japan Islamic Agribusiness Index, covering 30 shari'ah compliant companies in the Asia Pacific region with revenues derived directly from agricultural products. It is the first index of its kind in the Asia Pacific region, the company said.

The Thomson Reuters Islamic Asia Pacific Ex-Japan Agribusiness Index combines Thomson Reuters transparent rules-based methodology with IdealRatings' expertise and research-based approach to shari'ah-compliant screening.

In addition, the index uses Thomson Reuters Business Classification (TRBC) to select companies engaged in upstream agricultural activities. TRBC has five levels of classification enabling a more accurate and granular selection of companies. This allows Thomson Reuters to systematically include industries and business activities which derive revenue from agricultural produce such as dairy producers or fertiliser while excluding activities related to agricultural product manufacturing which are not considered to be part of the agribusiness sector.

Thomson Reuters has supported Islamic finance for over 30 years, offering shari'ah compliant investment and trading solutions for financial professionals. Said Stephan Flagel, Head of Indices at Thomson Reuters: “The index provides rules-based, liquid and transparent exposure to companies within the fast growing Asian agribusiness sector. Bringing the efficiency and transparency expected in advanced financial markets to the rapidly growing Islamic finance industry requires the provision of deep and reliable market indicators, benchmarks and terms and conditions.”

The index will be tracked by an exchange-traded fund (ETF) provided by i-VCAP Management which was launched on the same day and is named MyETF Thomson Reuters Asia Pacific ex-Japan Islamic Agribusiness. The newly-launched ETF will offer investors exposure to the performance of the index and is the first agricultural-related Islamic ETF available globally and the first Islamic sector ETF available in the region, adding to ETFs worth US$2 billion based on Thomson Reuters indices globally.

The Thomson Reuters Islamic Asia Pacific Ex-Japan Agribusiness Index is calculated in real time and will be available through Thomson Reuters Eikon.

UNHCR and Islamic Museum of Australia to host fund-raiser for Syrian refugees

The UN Refugee Agency Australia for UNHCR and the Islamic Museum of Australia are hosting a fund-raising dinner in aid of Syrian refugees on 28 November 2015, at the museum premises.

Dinner will feature the work of Masterchef Finalist Samira El Khafir. The evening will also feature guest speakers and an auction.

All of the ticket sales and proceeds go to UNHCR for the Syrian refugee crisis. Urgently-needed relief includes cash for medicine and food, stoves and fuel for heating, insulation for tents, thermal blankets and winter clothing.

Interested?

Tickets cost A$260 per person, or A$2,500 for a table of ten. Call 1300 915 171 or email admin at islamicmuseum.org.au for enquiries.

Read the Suroor Asia blog post about the new UN, World Bank and Islamic Development Bank approach to MENA and the refugee crisis

GCC pension funds may give greater role to Islamic retirement products

GCC governments are relooking at existing models of both public and international pension funds to ensure they are sustainable, according to EY’s GCC Wealth and Asset Management 2015 report – Fast growth, divergent paths, launched at the FundForum Middle East 2015. Across the GCC, public pension funds amount to US$397 billion, representing nearly a quarter of GDP and US$15,000 per national, said EY.

George Triplow, MENA Wealth & Asset Management Leader, EY, says: “Public pension funds in the GCC are only just coming of age, just over a fifth is invested in local equities. Two big issues are currently driving significant rethinking in the sector. The first is the sustainability of public pension funds for nationals, given the relatively small size of the funds, demographics and the gap between contribution and benefit levels. Secondly, there is a growing recognition by many employers that end of service benefit (EOSB) payments received by expatriates are neither adequate nor suitable as an alternative to a pension.”

The size of GCC pension funds is relatively low, compared with employer-provided pension funds in the UK, for example, where these assets are larger than GDP and funds per individual are nearly four times the GCC average.

Kuwait has the best capitalised fund relative to the size of its economy and citizen population. This follows an initiative to recapitalise the pension fund from the budget since 2008, filling an actuarial deficit that had been estimated at nearly US$40 billion. In international terms, its assets relative to population are similar to those of the UK’s pension funds.

Qatar’s pension assets are also sizeable relative to the population, following a capital injection from the Ministry of Finance in 2012. Since then, Qatar’s General Retirement and Social Insurance Authority appears to have focused heavily on investment in local equities, including stakes in major companies.

Saudi Arabia naturally has the largest pool of pension assets. Assets are split between the Public Pensions Agency (for public sector workers) and the General Organization for Social Insurance (for private sector workers). The two often co-invest in companies together and alongside the Public Investment Fund. Aside from stakes in dozens of major listed companies, they also invest in private companies. However about 85% of the pension assets are invested abroad, mainly in US treasuries managed by the Saudi Arabian Monetary Authority.

“To address the concerns over the sustainability of the industry, Gulf countries will have to relook at the retirement ages, benefit levels and contribution requirements. This could require further recapitalisation of the funds and reforms to benefits and retirement age. Where fiscal means are limited, it may also involve the kind of three-tier system that is increasingly common elsewhere, combining a minimal state pension, defined contribution workplace pensions and additional personal contributions — but a wholesale shift in this direction is unlikely. More systematic reform is also possible in the most fiscally strapped countries to incorporate additional pension insurance elements. Recent changes in Gulf healthcare, with a steady shift towards private insurance, may set a precedent for such reforms,” commented George.

The report highlights three key areas which can benefit the GCC pension funds industry: new levels of regulation and governance, expanded EOSB schemes and shari'ah-compliant retirement products.

The emergence of Islamic retirement products is a development that is relevant to both expatriates and nationals in the GCC, says EY. To ensure that pension savings under Islamic schemes are in accordance with Islamic law, they need to be invested in shari'ah-compliant assets. However, there are concerns about annuities, which are typically purchased at retirement using pension fund pots, and the concept of a longevity sukuk has been developed as a shari'ah-compliant alternative.

“There will be significant changes in the way GCC pension provision is looked at in the coming years because the current system may find it difficult to cope with the needs of GCC residents. We expect a shift in the retirement ages of GCC nationals and changes to be made to the EOSB schemes to make them more relevant to the actual retirement needs of expats. There will be a lot of opportunity for local providers in the region, especially in the Islamic retirement product arena,” concluded George.

Arab Monetary Fund and International Islamic Liquidit Management Corp to promote financial inclusion in the Arab world

The Arab Monetary Fund and International Islamic Liquidity Management Corporation (IILM) have agreed to cooperate with an MoU that will allow the two parties to launch joint activities and programmes that help support economic development, opportunities, as well as to promote financial inclusion in the Arab region.

The two institutions will work together to provide technical support services and to build capabilities to develop the Islamic finance industry. The Arab Monetary Fund will contribute its expertise on the region, while the IILM will facilitate liquidity management for institutions that offer Islamic financial services.

Professor Datuk Rifaat Ahmed Abdel Karim, Chief Executive Officer of the IILM said, “This collaboration is in line with the objectives of the IILM to facilitate liquidity management for Islamic financial services in the Arab region thereby enhancing their resilience and ability to meet future economic challenges. The development of a systemic shari’ah-compliant liquidity management infrastructure, accepted across multi - jurisdictions in which Islamic financial services operate, is instrumental towards ensuring sustainable financial stability.”

HE Dr Abdulrahman Al Hamidy, Director General Chairman of the Board, Arab Monetary Fund, said that that the signing of this memorandum is within the framework of the Fund's interest to develop its activities and programmes in the field of Islamic finance and financial inclusion. Furthermore the MoU attempts to consolidate relations with institutions and related bodies especially with the IILM and its role in supporting the opportunities of the development of Islamic industry.

The Arab Monetary Fund works to strengthen the foundations of monetary integration of the Arab economies, and provides financial and technical support for economic and financial reforms undertaken by the Arab countries to support the development and improvement of growth opportunities. On the other hand, the IILM aims to assist in the development of the Islamic finance industry by facilitating liquidity management for institutions that offer Islamic financial services.

Muscat Capital appoints Northern Trust for global custody, fund valuation and accounting services

Muscat Capital, the Saudi Arabia-based investment banking arm of Bank Muscat – the largest commercial bank in Oman – has appointed Northern Trust to provide global custody and fund valuation and accounting services for its Saudi equity fund, the Muscat Capital IPO fund, benchmarked to the Muscat Capital Saudi IPO Shari’ah Index.

This latest appointment adds to Northern Trust’s growing client base across the Gulf Cooperation Council (GCC) states, which include 60% of the GCC government pension funds and 50% of the GCC sovereign wealth funds.

Said Abdulwahed Al Murshidi, CEO, Muscat Capital: “Northern Trust’s ability to offer tailored solutions for the Gulf region as well as their proven expertise in supporting Saudi institutions through their local presence in Riyadh, were among the key factors in their selection.”

Northern Trust has been serving clients across the Middle East since 1987 and, through its offices in Abu Dhabi and Saudi Arabia, provides asset servicing and asset management expertise to pension funds, sovereign wealth funds, investment managers and ultra-high net worth individuals across the region. It offers a range of solutions tailored to support the needs of Middle East investors including
shari’ah-compliant post-trade compliance monitoring, shari’ah-compliant investment manager discretionary mandates and sukuk processing and reporting services.

Said Michael Slater, Country Head, Saudi Arabia, Northern Trust: “We understand that sophisticated institutions like Muscat Capital require customised solutions to meet their evolving requirements in this dynamic market, in particular the ability to innovate and offer asset servicing solutions around the Middle East’s working week. Our presence as part of the business community in Saudi Arabia, underpinned by long-standing expertise as a provider of these services ensures we are well-placed to continue providing exceptional service to clients in the region.

MUIS launches aid appeal for victims of the Nepal earthquake

Source: MUIS Facebook page.

The Islamic Religious Council of Singapore (MUIS) has announced that mosques in Singapore, in collaboration with the Rahmatan Lil Alamin Foundation (RLAF), are organising a fund raising effort in aid of earthquake victims in Nepal. Donation boxes will be placed at all 68 mosques from till Thursday, 7 May 2015 and are marked Special Collection for Nepal.

Members of the community can also offer their donations in cash or by cheque to Muis or contribute online.

All proceeds from the collection will be handed over to Mercy Relief.

Rahmatan Lil 'Alamin Foundation spearheads charity drive for Syrian refugee children

Source: MUIS.

The Rahmatan Lil 'Alamin Foundation (RLAF), in collaboration with mosques in Singapore, has kicked off a fund-raiser in aid of Syrian refugee children.

Part of an initial fund-raising effort in April this year, which netted S$240,000, was used to send relief in the form of food packages, hot food, medicines, clean water, school packages, and household items. 

S$150,000 has been set aside for the establishment of a school for children of Syrian refugees in the border town of Kilis in Southeastern Turkey. "This school will help to restore some semblance of normality, sanity and confidence in the hearts and minds of the young children," the charity said in a statement. "To make this school project possible, we will need to raise at least S$350,000 for the building, facilities and equipment needed for the school."

Donation boxes marked Singapore Muslim Community’s Special Collection for School Project for Children of Syrian Refugees have been placed at all 68 mosques till 11 December 2014. Those who are not able to make their contribution at the mosque can also offer their donation in cash or by cheque. The cheque should be made payable to “RLAF” with the words Special Collection In Aid of Syrian Refugees written on its back. The cash and cheques can be delivered to the MUIS building at the Singapore Islamic Hub, No. 273, Braddell Road Singapore 579702. In addition, members of the community can also make their contributions online via www.muis.gov.sg/epayment/Donations.aspx.

The RLAF is working with Kimse Yok Mu, a Turkish humanitarian agency, and Aid to Syrian Refugees in Turkey (ASRIT) for the project. Kimse Yok Mu will provide the teaching staff, remuneration and all the utilities needed for the school. Registration of students has already begun.

Global Islamic fund sector worth US$72.9 billion in Q314

The global Islamic fund sector has gathered US$72.9 billion in assets under management (AuM) as of 17 September 2014, according to KFH Research's Islamic Funds Review Q3-2014. 

As of September, there are 1,149 Islamic funds, the research firm said, predicting that the outlook for the last quarter of 2014 of the Islamic fund sector is broadly positive, with Islamic banking and capital market trends expected to reinforce the advancement of the shari’ah compliant funds sector. 

"We forecast global Islamic AuM to fall between US$87.9 billion and US$97.3 billion by end-2017," the company noted online.

More about the review is available here.

*Image from the KFH Research website.