The Sanad Sukuk Fund is the world's first GCC-oriented, diversified Sukuk fund. Sukuk-which are also known as 'Islamic bonds'-have, until now, been difficult to purchase for the vast majority of Muslims leaving them unable to enjoy the benefits of bond-like investments. Previously Muslims were able to buy only deposit equivalents, stocks, real estate and private equity assets that met Sharia standards. A major gap has existed in the investment universe of Muslim savings, a gap that finally will be closed with the launch of the Sanad Sukuk Fund.
Mark Mortimore, Executive Director of the Sanad Sukuk Fund and a member of the fund's Board of Directors, commented, 'For the first time we can offer Islamic investors a reliable, Sharia-compliant alternative to a conventional bond fund, and provide them with both the returns and liquidity that western investors have enjoyed for decades. Since bonds make up almost 45 per cent of worldwide managed assets, this will indeed be a historic day for Islamic Wealth Management.'
John A. Sandwick, Managing Director of Encore Management S.A., adds: 'The Sanad Sukuk Fund revolutionises Islamic Wealth Management. Before this fund there really was no such thing as true Islamic Wealth Management because very basic elements of a modern portfolio were absent, except for high net-worth investors. Now we can offer Muslims of even modest wealth the chance to invest like professionals.'
Investments in the Sanad Sukuk Fund will be in Sukuk and Islamic commercial syndications with a focus on the GCC region-adding liquidity to the Sukuk sector and promoting economic growth in all Muslim countries, but particularly in the Middle East.
The Islamic finance market's first diversified Sukuk fund will be launched on Tuesday, 14 November 2006, at the International Islamic Finance Forum (IIFF Europe) taking place in the Swissotel, Zurich, Switzerland. The official announcement will be made by the fund's Executive Director, Mark Mortimore; the Chairman of the Sanad Sukuk Fund's Board of Directors, Sheikh Mohammed Abudawood, a respected businessman based in Jeddah, Saudi Arabia; and John A. Sandwick, Managing Director of Encore in Geneva.
The International Islamic Finance Forum (IIFF Europe) is the premier event in the increasingly important Islamic financial sector, a sector that is experiencing annual growth rates above 15 per cent and comprises an estimated US$500 billion in total assets. Leading industry professionals from around the globe will convene at IIFF in Zurich for the first time, emphasising the growing importance of Islamic Wealth Management to the Swiss financial industry. Now in its fourth year, the successful IIFF series has held previous events in Dubai, Istanbul and Singapore, covering Islamic finance on a global scale.
Christianna Tsiterrou, conference director of IIFF Zurich, remarked, 'We are pleased to host the launch of the Sanad Sukuk fund, earlier this year in Dubai, we hosted the launch of the first Sukuk index, the Dow Jones Citigroup Sukuk Index. This is yet another significant milestone for the International Islamic Finance Forum'
An important effect of the Sanad Sukuk Fund's launch will be the impact on Sukuk market activity. Throughout 2005 there were only approximately $60 million in GCC-style Sukuk secondary market transactions, a tiny fraction of the estimated $15 billion of Sukuk that were outstanding at the end of last year. With the introduction of the Sanad Sukuk Fund-targeted to reach at least $100 million-secondary market trading should increase substantially. Economists the world over have emphasised that increased market trading and liquidity of all securities is a core component of economic development, fostering increased issuance of securities and thereby contributing to economic growth.
Sanad Sukuk Fund to be launched at International Islamic Finance Forum in Zurich
The Sanad Sukuk Fund will be officially launched on Tuesday, 14 November, at The International Islamic Finance Forum (IIFF Europe), which takes place at the Swissotel Zurich·
- United Kingdom: Tuesday, November 07 - 2006 at 10:06
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Media and interested parties are invited to join the official launch announcement on Tuesday, 14 November, 10h15 in Zurich during the coffee break of The International Islamic Finance Forum (IIFF Europe), taking place at the Swissotel Zurich (www.iiff.com)Sukuk, the plural of the Arabic word Sakk, means 'certificate' or sometimes 'credit note.' It is also the root for the English word 'cheque.' Sukuk replace interest income with rent or profits; they are therefore the alternative for Muslims seeking a stable income complying with their faith. Sukuk finance real economic activities and, depending on the underlying structure, they are tradable at market value from the Islamic perspective. Secondary market trading is still weak in the GCC region, as Sukuk are relatively new. Significant new Sukuk issuance has only recently increased, while near-term expected new issuance is forecast to increase dramatically. Japan, China and Indonesia are among many market entrants expected to enter the Sukuk market in 2007, while at least 100 or more companies based in the Arab world are believed now to be preparing new Sukuk issues.
ABOUT SANAD INVESTMENT COMPANY LTD.
Sanad Investment Company Ltd.-or the Sanad Sukuk Fund-is the first GCC-oriented diversified Sukuk fund in the world. It will provide both stable income and liquidity for Muslim investors. It closes the significant market gap for Muslim investors in their asset allocation by finally providing a bond-like investment vehicle that is fully Sharia-compliant. The Sanad Sukuk Fund will invest not less than 75% in Sukuk and a maximum of 25 % in Sharia-compliant credit syndications, with a focus on the GCC countries. Expanding the Sukuk market by creating a Sukuk fund will lead directly to increased economic development in the GCC region. The fund is being domiciled in the Cayman Islands along with the fund manager Encore Fund Management Co. Ltd., a wholly owned subsidiary of Encore Management S.A. in Geneva, Switzerland. The Sanad Sukuk Fund targets institutional and individual investors of all kinds.
ABOUT ENCORE MANAGEMENT S.A.
Encore Management S.A. was founded in 1998 to serve private clients in the management of their family long-term savings, whether through portfolio investments, private equity, or real estate. The firm has established deep institutional relationships in Switzerland, in particular working in partnership with UBS S.A., the world's largest asset management bank. Encore's principles are bankers of long standing in the Swiss private banking and asset management businesses. The company remains very active in the Islamic banking space, and has frequently promoted increased transparency and Sharia-compliant securities development through conferences and both print and electronic media. Encore's wholly owned subsidiary-Encore Fund Management Co. Ltd.-was created to manage the new Sanad Sukuk Fund.
ABOUT THE INTERNATIONAL ISLAMIC FINANCE FORUM The Forum brings together pioneering international and regional policy makers, business leaders and scholars with the latest trends and challenges in what is the world's fastest growing financial sector.
The Forum, organised in association with Dow Jones Indexes, has established itself as the premier business-to-business conference in the field of Islamic finance and is designed for experienced practitioners as well as new entrants to the field.
As the hundreds of participants from around the world attending previous events have already discovered, the Forum also presents an unrivalled networking opportunity. Ministers, Chairmen, CEOs, Managing Directors and senior executives attend.
In total twenty in-depth sessions covering a wide range of topics, including a special 'Leaders In Islamic Finance' session that will examine 'Emerging Markets In The Islamic Finance Arena - with a Spotlight On Europe'. Another highly relevant presentation will be made on 'Meeting The Demands Of High Net Worth Individuals, For Sharia'a Compliant Products In Europe - Exploring Opportunities In The Swiss Private Banking Sector'.
Over 50 expert speakers have been recruited including Global Director, Dow Jones Islamic Indexes, US, Rushdi Siddiqui; managing director, SAM Indexes GmbH, Switzerland, Alex Barkawi; director general Association Suisse des Gérants de Fortune (ASG), Switzerland Maurice Baudet; director Asset Management Division, Global Head -Islamic Investments, Credit Suisse, Switzerland, Fares Ahmed Mourad and Global Markets Equity, Deutsche Bank AG, UAE, Hussein A. Hassan.
www.iiff.com
Issued on behalf of Sanad Investment Company Ltd.
For further press information and interview requests please contact Michael Gassner
Michael Gassner Consultancy Ltd.
68 Lombard Street
London, EC3V 9LJ, United Kingdom
Phone: +44 207 868 1717
Fax: +44 207 868 1817
www.islamicfinance.de
Posted by Anne-Birte Stensgaard, Senior News EditorTuesday, November 07 - 2006 at 10:06 UAE local time (GMT+4)
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This Article was updated on Tuesday, November 14 - 2006
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