June 2009 HSBC HSBC yesterday launched $100 million (Dh367m) HSBC Amanah Sukuk Fund in the UAE, offering mid to high single digit returns to investors, the bank said yesterday. In a reply to Emirates Business, the bank said it's confident of raising the required fund because "interest in sukuk among investors is high." Targeted at the UAE retail investors, the fund will deliver a competitive income in addition to capital appreciation from a select number of regional and international sukuk. The fund will be closed on July 14, 2009. To be managed by HSBC Global Asset Management, the fund will be structured as a fixed-term investment over four years, at which point capital is returned to investors. Income will be paid quarterly over the life of the fund. The fund will invest in sukuk issued primarily by sovereigns, quasi sovereigns and corporates in the GCC region. Each sukuk within the fund will be screened and approved by the HSBC Amanah Shariah Central Committee. HSBC Global Asset Management manages assets worth $354.56 billion as of March 2009. Mukhtar Hussain, Global CEO of HSBC Amanah HSBC Amanah , said: "This fund is another important step towards building a broad and deep product portfolio for Shariah-compliant investors. The growing market in sukuk, and the growing popularity of Islamic finance generally, means we anticipate strong demand for this fund from Muslim and non-Muslim investors alike." The minimum subscription for the fund is $10,000 with one per cent annual management charges.

By Waheed Abbas

© Emirates Business 24/7 2009 omar 1.1:zy