Dubai-based Islamic investment manager Mashreq Capital has announced that its flagship sharia fund has reached $100 million in assets under management.
The Mashreq Ak Islami Income Fund was launched in 2009 making it one of the oldest sharia-compliant funds in the region, said Issam El-Hourani, head of marketing.
He also hailed the AuM achievement as a “symbolic milestone” that was “testament to the fund’s performance”.
“Long-term investors have enjoyed returns north of 80% since inception,” added El-Hourani.
The fund invests in US dollar-denominated and sharia-compliant fixed income securities and an AED share class was added in 2019.
Investors received an annual distribution of 5% from the income paying share class in 2019 and the same distribution target is to be maintained in 2020.
The news also caps a two-year turnaround for the firm after it was downgraded by credit rating agency Moody’s in May 2018 following a high turnover of staff that resulted in four chief executives being appointed in 10 months.
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