Sico and Wafra launch sharia-compliant fund

Two Mena-based asset managers have joined forces to launch a sharia-compliant fixed income fund.

Saudi fund manager Sico and Kuwait-based Wafra International Investment Company have unveiled the Elzaad Sukuk fund. The  “moderate risk fund” will invest in sharia-compliant bonds from sovereign, quasi-sovereign and corporate issuers globally.

The fund will be marketed to Mena-based investors and will have a minimum investment level of US$100,000.

Sico will be the investment manager, while Wafra will be the investment adviser for the fund. The Central Bank of Bahrain will regulate it.

The fund launch comes at a time of rising demand for sharia-compliant products – the Bloomberg Sukuk index has grown by 3.63% in the last five years.

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