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CIMB-Principal launches Dubin-domiciled Sukuk fund
10 January 2017
Fund invests in Sukuk of sovereigns in the Middle East and Asia
A Dublin-domiciled fund investing in Islamic bonds, known as
Sukuk, launched this week.
The vehicle, part of a joint venture between Malaysian asset
manager CIMB and Principal Global Investors, is UCITs compliant
– meaning it can be sold to any investor within the
Both CIMB and Principal won approval for the launch last
September from the Central Bank of Ireland.
The fund mainly invests in Sukuk of sovereign and
sovereign-related entities in the Middle East and Asia.
"Historically, global Sukuk has outperformed conventional
emerging markets’ bonds, particularly during
periods of market downturns," said Datin Seri Norashikin Mohd
Kassim, chief executive of CIMB-Principle Islamic Asset
"We expect strong demand for the Global Sukuk UCITS Fund
given the volatile equity markets and the ongoing quest for
Aside from Ireland, Hong Kong, South Africa and Luxembourg
have also issued Sukuk in recent years.
2012 saw the highest global Sukuk issuance, amounting to
$137bn. Issuance has slowed more recently and totaled $77.1bn
The deceleration in growth is largely due to challenging
economic conditions in emerging markets and the Gulf
Cooperation Council (GCC) tapping conventional liquidity from