Business | Banking
Prudential to launch Islamic fund from DIFC
Prudential Asset Management, licenced by the Dubai Financial Services Authority will launch its first fund from the Dubai International Financial Centre (DIFC) soon, according to a report by MoneyWorks magazine
- Staff Report
- Published: 00:31 April 6, 2008
Dubai: Prudential Asset Management, licenced by the Dubai Financial Services Authority will launch its first fund from the Dubai International Financial Centre (DIFC) soon, according to a report by MoneyWorks magazine.
The fund will have the structure of an open ended investment company (OEIC) incorporated in the DIFC.
The Sharia-compliant equity fund will target the growth markets of India and China. Gaurav Kumar, chief marketing of Prudential, said that the company has not yet lodged a formal application with the DFSA for the OEIC. The fund will be a multi-share class structure with two funds, one investing in India and China and the other investing in Asia.
OEICs are open-ended investment vehicles that can adjust the number of shares in the fund either by issuing or eliminating shares. When shares are issued, the fund receives money and invests it.
When eliminating shares, the fund pays out money from the fund. These funds can mix different types of investment strategies such as income and growth, and small cap and large cap.
Kumar said that Prudential, as the operator of the fund, has appointed Dubai Islamic Bank's Sharia board as the fund's Sharia supervisory board.
Management team
The proposed new Sharia-compliant fund will be designed in accordance with the DFSA regulations on collective investment rules and the Islamic financial business module.
"Prudential plans to appoint the team in Prudential Fund Management Berhard (PFMB) as the sub-managers for the proposed funds. PFMB has been managing the PRUdana Al Ilham Fund, which received the Falaika award 2007 for the best Asian equity fund, and we would like to leverage our in-house capabilities" said Kumar.
The Asian fund will follow a dynamic asset allocation strategy, he added.
"We are managing a segregated mandate for a Middle Eastern institution in India and China and have a proven track record of performance and management of funds in these countries," he said.
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