Demand for Shariah-compliant funds surging in Qatar: QInvest

 28 Aug 2017 - 15:59

Demand for Shariah-compliant funds surging in Qatar: QInvest
Dr Ataf Ahmed and Nasser Al Mahmoud

The Peninsula

Qatari market is witnessing a surge in demand for Shariah compliant funds. Conventional investors have also expressed interest in a range of Sharia’h compliant products and investments, senior officials at QInvest, said yesterday.

“In response to the growing investor demand for more innovative, income-generating, Shariah compliant products, QInvest  successfully launched SQN Income Fund in collaboration with SQN Capital Management earlier this year,” said Dr Ataf Ahmed, Head of Asset Management at QInvest, a leading private investment group  in the country.  

He was speaking at the ACQ5 Global Awards 2017 ceremony, which saw QInvest  recognised as Qatar’s “Asset Management Advisory Firm of the Year.”

“Offering investors a unique opportunity to access income generating assets in developed markets, the fund was oversubscribed and aims to pay out a net yield of 7 percent per annum on a monthly basis and has a targeted IRR of between 8 and 9 percent, with a tenure of 5 years,” he said.

“We credit our Asset Management team with earning this recognition through their hard work, innovative thinking and entrepreneurial spirit. QInvest  has endeavoured to leverage its global network and relationships to develop world-class offerings that can adequately address investors’ increasing appetite for diversified portfolios,” he added.  

QInvest is also seeing increased appetite for Sharia’h compliant products and investments from non-Muslim investors, according to the officials.

“These investors can be  broadly broken down into two groups. The first group identify as investors attracted to the ethical and social characteristics of the assets that Sharia’h funds invest in including Environmental, Social and Governance (ESG) factors,”said Nasser Al Mahmoud, Head of Client Coverage and Distribution, QInvest.

“The second group are investors who look to Sharia’h compliant funds to diversify their portfolios away from certain assets that are prominent in conventional funds and are seen as being more susceptible to economic volatility,” Al Mahmoud said.

“The important thing to remember is that a well-managed Sharia’h compliant fund can perform just as well and even outperform a conventional counterpart,” he added.

The 12th Annual ACQ5 Global Awards honoured the leading deal teams, firms and professionals who’s activities set the standard for the financial markets. This year, companies and individuals, representing every major market in the world, became finalists for the awards.

“The 2017 ACQ5 Global Award winners represent the best of breed in all industry sectors and have earned these honours by standing out in a group of very impressive finalists. We are lucky to work with some of the most influential and enterprising private organisations in the world and are proud to share their message with our readers. Relying on reader insight and experience to provide nominations to the panel remains the cornerstone of our program and to identify industry leaders, individuals, teams and organisations that represent the benchmark of achievement and best practice in the business world,” said Jake Robson, Group Editor at ACQ5.

QInvest  has a strong track record in managing Sharia’h compliant funds via its QInvest  Managed Account Platform (“QMAP”), the world’s first open architecture Sharia’h compliant managed account platform. It brings best practice from the conventional fund industry to investors through a range of global partnerships with managers around the world.