BIBD Securities Sdn Bhd (BIBDS) and Lion Global Investors (LGI) yesterday jointly announced the launch of the Lion-BIBDS Islamic Enhanced Liquidity Fund, the first mutual fund managed within Brunei Darussalam and the first Syariah-compliant enhanced liquidity fund domiciled in Singapore.
According to a statement by BIBDS, the fund seeks to preserve capital and enhance income, while keeping overall portfolio risk low and maintaining a high level of liquidity. The fund will invest in an actively managed and broadly diversified portfolio of global Syariah-compliant short-term fixed income instruments, including but not limited to Islamic deposits, money market instruments and sukuk approved by the Syariah Advisory Body of BIBDS.
The fund had a soft launch in March, with a USD share class and was initially only extended to accredited investors. As of June 30, the fund has gathered assets under management (AUM) of SGD63.3 million (USD46.5 million). The fund’s USD share class is now available to all investors and the SGD-hedged class will be available on August 1.
LGI Chief Marketing Officer Kwok Keng Han said, “We expect this fund to be well-received because of its value proposition – having sukuk and combining it with Islamic deposits and money market instruments offers investors the benefit of stable returns in a Syariah-compliant portfolio. Furthermore, we see good demand prospects stemming from the lack of Syariah-compliant liquidity solutions in Southeast Asia.”
BIBDS Managing Director Jason Wong said, “This strategic partnership not only showcases BIBDS as a major regional player in Syariah-compliant investments but also reinforces our shared vision with LGI to deepen innovation in the Islamic finance space.
“The goal is to expand our range of products and effectively bridge regional investors with Syariah-compliant opportunities.
“This fund is a testament to our shared commitment to excellence and innovation in the field of Islamic finance. It leverages joint strengths and signifies a pivotal step towards integrating Brunei’s Islamic finance capabilities with global markets, enhancing our position as a gateway for Syariah-compliant investments in the Asia-Pacific region.” – Azlan Othman
