Asset management to support productive capacities
Our asset management activities are aimed at connecting sovereign wealth funds, financial institutions, pension funds, insurance companies, endowments, foundations, family offices and high-net worth individuals with investment opportunities across various themes in emerging markets.
The ICD manages various income funds for investors across the full risk-reward spectrum including the Unit Investment Fund (UIF), the Trade Premium Fund (TPF), the Corporate Premium Fund (CPF) and the Global Sustainable Fund (GSF).
UNIT INVESTMENT FUND (UIF)
The Unit Investment Fund offers sharia-compliant financing products across the corporate and trade finance spectrum. In 2017, to overcome various challenges, we had an underlying trade and corporate sub-portfolio that will enable us to enhance the performance of our funds and surpass benchmarks in the near-term. In 2017, UIF’s performance was in line with 2016 performance as the fund distributed an interim dividend of 1%. The UIF achieved USD201.2m assets under management during the year. Improvements in the return factor in the growth of the underlying sub-funds, CPF and TPF, described below.
TRADE PREMIUM FUND (TPF)
The TPF was launched in January 2016 and was positioned to invest predominantly in premium yield structured trade finance (STF) with an exposure to lucrative sovereign and bank-guaranteed trade finance.
Although the fund was still considered in its investing period, it has successfully closed the year with over 85% utilization of proceeds and generated a rate of a return of 3.77%.
CORPORATE PREMIUM FUND (CPF)
The CPF was launched in January 2016 with an initial capital base of USD74m, and aims to invest in viable corporate finance transactions in line with the principles of sharia in high growth frontier and emerging markets.
Overall, the fund made seven new investments in four countries and five sectors in 2017. This head start, along with a solid pipeline of projects, empowers the fund to make a significant impact in corporate investments in the coming years.
In 2017, it generated a return of 5.03% in line with its target return.
GLOBAL SUSTAINABLE FUND (GSF)
In 2017, we have conceptualized and launched our new Islamic sharia compliant equities fund, the GSF. The fund follows the environmental, social and governance model in selecting its equity investments. GSF ended the year 2017 with assets under management of USD36m and a return significantly exceeding its year-end target of 5% (annualized). Since its launch in July 2017, the GSF has yielded an exceptional annualized return of 11.5% –exceeding its benchmark.