UAE: Doug Bitcon, the head of fixed income funds and portfolios at Rasmala Investment Bank, believes that the Rasmala Global Sukuk Fund is benefiting from a change in attitude of investors;who now view Sukuk as generally defensive instruments that provide predictable income streams and potential for capital growth.
This is especially as investors have refocused on the risk-reward relationship, following losses from the financial crisis sparking a renewed interest in Sukuk.
Bitcon also said that there is growing recognition and acceptance by investors that Sukuk play an important role within a diversified investment portfolio.
Additionally, Sukuk prices are expected to remain supported by a constructive regional backdrop, with governments well-placed to invest in their economies. However, he noted that social unrest in Europe, driven by the region’s austerity measures, or growing political tensions between Iran and the west, would negatively impact the Rasmala Global Sukuk Fund.
Launched in April this year, the fund targets a 3.5% distribution per year.