NCB Capital launches Shariah compliant funds on UCITS platform (By IFN)

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IRELAND: Saudi Arabia’s NCB Capital has launched two Shariah compliant funds under the Undertakings for Collective Investment in Transferable Securities (UCITS) platform, reaffirming Ireland as the domicile of choice for the registration of Shariah compliant funds. The NCB Capital Saudi Arabian Equity Fund and the NCB Capital GCC Equity Fund are the first of NCB Capital’s funds which are not registered in Saudi Arabia. UCITS are allowed to operate freely throughout the European Union on the basis of a single authorization from one member state. In its statement, the wealth manager said that the funds will be marketed internationally with a concentration on institutional investors in Asia and Europe. The funds are expected to generate long-term capital growth through investments in mid-cap, blue chip, income-generating stocks. Global asset management company Amundi has been hired as fund manager for both offerings. Ireland’s conventional funds industry surpassed the EUR1 trillion (US$1.3 trillion) mark as of September this year, while its Shariah compliant funds industry is estimated to have reached around EUR2.5 billion (US$3.26 billion) during the same period. The Central Bank of Ireland has already established a Shariah advisory team for the approval of Islamic funds while the Irish Stock Exchange has also set up a unit to list Shariah compliant products on.