Press Release
Badr Al-Islami Income Fund ends last 3 months with a return of 5.16% flat (annualized 20.64%p.a.)
28 October, 2009The fund was launched on 9th June 2009 and has been running for four months now. During the last three months ending September 2009, it has returned 5.16% flat (annualized 20.64%) Weighted average yield of the portfolio is 14.89% in annualized terms. This performance is against a targeted return of 5% to 7% p.a. over the life of the fund. We feel due to the exceptional circumstances in the market today, the fund may be able to return 9%-12% in the first year.
Overview and Outlook for the month of September
The Badr Al-Islami Income Fund has gained 3.52% for the month and is up 3.88% since inception. This performance can largely be attributed to the statement by Sheikh Mohammed on Dubai debt. Expressing confidence in the Dubai’s financial position, this statement helped rally a number of Dubai government related names.
We continue to make a concerted effort in positioning the fund into a diversified set of Shariah Compliant fixed income instruments. We currently have a 26% Cash position, in order to take advantage of upcoming new issues.
Our strategy going forward will be to continue to participate in new Sukuk issuances such as the upcoming Tourism Development & Investment Co. (TDIC), an Abu Dhabi government owned entity.
Badr Al-Islami Income Fund is a Shariah Compliant open-ended Fund incorporated in the Dubai International Financial Centre (DIFC). The Fund's objective is to achieve average annual returns of 5-7% per annum over the life of the Fund. The Fund invests primarily in Sukuk and other fixed income Shariah compliant assets.
Fund Summary
| NAV as at 29th Sept 09 | 10.39 |
| Yield | 14.89% |
| Average Coupon | 3.64% |
| Portfolio Modified Duration | 0.886 |
| Average Maturity | 1.84 years |
For detailed Fund fact sheet for the month of September 2009, please click here.