Dubai-based investment bank Arqaam Capital has announced the launch of two specialist fixed income funds located within Dubai International Financial Centre (DIFC).
The high income fund will invest in emerging markets with a focus on the Middle East and North Africa region. It will include a mixture of fixed and floating rate investments.
The Islamic fixed income fund will invest in regional and global Shariah compliant fixed income securities, known as sukuk, issued by sovereigns, quasi-sovereigns and corporates.
Arqaam said the funds, developed within the Dubai Financial Services Authority’s collective investment fund regime, are denominated in US dollars and pegged currencies and will target annual returns of 6 and 7 per cent respectively.
They will be co-managed by Abdul Kadir Hussain, head of fixed income asset management, and Zeina Rizk, director of fixed income asset management.
“The emerging markets debt universe and the global sukuk market offer a wealth of attractive opportunities and a host of benefits to investors, including diversification, lower volatility and greater liquidity,” said Tarek Lotfy, president of GCC at Arqaam Capital.