Arqaam Capital Launches Two Specialist Fixed-income Funds At Difc

Monday, September 25, 2017

• EM and Sukuk Funds to target 7% and 6% annual return respectively
• Arqaam using DIFC infrastructure and new DFSA Fund Regime as platform for its funds

Arqaam Capital, the specialist emerging and frontier markets investment bank, today announced the launch of two specialist fixed income funds at Dubai International Financial Centre (DIFC) following approval from its independent regulator, the Dubai Financial Services Authority (DFSA). The two funds have been developed entirely within the DFSA’s Collective Investment Fund Regime.

The Arqaam High Income Fund is an open-ended fund investing in emerging markets with a focus on the MENA region. The portfolio comprises fixed and floating rate investments originating from target markets with a tilt towards higher yielding instruments to enhance the risk adjusted returns.

The Arqaam Islamic Fixed Income Fund, in turn, is an open-ended fund investing in regional and global diversified Shariah compliant fixed income securities (sukuk) issued by sovereign, quasi-sovereign and corporates.

The EM fund invests in hard currency and pegged currencies, with a target return of 7%, whereas the Sukuk fund invest in USD and pegged currencies with a target return of 6%.

Salmaan Jaffery, Chief Business Development Officer at DIFC Authority, said: “By domiciling these funds in DIFC, Arqaam Capital is utilising the DFSA’s recently updated Fund Regime and our supportive infrastructure to build a solid platform from which they can access investors around the world. DIFC has worked hard to create an environment for fund managers that is not only consistent with best in class international regulatory standards but is also highly competitive and attractive from an operational and economic perspective. We congratulate Arqaam Capital on this exciting milestone and we look forward to working closely with them and other fund managers to continue to use the DIFC’s fund management platform to deepen their business.”

Tarek Lotfy, President of GCC at Arqaam Capital, said: “The launch of Arqaam’s fixed income funds is further evidence of our continuous efforts to provide clients with innovative financial solutions and  unique investment vehicles in the region. 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.”

“Arqaam’s funds are spearheaded by a highly-regarded team with a proven track record in fundamental credit analysis, the management of downside risk, as well as an ability to read macro trends.’ Mr. Lotfy added.

The Fund will be Co-Managed by Abdul Kadir Hussain who is the Head of Fixed Income Asset Management and Zeina Rizk, Director of Fixed Income Asset Management. Mr. Hussain has more than 24 years investment experience in the Emerging Market space, with a 10 year public track record in managing conventional Fixed Income credit-based funds and a 6 year public track record managing Shari’ah compliant fixed income credit funds. The funds managed by Mr Hussain have won awards in every year since 2010, and Islamic funds have been recognized by Bloomberg as the best in the MENA region in 2012, 2014, and 2015.  Ms. Rizk has over 10 years of investment experience in the Global Credit Market, with a 6-year track record of managing both a Conventional Global Credit Fund and a Shari’ah Global Credit Fund. The Islamic fund she managed won an award in 2014 and 2015.

Abdul Kadir Hussain commented: “We are excited to offer an investment opportunity that provides regular income and relatively low-risk exposure, and builds on our decade old track record. The new funds will invest in a range of fixed income assets from within the regional and global emerging markets.  Arqaam Capital has introduced a state of the art trading and risk systems to ensure investors are provided with the highest quality investment products.”