Islam, Islamic, Islamic News, Fatwa's and Islamic Business/Finance with Islam Online - The premier and trusted provider of online Islamic content.

Top Gulf Fund Manager Says Bond Rally to Fizzle: Islamic Finance

Published: 05/12/2012 08:24:17 PM GMT
Related Stories

The Persian Gulf's bestp-erforming fixed-income fund manager says returns in the oil-exporting region may drop by about half in 2013 after a three-yea (more)

The Persian Gulf's bestp-erforming fixed-income fund manager says returns in the oil-exporting region may drop by about half in 2013 after a three-year rally drove yields and risk premiums to record lows.

Bonds and Shariah-compliant debt in the six-nation Gulf Cooperation Council have made 12 percent this year, bringing their total returns since 2009 to more than 34 percent, according to HSBC/Nasdaq Dubai's GCC U.S. Dollar Sukuk/Bond Index. Gains may drop to between 4 percent and 6 percent next year, Abdul Kadir Hussain, who manages about $270 million as chief executive officer of Mashreq Capital DIFC Ltd., said in an interview in Dubai yesterday.

"Three years is a long time to have a rally," said Hussain, whose Mashreq Al-Islami Income Fund (BADISIN) handed investors 13 percent this year and non Shariah-compliant fund 18 percent. "The last time valuations were this stretched was probably in 2006 or 2007, but it was a much smaller market."


Sukuk.me Wire External Story From Source: Bloomberg - Read full article here

Sukuk.me is not responsible for the content of external internet sites




Advertisement







Advertisment