Afrinvest unveils N2.5bn Halal fund for Sharia compliant investors

By Providence Ayanfeoluwa

Afrinvest Asset Management Limited, a subsidiary of Afrinvest, has launched a N2.5 billion Halal fund, especially for Sharia compliant investors.

The fund, approved by the Securities and Exchange Commission, SEC, is an open-ended unit trust scheme offering 25 million units at N100 per unit, totaling a public offer size of N2.5 billion.

Speaking at the unveiling at a media briefing in Lagos, Group Managing Director, Afrinvest West Africa, Mr Ike Chioke, said the fund was designed for investors who wished to grow their wealth in accordance with Islamic principles.

He explained that the fund adhered strictly to Sharia investment guidelines and supervised by an advisory committee expert, a body comprising renowned Islamic scholars that had experience both nationally and internationally.

He said appetite for Shariah-compliant investments was growing due to the N300 billion Sukuk issued by the federal government and oversubscribed by almost N2 trillion.

The Managing Director, Afrinvest Asset Management Limited, Mr Chris Omoh, said the fund was specifically aligned to people who wanted to invest their money in a particular instrument that protected their faith.

He added that the fund to investors also served as diversification, including fixed income, equities and other Shariah-compliant instruments.

“An investor can invest in Sukuk issued by state governments and corporate entities. An investor can also invest in quoted equities, which are shariah compliant,” Omoh added.

In his presentation, Senior Business Development Manager, Afrinvest, Mr Kabir Ibrahim, said the fund was targeted at all classes of investors, especially those with faith-based shariah principles for income generation.

Ibrahim said: “We wanted to make sure we have the right product for all the markets, particularly, the northern market. But indeed, ethical funds are available for everyone because the issues that is fund deals with is applicable regardless of your religious need

“The fund adheres strictly to Shari’ah investment guidelines and is supervised by an Advisory Committee of Experts, ACE, a body comprising renowned Islamic scholars with both national and international experience. The ACE issues a certificate of compliance annually, ensuring the Fund’s alignment with Shari’ah ethical standards.”

He explained that the fund was expected to be invested in three asset classes, including fixed income, equities and other investments.

His words: “About 70-100 per cent of the fund is targeted at shariah compliant fixed income instruments (FGN sukuk, State Sukuk, Corporate Sukuk), while 0-30 per cent goes into quoted stocks – Shariah and ethically compliant companies and 0-25 per cent other Shariah compliant investments such as ijarah sukuk, among others” he said.

He stated that the minimum an investor could invest was 100 units (subsequent multiples of 10 units), while the benchmark was 10 years Federal Government of Nigeria Sukuk (FGN Sukuk).

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