ANZ Investment Bank has extended the offer period on its specialised Islamic fund until the end of December to attract more private investors.
Launched in May, the Guernsey-registered First ANZ International Modaraba fund (FAIM) is a specialised investment vehicle complying with Sharia investment laws. The minimum lump sum investment in the fund for private players is $10,000.
The fund has so far raised $25m from institutions and a further $15m is expected in commitments and disbursements. The group hopes to raise $100m by the end of December, says Global Islamic Finance manager Rashid Rab.
He is confident FAIM will be able to raise $50m from private investors as “there is a lot of money in the Middle East, especially in Saudi Arabia”.
The fund aims to generate strong US dollar returns from a portfolio giving it a broad exposure to emerging markets, says ANZ Global Islamic Finance director Tariq Husain.
Following principles of Islamic law, the fund will provide medium-term finance for mainly private-sector physical assets including plant and machinery, aircraft, containers, computers and commercial vehicles.
“The fund presents investors with an ideal opportunity to invest in Islamic finance. We have had a great response from institutions and expect the fund to be warmly received by private investors,” says Husain.