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Islamic Finance

Singapore's first Islamic liquidity fund launched

Singapore’s first Islamic liquidity fund has been launched this month. 

Lion Global Investors, a Singapore-based asset management company and Brunei’s Shariah-compliant securities company BIBD Securities Sdn Bhd have announced the launch of the fund. 

The Lion-BIBDS Islamic Enhanced Liquidity Fund will be the first mutual fund managed within Brunei Darussalam as well as the first Shariah-compliant enhanced liquidity fund domiciled in Singapore.

The fund will invest in a diversified portfolio of global Shariah-compliant short-term fixed income instruments, including but not limited to, Islamic deposits, money market instruments and Sukuk, the company said in a statement. 

The fund, which was introduced with a soft launch this March with a USD share class, has gathered $46.5 million in assets under management as of June 30. 

The global Islamic Financial Services Industry is growing, estimated to be $3.25 trillion in 2022, according to the Islamic Financial Services Industry Stability Report 2023. 

Southeast Asia holds the second largest share at 23.3%, and is the largest Sukuk issuances market, accounting for 49.6% of the total volume at $829.7 billion. 

Kwok Keng Han, Chief Marketing Officer of Lion Global Investors, said the company sees good demand prospects stemming from the lack of Shariah-compliant liquidity solutions in Southeast Asia.