Abu Dhabi-based Al Hilal Bank has launched a new fund designed for investors interested in participating in the growth and income potential of Shariah-compliant equities and sukuk from around the world.

The Global Balanced Fund is an open-ended and Shariah-compliant investment instrument with weekly subscription and redemption features, said the bank in a statement.

It aims to follow the footsteps of two of its other highly-successful funds, namely the Al Hilal GCC Equity Fund, which has posted an impressive 55.89 per cent return since its inception in March 2011, and the Al Hilal Global Sukuk Fund, which has recorded a 2.4 per cent return since its founding, it added.

The Islamic lender said the Global Sukuk Fund has paid a total of 6.39 per cent in dividends to its investors since being founded in March 2012.

The Investment Banking Group of Al Hilal Bank will serve as investment manager of the fund while Zurich-based Credit Suisse AG is the investment advisor. HSBC Bank Middle East will act as the custodian and administrator.

The Fund will provide a steady stream of annual income to investors through coupon from sukuk, stock dividends, as well as any capital appreciation, it added.

The Al Hilal GCC Equity Fund typically invests at least 75 per cent of assets in equity securities. Through a highly disciplined and rigorous stock selection process, the Fund has consistently exceeded customer expectations even under challenging market conditions.

The Al Hilal Global Sukuk Fund, on the other hand, satisfies investors’ preference for low-risk investments that guarantee stable returns and regular income. Al Hilal’s first sukuk fund continues to leverage the proven track record of its management and advisory team, unpredictable global financial shifts, and growing international demand for sukuk securities.

"Driven by the strong performance of our earlier funds, we have decided to introduce yet another fund to expand our array of investment solutions and to meet our investors’ demand," remarked Lim Say Cheong, the head of Investment Banking Group of Al Hilal Bank.

"Our new medium-risk fund will offer a globally diversified portfolio of high dividend yield stocks and Shariah-compliant fixed income securities managed by a team of high experience professionals from our Investment Banking Group. Our customers can expect the same high level of service and strong performance that our previous funds have ably delivered," he added.-TradeArabia News Service