Comtrust-Adl Mudarabah Fund completes an impressive first year since launch

Friday, 7 February 2014 01:11 - - {{hitsCtrl.values.hits}}

The Comtrust-Adl Mudarabah Fund, Sri Lanka’s first ever open-ended Shariah complaint income fund, a combined initiative of Comtrust Asset Management Ltd. and Adl Capital Ltd., completed its first year since its launch in January 2013. During this period, the Fund posted an annual growth of 10.5% p.a., which compares remarkably well in comparison to Shariah-complaint investments of similar tenor offered in the market. During its first year, the fund declared two dividends, thus meeting the need of investors for regular returns, which was one of several espoused objectives of the fund. Adl Capital Associate Director Azad Zaheed attributed the success of the fund’s unique features such as a profit sharing ratio (PSR) of 90:10, which ranks among the highest in Sri Lanka’s Islamic finance market, and the absence of entry and exit fees. He also noted that the fund’s investors have particularly welcomed the low minimum investment of Rs. 1,000, the flexibility provided to investors/entities to access their funds at short notice and the relatively low risk on investment, as key advantages of investing in this fund. The absence of tax, either on the income or capital gains, is yet another feature that investors were appreciative of. The Comtrust-Adl Mudarabah Fund entered the local Islamic Banking & Finance (IBF) market space against the backdrop of a dearth in Shariah compliant investment mechanisms available for retail/personal investors to manage their surplus liquidity. The fund has been able to successfully fill this vacuum and offers investors with a hassle free, Shariah compliant financial instrument that provides regular returns. The fund also offers IBF institutions/Corporates with the opportunity to avail the fund as a quasi-money market instrument to manage liquidity. During the year, the fund also emerged as the recipient of the Silver Award under the category of ‘Islamic Finance Product/Deal’ of the year at the Inaugural ‘Sri Lanka Islamic Banking and Finance Industry (SLIBFI) Awards Night’ adjudicated by KPMG and held late last year.

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