HwangDBS Fund Has Top Sukuk Return, Buys U.A.E: Islamic Finance - BusinessWeek

HwangDBS Investment Management Bhd. ran the best-performing sukuk fund in the past year as it bought Persian Gulf debt after prices tumbled.

Malaysia’s HwangDBS Aiiman Global Sukuk Fund returned 28 percent, beating the 5 percent median return for 67 funds tracked by Bloomberg that invest in Islamic bonds. Holdings of the fund include sukuk, or debt that complies with the religion’s ban on interest, sold by an entity of Ras Al Khaimah, one of the seven sheikhdoms that make up the United Arab Emirates. It also held Shariah-compliant notes in Bahrain.

The fund snapped up debt as investors shunned Middle Eastern bonds after property prices slumped and forced Dubai World to warn investors that it may default. HwangDBS bought before one of the U.A.E.’s three main business group agreed in May to restructure $23.5 billion in obligations, helping the Dow Jones Citigroup Sukuk Index extend a rally from a low reached in December 2009.