Money managers under the microscope
Islamic funds may well be ”the most dynamic part of the Sharia-compliant sector”, supported by with increasing interest from deep pocketed investors, but if you are a hedge fund manager, Banque Sarasin reckons you have no hope of getting a slice of this Sharia pie.
The Sarasin Islamic Wealth Management Report 2010 says many Islamic investors cannot be persuaded hedge funds are linked to the real economy (one of the tenets of Islamic finance), plus investors are discouraged by short selling which, strictly speaking, is also prohibited.
And before you hedgies say you know a Sharia scholar or two who is comfortable with signing off a fatwa, the necessary backing to any Islamic product, Sarasin says the “forbidden” label still sticks to hedge funds — “effectively stopping the development of this sector”.
“Despite efforts since 1997, the sector remains small. To date, there does not appear to be an Islamic hedge fund which has substantial assets under management.
Man Group seems to be doing quite well out of currency movements.
Last week the group’s trading statement showed dollar weakness boosted assets under management by $2.1 bln over the half year to end-September.
As predicted last November, troubled fund firm Crosby’s joint venture Apollo Multi Asset Management has struggled to attract assets and today Crosby announced it is pulling out as a partner in the loss-making boutique.