These developments are important steps in Allianz Global Investors' strategy of offering market-leading investment products and services to investors across the Middle East to complement its growing and successful businesses in Europe, Asia and the USA. As part of its long term strategy and commitment to Middle Eastern clients, Allianz Global Investors will base its operations in a new permanent representative office in Bahrain, which will be led by Sami Zghal, Chief Representative & Head of Business Development, Middle East & North Africa. Sami Zghal is a long-standing and senior Allianz Global Investors employee who was previously based in the firm’s Paris office.
Commenting, Nick Smith, Head of Fund Distribution at Allianz Global Investors UK, said: "We are very excited to be opening an office in Bahrain as well as launching two Shariah-compliant funds, specifically designed for clients in the Middle East. We are very committed to building a long term business in the region by offering the best of our global asset management capabilities together with a very high level of local service. We believe that clients increasingly want access to the most sophisticated asset management expertise whether applied to well established funds investing in core areas, or applied to newer, more innovative funds investing in specialist areas. The size and scope of our resources allow us to offer funds and services right along this spectrum. We also pride ourselves on listening to clients and providing tailored solutions where appropriate."
Allianz Global Investors expands in Middle East
A growing demand for Shariah-compliant funds
As part of its initial offer to regional investors, Allianz Global Investors will market two new, Shariah-compliant, equity funds: the Allianz RCM Islamic Global Emerging Markets Equity Fund and the Allianz RCM Islamic Global Equity Opportunities Fund. The new funds are based on two highly successful strategies offered by the firm; the Allianz RCM Global Emerging Markets Equity Fund and the RCM Global Equity Unconstrained Shariah strategy.
"We are launching the new equity funds now for two reasons", explains Smith. "Firstly, we believe that there is growing demand over the long term for Shariah-compliant funds, especially those based on proven strategies investing in promising areas. Secondly, we believe that recent equity market corrections have provided a good entry point for investors. Although we may see some volatility in the short term, our medium to long term view on equities is very positive. We have also chosen the strategies very carefully to provide access to some of the best investment opportunities globally. To enable the funds to get to a sufficient size quickly, we have seeded each one with 50 million US dollars."
The two funds' investments will be monitored in terms of their compliance with Islamic law by a distinguished and experienced Shariah Board, consisting of Sheikh Nizam Yaquby (Chairman), Sheikh Osama Mohammed Saad Bahar (Board Member), and Dr Muhammad Humayon Abbas Dar (Expert Member and Chief Executive Officer of BMB Islamic UK Limited). BMB Islamic UK Limited is also acting as Shariah Adviser to the funds.
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