Afrinvest West Africa has officially launched a Shari’ah-compliant N2.5 billion investment fund known as the Afrinvest Halal Fund. The fund is an open-ended unit trust scheme approved by the Securities and Exchange Commission (SEC).
It is aimed at investors seeking Shari’ah-compliant investment opportunities.
The Fund is offering 25 million units at N100 per unit, catering specifically to individuals and institutions that want to grow their wealth in accordance with Islamic ethical principles. It will be guided by strict Shari’ah investment rules and overseen by an Advisory Committee of Experts (ACE), a panel of esteemed Islamic scholars with national and international experience.
Fund asset allocation
The Halal Fund’s asset allocation is structured with between 70 to 100 percent in Shari’ah-compliant fixed income instruments. These instruments include Federal Government Sukuk, State Sukuk, and Corporate Sukuk.
Between 0 to 30 percent of the fund will be invested in the quoted stocks of Shari’ah-compliant and ethically sound companies. Potentially up to 25 percent of the fund may be invested in other Shari’ah-compliant instruments as approved.
According to Kabir Ibrahim, the Senior Business Development Manager of Afrinvest’s Kano Office, these other investments may include Ijara, Mudaraba, Wakala, and Musharakah. Then up to 5 percent may be held as cash in non-interest-bearing accounts and Shari’ah-compliant institutions.
The Fund uses the 10-year Federal Government of Nigeria Sukuk as its benchmark. A minimum subscription of 100 units (N10,000) is required, with subsequent investments in multiples of 10 units.
Read also: DMO opens N300bn Sukuk with 19.75% yield
Kabir also noted that investors can redeem their units on any business day by submitting a redemption form to the fund manager. He added that payouts will be processed within five business days, based on the applicable bid price. However, a 90-day lock-in period applies from the date of initial registration, and early redemptions within this window will attract a 1.5 percent charge on earned income.
Fund targets Northern community
Speaking during the media presentation, Ike Chioke, the Group Managing Director of Afrinvest West Africa, noted that offering the fund was in response to customer demand especially in Northern Nigeria.
“When we launched our Kano office about two years ago, now headed by Kabir, we quickly realized the need for a tailored product offering to support that region. Being in the heart of Kano, where many clients seek ethical, faith-aligned investment options, it became clear that such products were essential.” Chioke said.
Chris Omoh, the Managing Director of Afrinvest Asset Management also highlighted the importance of the fund especially for Muslims.
Read also: Pension investment in Sukuk reaches N580bn in five years
He noted, “The Fund is Sharia-compliant, which means investors can grow their wealth without compromising their faith. With a minimum investment of just N10,000, you have full confidence that your money is being directed into instruments that align with Islamic principles.”
