LGI and BIBDS launch second shariah-compliant fund targeting income and growth
What's the deal? Lion Global Investors (LGI) and Brunei's BIBD Securities Sdn Bhd (BIBDS) have launched the Lion-BIBDS Islamic Income & Growth fund, a shariah-compliant, actively managed multi-asset product. It aims to deliver regular income and long-term capital appreciation through globally diversified, ethically aligned investments.
How it works: The fund allocates about 70% to shariah-compliant global equities for growth and 30% to shariah-compliant fixed income for income and capital preservation. It may also hold cash, cash equivalents, and Islamic liquidity.
Diversification: To broaden exposure, the fund can invest in shariah-compliant collective investment schemes and exchange-traded funds (ETFs), spanning global Islamic equity and fixed income strategies. A small portion may go to shariah-compliant gold ETFs.
Why now? The launch builds on the firms' first joint product, the Lion-BIBDS Islamic Enhanced Liquidity fund, which began in March 2024. Investors can choose accumulation or quarterly income distribution, with all distributions subject to a shariah-guided dividend purification process.
What they said: "Building on the strong foundation of our first collaboration with BIBDS in 2024, this next step allows us to bring together income and growth in a single, globally diversified Shariah-compliant portfolio," said Teo Joo Wah, chief executive officer of Lion Global Investors.
Jason Wong, managing director of BIBD Securities, said the fund gives clients "globally diversified exposure with the potential for sustainable income and long-term capital growth, while staying true to the Shariah principles that guide us."
The signal: The second collaboration in under two years signals deepening ties between the Singapore and Brunei firms, and a bid to court investors across the region seeking returns aligned with Islamic principles.
Read more: Fund Selector Asia
Image credit: Jorge Lascar
