Course Details

Islamic Asset Management Products & Investment Strategies

Islamic Asset Management Products & Investment Strategies

Price: $2,850.00
Start Date
10 Apr 2016
(
3
days)
Institute
Nasdaq Dubai
Trainer
Tariq Alrifai
Location
Dubai
, United Arab Emirates

COURSE OVERVIEW

 

The Islamic investment management industry is one of the fastest growing areas in
international global finance. Key demographics exist such as the burgeoning middle
classes in Southeast Asia and the Gulf. The opportunities for managing Shariahcompliant
wealth are global and lucrative.

 

This new 3-day training programme will provide an up-to-date analysis of current Islamic
investment techniques and products. The programme will examine Islamic asset fund
structures, including ETFs, equity, Sukuk and commodities funds. Having a background
in private equity, the course director will cover Islamic private equity investment
structures in detail, as well as real estate investments. The course will then address
important products and techniques for hedging Islamic investment portfolios, and the
various Islamic investment products and investment strategies in order to protect and
preserve wealth in a Shariah-compliant manner.

 

HIGHLIGHTS

• Islamic Asset Management and Funds: Equity, Sukuk, Ijarah, Commodities and ETFs
• Assessing Islamic Private Equity (PE) Fund Structures
• Structuring Islamic Real Estate Investments
• Hedging Tools and Techniques in Islamic Finance Investment Management
• Asset and Wealth Preservation Strategies - Portfolio Diversification

 

COURSE OUTLINE

 

Day 1

 

Overview of Money and the Financial System

• Money and the financial system
• The Islamic financial system
• Economic cycles and theories

 

Understanding Economic Cycles

• Review of past financial crises and their causes
• Solutions applied and their results
• See documentary on financial crisis (if possible)

 

The Islamic Financial System

• The structure of the Islamic financial system
• Modes of Islamic finance

 

Economic Cycles and Islamic Finance

• Where are we on the on the current economic cycle
• Searching for evidence and clues to find forecast what comes next Learning to spot trends and formulate investment strategies according to where we are in an economic cycle

 

Day 2

 

The Application of Islamic Modes of Finance in Today’s Economy

 

Islamic Banking Products and their Structures

• Deposits, Wadiah, time deposits and Tawarruq
• Case Study: Islamic bank products

 

Islamic Asset Management and Funds - Equity, Sukuk, Ijarah, Commodities and ETFs

• Equity funds
o Reviewing structures and analyzing the various jurisdictions
o Investment styles: global, sector, and country focus, long vs short, market neutral, hedged
o Hands-on Exercise: Equity screening criteria - comparing the various methods
• Commodity funds
o Commodity Murabahah
o Precious metals funds versus non-precious metals commodity funds
o Funds utilizing forward sales and their permissibility
• Ijarah funds
o Types of permitted Ijarah assets and structures
o Operating lease (Ijarah) funds
o Real estate-based Ijarah funds

• Sukuk funds

o Types of Sukuk and their structures

o Sukuk versus asset-backed securities

o Trading and liquidity issues with Sukuk funds

• Exchange-Traded funds (ETFs)

o Comparing the structure of an ETF versus a fund

o ETF investment styles

o ETF advantages and benefits to investors over funds

o Limitations of ETFs: Liquidity issues, premium/discount NAV

• Comparing returns on Islamic funds versus conventional funds

• Hands-on Exercise: Using financial database (IFN) to research funds

 

Assessing Islamic Private Equity (PE) Fund Structures

• Shariah-compliant PE structures
• Islamic PE versus conventional PE, analysing the differences in structure and execution
• Advantages Islamic PE has over conventional PE to investors and owners of the target company
• Using leverage to enhance returns - Shariah-compliant leverage equivalents and limitations of use
• Case Study: Islamic private equity transactions

 

Day 3

 

Structuring Islamic Real Estate Investments

• Direct real estate investment; transaction structure and financing modes
o Comparing Murabahah, Ijarah, Musharakah, Istisna and other real estate financing modes 
o Removing non-compliant revenue streams from permissible revenues
• Investing in real estate under a fund structure
o Types of real estate classes used in funds
o Calculating yield and return on investment
• Real Estate Investment Trusts (REITS)
o Advantage of REITS over funds
o Analyzing returns on REITs versus real estate funds
• Investing in real estate using PE structures
o Similarities between REITs and PE real estate investments
o Achieving higher returns using PE while managing risk
• Using leverage to enhance returns on any type of real estate investment
o Calculating returns at different leverage ratios
• Case Study: Islamic RE investments

 

Hedging Tools and Techniques in Islamic Finance Investment Management

• Hedging using legal structures:
o Evaluating counterparty risk
o Offshore legal structures to protect assets and minimize loss
• Using tools such as Waad and Arbun, Takaful

 o Applying these tools and instruments to manage risk
• Managing currency risk
o Managing currency risk exposure using Shariahcompliant
tools
o F/X forward sales and their permissibility

• Case Study: Deficiencies in modern risk management theories

 

Asset and Wealth Preservation Strategies

• Portfolio diversification
• Finding ‘safe’ assets
• Safe haven jurisdictions and currencies
• The best investments to hold during a crisis
• Case Study: Observing how portfolio diversification strategies performed during up and down markets and comparing the outcomes

Protection: Positioning Yourself and Your Assets to Prosper Regardless of the Economic Cycle

• Which assets and investments to buy based on cycle
o Inflation versus deflation hedges
o Are precious metals really a good hedge against
inflation?
o Comparing the returns of real estate, Sukuk, equities and commodities during down markets
• Which economic sectors will outperform based on cycle
o Looking at how different asset classes lead or lag in an economic cycle (hint: equities are typically the last to peak)
o How to identify which asset class will outperform based on its cycle
• Case Study: Islamic investments after the Global Financial Crisis

 

Course Conclusion