Afrinvest Asset Management Woos Investors with N2.5bn Halal Fund 

Kayode Tokede

Afrinvest Asset Management Limited, one of the subsidiaries of  Afrinvest, yesterday launched a N2.5 billion Halal fund, targeted at bridging the gap between faith and finance.

The Halal Fund is an open-ended unit trust scheme offering 25 million units at N100 per unit, totaling a public offer size of N2.5 billion.

Speaking at the unveiling press conference  in Lagos, the Group Managing Director, Afrinvest, Mr. Ike Chioke noted that the  Halal Fund was necessary to attract more investors who seek to invest in Shariah compliants instruments.

He expressed that there is high appetite for Halal Fund, focused on ethical investment, calling on other investment advisors to join and create products that meet the tenants of Islamic finance that support other faith based investors.  

Managing Director, Afrinvest Asset Management Limited, Mr. Chris Omoh noted  that the fund is specifically aligned to people who want to invest their money in a particular instrument that protects their faith.

He noted that part of investing in the Afrinvest Halal Fund is aimed to serve as an income generation opportunity. 

“The profit that is generated from these businesses are shared across unit holders.  So everyone that is a unit holder  also earns income from this particular investment.,” he said.

He added that the fund to investors also serves as diversification which include fixed income, equities and other Shariah compliant instruments.   

“An investors can invest in Sukuk issued by state governments  and corporate entities. An investor can also invest in quoted equities,  which are shariah compliant,” Omoh added. 

 Earlier, the Senior Business Development Manager, Afrivest, Mr. Kabir Ibrahim in a presentation  stated that the fund is designed for investors who wish to grow their wealth in accordance with Islamic principles, most especially in the Northern part of Nigeria.

“We wanted to make sure we have the right product for all the markets, particularly, the northern market. But indeed, ethical funds are available for everyone because the issues that is fund deals with is applicable regardless of your religious need

The fund adheres strictly to Shari’ah investment guidelines and is supervised by an Advisory Committee of Experts (ACE), a body comprising renowned Islamic scholars with both national and international experience.  The ACE issues a certificate of compliance annually, ensuring the Fund’s alignment with Shari’ah ethical standards.”

He noted that the fund is targeted at all classes of investors, especially investors with faith-based shariah principles for income generation.

According to him, the fund is expected to be invested in three asset classes that include fixed income, equities and other investments.

“About  70-100 per cent of the fund is targeted atShariah compliant fixed income instruments (FGN sukuk, State Sukuk, Corporate Sukuk), while 0-30 per cent goes into quoted stocks – Shariah and ethically compliant companies and 0-25 per cent other Shariah compliant investments such as ijarah sukuk etc,” he said.

He stated that the minimum an investor can invest is 100 units (subsequent multiples of 10 units) and the benchmark is 10 years Federal Government of Nigeria Sukuk (FGN Sukuk).

Units can be redeemed on any business day by submitting a form to the fund manager. Payment will be made within five business days based on the applicable Bid Price.”

On redemption policy, he said, “A 3-month (90-day) investment lock-in period applies from initial registration. Early redemption within the 90 days incurs a 1.5per cent charge on the income earned.”

Ibrahim  stated that the fund is not only timely but strategic, offering several key advantages that include: shari’ah compliance, ethical income generation, diversification, professional oversight, accessibility and free entry /exit.

“With the Afrinvest Halal Fund, we are not just launching another investment product. We are creating a bridge between faith and finance, between belief and opportunity. It is our belief that every Nigerian, regardless of religious or ethical orientation, deserves a product that aligns with their values, grows their wealth, and sustains their future,” he added.