Page 40 - ICD AR21 EN

3.7 ASSET MANAGEMENT
ACTIVITIES
The primary goal of ICD’s Asset Management business is to create an enabling environment for the growth of Islamic finance (via the Fund Management Program and Client Advisory Services) and build partnerships with the private sector to:
1 ENHANCE RESOURCE
MOBILIZATION
The primary goal of
ICD’s Asset Management business is to create an enabling environment for
the growth of Islamic finance.
CREATE A 2 SIGNIFICANT
MULTIPLIER EFFECT
CONTRIBUTE
TOWARDS THE 4 SOCIAL ECONOMIC DEVELOPMENT OF
THE PRIVATE SECTOR
IN ICD's MEMBER COUNTRIES
ASSET MANAGEMENT ACTIVITIES
3
3.7.1 Fund Management Program
The main objective of the ICD Fund Management Program is to build ICD’s general partner (GP)
business and launch new “self-selling” products
(or Funds) with a focus on in-house funds aligned
with ICD’s core competencies and track record. Our products encompass fixed income, capital markets
and alternative assets which are complemented with client advisory services that are designed to provide tailored and effective asset management solutions
to clients including business development, portfolio management and operations related support. The key goal is to increase financial sustainability via developed high-performance and attractive products that generate optimal risk-adjusted returns, enhance the fee business (i.e. resource mobilization) and boost development impact. At present, two in-house managed funds exist within the program: the ICD Unit Investment Fund (UIF) and the ICD Money Market Fund (MMF).
DEVELOP ISLAMIC FINANCE CHANNELS
38 ICD ANNUAL REPORT 2021
3.7.1.1 ICD Unit Investment Fund (UIF)
The principal objective of ICD’s Unit Investment Fund (UIF) is to achieve competitive, periodic returns by investing in viable and socially responsible investments (primarily corporate, trade and treasury instruments)
in conformity with the principles of Shari’ah and the Investment Policy of the Fund. At present, the fund is winding down some of its operations and investments and the process is being managed in a way that is designed to protect and maximize the interest of the investors. Since its inception, the Fund has mostly outperformed its benchmark, generating a cumulative return of around 141% to investors over its almost
30 years of existence.
By end of 2018, ICD in its capacity as Fund Manager of UIF had concluded that the Fund had reached closure in terms of its objectives. Due to its natural lifetime and the market sentiment, it was decided that a liquidation