All posts related to KL Conference on Islamic Wealth Management & Financial Planning 2016 - KLC-IWM-2016

Wednesday, 25 May 2016

Event Summary (KLCIWM2016) - KL Conference on Islamic Wealth Management & Financial Planning 2016

KL International Conference on
Islamic Wealth Management & Financial Planning

Date    : 1-2 June 2016
Venue : Grand Seasons Kuala Lumpur, Malaysia
“An international gathering of practitioners, scholars and experts to discuss and share their knowledge, expertise and experience on the principles, instruments and issues related to Islamic wealth management and financial planning to be held at the world’s leading Islamic financial centre…Kuala Lumpur.”

This 2-day conference will explore the key principles and avenues of Islamic wealth management which includes Islamic wealth creation, accumulation, protection, distribution and purification in the Wealth Management Cycle. This conference will enable individuals, investors and corporations to learn and understand more about the Islamic wealth management and financial planning from industry experts with wide spectrum of expertise and will be able to implement them. This conference will also be an excellent platform for networking and exchange of experience, ideas  and outlooks about the industry and services.

- Islamic Financial Planning & Wealth Management: Principles, Products & Services
- Sharing the Wealth Using Exchange Instruments
- Islamic Funds Management & Investment
- Retirement Planning: Managing Wealth for Golden Years
- Islamic Estate Management (Faraid, Wills, Hibah, Waqf)
- Risk Management and Takaful (Wealth Protection)
- Zakat: Wealth Redistribution and Purification
- The Need For Prudent Financial Management

- Financial planners
- Wealth advisors
- Financial consultants
- Bankers
- Insurance operators
- Unit trust agents
- Insurance / Takaful agents
- Remisiers
- Lawyers
- Academicians
- Entrepreneurs
- Other professionals


Ahmad Sanusi Husain
CEO & Chief Consultant, Alfalah Consulting
(Certified Islamic Financial Planner)

Others to be confirmed

Early Bird Fee: 
Registration with payment by 18 May 2016
Malaysian   :  RM1,500
International  :  USD600

Normal Fee:
Registration with payment after 18 May 2016
Malaysian  :  RM1,800
International  :  USD700
Special fee for Malaysian university lecturers :  RM1,000 (group discount not applicable)

Fee is inclusive of lunch, refreshments and seminar package only.

Group Discount:
Enjoy 10% discount for 3 or more delegates registered from the same organisation and the same billing source.





Grand Seasons Kuala Lumpur, Malaysia


Kuala Lumpur

DP World Raises $1.2 Billion From Sukuk to Fund Bond Buyback

DP World Ltd., the Dubai-owned company that operates ports from China to South America, raised $1.2 billion from the sale of Islamic bonds and said a tender offer to buy back securities received 48 percent more bids than the target.
The company sold a seven-year sukuk that will be priced to yield 237.5 basis points, or 2.375 percentage points, over the benchmark midswap rate, according to two people familiar with the deal, who asked not to be identified because the information is not public yet. The issue received more than $2.5 billion in bids, they said.
Money raised from the sale was meant to fund an offer to buy up to $750 million of DP World’s existing 2017 sukuk and for general corporate purposes, the company said earlier this month. The tender offer received $1.113 billion of valid certificates at its close on May 23 and DP World said it may buy all of them if it raises enough cash from the issue.
The offer for the 2017 securities was to pay $10,555 for every $10,000 of principal.
Bond sales from the six-nation Gulf Cooperation Council, which includes the two biggest Arab economies of Saudi Arabia and the United Arab Emirates, are accelerating as governments and companies seek funds following oil’s decline in the past two years. Offerings from the region have risen 28 percent to $16.7 billion, while Qatar’s government, Abu Dhabi’s Etihad Airways PJSC and its partners also plan to sell bonds this week. Dubai-based Noor Bank PJSC also raised $500 million from a perpetual sukuk today.

Citigroup Inc., Deutsche Bank AG, Dubai Islamic Bank PJSC, HSBC Holdings Plc, Barclays Plc, Emirates NBD Capital PJSC, First Gulf Bank PJSC, JPMorgan Chase & Co., National Bank of Abu Dhabi PJSC and Societe Generale SA are helping arrange DP World’s issue. Noor Bank, Samba Financial Group and Union National Bank PJSC have also been appointed co-arrangers.

(Bloomberg / 24 May 2016)
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Tuesday, 17 May 2016

Sukuk plays important infrastructure development role

Sukuk has played a significant role in promoting resilient infrastructure and sustainable economic development, and therefore should be boosted in the future, Finance Minister Bambang Brodjonegoro has said.
In his opening remarks at a seminar during the Islamic Development Bank ( IDB ) Group annual meeting at the Jakarta Convention Center ( JCC ) on Monday, Bambang said it was important for Islamic finance to contribute to the sustainable development goals ( SDGs ).
"Sukuk naturally controls the needs of financing, which are based on underlying assets. It also provides a protective mechanism and natural hedging, making the industry more sustainable," Bambang said.
He further said that sukuk had played a significant role in infrastructure financing. Aside from issuing sukuk for general financing, the government has issued sukuk to finance infrastructure projects, such as railways and toll roads.
"This kind of project financing assures the effectiveness of sukuk," he went on.
Bank Indonesia ( BI ) Governor Agus Martowardojo added that sukuk had been growing rapidly in the last few years. However, Islamic financing instruments must be developed.
Indonesia has been active in sukuk markets since it laid the groundwork for sukuk issuance in 2007. This year, Rp 110.9 trillion ( US$ 8.33 billion ) in sukuk was issued in the domestic and international markets, according to ministry data.

Sukuk made up 15 percent of total outstanding government securities as of April 29. It comprises six instruments across a wide range of tenors, sizes, coupons and investors. 
(The Jakarta Post / 16 May 2016)
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Islamic finance prepares rules for awqaf and zakat charitable funds

Islamic finance institutions will present a set of guidelines for Muslim charitable institutions later this month, as the industry looks to develop a more efficient use of their assets, an Indonesian central bank official told Reuters.
Islamic endowments (awqaf) and alms-giving (zakat) have been in existence for centuries and hold billions of dollars in assets around the globe, but they are often criticised for being poorly managed.
A set of guiding core principles for zakat has now been completed and will be unveiled at an upcoming United Nations summit in Istanbul, said Indonesian central bank deputy governor Perry Warjiyo.
Similar rules for awqaf are also in development, Warjiyo said on the sidelines of the annual meeting of the Islamic Development Bank Group being held in Jakarta.
Indonesia’s central bank is hosting some of the technical discussions for developing the core principles, as it hopes to strengthen the auditing function and professional management of such entities.
Reliable statistics are scarce, but awqaf are believed to hold large portfolios of real estate, commercial enterprises, cash, equities and other assets, with some estimates as high as $1 trillion worth of assets held globally.

In Indonesia alone, registered land from awqaf stands at 1,400 square kilometres with an estimated market value of around $60 billion, according to the country’s Ministry of Finance.
(Reuters / 16 May 2016)
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Monday, 16 May 2016

Bahrain Said to Raise $435 Million From Privately Placed Sukuk

Bahrain, whose junk rating was lowered by Moody’s Investors Service, tapped the dollar bond market for a second time in three months, according to two people familiar with the matter.
The Gulf nation appointed Noor Bank, Bank ABC and Kuwait Finance House to arrange a $435 million, privately placed Islamic offering, the people said, asking not to be identified because the information is private. The three-year debt will have a profit rate of 325 basis points over midswaps. Moody’s on Saturday reduced Bahrain’s long-term rating one notch to Ba2, two levels below investment grade.
The island state is attempting to shore up state finances pressured by low oil prices. Bahrain’s vulnerability to a decline in crude increased since 2009 when government expenditures started to rise in response to the global economic slowdown and civil unrest in the country. The sovereign last tapped the dollar bond market in February when it raised $600 million, a week after S&P Global Ratings cut the nation’s credit grade to junk.

Spokesmen for Bahrain’s central bank, Kuwait Finance House and Bank ABC didn’t immediately respond to calls or e-mails. No one at Noor Bank was immediately available for comment.

(Bloomberg / 15 May 2016)
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Gold may fuel Islamic finance

With the Islamic finance industry set to be worth US$3 trillion in the next decade, gold could be a catalyst for its growth with the setting of new regulations that will allow Islamic investors for access to gold-based products for the first time.
The market development body, the World Gold Council (WGC), which is based in London and the Islamic standard setting body, the Accounting and Auditing Organisation for Islamic Financial Institutions (Aaoifi), based in Bahrain, are working on a draft of the standard that would galvanise the $2n Islamic finance industry.
“Consumers more or less have been confined to investing in bars and coins because that’s the only area where the rules are clear," says Natalie Dempster, the WGC’s managing director of central banks and public policy.
“It [the standard] could fundamentally change the way in which Islamic countries access gold."
A final draft is expected to be published in the next few months, to be followed by a period of public consultation, says Ms Dempster. The standard could be issued in the fourth quarter, prompting its adoption and unleashing hundreds of tonnes of extra demand for gold, she adds.
“This is the most significant game-changer for the gold market since the Washington Agreement in 1999, whereby 15 central banks pledged to coordinate and limit their activities," says Matthew Keen, the founder of the Dubai consultancy Evidens. “The price of gold has quadrupled since that agreement was formed."
The Washington agreement limited the amount of gold that several major European central banks can collectively sell in any one year, helping to stabilise the gold market. The price of gold in 1999 was $290.25 an ounce. Now it is trading above $1,266 an ounce.
“I would expect billions of USD equivalent to be made available towards the global gold markets, keeping in mind that gold as an asset class has, anyway, a strong presence in a near zero interest rate environment," says Gerhard Schubert, the founder of Dubai’s Schubert Commodities Consultancy.
The fact that the Aaoifi is working on the standard will speed up its adoption worldwide because the regulations issued by the body are widely accepted, analysts say.
The divisive view of gold as a commodity or currency will also be clarified in the standard, which will take into consideration both aspects of the metal.
“Gold can only be bought and sold on spot/cash basis, there can be no deferred payment for any purchase of gold, and there are specific rules on the use of gold as a commodity or currency," says Megat Hizaini Hassan, the head of Islamic Finance Practice at Lee Hishammuddin Allen & Gledhill in Kuala Lumpur.
“Thus having a Sharia standard on gold would help contracting parties to know what specifically they can or cannot do with gold."
Gold has had a lustrous start to the year, rising by about 20 per cent year to date on the back of the low interest rate environment and flight of investments to a haven asset.
Gold’s rally this year follows three consecutive years of losses, its longest rout in more than 30 years.
Demand for gold rose in the fourth quarter of last year 4 per cent to 1,117.7 tonnes, led by central bank purchases, the WGC says. Central banks are buying the bullion to diversify their asset portfolios amid wobbly global economic growth and plunging commodity prices.
For the full year, gold demand fell 14 tonnes to 4,212.2 tonnes, a level on par with demand for 2010, the WGC adds.
Although Islamic investors have missed the gold train, the new standard will help them channel their money into products such ad gold exchange traded funds (ETFs), gold accumulation accounts and gold savings accounts, analysts and officials say.

ETFs are funds that are listed on an exchange, tracking indices and behaving like stocks.
“[The standard] makes it easier and more cost efficient for banks and financial institutions to issue gold products," says Ms Dempster.
“At the moment, if you want to invest in Sharia-compliant assets, the universe of assets that you have to choose from is actually quite small."
Currently most Islamic investors funnel their money into equities, property and sukuk or Islamic bonds.
“Although the price of gold can prove to be volatile in the short term, it’s always maintained its value over the long term," says Samina Akram, the managing director of London’s Samak Ethical Finance. “Investing in physical gold or mining stocks, I feel, will prove popular for investors in coming years. I would even argue further, values of currencies are declining as fiat money has no intrinsic value, and physical gold could be one of possible remedies to the global financial crises."
Gold could be used as an underlying asset for a number of products, including sukuk.
Islamic banks could also use gold as a high-quality liquid asset (hqlas) to comply with more stringent Basel III banking standards that are being phased in. High-quality liquid assets can be composed of cash, or assets that can be converted into cash at little or no loss of value in private markets to meet a bank’s liquidity needs.
“Since the financial crisis, banks have been required to set aside pockets of so-called high-quality liquid assets to protect them against another systemic liquidity crisis," says Ms Dempster.
“Basel gave national supervisors in Islamic jurisdictions the right to define high-quality liquid assets themselves. And I think gold will fit very well there. It is an extremely liquid market."
But the adoption of the standard could face a few bumps.
Banks should be willing to adopt the standard and dedicate time and effort to create products that investors want.
“The Islamic community will only be able to take advantage of this if the banks, both Islamic banks and regular banks, are prepared to deliver products to their clients, Islamic or otherwise," says Mr Keen.
“If the banks don’t do anything to take advantage of this, then nothing changes.
(The National Business / 15 May 2016)
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Saturday, 14 May 2016

Malaysia: Sukuk market holds potential,but devoid of retail players

KUALA LUMPUR: The sukuk market has a lot of potential as an asset class, but is currently dominated by institutional investors with little opportunities for retail players, a forum was told yesterday.
OCBC’s consumer financial services chief Lim Wyson said sukuk provides predictability of yields, which is especially looked for by investors in a volatile market.
“It is not so volatile compared to equities,” he said at a talk on Islamic wealth management at the Global Islamic Finance Forum 5.0.
Lim stressed, however, that the “depth and width” of the sukuk market need to be developed.
“If you are able to widen and deepen the sukuk issuance, you can tap into the private wealth management part of the business,” he said.
Speaking to reporters later, Lim said most of the time, institutional investors are the first to buy during a sukuk issuance. 
“Then there is left very little for the retail side. So one of the areas [to look into] is bigger development in terms of the number of issuance, liquidity so that retail investors have access to it,” he added.
Lim said the creations of more unit trusts with sukuk-investor type of funds will provide access for investors to participate in sukuk through a unit trust format.
“This is relating to investment mandates. Most of the syariah invested funds here are very concentrated in Malaysia or have a big allocation in Malaysia.
“What we are trying to find is more globally invested type of unit trust that is syariah-tied, that we will be able to give to our clients.
“That is the opportunity that we see, if we have more globally diversified mandates that are not so biased in terms of the heavyweight allocation to Malaysia. That is a demand seen in the market,” he added.
According to RAM Rating Services Bhd, global sukuk issuance totalled US$66.4 billion last year, with Malaysia being the world’s largest sukuk market.
In March 2015, Malaysia’s sukuk issuances accounted for 58% of the global US$308 billion outstanding sukuk.
Another speaker, Employees Provident Fund chief executive officer Datuk Shahril Ridza Ridzuan, said there has been limited growth in the global issuance of sukuk to certain issuing markets and issuers.

“Hopefully, if we can move away from this preoccupation with syariah financing purely on faith-based systems towards sustainability, then I think that’s the right way forward to improve growth of this market.
(The Edge Markets / 13 May 2016)
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Zakat Foundation’s Super 17 shine at civils

Aligarh: It was a day of fireworks at New Delhi's Mukherjee Nagar-based Zakat Foundation - an organization devoted to increasing the number of civil servants in India, whose 17 candidates made to the final list of civil services examination on Tuesday. The organization, which selects candidates for coaching after an exam conducted at centres situated in areas of concentration of Muslim population, had coached a total of 35 candidates. Significantly, 16 of its students had also cleared the prestigious exam even last year.

The candidates who cleared the exam this year include Farha Husain from Rajasthan, Mohd Arshad from Jharkhand, Ansar Ahmad Shaikh from Maharashtra, Minhajuddin Nizami, Ashar Ahmad, Arish Bilal from Uttar Pradesh, Anna Sosa Thomas, Benson Samuel, Dr Ibson Shah and Ashif Anakarth from Kerala, Asim Anwer from Karnataka, Syed Junaid Adil, Dr Bashit Qayoom, Dr Bilalwal Shafeeq Chowdhury, Shakil Ahmad Ghani, and Deeba Farhat from Jammu and Kashmir and Hussain Mehedi Rahman from West Bengal.

The organistaion's founder, Zafar Mahmood, who was in Aligarh to encourage and inspire AMU students to prepare for civil services exam, told TOI, "Political representation of Muslims is very low because constituencies of Muslim majority areas are mostly reserved for SC/ST candidates. The Sachar Committee had asked for referring this anomaly to the Delimitation Commission. Similarly, sufficient number of Muslims are not appearing for civil services exam after a well-directed training. . The effort needs to be made by sincere community leaders and well-wishers."

Explaining the way the foundation picks up talent and nurtures them for the country's top exam, Mahmood, himself a civil servant who took voluntary retirement in 2009, said, "The candidates are taken only after they clear the foundation's in-house exam. The exams are conducted in Kerala, Jammu and Kashmir and in Kolkata keeping the concentration of Muslim population in mind and also the fact that the potential of people in these regions is very good. Then a test is held in Delhi for the Muslim aspirants from the rest of India. After the results are out, good performers are taken in and are provided with residential as well as coaching facilities in New Delhi's Mukherjee Nagar. A monthly report card of each candidate is maintained to track his or her performance."

Since Independence, there have been just four Muslim toppers of civil services exam and one of them, Shah Faesal from Kashmir who topped the exam in 2009, was coached by this foundation.

According to Mahmood, a lack of information and confidence in the system has led to disinterest of Indian Muslims in the civil services exam. "Ever since I joined the services in 1977, I made it a point to visit AMU, Jamia Milia Islamia and other minority institutes to encourage Muslim students for taking the exam. I met students and encouraged them to become part of the policymaking system and governance," he said.

(The Times Of India City / 10 May 2016)
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Indonesia: BI urges Islamic finance industry to enhance human capital

Bank Indonesia ( BI ) has urged Islamic financial institutions to enhance their human capital in order to improve competitiveness and sustain the industry’s rapid growth.
"If we want to see the Islamic financial sector on par with its conventional counterpart, it is relevant to improve the human capital," BI deputy governor Hendar told a seminar on human capital development held at BI’s offices in Jakarta on Friday.
Hendar added that Islamic financial institutions had achieved significant growth, surpassing the growth of conventional financial institutions even during the global economic crisis.
Despite this achievement, the industry was still facing a low quality of human capital, resulting in relatively low operational efficiency and poor product knowledge, he said.
"We should pay more attention to the low quality of human resources. This unfortunate phenomenon has affected many countries, including Indonesia," he said.
To enhance human capital, industry players needed to address crucial factors. Universities needed to provide teaching materials that combined Islamic and regular education with technology-based development and needed to build strong cooperation with global institutions.
Meanwhile, Ali Ghufron Mukti, director general for science, technology and higher education at the Research and Technology and Higher Education Ministry, added that to achieve global competitiveness, industry players needed to improve technological readiness, innovation and higher education.
"In the era of ASEAN Economic Community, human resources, undoubtedly, play an important role to enhance the competitiveness of the country. Hence, the ministry encourages individuals and organizations to conceptualize and make strategies to enhance human capital," he said, adding that vocational education was necessary beside academic education.

He said priority sectors to focus on were energy and renewable energy, health care, transportation, defense and maritime industries.
(The Jakarta Post / 13 May 2016)
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Wednesday, 11 May 2016

Boubyan Bank’s sukuk issuance oversubscribed, reaches $1.3bn

Mr. Adel Abdul Wahab Al-Majed, Boubyan Bank’s Vice Chairman and CEO, stated: “Thanks to God, the Bank succeeded locally and internationally in covering the subscription in its capital enhancement sukuk which was oversubscribed by more than 5 times the targeted amount, reaching US$ 1.3 billion. This was achieved during a marketing period that did not exceed two weeks from the date of obtaining the regulatory approvals from the Capital Markets Authority and the Central Bank of Kuwait. The marketing campaign was launched by the Bank in Kuwait as well as the international financial capitals and Boubyan Bank issued US$ 250 million sukuk, priced at 100%, which will bear profit at a rate of 6.75%.”
“Succeeding in covering the sukuk issuance which aims at enhancing the capital base via Tier 1 capital instruments reflects the trust of local and international investors in the future of Boubyan Bank in light of the Bank’s achievements during the past years and its successes which encouraged such investors.”, Al-Majed added.
Al-Majed went on to add: “We take pride in our achievement not only because this represents a success for Boubyan Bank, but also because this success is similarly attributed to the Islamic financial industry, and as it highlights the investment environment in the state of Kuwait, in general, being one of the countries that enjoy the necessary elements to attract global investors in light of the availability of new opportunities such as Boubyan Bank’s sukuk.”
Al-Majed did not forget to praise the role played by Boubyan Capital, Boubyan Bank’s investment arm, whose efforts were crowned by success in managing the sukuk issuance which represented the company’s first and most important test on the international arena where the company succeeded in arranging, managing and marketing Boubyan Bank’s sukuk within record time for this important issuance and in a very professional manner.
On the other hand, Mr. Saleh Al Ateeqi, Chief Executive Officer of Boubyan Capital, stated: “Boubyan Capital believed that the first sukuk issuance to be managed by the company should be the one of Boubyan Bank because this is a very unique event, being the first issuance of sukuk in the world for the enhancement of Tier 1 Capital in compliance with the requirements of Basel III. The importance of this sukuk issuance emanates from the fact that it is the first one in Kuwait since 2007 in addition to being the first sukuk issued by a Kuwaiti Bank to enhance Tier 1 Capital.”

“Despite the circumstances surrounding the international economy and the concerns of investors which drive them away from entering into investment opportunities, the company managed, thanks to God, with its young national cadres and expertise, to market the sukuk within a record time and succeeded in managing the issuance.”, he added.

(Kuwait Times / 11 May 2016)
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