Lured By Halal Livestock? Banco de Brasil To Launch First Sharia-Compliant Fund
Banco do Brasil is planning to launch a Shari’ah-compliant fund in partnership with Singapore-based Islamic Bank of Asia. The fund will focus on stocks listed on the São Paulo Stock Exchange (Bovespa) and specifically in the commodities, mining, oil and gas sectors.
Islamic Bank of Asia is reported to be providing support in certification of the stocks in the portfolio, helping to define the rules for the proposed fund and assist in ensuring compliance with Shari’ah law. The fund will be managed in Brazil and marketed around the world.
Brazil is a significant exporter of Halal foods. In 2013 it shipped 1.48 billion tonnes of chicken to the Middle East. In January Abu Dhabi Equity Partners invested in a livestock financing programme to fund the fattening of 70,000 cattle heads – the equivalent of entire UAE’s annual import of beef.
Managing more than $237 billion in assets, BB DTVM – Banco do Brasil Asset Management – is the largest manager of third parties’ funds in Latin America. A wholly-owned subsidiary of Banco do Brasil S.A., BB DTVM was created in 1986 and since 1994 has consistently occupied the leading position in Brazilian financial funds industry, with a market share of approximately 21 per cent.
Originally published on www.albawaba.com