A Sukuk model portfolio provides diversification, Sharia-compliant investment options, potentially stable returns, and reduced risk through exposure to different sectors and geographies.

The main risks include market risk, credit risk, liquidity risk, interest rate risk, regulatory risk, currency risk, and the performance of the underlying assets.

Sharia compliance is ensured by investing in Sukuk certified by reputable Sharia boards, adhering to Islamic finance principles, and conducting regular audits to maintain compliance.

Returns vary based on market conditions, the types of Sukuk included, and the performance of underlying assets. Historically, Sukuk portfolios offer competitive returns compared to conventional fixed-income investments.

Diversification is achieved by investing in different types of Sukuk, various sectors (e.g., real estate, infrastructure), multiple geographies, and varying maturities to spread and reduce risk.

Liquidity can vary; some Sukuk have active secondary markets, while others might be less liquid. Effective liquidity management within the portfolio helps meet redemption needs without significant loss.

While Sukuk do not pay interest, changes in market interest rates can affect their market prices. Generally, when interest rates rise, the market value of Sukuk may decrease, similar to conventional bonds.

Fees may include management fees, performance fees, and other administrative charges. It’s essential to review the fee structure to understand its impact on returns.

Performance is measured through returns generated from profit-sharing, lease payments, and capital appreciation, benchmarked against relevant indices and other fixed-income instruments.

The minimum investment amount is $100,000

Tax treatment of Sukuk varies by jurisdiction. It’s important to consult with a tax advisor to understand the specific tax implications in your country of residence.

Investors can monitor their portfolios through regular statements from online account access via Enigma’s counterparties, performance reports, and updates on market conditions and underlying assets.

Step 1: Enigma assesses whether you qualify as a professional client and pass our suitability assessment.

Step 2: Complete an Investment Management Agreement (IMA).

Step 3: Open an online trading account with one of our counterparties and deposit funds (subject to KYC/AML).

Step 4: Sign a Limited Power of Attorney (LPOA).

Step 5: Enigma will oversee and actively manage the purchase and management of the Sukuk funds.

Sukuk investments align with ethical and social responsibility by adhering to Islamic finance principles, which prohibit investments in industries such as alcohol, gambling, and tobacco. This ensures that the investments are socially responsible and ethically sound.

Typically, the portfolio is reviewed and adjusted periodically to maintain the desired asset allocation and manage risks effectively.

This model portfolio has been carefully designed to meet broad investment objectives and maintain optimal diversification. Therefore, it cannot be tailored to individual preferences; it follows a set standard.

Technology plays a crucial role in managing a Sukuk portfolio by enabling real-time monitoring, efficient trading, risk management, and performance analysis. Advanced analytics and automated systems help optimize portfolio management and enhance decision-making processes.