Albaraka Turk Value & Wealth Turkiye Sukuk Fund

Established in Bahrain as the first Turkiye-focused Sukuk fund of its kind, Albaraka Portfolio Management’s latest initiative, the Albaraka Turk Value & Wealth Turkiye Sukuk Fund, offers international investors diversified exposure through a Shariah compliant, open-ended structure.

Launched on the 4^th November 2025, and to be operational from the 29^th November 2025, this open-ended fund – with an initial US$50 million target size – invests primarily in Sukuk and Shariah compliant fixed income instruments issued by sovereign, quasi-sovereign and corporate entities.

Its portfolio may also include money market instruments, Shariah-labeled deposits, listed equities, derivatives, precious metals, asset-backed-securities and other approved structures, alongside cash holdings, shared General Manager Muhammed Emin Ozer.

The targeted securities are denominated in US dollar, euros, the Turkish lira or in other currencies pegged to the US dollar – with exposure capped at 40% of its NAV in any single country outside of Turkiye.

The fund seeks to maximize total return, combining profit income and capital appreciation, relative to its benchmark, the Bloomberg EM Turkiye TR Unhedged USD Index. Muhammed explained the partnership with SICO brings additional market expertise to support the fund’s long-term performance.

Participation is open to accredited investors, the minimum initial subscription is US$100,000, with subsequent investments of US$10,000, with the unit’s par value set at US$100. Investors are subject to a three-month lock-up period, after which redemptions may be made monthly.

Investment limits cap listed equity exposure at 20% of NAV and single-issuer exposure at 50%. Up to 80% of securities may be non-investment grade which are rated below ‘BBB’ – by agencies such as S&P or ‘Baa3’ by Moody's – which typically carry a higher risk of default but also offer higher yields.

“By imposing this restriction, the fund aims to maintain a balance between higher-risk assets and more stable, investment-grade securities, thereby protecting investors from excessive risk and promoting a more stable investment strategy overall,” explained SICO Group Head of Fixed Income Asset Management Manuel Shaker Almutawa.

Further, a maximum tenor of 10 years applies for certain securities that the fund can invest in as it mitigates interest rate risk to rate changes. Profit distributions will be made bi-annually, planned for June and December.

*Disclaimer: The opinions and viewpoints expressed in this Fund Profile do not constitute recommendations for any funds highlighted. The information presented is not investment advice and should not be treated as such.