US-based fund management stalwart Janus Henderson is aiming to invest at least 1% of its current US$382 billion global assets under management (AuM) in the Middle East, growing its Shariah investments portfolio to meet this region’s rising client demand.
Meshal AlFaras, Head of Middle East, Africa and Central Asia at Janus Henderson, told IFN Investor the push came with the June 2022 appointment of CEO Ali Dibadj, who came to visit the Dubai office that Meshal established in 2012.
“We cannot just continue to be in one office in the DIFC (Dubai International Financial Center) with one or two people. We need to invest in the region,” Ali stressed then – which led to the May 2024 acquisition of National Bank of Kuwait’s alternative investments business.
NBK Capital Partners became the group’s new emerging markets private capital division “because it would take time to develop a new private credit unit and for it to get the track record and everything. It made more sense to acquire an existing reliable business,” explained Meshal.
While this acquisition provided a solid Shariah investment foundation worth several millions, Meshal said the AuM was still far from the target – given the 90-year legacy of Janus Henderson focusing on only managing traditional liquid assets, equities and fixed income instruments.
An internal review showed that roughly 5% of the Janus Henderson group AuM comes from the GCC region – with clientele being wealth funds, pension funds, private banks and family offices. This review revealed private credit to be a major focus and clients were also asking for more investment choices.
Responding to client demand, Meshal shared: “We are launching a private credit Shariah compliant fund in early 2025. The fund will be about US$400 million, which will be invested in this region.”
Meshal said the group is already working on other investment offerings – including leveraging on strong demand seen from GCC region clients for its Global Technology and Innovation Fund. “This fund essentially meets both sustainable and Shariah compliance requirements.”
Janus Henderson may create a global Sukuk fund, given the GCC region’s upcoming major infrastructure projects and needing significant requirements. “I see the future being here. If you look at Saudi Arabia, if you look at the UAE, in the similar path you have Oman and Kuwait is catching up.”
Another driver will be the July 2024 acquisition of European exchange-traded fund (ETF) provider Tabula Investment Management. “We have been very successful in the US, becoming the third largest ETF provider there. We want to replicate that internationally, including in the Middle East.”
Meshal said the Tabula expertise allows the Janus Henderson group to create and launch different flavors of ETFs – with a recent launch being focused on the Japanese market. “We have a gold ETF that’s not Shariah compliant yet and we’re looking to convert it.”
