Lion Global Investors (LGI) and BIBD Securities Sdn Bhd (BIBDS), a Brunei shariah-compliant securities firm, have launched the Lion-BIBDS Islamic Income & Growth fund, a shariah-compliant, actively manged multi-asset product designed to provide investors with regular income and long-term capital appreciation through globally diversified and ethically aligned investments, according to LGI.

The fund is the second collaboration between LGI and BIBDS, following the inception of the Lion-BIBDS Islamic Enhanced Liquidity fund in March 2024.

The new fund allocates about 70% to shariah-compliant global equities to capture growth opportunities, and 30% to shariah-compliant fixed income instruments to support income generation and capital preservation. The portfolio may also hold cash, cash equivalents and Islamic liquidity.

To achieve broad diversification, the fund may invest in a range of shariah-compliant collective investment schemes and exchange-traded funds (ETFs), including global Islamic equity and fixed income strategies deemed permissible by its shariah advisory body.

The fund may also allocate a small portion of its assets to shariah-compliant gold ETFs as an additional diversification tool.

Investors can choose between accumulation or quarterly income distribution options, and all income distributions will be subject to a “shariah-guided dividend purification process to ensure continued alignment with Islamic investment principles”.

Teo Joo Wah, CEO, Lion Global Investors said: “Building on the strong foundation of our first collaboration with BIBDS in 2024, this next step allows us to bring together income and growth in a single, globally diversified Shariah-compliant portfolio. We are pleased to deepen our partnership with BIBDS and to support investors in Singapore, Brunei and the wider region in achieving their long-term financial goals in a manner consistent with their values.”

Jason Wong, managing director of BIBD Securities said: “The Lion-BIBDS Islamic Income & Growth fund gives our clients globally diversified exposure with the potential for sustainable income and long-term capital growth, while staying true to the Shariah principles that guide us.”