31 Jul 2024

Saturna’s Patrick Drum Article on US Dollar-Denominated Sukuk Market Published in ISFIRE Magazine

News Article

Bellingham, WA, July 31, 2024 – Patrick Drum, MBA, CFA®, CFP®, portfolio manager and senior investment analyst at Saturna Capital, article was published in the Islamic Finance Review (ISFIRE) Magazine, a leading journal in Islamic Finance topics distributed in over 30 countries. The article "Correlation and Asset Allocation Considerations: An Assessment of the US Dollar-Denominated Sukuk Market," delves into the evolving landscape of the global sukuk market, highlighting the specific attributes and potential of US dollar-denominated sukuk.

In his comprehensive analysis, Mr. Drum examines the significant growth of the global sukuk market, which surpassed $850 billion US by the end of 2023. The article provides a thorough evaluation of how US dollar-denominated sukuk fit into broader investment portfolios, offering a distinct perspective amidst a predominantly Malaysian Ringgit-focused research landscape.

Mr. Drum discusses how US dollar-denominated sukuk offer competitive risk-adjusted returns compared to other fixed-income benchmarks. The article emphasizes the appeal of this asset class, particularly due to the substantial capital reserves and hydrocarbon wealth of the Gulf Cooperation Council (GCC) countries.

The research shows that US dollar-denominated sukuk exhibit low correlation with conventional fixed-income indices and offer diversification benefits for investors. Mr. Drum’s findings suggest that sukuk can serve as an effective tool for balancing portfolios and managing risk, and sheds light on the often-overlooked segment of US dollar-denominated sukuk, providing valuable insights for both Islamic-compliant and conventional investors.

About Saturna Capital Corporation

Active Investing to Reflect Your Values

Saturna Capital Corporation, established in 1989 in Bellingham, Washington, USA, is a private, employee-owned investment adviser with US$8.9 billion in assets under management, providing investment advisory services to mutual funds, institutions, businesses, individuals, and endowments. Saturna Capital is adviser to the Amana Mutual Funds Trust, the oldest and largest family of funds in the US that follow principles of Islamic finance. Saturna Capital is also adviser to the US-based Sextant Mutual Funds and Saturna Sustainable Funds.

About the CFA Credential

The Chartered Financial Analyst (CFA) charter is a globally respected, graduate-level investment credential awarded by CFA Institute — the largest global association of investment professionals. There are currently more than 160,000 CFA charterholders working in 164 countries and regions. To earn the CFA charter, candidates must: 1) pass three sequential, six-hour examinations; 2) have at least four years of qualified professional investment experience; 3) join CFA Institute as members; and 4) commit to abide by, and annually reaffirm, their adherence to the CFA Institute Code of Ethics and Standards of Professional Conduct. For more information visit www.cfainstitute.org.