29 Jul 2024

Saturna’s Patrick Drum Featured Guest on CFA Society New York Podcast Compound Insights

News Article

Bellingham, WA, July 29, 2024 – Patrick Drum, MBA, CFA®, CFP®, portfolio manager and senior investment analyst at Saturna Capital, was a featured guest on the CFA Society New York podcast Compound Insights with host Robert Rowan. The episode “Major Changes for Sharia Bonds” aired on July 1, 2024, and examines the macro changes and research challenges presented by Islamic bonds, or sukuk.

Patrick Drum delves into the structure and function of Islamic-compliant financial certificates, more commonly known as sukuk. Mr. Drum notes that the sukuk market is approximately 850 billion US, which is currently estimated to be larger than the European Eurodollar conventional fixed-income market, and is comprised of approximately 27 different currencies. Mr. Drum provides insights into how sukuk, which adhere to Islamic law, present unique opportunities and risks for investors.

Patrick Drum elaborates on the structural differences between sukuk and conventional bonds, including their low volatility and risk-adjusted returns. He also discusses the sukuk market's primary currency players and their influence on global investment strategies. The episode addresses the challenges of researching sukuk, including the nuances of Islamic-compliance and the evolving standards set by organizations like the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Mr. Drum shares his experience with the research process, emphasizing the importance of understanding underlying asset structures and credit analysis.

The discussion touches on the impact of oil market fluctuations on sukuk performance and the broader economic diversification efforts within the Gulf Cooperation Council (GCC) region. Mr. Drum highlights how these efforts are reshaping investment dynamics and offering new opportunities for global 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.