The new RHB-OSK Global Sukuk Fund - Series 1 is a close-ended Shariah-compliant fund that invests in a range of global Islamic fixed income instruments with at least 70 per cent of its net value invested in sukuk. The portfolio also includes Islamic commercial paper, acceptances and Islamic notes issued by corporations, financial institutions, supranationals, governments and their agencies worldwide. It aims to provide a 4.5 per cent annual return or the initial investment amount. 

RHBAM currently has around 10 per cent of its assets in Shariah-compliant investments. The company established its Islamic asset management arm in 2010. 

The fund's initial issue price is MYR1 per unit, with a minimum investment of MYR1,000 ($310). The offer period started on 16 June 2014 and will end of 30 July 2014. 

Sukuk is the term for Islamic finance equivalent of bonds; they are structured in such a way as to deal with the prohibition, under Shariah law, of interest payments for borrowing money. Last year, the World Islamic Funds and Financial Markets Conference was told that the global Sukuk market is expected to rise by more over 140 per cent to reach a total of $292 billion by 2016, admittedly still dwarfed by conventional bond markets in North America and Europe. One stumbling block for more rapid expansion has been the lack of a global standard on what sort of financial instruments are permissible under Shariah law, which bans activities such as charging of interest for money, and gambling. There are perceived differences between relatively liberal jurisdictions, such as Malaysia, and the more conservative counterparts, such as Saudi Arabia.