Best Indonesia Sukuk Fund Expects Rating Boost: Islamic Finance
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Indonesia’s Islamic bonds may extend this year’s rally that drove yields to record lows on prospects of further ratings upgrades, according to the manager of the world’s best-performing sukuk fund.
PT Bhakti Asset Management’s BIG Dana Muamalah fund, which returned 13.4 percent this year, bought rupiah-denominated government sukuk in March, the same month Standard & Poor’s raised the nation’s rating to BB, two levels below investment grade. BIG Dana, the top performer in 2010 among 67 Shariah-compliant fixed-income funds tracked by Bloomberg, expects more Indonesian companies to sell Islamic bonds next year.