(
Sukuk.net - Khaleej Times) An official of Emirates NBD Group's investment arm said his company is preparing to launch a third real-estate fund as soon as the negative market sentiment dies down, as he calls for a self-regulating body for fund managers.
"We'll wait for the market to settle down because the sentiment now is negative," said Deon Vernooy, the senior executive officer of Emirates Investment Services (EIS) Ltd.
"Otherwise investors may pull their money out and wait for stability."
Market conditions have to be conducive for investments and fund managers must be able to convince investors about potential returns before a product is launched, he added, saying the crackdown on corruption has affected investor confidence.
A number of former senior officials and other employees of big real-estate firms and a bank are undergoing investigation over alleged embezzlement and bribe-taking after a series of arrests made by the police in
Dubai.
Vernooy said that EIS is also looking at a specialist-equity fund in the Gulf region and one "special fund" to launch late this month or in November.
The equity fund could be Islamic or commercial, he added.
He stressed, meanwhile, the need for fund managers to sit down and discuss the creation of a mutual fund industry body to represent and govern the industry by organising the collection of data and standardising best practices.
A more regulated asset management sector will hasten its growth as a formal industry and protect investors better, he said, lamenting the lack of information and data that can help fund managers and investors grow the market.
EIS launched in April the Emirates Islamic Global Property Fund, which focuses on properties in Asia and Europe while shuns those in the US due to the subprime mortgage crisis.
Requiring a minimum $25,000 investment for individuals and $1 million for institutions, this is the seventh fund complying with Islamic rules launched by EIS.
In June 2005 the company launched the Emirates Real Estate Fund, its first Islamic fund that has since provided returns of about 16 per cent, EIS said in April.
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