Mark Mortimore Appointed as Executive Director to the World's First GCC-oriented Sukuk Fund
He will be responsible for managing the Islamic bond fund in accordance with its investment and Sharia compliance criteria. Mr. Mortimore has a professional track record that encompasses senior management positions with Barclays Bank, Manufacturers Hanover Bank, GE Capital, Riyad Bank, United Bank of Kuwait and Arab Banking Corporation. He is an expert in structuring asset-backed finance transactions and has worked for 25 years in the banking markets of North America, Europe and the GCC region. His Middle East banking experience began in 1993 when he was based in Riyadh, Saudi Arabia, where he worked as a senior corporate banking officer. Mr. Mortimore now has specialised in Islamic Finance for ten years and has extensive experience in Islamic fund management and structuring Ijarah, Sukuk and Murabaha transactions.
The Managing Director of Encore Management S.A. , John A. Sandwick, commented on the assignment: “We are extremely pleased to appoint Mark Mortimore for this key position. He has a wealth of experience and substantial network across the industry, and with him we are going on a fast path to establish the much needed world`s first GCC-open ended Sukuk fund.”
Mark Mortimore has successfully executed a number of ground-breaking Islamic asset financings including the world’s first Sharia-compliant Ijarah agreement on a large fleet of inter-modal shipping containers; the first combined Islamic Sukuk and conventional financing structure for a single shipping asset; and the first major Murabaha installment sale contract on heavy equipment for use by a significant construction company in north Africa.
John A. Sandwick, concludes, “Mark’s extensive experience in the Islamic banking industry adds tremendous value to our Sukuk fund. This clearly demonstrates that the fund has the ability to close a major gap in the market, with its investments in Sukuk and Islamic commercial syndications being equivalent to a bond fund in conventional investing.”
An important effect of the fund’s launch will be the impact on Sukuk market activity. In all of 2005 there were only about $60 million in GCC-style Sukuk secondary market transactions, a tiny fraction of the estimated $15 billion of Sukuk that were outstanding at the end of last year. With the introduction of the Sanad Sukuk Fund—targeted to reach at least $100 million or more in size—secondary market trading should substantially increase. Economists the world over point out that increased market trading and liquidity of all securities is a core component of economic development, fostering increased issuance of securities and thereby contributing to economic growth.
Note to Editors:
Sukuk, the plural of the Arabic word Sakk, means “certificate” or sometimes “credit note.” It is also the root for the English word “cheque.” Sukuk replace interest income with rent or profits; they are therefore the alternative for Muslims seeking a stable income complying with their faith. Sukuk finance real economic activities and, depending on the underlying structure, they are tradable at market value from the Islamic perspective. Secondary market trading is still weak in the GCC region, as Sukuk are relatively new. Significant new Sukuk issuance has only recently increased, while near-term expected new issuance is expected to increase dramatically. Japan, China and Indonesia are among many market entrants expected to enter the Sukuk market in 2007, while at least 100 or more companies based in the Arab world are believed to be readying new Sukuk issues.
About Sanad Investment Co. Ltd.
Sanad Investment Co. Ltd. -- or the Sanad Sukuk Fund -- is the first GCC-oriented Sukuk fund in the world. It will provide both stable income and liquidity for Muslim investors. It closes the significant gap for Muslim investors in their asset allocation by finally providing a bond-like investment vehicle that is fully sharia compliant. All investments made by the Sanad Sukuk Fund will be in not less than 75% Sukuk and maximum of 25 % regional sharia-compliant credit syndications, predominantly in the GCC countries. Expanding the Sukuk market by creating a Sukuk fund directly leads to increased economic development in the GCC region. The fund is being domiciled in the Cayman Islands, as is its manager Encore Fund Management Co. Ltd., a wholly owned subsidiary of Encore Management S.A. in Geneva, Switzerland. The Sanad Sukuk Fund targets institutional and individual investors of all kinds. The fund’s website -- www.sanadfund.com -- will be launched alongside the fund itself
About Encore Management S.A.
Encore Management S.A. was founded in 1998 to serve private clients in the management of their family long-term savings, whether through portfolio investments, private equity, or real estate. The firm has established deep institutional relationships in Switzerland, in particular working in partnership with UBS S.A., the world’s largest asset management bank. Encore’s principles are bankers of long standing in the Swiss private banking and asset management businesses. The company remains very active in the Islamic banking space, and has frequently promoted increased transparency and sharia-compliant securities development through conferences and both print and electronic media. Encore’s wholly owned subsidiary -- Encore Fund Management Co. Ltd. -- was created to manage the new Sanad Sukuk Fund, as well as other future Islamic strategy portfolios.
Issued on behalf of Sanad Investment Co. Ltd.
Author Information
Michael Gassner
MICHAEL GASSNER CONSULTANCY
