Franklin Global Sukuk
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Brief information: Franklin Global Sukuk Fund is an open-end fund incorporated in Luxembourg. The Fund aims to maximize, consistent with prudent investment management, total return through income and capital appreciation. The fund invests in fixed and floating Shariah-compliant securities and short-term instruments issued by governments and corporations in developed and developing countries.
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Introduction to Franklin Global Sukuk Fund:
The Fund aims to maximise, consistent with prudent investment management, total investment return, consisting of a combination of profit income and capital appreciation, by investing principally in a portfolio of fixed- and floating-rate Shariah-compliant securities (including non-investment grade securities), including Sukuk, Murabaha and Wakala placements and other short-term instruments issued by government, government-related and corporate entities located in developed and developing countries.
What are you investing in?
You are investing in a type of investment fund, UCITS, based in Luxembourg. The purpose of this fund is to help you grow your investment by investing in technology companies’ stocks.
The fund may also distribute some of its earnings to investors, but this distribution is subject to legal and regulatory requirements. If distributions are made, the fund’s value, known as the net asset value (NAV), will decrease by the amount distributed.
Top 10 Holdings | Weight % |
---|---|
KSA Sukuk Ltd | 4.80 |
Saudia Electricity | 3.56 |
SA Global Sukuk | 3.13 |
Maldives Sukuk Issuance | 2.79 |
Hong Kong Sukuk 2017 | 2.51 |
TMS Issuer S.A.R.L, Reg | 2.47 |
Arab National Bank | 2.43 |
DP World Salaam | 2.33 |
Malaysia Govt Investment | 2.20 |
Perusahaan Penerbit SBSN | 2.19 |
Lipper Leader Rating
Overall | 3 Years | |
Total Return | 4 | 4 |
Consistent Return | 3 | 3 |
Preservation Return | 4 | 4 |
Expense | 1 | 1 |
How do you grow your money by investing in Franklin Global Sukuk Fund?
Opportunities and capitalize on the advancements and innovations in the sector.
Investors in Franklin Global Sukuk Fund have the potential to participate in the growth of global technology companies while adhering to Shariah-compliant investment principles. The fund’s structure allows for liquidity, as it is open-ended, and it aims to generate capital appreciation over the long term.
What makes Franklin Global Sukuk Fund Shariah Compliant?
Business Activity Screening
Sharia investment principles do not allow investment in companies which are directly active in or derive more than 5% of their revenue (cumulatively)2 from the following activities (“prohibited activities”):
- Alcohol
- Adult Entertainment
- Cinema
- Conventional Financial Services1
- Defense / Weapons
- Gambling / Casino
- Hotels
- Music
- Online Dating2
- Pork related products
- Tobacco
For Financial Screening
Sharia investment principles do not allow investment in companies deriving significant income from interest or companies that have excessive leverage. MSCI uses the following three financial ratios to screen for these companies:
- Total debt over total assets
33.33% 30.00% - Sum of cash and interest-bearing securities over total assets
33.33% 30.00% - Sum of accounts receivables and cash over total assets
33.33% 30.00%
Analysis of Franklin Global Sukuk Fund:
Analysis | Over 1 Year | Over 3 Year |
Alpha | -0.63 | -0.27 |
Annualized Standart Deviation | 4.46 | 3.59 |
Beta | 0.15 | 0.25 |
Correlation | 0.32 | 0.26 |
Information ratio | -0.49 | -0.26 |
Max Drawdown | -6.04 | -9.20 |
R/R Ratio | -0.23 | -0.12 |
R-square | 0.10 | 0.07 |
Sharpe ratio | -0.49 | -0.26 |
Sortinio | -0.33 | -0.22 |
Tracking error | 1.29 | 1.06 |
Treynor ratio | -2.03 | -0.25 |
Value at Risk normal | -2.41 | -1.83 |
Value at Risk normal ETL | -2.95 | -2.26 |
Value at Risk Quantile | -3.16 | -1.65 |
Variance | 1.66 | 1.07 |
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Alpha conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has exhibited negative Alpha values of -0.63% over the past year and -0.27% over the past three years, indicating underperformance compared to its benchmark index.
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Annualised Standard Deviation Conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has had an annualized standard deviation of 4.46% over the past year and 3.59% over the past three years, indicating its level of volatility or risk.
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Beta Conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has a beta of 0.15% over the past year and 0.25% over the past three years, indicating its historically lower volatility than the overall market.
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Correlation conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has a correlation of 0.32% over the past year and 0.26% over the past three years, indicating a relatively weak relationship between the fund’s returns and its benchmark.
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Information ratio Conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has an information ratio of -0.49% over the past year and -0.26% over the past three years, indicating underperformance relative to the benchmark on a risk-adjusted basis.
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Maximum Drawdown Conclusion of Franklin Global Sukuk fund:
The maximum drawdown for the Franklin Global Sukuk Fund was -6.04% over the past year and -9.20% over the past three years, representing the largest decline in its value during those periods.
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Risk Reward Ratio Conclusion of Franklin Global Sukuk Fund:
The R/R (Risk/Reward) ratio for the Franklin Global Sukuk Fund was -0.23% over the past year and -0.12% over the past three years, indicating a negative relationship between risk and reward during those periods.
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R-Square Conclusion of Franklin Global Sukuk Fund:
The R-squared value for the Franklin Global Sukuk Fund is 0.10% over the past year and 0.07% over the past three years, indicating a relatively low correlation between the fund’s returns and its benchmark index during those periods.
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Sharpe Ratio Conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has a Sharpe ratio of -0.49% over the past year and -0.26% over the past three years, indicating a negative risk-adjusted return during those periods.
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Sortino Ratio Conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has exhibited poor risk-adjusted returns as indicated by its negative Sortino Ratios of -0.33% for one year and -0.22% for three years. These ratios suggest that the fund has not adequately compensated investors for the level of downside risk taken.
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Tracking Error Conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has a tracking error of 1.29% over the past year and 1.06% over the past three years, indicating the degree of deviation in returns compared to its benchmark index.
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Treynor Ratio Conclusion of Franklin Global Sukuk Fund:
The Franklin Global Sukuk Fund has a Treynor ratio of -2.03% over the past year and -0.25% over the past three years, indicating negative risk-adjusted returns relative to its systematic risk during those periods.
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Value at Risk Conclusion for Franklin Global Sukuk Fund:
The one-year Value at Risk (VaR) for the Franklin Global Sukuk Fund, assuming a normal distribution, is -2.41%, while the three-year VaR is -1.83%. VaR represents the estimated maximum potential loss at a specified confidence level.
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Value at Risk Normal ETL Conclusion for Franklin Global Sukuk Fund:
The one-year Expected Tail Loss (ETL), assuming a normal distribution, for the Franklin Global Sukuk Fund is -2.95%, while the three-year ETL is -2.26%. ETL represents the average potential loss beyond the specified confidence level.
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Value at Risk Quantile Conclusion for Franklin Global Sukuk Fund:
The one-year Quantile-based Value at Risk (VaR) for the Franklin Global Sukuk Fund is -3.16%, while the three-year VaR is -1.65%. VaR represents the estimated maximum potential loss at a specific confidence level.
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Variance Conclusion Franklin Global Sukuk Fund:
The variance of the Franklin Global Sukuk Fund is 1.66% over the past year and 1.07% over the past three years, reflecting the level of dispersion or volatility in its returns during those periods.
Is Franklin Shariah Global Sukuk Fund regulated?
Yes, Franklin Shariah Global Sukuk is regulated by being listed on Luxembourg.
Conclusion
The Franklin Global Sukuk Fund has exhibited negative performance metrics across various measures. The fund’s information ratio, Sharpe ratio, Treynor ratio, and Sortinio ratio have all shown negative values over both the one-year and three-year periods. Additionally, the R-squared values indicate a relatively low correlation between the fund’s returns and its benchmark index. The maximum drawdown and tracking error figures suggest significant fluctuations and deviation from the benchmark, respectively. On the risk side, the Value at Risk (VaR) and Expected Tail Loss (ETL) figures indicate potential losses beyond the specified confidence levels. Overall, these metrics suggest that the fund has faced challenges in delivering positive risk-adjusted returns and has exhibited volatility and deviations from its benchmark.