Lured By Halal Livestock? Banco de Brasil To Launch First Sharia-Compliant Fund

Enticed by the Halal Livestock Industry, Banco do Brasil is set to introduce its first Sharia-compliant fund in collaboration with the Islamic Bank of Asia, based in Singapore. This fund will primarily focus on stocks listed on the São Paulo Stock Exchange (Bovespa), with a specific emphasis on sectors such as commodities, mining, oil, and gas.

The Islamic Bank of Asia will play a crucial role in supporting the certification of the stocks within the fund’s portfolio, assisting in defining the fund’s Shari’ah-compliant rules and ensuring compliance with Shari’ah law. The fund’s management will be based in Brazil, but its marketing efforts will extend globally.

Brazil is a notable exporter of Halal foods, with a substantial shipment of 1.48 billion tonnes of chicken to the Middle East in 2013. In January, Abu Dhabi Equity Partners made an investment in a livestock financing program aimed at funding the fattening of 70,000 cattle heads, equivalent to the entire annual beef import of the UAE.

Banco do Brasil Asset Management (BB DTVM), responsible for managing over $237 billion in assets, stands as the largest third-party fund manager in Latin America. Established in 1986 as a wholly-owned subsidiary of Banco do Brasil S.A., BB DTVM has maintained a leading position in the Brazilian financial funds industry since 1994, boasting a market share of approximately 21 percent.