| 06 Jul 2009 |
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Badr Al Islami and Mashreq Capital Launches Sharia compliant fixed income fund
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Badr Al- Islami Income Fund, designed to meet the growing demand for Shariah compliant investment opportunities
Dubai, United Arab Emirates, 6 July 2009: In response to the growing demand for Shariah compliant financial instruments, Mashreq Capital DIFCMashreq Capital DIFC
Ltd, which is regulated by the DFSA, has launched the Badr Al-Islami Income Fund in partnership with Badr Al-Islami, the Islamic banking division of Mashreqbank psc. The fund is one of the first regional Islamic Fixed Income funds and all investments in the Fund are approved by its Shariah Supervisory Board that consist of esteemed members; Sh. Abdalla Al Manei, Sh. Nizam Yaqouby and Sh. Dr. Mohamed Al-Gari. The objective of the fund is to generate long term returns in the 7% range without excessive volatility. The Fund is currently available only to Professional Clients. Professional Clients refers to a client category as defined by the DFSA Rules, and can include, amongst others, high net worth individuals, institutions and sophisticated investors. Please refer to DFSA Rules for more details.
"The demand from investors for Shariah compliant fixed income securities has grown exponentially over the last five years," commented Abdul Kadir Hussein, CEO, Mashreq Capital. "To satisfy this demand the market has witnessed a rapidly expanding list of issuers of Shariah Compliant fixed income securities. Currently there are at least $500 billion worth of Islamic financial assets worldwide. Badr Al-Islami Income Fund will cater to demand from investors for an investment vehicle that provides Shariah compliant returns by investing in Shariah compliant financial instruments." " Any efficiently managed portfolio will require some exposure to the fixed income asset class and this Fund hopes to provide that exposure in a transparent, low cost and efficient manner"
The fund will primarily invest in public Sukuk's from the MENA region but will have the ability to undertake a broader array of Income instruments as long as they are approved by the fund's Shariah Supervisory Board.
Mubashar Khokhar CEO of Badr Al-Islami said "Badr Al-Islami's credentials in structuring 'pure & premium' Islamic products together with Mashreq Capitals' investment expertise makes this investment fund 'one of the few of its kind' in the market. Innovatively structured, to yield high returns the Badr Al-Islami Sukuk fund is designed for the market-savvy investor. The highlight of this fund remains its simple & straightforward shariah structure. Backed by a Shariah Supervisory Board consisting of eminent Islamic banking scholars, Investors can also have complete peace of mind that their investments are fully shariah compliant . "
Badr Al-Islami Income fund is an open ended fund with weekly quoted NAV. The fund requires a minimum investment of $10,000 with additional investment in lots of $1,000. The fund is part of an Umbrella Funds Company that is registered in the DIFC under the name Mashreq Capital Shariah Compliant Funds (OEIC) Ltd.
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About Mashreq
Mashreq is the largest private bank in the UAE and also the second oldest. Founded in 1967 as Bank of Oman, the bank has played a pioneering role in the industry, particularly in retail banking. Among its many firsts, it was the first to launch such products as travellers' cheques, credit cards and ATMs in UAE.
It is invariably among the highest performing banks in the region. In 2008, it recorded a Net Profit of over AED 460 million. At the end of this year's first quarter its Total Assets stood at AED 94.1 billion.
As a leading financial Institution in the UAE Mashreq aims to be world class in every facet of its business, including its social responsibility to the community it serves. Towards this goal the bank pays particular attention to recruiting, training, developing and retaining UAE National employees.
About Mashreq Capital
Mashreq Capital is an independently managed business and a wholly owned DIFC subsidiary of Mashreq bank, which is regulated by the DFSA and that specializes in fixed income investments.
About Badr Al-Islami
Badr Al-Islami is an Islamic Financial services provider headquartered in Dubai, United Arab Emirates .Established in December 2006, Badr Al-Islami is Mashreq's Islamic banking initiative.
Badr Al-Islami offers a wide range of Shariah Compliant products and services covering the spectrum of financial services including Retail, Wholesale and Investments. The Company is subject to the supervision of UAE Central Bank and an independent accounting firm, as well as the Shariah Supervisory Board
Badr Al-Islami has won various accolades since it started full-fledged operations in 1 Quarter 2007, including the Islamic Finance News award for 'Best Sukuk Deal of the year - 2008'
© Press Release 2009
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