Friday, May 15, 2009

(Adds CEO comments, background.)

LONDON (Dow Jones)--Shariah-compliant DSAM Kauthar Commodity Funds were up across the board in May from the previous month, with the DSAM Kauthar Global Resources & Mining Fund the best performer.

The DKCF is an equally weighted fund-of-funds comprised of four commodity-focused funds that invest in shariah compliant long/short equity hedge funds on the Al Safi Trust platform. They were launched Jan. 1 on the Dubai Shariah Hedge Fund Index.

The best performing fund in the group during May was the DSAM Kauthar Global Resources & Mining Fund, up 13.64% on the month and up 24.99% from the Jan. 1 start.

DSAM Kauthar Energy Fund was up 13.23% on the month in May and 16.90% from Jan. 1. The DSAM Kauthar Gold Fund was up 10.65% on the month in May and 21.50% since the start of the year.

The DSAM Kauthar Natural Resources Fund was up 1.62% on the month in May and up 0.80% from the start of the year.

The DSAM Kauthar Commodities Fund, an equally weighted basket of the four funds, was up 9.78% on the month and up 14.79% from Jan. 1.

"Our primary objective is to provide the same, high-quality institutional alternative investment managers enjoyed by conventional investors to Islamic investors," said Eric Meyer, chief executive of Shariah Capital Inc. "This year's results prove we've achieved that. Of course, the upturn in commodity prices has helped."

Commodity prices such as base metals and oil are up between 30% and 50% from the start of the year. The rise was spurred by optimism in the wider markets, analysts say.

The DKCF was launched by Connecticut-based Shariah Capital with initial seed money from The Dubai Multi Commodities Center Authority. The funds were each given $50 million from the DMCC.

The individual fund portfolios are run by BlackRock Inc.'s Global Resources & Mining Fund, Tocqueville Asset Management, Zweig-DiMenna International Managers and Lucas Capital Management.

-By Devon Maylie, Dow Jones Newswires; +44 (0)20 7842 9483; devon.maylie@dowjones.com

(END) Dow Jones Newswires

15-05-09 0847GMT