Deutsche Bank launches Shari'a mutual fund capability

A specialist fund range, to be marketed as DWS Noor Islamic Funds , has been developed to meet the specific needs of Islamic investors. Initially, the range will be offered to retail and institutional investors in UAE and Bahrain, with plans to expand the offering to other countries in MENA, Asia and Europe in 2007.

The first five DWS Noor Islamic Funds were officially launched in the region today:

• DWS Noor Precious Metals Securities Fund - believed to be the first Shari`a compliant fund of its kind, this fund invests in gold, platinum, silver and other precious metals securities and provides a unique avenue for portfolio diversification and absolute returns;
• DWS Noor Global Select Equity Fund - provides access to equity opportunities around the world through a concentrated stock portfolio;
• DWS Noor China Equity Fund - provides access to the dynamic growth of one of the largest economies in the world. China has the fastest GDP growth rate of all the major global economies;
• DWS Noor Japan Equity Fund - provides access to Japan's rising economic opportunities; and
• DWS Noor Asia Pacific Equity Fund - provides access to the outstanding growth opportunities in Asia Pacific's emerging economies.

"With DWS Noor Islamic Funds, our Islamic clients can rely on a strictly Shari`a compliant framework while benefiting from attractive international investment opportunities usually only available as conventional mutual fund products," said Scott Jaffray, Chief Investment Officer for DWS Investments in MENA, and architect of the DWS Noor Islamic Funds range.

"DWS Investments is today among the top ten asset managers globally, with steady growth anticipated in key emerging regions such as the Middle East and Asia. We aim to continually expand the DWS Noor offering into further asset classes and investment styles, delivering a range of Islamic products with the same breadth and depth as our conventional mutual fund range," added Mr Jaffray.

The DWS Noor Islamic Funds range distinguishes itself from its competitors through the initial application of a Shari`a compliant screening process across the entire spectrum of the global investment universe. Investors will benefit from the potential to invest in all regions and sectors, including the option to participate in IPO's.

The funds are further differentiated by the pedigree of its Shari`a Advisor, Dar Al Istithmar, whose Shari`a Board comprises five of the world's leading Shari`a scholars - Dr Hussain Hamed Hassan , Dr Ali AlQaradaghi , Dr Abdul Sattar Abu Ghuddah , Dr Mohamed Elgari and Dr Mohamed Daud Bakar .

Dar Al Istithmar is a Shari`a advisory service created through a joint venture between Deutsche Bank, the Oxford Centre for Islamic Studies (Oxford University) and investment adviser Russell Wood. The firm offers cutting-edge academic and market research to institutions offering Islamic financial services. Dar Al Istithmar was the winner of the Euromoney 2006 award for Best Islamic Assurance and Advisory Services.

The Shari`a Board provides a holistic oversight over the funds' legal documents, structure and investment process. A separate and discreet legal entity has been established to ensure full independence from Deutsche Bank's conventional fund business.

The Shari`a structuring team responsible for launching the DWS Noor Islamic Funds is based in the Dubai branch of Deutsche Bank. Deutsche Bank's on-the-ground presence in MENA ensures the manager can respond quickly to changing market conditions while developing new products to meet client demand. Deutsche Bank has been an active participant in Islamic finance for many years, and aspires to become the leading Islamic finance and investment banking organization in the region.