Bahrain-based investment bank offers USD50 million Equity Fund

The Fund, linked to the Islamic Dow Jones, allows investors to benefit from the performance of the index without any risk to their initial capital.

Hasan Habib, Manager of Treasury & Financial Institutions, KFI, said,

"We are thrilled to introduce a unique product to our clients and be the arranger, promoter & placement agent for this Fund. Among our many treasury funds, this is the first of its kind being offered through an international partnership with Deutche Bank."

"We are looking forward to expanding KFI's treasury business in the region and aim to provide our clients with new, high-performance Shariah-compliant investment products," he added.

The Capital Protected Equity Fund is a 5-year closed-end investment, with a minimum initial subscription of US $250,000. The Fund was developed with an initial value of US $50 million, but KFI can raise the fund offering to US $100 million at any time prior to the Fund's closing.

At the end of the 5-year maturity period, investors receive 100% of their initial capital, with a minimum additional 8% return on investment, and not less than 90% participation of the average monthly performance.

The stocks that comprise the Fund were carefully selected from the Dow Jones Islamic Market Index (DJIM), and represent the 20 largest Sharia'h compliant listed companies (based on regional weighting). Each of the 20 companies is equally weighted in the overall basket.

The equity basket represents exposure in various countries, with 15% in Asia, 30% in Europe and 55% in the United States. The industry exposure of the basket covers the communications, technology, energy and consumer sectors, among others.

While KFI is acting as the arranger, promoter & placement agent for this Fund, Deutche Bank will be the provider of both the Capital Protection and the minimum absolute return of 8% to KFI, as well as acting as the Underlying Basket Arboon seller to KFI.

KFI plays a key role in serving the asset management and investment needs of shareholders throughout the region with its portfolio of high performance Shariah-compliant investment products for its strong, diversified shareholder base.

Combining innovation and global reach, KFI is successful in managing investment activity of its clients with absolute discretion and confidentiality through experienced advisors.