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The "Al Islami Shipping Fund" has a locked-in 4-year maturity and will provide investors with the opportunity to enter into an investment product that can provide a predictable return derived from pre-determined Charter Hire Rates for the entire period of the term. The minimum investment amount is US$ 25,000 and the fund is targeting an estimated profit rate of 8.5% per annum which will be distributed within four weeks from the end of each quarter.
Saeed Al Qattami, Senior Vice President, Head of Wealth Management, DIB, said:
"The Al Islami Shipping Fund adds an innovative new element to our portfolio of investment products and provides our customers with another diversified investment option. As a result of the recent market volatility and apprehension of some investors to enter the equity markets, we felt this product will provide an alternative investment solution. This product is for those customers looking to achieve a higher rate of profit relative to short-term deposits and wanting a regular stream of income via quarterly payouts."
Erick Lind, CEO of Tufton Oceanic, the Investment Manager of the Al Islamic Shipping Fund, commented that he considered the Investment Units offer an attractive risk / reward ratio with a high yield. He added that the underlying covenants supporting the investments made by the fund are first rate shipping companies in the region. He further added that he was pleased that Tufton Oceanic has been able to work with DIB to bring out this product together with a focus on the international shipping industry, which is presently going through a period of prosperity.
Moinuddin Malim, Managing Director, Asset Management & Capital Markets, Investment Banking Group, DIB, said: "We are pleased to announce the launch of yet another innovative product from Dubai Islamic Bank. Al Islami Shipping Fund is our 5th investment product in the last 7 months, which is a clear indication of DIB's aim to rapidly develop a diversified menu of investment products that will cater to all segments of our large and growing customer base. We will continue offering new innovative products in future and have a healthy product pipeline to meet the demands of investors."
"The investments in the new fund will be made into modern ships with substantial expected useful lives beyond the end of the investment period. The Guarantors of the vessels are financially strong companies with well established businesses," Malim concluded.
The "Al Islami Shipping Fund" is the latest in a series of investment funds launched by DIB, including Al Islami Capital Protected Note, GCC Equity Fund, Al Islami Saving Scheme, Pan European Real Estate Fund, US Real Estate Fund and two French Real Estate Funds.
Posted by Anne-Birte Stensgaard, Senior News Editor
