Towry Law introduces Islamic Investment Fund

Towry Law, part of the AMP global financial services group, is introducing the Mutajarah Fund Ltd, the first Shari'ah approved multi-manager alternative investment fund employing various hedge fund managers to trade the fund's capital.

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By  Massoud Derhally Published  September 26, 2001

Towry Law, part of the AMP global financial services group, is introducing the Mutajarah Fund Ltd, the first Shari'ah approved multi-manager alternative investment fund employing various hedge fund managers to trade the fund's capital.

The objective of the fund is to achieve an annual return of 10-15% with low risk (7% annualized volatility) and no correlation to traditional investments such as equities, commodities and currencies. It is specifically designed for Islamic investors and relies on combining knowledge; human efforts and Shariah approved investment strategies produce consistent returns.

"The market for Islamic investment products has witnessed dramatic growth in recent years. Islamic banking is estimated to manage funds of US$100 billion, with annual growth estimated at a rate of 15%,” said Yasser Al-Maskati, director, Towry Law International. "However, the current Islamic product range is limited to traditional investments and mostly highly correlated to the performance of the equity markets, so Towry Law and its advisors felt the time was right for an Islamic alternative investment fund," added Al-Maskati.

With its volatility and low correlation to equity markets, the Mutajarah Fund can help to effectively diversify a traditional Islamic investment portfolio. The Fund will be managed by Swiss Alternative Investment Strategies Group AG (SAIS), the former alternative investment team of the second largest Swiss bank. SAIS has vast experience in analysing and selecting hedge fund managers worldwide and in managing multi-manager hedge fund portfolios.

The Mutajarah Fund is specifically designed for the Islamic investor. SAIS has teamed up with the International Investor K.S.C. (TII) in Kuwait. TII's role is to ensure that all principals set under Islamic law are strictly adhered to.

The Mutajarah Fund is Shari'ah approved and will be constantly monitored by a highly respected International Shari'ah Advisory Committee, whose members are:

· Sheikh Abdulla Ibn Abdul Aziz Ibn Aqeel (Chairman) - a well known major Saudi Shari'ah Scholar;

· Sheikh Saleh Ibn Abdul Rahman Al-Hussain (Deputy Chairman) - a well known Saudi scholar of Shari'ah and law;

· Sheikh Abdul Rahman Ibn Abdulla Ibn Aqeel (Member and Secretary) - Shari'ah graduate and active in Shari'ah research;

· Dr Muhammad Anas Zarka (member).

The subscription is open now and ends on October 26th. Final allocation will take place on November 1st.

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