RIYADH, 23 June 2006 — Amanah Capital of the UAE has launched a new type of investment vehicle that safeguards the interests of investors and expatriates, including those from the Kingdom. The launch of Al-Hosin Fund, jointly developed by Amanah Capital and Deutsche Bank, was announced at a seminar held in Abu Dhabi.
It has been described as the only Shariah-compliant investment fund in the region to offer investors the unique features of an 80 percent profit lock-in, (whereby 80 percent of the highest value achieved by the fund is protected), combined with the ability for weekly entry/exit options.
With its accent on the GCC capital market, the Al-Hosin Fund will invest in equities, Shariah-compliant mutual funds and money market products. The open-ended Fund has an initial tenure of five years with each individual unit in the fund initially priced at $100. The minimum investment amount is $10,000, according to an e-mail received by Arab News from Abu Dhabi.
Between 50 to 55 percent of the Fund’s assets will be invested in Saudi Arabia, while 35-40 percent of the assets are allocated for investments in the UAE. Investments in Kuwait will range from 5-10 percent of the total investment portfolio, with Qatar, Bahrain and Oman each receiving 2-5 percent of the allocation.
“We believe the Fund provides an exceptional opportunity to investors. It is in line with Amanah Capital’s mission to provide innovative Islamic finance services to investors,” said Saleh Al-Hamed, chief executive officer of Amanah Capital.
“Our association with Deutsche Bank, a world class banking institution and leading global investment bank, mandated with managing Al-Hosin, is a signal to investors of the immense potential that this product presents,” he added.
“The launch of Al-Hosin comes at a time when investors are seeking more sophisticated and protective vehicles for their money. Deutsche Bank’s excellent understanding of the GCC markets will be used to maximize long-term returns. We are confident that Al-Hosin will generate significant investor response, both from the region and internationally,” said Geert Bossuyt, managing director, Global Markets, Regional Head of Middle-East Structuring, Deutsche Bank.
Elaborating on the unique features of the Al-Hosin Fund, Nadi Bargouti, head of Asset Management at Amanah Capital, said: “The Fund locks in 80 percent of the highest value it achieves and gives investors a chance to reap increasing returns when markets rise. If markets fall, the unique ‘lock-in’ feature enables 80 percent of the profits at the previous value to be locked in each week, thereby ensuring investors are protected against a market decline. Add to this the actively-managed hedging that will take place, and this should give investors a great deal of security.”
Al-Hosin will be listed on the Dubai International Financial Exchange in July, enabling global investors to access the Fund. Currently, investments to the Fund can also be made via leading regional banks as well as through Amanah Capital directly. Stating that the region’s investors were anxious to regain their confidence in the stock market, Bargouti said that there was a market need for experienced asset managers and innovative, highly liquid products that are built on Shariah principles.
“Al-Hosin is the first of several innovative products that will be launched by Amanah Capital, in partnership with some of the world’s leading financial institutions,” he observed.
