Amanah Capital has announced the launch of a new type of investment opportunity called the Al Hosin Fund. Al Hosin, jointly developed by Amanah Capital and Deutsche Bank, is the only Sharia-compliant investment fund in the region to offer investors the unique features of an 80% profit lock-in, (whereby 80% of the highest value achieved by the fund is protected), combined with the ability for weekly entry / exit options.
Focussed on the GCC, the Al Hosin Fund will invest in equities, Sharia-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 US $100. The minimum investment amount is US $10,000.
“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 an important time for the region, as investors look to more sophisticated and protective vehicles for their money. Deutsche Bank’s excellent understanding of the GCC markets will be used to maximise long-term returns and 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% 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% 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 2006 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.
“At any point of time, between 50 - to 55% of the Fund’s assets will be invested in Saudi Arabia while 35 – 40 % of the assets are allocated to investments in the UAE. Investments in Kuwait will range from 5-10% of the total investment portfolio, with Qatar, Bahrain and Oman each receiving 2-5% of the allocation.” added Bargouti.
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 Sharia 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 said.
Amanah Capital is an investment banking and asset management company focused on providing financial products and services based on Islamic finance. Amanah has a registered office at the Dubai International Financial Centre (DIFC) and has obtained an operating license from the Dubai Financial Services Authority (DFSA). The company’s lines of business include; Fund Management, Portfolio Management, Research and Analysis, Investment Banking and Financial Advisory services. Amanah Capital also operates Brokerage Services on the ADSM (Abu Dhabi Securities Market) and DFM (Dubai Financial Market) through its subsidiary Amanah Financial Services.
