FAQs about the Watani US Real Estate & Income Growth Fund

1. What is Watani US Real Estate & Income Growth Fund (the "Fund")?

An open-ended Fund (with an initial 3-year lock-up period) that seeks income and capital appreciation from a portfolio of investments in U.S. real estate and real estate related assets while preserving capital. The Fund is a long-term investment vehicle designed to achieve an expected IRR between 11-14% per annum with an expected annualized net distributable dividend yield of money market returns during the Investment Period and 8 -10% thereafter.

 2.  What are the benefits of this Fund to investors?

• Well-diversified portfolio of U.S real estate investments
• US Dollar denominated
• Quarterly income distribution
• Quarterly subscriptions and semi-annual redemptions (after an initial 3-year lock-up period)
• Managed by one of the world's top real estate managers

3. How do real estate funds work?

A number of unrelated investors club together and place their money in a pool-the "Fund". The total amount is then managed by a fund manager and invested according to the respective investment policy in various properties. Each investor is a co-owner of a real estate portfolio with prime properties in proportion to the amount he/she has invested.

4. Does the US real estate market offer attractive investment opportunities?

Indicators in the real estate market suggest greater investment opportunity in this industry. Examples of these indicators are:

• Large, dynamic market worth approximately US$2 trillion
• The real estate market fundamentals are sound: vacancies are generally low, construction is relatively limited and excessive leverage is limited too
• The real estate market has little or no correlation to equity and bond markets, which provides portfolio diversification
• The speed and quality of information has improved the responses of the industry to changes in the market
• Stable cash flow returns currently well in excess of treasury rates providing positive leverage