 Money Market Funds
Equity Funds
Ijara Funds
Alternative Funds
Multi Asset Funds
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FAQs | 4Q07 |
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The Fund Is Closed For New Investors |
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Fund Objective:
The investment objective of the fund is to provide investors with reliable and attractive monthly return by investing selectively in Ijara transactions that satisfy the requirement of the Islamic Shariah and which are approved by the Shariah board. The fund expects to repay principal at the end of the fund term, and to provide "varying" yields.
Investment Strategy:
Seeks to invest all its assets in direct purchase of equipment or portfolios of equipment which, intern, will be leased to diversify lessees. The fund will select high quality leases, focusing particularly on "Fortune 1000" companies. The equipment portfolios of the fund will also have a diverse range of leases and equipment types, thus, reducing risk. The entire portfolio is invested in accordance with the principles of Islamic Shariah.. |
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Fund Facts
| Fund Structure: |
A close-ended Fund |
| Fund Term: |
5 years (including a 6- months investment period) |
| Offering Period: |
25-12-2005 to 19-1-2006 |
| Subscription price: |
US$ 10 per unit. |
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Minimum Investment:
Investment Period:
Closing Date:
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US$ 250,000 with multiples of US$ 10,000 thereafter.
6 months following the end of the offering period
19 January 2006.
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| Distributions: |
On each payment days during the investment period, the fund expect to make a payment to investors equal to the Murabaha yield on capital un invested in leases transactions, plus 50% of net profit from lease transactions generated during the investment period at the end of the investment period.
Monthly income after the end of the 6-months investment period (the 7th month) capital is expected to be distributed at maturity at the end of 54(fifty four) months from the end of the investment period (i.e., sixty (60) months from the end of the offering period). However, there are no guarantees that all the initial capital will be paid back at maturity. The original rate is calculated for the first twelve (12) months after the investment period at 3% over the yield of U.S Treasury note. The original will not be less than 7% per annum. After that, this yield will increase on an annual basis by 30% of any increase in the yield of U.S Treasury Notes over the preceding twelve (12) months. Similarly the yield may increase annually by 30% by any decrease in U.S Treasury Notes yield, but the yield can never be less than the original rate. |
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Sales Charge:
Management Fee: |
a one time fee of up to 2% upon subscription.
1.00% p.a. |
| Fund Manager: |
Wafra Investment Advisory |
| Shariah Advisor: |
A Shariah board headed by Dr Mohammed A. Elgari, Shaikh Yousef Talal Delorenzo, and Shaikh Nizam Yaquby. |
| Distributor: |
National Bank of Kuwait S.A.K. |
| Auditor: |
McGladrey & Pullen LLP |
| Reporting: |
Semi-annual customer statement and annual audited financial statement |
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