Tharawat distributes 9pc profits of sukuk
Manama, November 7, 2010
Bahrain-based Tharawat Investment House has distributed more than nine per cent of sukuk profits for its key fund.
The Islamic investment, which was regulated by the Central Bank of Bahrain, has announced the distribution of profits for Tharawat Sukuk Fund in excess of 9 per cent, which became due last month for the first six-month period from February to September.
Tharawat Sukuk Fund is considered as the first open-ended Sharia-compliant investment product, which was officially launched early this year. This Bahrain-based fund invests at least 70 per cent of its cash liquidity in sukuk issued by governments and corporations in the GCC countries, Middle East, Far East and North Africa. The fund sub-adviser is Algebra Capital Limited while the administrator, registrar and custodian of the fund is Ohad Trusts Corporate and Financial Services.
The announcement by Tharawat of the distribution of profits on time comes against a backdrop of ongoing fluctuations on the world and regional markets, reflecting the strength of the company's performance, its portfolio and sound strategy pursued by the portfolio for generating high returns to its investors.
The fund buys sukuk on the preliminary and secondary capital markets.
'I am very pleased to announce that in spite of all the unusual conditions experienced by the global and regional markets, the payment by Tharawat Investment House of profits of 9.12 per cent, exceeded our forecasts that were initially set at 8 per cent since the launch of the portfolio earlier this year,' Tharawat chief executive officer Arif Mohammad Al Alawi said
'The payment of profits coincided with Standard & Poor's Gulf stocks Index pointing to modest profits paid by Gulf securities compared to the gains made by the Tharawat Sukuk Fund.
'We have pledged our investors who have expressed faith in our first investment product that we will make higher profits in the first quarter of 2011 as the portfolio will pay its profits on a semi-annual basis (in March and September).
In addition, the fund will offer investors the option to receive the distributions either in cash or by reinvesting them in additional units of the fund,' Al Alawi said.
The Tharawat Sukuk Fund targets high net worth individuals and corporate investors who are seeking higher yield investments than the low-risk bank deposits.
It is considered as a unique opportunity of investment in this product since sukuk are highly efficient fast-growth assets with lower representation in the portfolios of most investors who look for Sharia-compliant products with fixed income and secure assets.
'Tharawat Sukuk Fund pursues a conservative and effective risk management and investment policy since the fund assets are carefully selected by international investment experts and properly audited by the Sharia' Supervisory Board led by Shaikh Dr Nizam Yaqoubi.
'Effective management and the fund's investment policy provide investors with a lower level of risk as regards the issue or the issuer. It is also an opportunity to gain a regular investment income based upon the fund distributions,' Al Alawi said.
'It has always been our policy since the inception of our company to give the opportunity to all investors to share in our success which has been the basic slogan of all our business. We have been keen on consolidating the fund by investing a sum of $5 million upon its launch and we have ensured that the minimum investment will be $100,000 with multiples of $10,000 or more for keen investors who want to invest higher amounts.'-TradeArabia News Service