FYI, new syariah index.
Best regards,
Arlyana Abubakar
Senior Economic Analyst
Foreign Debt Analysis and Investor Relation Division
International Directorate
Bank Indonesia
Dubai Leads in Islamic Finance with New Shariah Hedge Fund Index
Jan 8, 2009 - 12:13 WAM Dubai, 7th Jan. 2009 (WAM) : The Dubai Multi
Commodities Centre Authority (DMCCA) and Shariah Capital, Inc. (SCAP.L) today
announced the Dubai Shariah Hedge Fund Index, the first
internationally-recognised index comprised exclusively of Shariah compliant
hedge funds. The Dubai Shariah Hedge Fund Index will be calculated and reported
by Thomson Reuters (NYSE:TRI), the global news and financial information
organisation.
The Index reflects the performance of the DSAM Kauthar Commodity Fund, Ltd.
("DKCF"). DKCF is an equally-weighted fund-of-funds comprised initially of four
single- strategy, commodity-focused funds that invest exclusively in Shariah
compliant long/short equity hedge funds on the Al Safi Trust platform. The Al
Safi Trust is a comprehensive Shariah compliant platform designed specifically
for hedge funds and launched recently by Barclays Capital and Shariah Capital.
Distributed under the DSAM Kauthar label, the four funds underlying the index
have been seeded with US$50 million each by DMCCA. They are: 25% DSAM Kauthar
Gold Fund, Ltd 25% DSAM Kauthar Energy Fund, Ltd.
25% DSAM Kauthar Natural Resources Fund, Ltd 25% DSAM Kauthar Global Resources
'&' Mining Fund, Ltd.
100% Dubai Shariah Hedge Fund Index = DSAM Kauthar Commodity Fund, Ltd., (DKCF)
The Dubai Shariah Hedge Fund Index itself is not an investable vehicle.
However, it mirrors the returns of the DSAM Kauthar Commodity Fund (DKCF) which
is open to institutional and individual investors on a monthly basis.
The Dubai Shariah Hedge Fund Index is accessible on Thomson Reuters under the
RIC code .DUBSHF for those subscribers using the 3000 Xtra system, including a
description page on DUBSHF1. For those using the Bridge system, the RIC code is
us'&'DUSHF. The index will be disseminated to over 300,000 traders and
investors throughout the world who subscribe to news and market information
from Thomson Reuters. For the first time, Islamic investors can use the index
to compare the performance of their other professionally-managed absolute
return investments and to determine strategies that include diversification
into commodities such as those covered by the index.
DSAM, or Dubai Shariah Asset Management, is a joint venture between Dubai
Commodity Asset Management (DCAM), a wholly-owned subsidiary of DMCCA, and
Shariah Capital, a publicly-traded company that creates and customises Shariah
compliant products and platforms. DSAM develops and brands commodity-linked
investment products under the DSAM Kauthar name and distributes them in the UAE
through DCAM, a UAE-licensed financial investment company.
"The purpose of the Dubai Shariah Hedge Fund index is two-fold," explained
Ahmed Bin Sulayem, Executive Chairman of DMCCA. "First, it provides a benchmark
for investors in Shariah compliant hedge funds who are looking for absolute
investment returns, particularly in commodities, during periods of market
volatility. Secondly, it reconfirms Dubai's leadership role in Islamic Finance
by its support of innovative solutions for those interested in Shariah
compliant investment products, like the DSAM Kauthar funds. The Dubai Shariah
Hedge Fund Index represents another significant step for Islamic finance into
the mainstream of global investing." Basil Moftah, senior company officer for
Middle East and Africa, Thomson Reuters, commented: "Thomson Reuters is proud
to be first in providing access to the Dubai Shariah Hedge Fund Index to
hundreds of thousands of traders and investors around the globe. The launch of
this unique index to our clients in one more example of the importance Thomson
Reuters is placing on accommodating those who wish to invest within the
parameters of Shariah compliance." Eric Meyer, Chairman and CEO of Shariah
Capital, expressed his enthusiasm for DMCCA's initiative and highlighted the
opportunity for investment managers within Shariah: "The Dubai Multi
Commodities Centre Authority and DSAM have established the gold standard for
Islamic hedge funds with this index. Under Ahmed Bin Sulayem's leadership,
DMCCA has selected and seeded prominent hedge fund managers with established
track records who have accepted our Shariah guidelines and who are committed to
superior absolute returns. We expect that more conventional hedge fund managers
will now explore the opportunity of managing within Shariah and make their
skills available to the growing number of Islamic investors." Shaykh Yusuf
Talal Delorenzo, Chief Shariah Officer and Board Member of Shariah Capital,
reiterated the discipline of the index's underlying funds within Shariah: "We
have taken exhaustive steps to insure that each company within the funds'
portfolios passes our Shariah screens and that all trading is executed within
the strict parameters established by the Al Safi Trust Shariah Supervisory
Board." "Moreover, in addition to the transparency afforded to Islamic
investors by Al Safi through segregated, separately managed accounts,
independent custodial oversight and Shariah Board access to daily trading
activity, this index provides a second level of comfort to investors.
Information about the index and its constituent hedge funds is publicly
disclosed and distributed on a regular basis to reporting agencies and
specialised fund data bases around the globe." WAM/TF
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