28th  NOVEMBER 1999

TAIB BANK TO LAUNCH ISLAMIC FUND

TAIB Bank E.C. is to launch an Islamic Investment Fund. TAIB Crescent Global Fund (TCGF) will form part of TAIB's family of mutual funds and is specifically designed for clients looking to invest in an Islamic fund. 

The main objective of the TCGF will be to obtain long-term capital appreciation by investing in Shariah compliant securities. It will invest out of the universe of stocks listed in the Dow Jones Islamic Market Index (DJIM). Each company listed on the DJIM is screened in accordance with Islamic Shariah Laws.

In order for a company to be Shariah compliant, the primary business of the company must be deemed to be Halal (permissible). In addition, companies must meet a set of three financial ratios relating to the permissible limit of debt, accounts receivable and interest income in businesses under Shariah Laws. 

Vice Chairman and Chief Executive of TAIB Bank E.C., Mr Iqbal G. Mamdani, said that TCGF would be structured to invest in accordance with Shariah principles in a diversified portfolio of Shariah compliant companies.  

"The goal of the Fund is to outperform the DJIM index," he said.  "As with the Bank's other Funds, it is designed to leverage our expertise in specific markets - in this case, the Islamic market - and to add to the diversified range of investment opportunities available to our clients."

Mr David Moran, President of Dow Jones Indexes and present in Bahrain for TAIB Bank's 20th Anniversary celebrations, remarked that "the establishment of this Fund will give increasing momentum to the Islamic investing concept.

"Dow Jones is committed to the concept of Islamic investments and is delighted that TAIB Bank, a truly innovative and well-established institution in the region, is offering a fund linked to the DJIM Index."

DJIM's Shariah supervisory board consists of five eminent Shariah scholars.  In addition, TCGF will itself be supervised by a Supervisory Committee comprising Shariah scholars who will ensure that the investments and the Fund remain compliant at all times.

TCGF will leverage the Islamic equity management and research capabilities of an experienced Adviser, drawing on its expertise to build a globally diverse portfolio of high quality, well managed Shariah-compliant companies. 

Such companies are selected based on in-depth analyses of financial stability, profitability and return on equity. In addition, the Fund is expected to invest globally. The Bank is currently awaiting the necessary regulatory approvals to launch the Fund.  A launch date is expected to be set during the Holy month of Ramadan 1999 and will be announced shortly.

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For more information, please contact the press coordinator:
Mr. Ali Khunji (Tel: 533334, Fax: 533174) e-mail: a_khunji@taib.com