Bank of London and the Middle East (BLME) has launched a Shari'ah compliant money market fund in Europe which it claims is the first and largest of its kind.
The $50,000,000 Sharia'a Dollar Income fund is structured as a Luxembourg-domiciled SICAV-SIF and aims to provide income plus security of capital. It invests in a diversified portfolio of high quality Islamic money market instruments including Sukuk, an Islamic bond and Ijara, the lending of assets. The fund's Shari'ah supervisory board will review contracts and agreements relating to all BLME's transactions to ensure they are consistent with the principles of Islamic jurisprudence. The fund has been run on a seed portfolio basis since 17 March 2009 and has delivered 4.71% net yiel...
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