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HASAN: Confident about outlook for commodities fund.

Arabian Banking & Finance discusses the Capivest Alternative Energy Fund with Hasan H. Hasan, executive director, treasury & financial institutions, Capivest.

Capivest, a Bahrain-based Islamic Investment bank, has announced the initial closing of its US $50 million Alternative Energy Fund, a 100% capital protected fund that will trade natural gas, soybeans, crude oil and copper.

According to Capivest, such commodities are susceptible to shortages and sudden spikes in demand, making them an attractive asset class. Hasan H. Hasan, executive director, treasury & financial institutions, reveals more about the fund.

What is the name of your fund, when was it launched, and how has it performed to date?

The fund is called Alternative Energy and it was launched at the end of June this year. The fund size is US $50 million and in September we announced the fund's successful initial closing.

What is its targeted performance, what do you use as a benchmark for the fund and how has it performed in comparison?

The fund has just been recently launched, and because of this the strike price of all commodities will be used as a benchmark. Performance will be determined at the observation date after one year.

Is it focused on any particular sector, asset class or region and what is its strategy?

The Alternative Energy Fund is focused on the following commodities: natural gas, soybeans, crude oil and copper. Analysis shows that these commodities are in constant demand by the world's economy, and are a fundamental part in the development of global industry. These are commodities that are in use everywhere, and are not limited to one particular region.

What is the minimum subscription, and what kind of investor does the fund target?

The minimum subscription to this fund is US $1 million, and we have targeted financial institutions and sophisticated high net worth individuals for the fund.

When is the NAV calculated?

On the first observation date after one year.

What management fees are payable?

We cannot answer this question at this time.

What advantages does your fund have over other similar funds available?

The Alternative Energy Fund has a dynamic structure that gives those who invest in it the unique opportunity to benefit from the high price of these commodities that are increasingly playing an integral part in the world economy.

What are the unique challenges involved with managing a fund of this kind?

One of our key motivations is finding for our stakeholders investments that provide capital protection and generate the highest returns possible. This is what was behind our decision to target these specific commodities. We are confident in the future demand for these commodities, and for this reason have created this fund that deals exclusively with them.

Who is in the fund management team and what is their background?

Our fund management team comes from Capivest in co-operation with Goldman Sachs International.

We choose our partners based on their prime position, high rating and expertise in the sectors, as well as their past performance. We see our co-operation as something that strengthens our position in the market and adds to our knowledge base, and it is the partnership agreements behind the Alternative Energy Fund that have acted as one of the primary bases for its creation.

What are your views on the performance outlook for your fund?

As stated above, we are very confident about this fund's performance because of the underlying commodities that we have chosen. We are an investment institution that is committed to growth and prosperity not only for our shareholders and investors, but for the region as a whole.

Investment in these commodities is a reflection of the confidence we have that the world economy will continue to move forward and require these particular commodities to achieve increased growth and wealth.

We're happy to play a small but significant role in that development.

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