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Wed 31 Jan 2001 04:00 AM

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Banks launch Sharia-compliant European equity fund

A new fund applying Sharia guidelines is soon to be launched in order for the Middle East’s Islamic investors to gain exposure to European markets

Commerzbank’s Asset Management Group and the Abu Dhabi Commercial Bank have collaborated to launch the AlSukoor European Equity Fund. The fund’s objective is to invest in European equities that follow Sharia guidelines. The banks claim the fund will be one of the first of its kind to be managed in accordance with these rules. The base currency will be the Euro and the stock selection will be made based on the guidelines provided by the fund’s Sharia board. This will eliminate companies that deal in the production of tobacco, armaments or alcoholic beverages.It is hoped that investors will be able to realise better returns than they might realise elsewhere, whilst still being able to conform with their religious convictions.Abu Dhabi Commercial Bank will be the exclusive distributor of the fund in the UAE, while Commerzbank Asset Management in Germany will manage the fund.

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