By Safura Rahimi
A new fund offered by the Bahraini bank 'navigates' between two asset profiles to give the best returns.
Bahrain's Shamil Bank has launched a 100% capital-protected Islamic fund, the company announced today.
The fully protected Shamil Navigator Modaraba is a sharia-compliant investment fund that invests in a basket of global equities and commodities. It is suited to investors who want a balanced exposure to the two, without risking their invested capital.
The ‘Navigator', or the ‘Modaraba', is a 3-year product that provides exposure to two profiles of diversified assets comprising global Islamic equities and commodities.
The fund is named so because it can ‘navigate' between the better of the two performing profiles at maturity, making it unique from other capital protected investments currently in the market.
"To ensure that investors get the best returns from both global Islamic equities and commodities, the Navigator takes an exposure on two profiles, an equity overweight profile (75% equity, 25% commodities) and a commodity overweight profile (75% commodity, 25% equity)," explained Ahmad Tayara, Head of Investment Banking at Shamil Bank.
"At maturity, the Navigator would measure the performance of both profiles. Investors would first receive their invested capital, and then the best performance among the two profiles, multiplied by a predefined participation rate (70% for Class A and 35% for Class B)," he added.
The subscription is open for one month between May 28 and June 28, with a minimum investment of $10,000.