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Shariah-Compliant Bank Launches High Yield Fund, Targets HNWIs
Tom Burroughes
1 June 2011
Bank of London and The Middle East, a bank specialising in
providing Shariah-compliant financial services to groups such as wealthy individuals,
has rolled out the BLME High Yield Fund. The BLME High Yield Fund targets a net return of 3 month US$
Libor +5 per cent by investing up to 85 per cent in Sukuk – Shariah-compliant
bonds - and 15 per cent in Ijara (a lease contract on an asset). The fund is an open-ended vehicle, requiring investors to
commit at least $250,000. Sterling and euro
share classes are also available; the fund is part of an existing SICAV range
that is domiciled in Luxembourg.