Abu Dhabi Investment House unveils Islamic equity

Abu Dhabi Investment House (ADIH) launched Islamic equity and structured products aimed at offering rare opportunities to investors, ADIH in a statement said. In the statement the investment institution said: "Investors can participate in two new funds being launched by the firm in co-operation with its Geneva-based subsidiary." The initial offering period lasts from until July 31.

The minimum subscription amount is $100,000. ADIH Islamic Helvetic Fund-Global Islamic Equity, the new equity fund, will invest in shares of companies worldwide in accordance with the principles of Shari'a investment. The new fund's strategy aims at capital preservation while offering an appealing alternative to classical asset classes such as fixed-income and money-market investments: return objectives are set to 10 per cent per year net of fees with a volatility of 5 per cent.

Based on a multi-management approach which has been rarely available among Shari'a-compliant equity funds up to now, the fund will gradually allocate its assets between complementary investment strategies, combining sector and regional allocation as well as fundamental and quantitative models. The fund's launch is timed to exploit robust growth rates in emerging markets and possible recovery of the equity markets globally during the second half of 2008.

Pakistan's Faysal Bank to Expand Outlets, Open Islamic Division

Faysal Bank Ltd. plans to expand its domestic branch network in Pakistan and start a new Islamic division to take advantage of rising demand for Shariah-compliant products and farm loans.

The bank will increase its number of outlets to 150 by December 2009, and will start the Islamic banking unit next week, Chief Executive Officer Naved A. Khan said in an interview at his Karachi head office yesterday. The bank, Pakistan's ninth-biggest, has 107 branches across the nation and plans to add 23 this year.

Khan is seeking to keep pace with bigger rivals including Bank Alfalah Ltd. in an economy forecast to grow 5.8 percent this fiscal year. Overseas banks such as ABN Amro Holding NV and Standard Chartered Plc are expanding in Shariah-compliant finance, a market Standard & Poor's estimates is worth $500 billion and growing 10 percent annually on booming oil revenue.

RHB expanding in Asean region

KUALA LUMPUR: RHB Bank Bhd intends to expand its presence within the Asean region to countries like Vietnam and Indonesia, said group managing director Michael Joseph Barrett.

International operations were expected to contribute 10% of earnings by 2010, from 4% in fiscal year 2007, he said after the RHB Capital Bhd AGM yesterday.

“Indonesia is a vibrant market with many Malaysian companies operating there. Furthermore, its economy is driven by natural resources,” he said, adding that the bank was looking for acquisition opportunities.

The bank, which already has a presence in Thailand and Brunei, intends to widen its footprint in those countries.

Amid concerns of a global economy slowdown, Barrett believes there are opportunities to be tapped, as prices of assets are likely to come down.

Barrett said RHB Bank was expected to reduce its non-performing loans ratio to below 3% and improve return on equity and return on assets to 15% and 1% respectively by year-end.

It also intends to open eight to 10 new conventional banking offices and six to eight Islamic banking branches throughout Malaysia this year.