Dubai's Algebra and Elaf Bank launch Islamic fund

Dubai-based fund manager Algebra Capital and Bahrain's Elaf Bank today launched an Islamic-compliant fund.

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Algebra Capital, the fund manager from Dubai, and Bahrain's Elaf Bank,today launched an Islamic-compliant fund of US$100 million (Dh367.3m) to invest in securities in the Middle East, North Africa and Asia. The Sukuk Fund is an open-ended vehicle offering returns above eight per cent, but will target an initial limit of up to $100m. "This will be the second fund managed by Algebra Capital in its fixed income line of business," said Ziad Makkawi, chief executive officer of Algebra Capital. "The Sukuk Fund reflects both our constructive view of the region's fixed income markets, as well as the importance of the sharia-compliant space to us."

Founded in 2006, Algebra advises on or manages about $1.1 billion in assets. Franklin Resources owns a 25 per cent stake in Algebra, which is a sub-adviser on a Middle East and North Africa Fund launched by the California-based firm in June. Elaf, which is seeding the fund, is an Islamic bank founded in Bahrain in 2007, which is targeting the equity and Islamic financing capital market. * Reuters