03 October 2007

IFA International Guaranteed Fund– a fund with a capital of US$ 18 million to US$ 150 million, aims at securing and growing the invested capital through guaranteed financial instruments related to international indices of the US market, European market, Chinese market and Indian market. The subscription period for this fund ends by the 31st of October, 2007.

Dr. Rassem Zok, President and Chief Operating Officer of International Financial Advisors Company, believes that this is an opportune time to invest in such a fund given the attractive market dynamics that are clearly visible in the emerging markets such as the Chinese and Indian market with the continuous growth of the US and European markets.

With the recent successes of IFA Investment Fund and Al-Asjid Islamic Fund, Dr Zok stated: “We are very excited about investing in the international markets through the IFA International Guaranteed Fund. As with our previous funds, we hope to surpass our client’s expectations.” In addition, Dr Zok stated: “Through our strategic alliances with some of the most prominent banks and financial institutions worldwide, we are continuously looking into diversifying our offerings, in order to create a platform of up to date value added products for IFA’s investor base.”

Dr. Zok, announced today that the Research Advisor for the Fund will be Julius Baer Group. The Zurich based Julius Baer Group is one of the world’s leading dedicated wealth managers. The Group, concentrates exclusively on the fields of private banking and asset management for private and institutional clients. Bank Julius Baer, the key company of the Group, has a long-term debt rating of Aa3 from Moody’s. Julius Baer will publish dedicated quarterly research on the underlying markets covered by the Fund.

The Structuring Advisor for the fund will be Tradition Group through one of its subsidiaries Tradition Securities and Futures OTC. Listed on the Zurich Stock Exchange since 1973, Tradition Group is a leading player in tailor made financial services; it has expanded its presence in 22 countries across the world. The company has a strong client base, primarily banks and financial institutions around the globe as well as local authorities, major industrial and commercial corporations.

The investment policy of the fund will be to invest in securities guaranteed by prime international banks with a credit rating of at least “AA”; its objective is to achieve a return of at least 14% while at the same time providing quarterly liquidity for those investors who wish to enter or exit the fund after the end of the subscription period. By investing only in capital guaranteed securities, IFA aims through this fund to give its investors full exposure to the growth potential of the underlying markets while protecting their downside.

Dr. Zok explained: “We are very confident that our choice of underlying markets will maximize returns for our investors by the end of the 3 year period. Here are some of the parameters which we feel make our story compelling:

  • Asia growth accounted for 60% of the world growth in 2006
  • Stock market capitalization is only 50% of India’s GDP and 35% of China’s GDP. (In mature economies it is around 150%)
  • US & Europe Characterized by very liquid, transparent and well regulated markets
  • Strong companies with extensive balance sheets within S&P and Eurostoxx

He concluded that IFA International Guaranteed Fund will give investors an attractive opportunity to seek diversification and exposure in the world’s major economies while protecting their downside.”