ILIRIKA EMERGING EUROPE ISLAMIC FUND
In compliance with the Law on investment funds (No. 85/08), Law on capital market (article 36.) and the Resolution of the Securities exchange commission (No. 05/1-19-203/10), ILIRIKA DZU Asset management company Ltd Sarajevo announces:
PUBLIC BID OF SHARES/UNITS IN OPEN-ENDED INVESTMENT FUND WITH PUBLIC OFFER
„ILIRIKA EMERGING EUROPE ISLAMIC FUND“
All needed informations one can find in the Prospectus and Statute of the fund.
The abstract form Prospectus of ILIRIKA EMERGING EUROPE ISLAMIC FUND:
A Sharia fund structures are similar to conventional fund, however the fund and its individual investments must remain compliant with Sharia. The funds are managed based on the mudaraba and wakalah contract. Every Sharia compliant investment funds has to include two basic conditions. Firstly, instead of a fixed return tied up, they must carry a pro-rata profit actually earned by the fund.
Therefore, neither the principle nor a rate of profit can be guaranteed! The subscriber must enter into the fund with a clear understanding that the return on their subscription is tied up with the actual profit earned or loss suffered by the fund. Secondly, the amounts pooled together must be invested in a business acceptable to Sharia. In an Islamic fund it is essential that all the shareholders be treated equally in accordance to Sharia, so there will be only be one class of shares issued to investors.
In an equity fund, the profits are mainly derived through capital gains made by purchasing shares and also by the dividends distributed by the relevant companies. It is obvious that if the main business of a company is not lawful in terms of Shari’a, it is not allowed for an Islamic Fund to purchase, hold or sell its shares.
