“The listing will give the fund a global presence,” said Patrick Georges, FFA’s Chief Investment Officer (CIO). It also makes the fund “more attractive to investors seeking transparency as it will comply by the strict transparency European standards,” he said.

The fund seeks to invest in a diversified portfolio of bonds and Islamic assets-Sukuk issued by governments or private companies. “It has invested in bonds issued by a number of well-known companies including Egypt’s Orascom Telecom, Abu Dhabi’s Taqa, and Kipco,” said Georges.

The fund which was established at the end of May 2009 has raised $10 million so far. Following the listing, the fund targets to reach a target of $100 million in one year, and even $500 million in the next three to five years, Georges said.

The fund targets individual and institutional investors such as insurance companies and pension funds in Europe and the MENA region and later on Asian and American investors. So far, the fund has not invested in the Lebanese market, said Georges, “but it might do so at any time,” he said.

The FFA Fixed Income Fund is one of the few bond funds offered in the MENA region. The bank had a choice between two or three other jurisdictions, but it chose the Luxembourg exchange. “This bourse is number one in fund listings,” said Georges.

Minimum subscription to the fund is $100,000 for individuals, and $500,000 for retail investors. No dividends will be paid to shareholders. It will be available through major clearing houses including Clearstream and Euroclear.

FFA is working to establish a similar fund jointly with an Islamic bank that operates in Lebanon to invest in Islamic products solely. The fund will be also listed on the Luxemburg Stock Exchange.