Encore Management S.A. Appoints Jawad Ali, Partner at King & Spalding, as Fund Counsel

Jawad Ali, Partner at King & Spalding is assigned by the Sanad Investment Co. Ltd, to be the legal counsel for the word’s first GCC-oriented Sukuk fund. Sanad is the Islamic Income Fund for the GCC investor seeking stable returns with liquidity. Sanad closes a major gap for all Muslim investors by allowing them to finally own a diversified, managed pool of sharia-approved sukuk, equivalent to a bond fund in conventional investing. Investments are undertaken in sharia compliant Sukuk and Islamic debt syndications predominantly in the GCC countries—which adds liquidity to the Sukuk sector and promotes economic growth in all Muslim countries, but particularly in the GCC region.

(PRWEB) October 2, 2006 -- Jawad Ali, a Partner at King & Spalding in London office, has been officially assigned as legal counsel to the first GCC-oriented Islamic bond fund: Sanad Investment Co. Ltd. (the “Sanad Sukuk Fund”) to be managed by Encore Fund Management Co. Ltd., a wholly owned subsidiary of Geneva-based Encore Management S.A., the fund sponsor.

John A. Sandwick, Managing Director of the parent Encore said from Geneva “I am delighted to work with Jawad on our pioneering fund. He has tremendous experience in Islamic investment products. His leadership has given Jawad nearly universal acclaim in the Islamic banking & finance community.”

Sukuk—often called Islamic bonds—have until now been unavailable to nearly all Muslim investors who were looking for stable income, generated out of rent and profits rather than forbidden interest-bearing loans. The Sanad Sukuk Fund will finally allow investors to purchase a portfolio of Sukuk with as little as $50,000, or as much as $10 million, finally delivering a much-needed investment to the field of Islamic Wealth Management.

Said Sandwick, “Today about 40% of all managed money in the world is invested in bonds. Muslims have not had the opportunity to duplicate this with Sukuk. They were forced to either accept haram assets or choose other, non-scientific methods of investing their savings. We are revolutionizing Islamic Private Banking with the introduction of the Sanad Sukuk Fund.”

“The importance of a Sukuk fund for Muslim investors is obvious,” comments Jawad Ali from the King & Spalding office in London, “and I welcome the opportunity to advise on this groundbreaking initiative.”

The Sanad Sukuk Fund will be launched before year end and targets both individual and institutional investors. The fund seeks to partner with retail banks—in particular those dedicated to serving Muslim customers—as well as other investing institutions.

An important effect of the fund’s launch will be the impact on Sukuk market activity. In all of 2005 there were only about $60 million in GCC-style Sukuk secondary market trades, a tiny fraction of the estimated $15 billion of Sukuk that were outstanding at the end of last year. With the introduction of the Sanad Sukuk Fund—targeted to reach at least in the $100 million or more in size—secondary market trading should substantially increase. Economists the world over point out that increased market trading and liquidity of all securities is a core component of economic development, fostering increased issuance of securities and thereby contributing to economic growth.

Note to Editors:
Sukuk , the plural of the Arabic word Sakk, means “certificate” or sometimes “credit note.” It is also the root for the English word “cheque.” Sukuk replace interest income with rent or profits; they are therefore the alternative for Muslims seeking a stable income complying with their faith. Sukuk finance real economic activities and, depending on the underlying structure, they are tradable at market value from the Islamic perspective. Secondary market trading is still weak in the GCC region, as Sukuk are relatively new. Significant new Sukuk issuance has only recently increased, while near-term expected new issuance is expected to increase dramatically. Japan, China and Indonesia are among many market entrants expected to enter the Sukuk market in 2007, while at least 100 or more companies based in the Arab world are believed to be readying new Sukuk issues.

ABOUT SANAD IINVESTMENT CO. LTD.
Sanad Investment Co. Ltd.—or the Sanad Sukuk Fund—is the first GCC-oriented Sukuk fund in the world. It will provide both stable income and liquidity for Muslim investors. It closes the significant gap for Muslim investors in their asset allocation by finally providing a bond-like investment vehicle that is fully sharia compliant. All investments made by the Sanad Sukuk Fund will be in not less than 75% sharia-compliant Sukuk and regional credit syndications, predominantly in the GCC countries. Expanding the Sukuk market by creating a Sukuk fund directly leads to increased economic development in the GCC region. The fund is being domiciled in the Cayman Islands, as is its manager Encore Fund Management Co. Ltd., a wholly owned subsidiary of Encore Management S.A. in Geneva, Switzerland. The Sanad Sukuk Fund targets institutional and individual investors of all kinds. The fund’s website—www.sanadfund.com—will be launched alongside the fund itself

ABOUT ENCORE MANAGEMENT S.A.
Encore Management S.A. was founded in 1998 to serve private clients in the management of their family long-term savings, whether through portfolio investments, private equity, or real estate. The firm has established deep institutional relationships in Switzerland, in particular working in partnership with UBS S.A., the world’s largest asset management bank. Encore’s principles are bankers of long standing in the Swiss private banking and asset management businesses. The company remains very active in the Islamic banking space, and has frequently promoted increased transparency and sharia-compliant securities development through conferences and both print and electronic media. Encore’s wholly owned subsidiary—Encore Fund Management Co. Ltd.—was created to manage the new Sanad Sukuk Fund, as well as other future Islamic strategy portfolios. visit www.encoremanagement.com

ABOUT KING & SPALDING LLP
King & Spalding LLP is an international law firm with more than 800 lawyers in Atlanta, Houston, London, New York and Washington, D.C. The firm represents more than half of the Fortune 100, and in a Corporate Counsel survey in August 2006 was ranked one of the top ten firms representing Fortune 250 companies overall. For additional information, visit www.kslaw.com/.

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