Shari’a-compliant Funds

Volaw has considerable experience in establishing and administering Shari’a-compliant funds for Islamic investors.

Since 1996, Volaw has been involved in the establishment and continuing administration of a Jersey-based fund investing in US real estate. This has led to the creation of several similar real estate funds, as well as a number of SPV structures for individual or small groups of investors wishing to invest in real estate, both in the US and Europe.

Other Shari’a-compliant funds have included an Egyptian equities fund, a Japanese equities fund, and an umbrella fund structure with a number of different asset classes that investors could select and switch between. Some of these funds were established as Jersey “public” funds, but several Islamic financial institutions have shown significant interest in using Jersey’s Expert Funds regime.

Jersey funds may be classified as:

  • Retail (or public) funds, being those aimed at a large number of investors, generally with a relatively low minimum investment threshold;
  • Private funds which are only made available to a very limited number of investors; and
  • Expert funds, which may be offered to a wider circle of potential investors.

Jersey Expert Funds will be established for sophisticated, high net worth, professional or institutional investors, or any combination of these; hence they are seen as an ideal fund class for investors based in the GCC.

For further information on Islamic Finance matters contact Trevor Norman of Volaw.