Al-Tawfeek Company for Investment Funds Ltd Financial & Business Analysis 2000 "A fine year, with generally good investment performance, increased assets under management and higher profitability."

Financial Trends

Ownership and Legal Status

Al-Tawfeek Company for Investment Funds Ltd. (a limited liability company) was registered in the Cayman Islands on 28 May 1992 with the main objective to deal in different transactions based on Shari'a provisions. The Company participates in financial markets and stock exchanges through offering negotiable investment tools. The Company is a subsidiary within the financial services division of the Dallah Al-Baraka Group, founded by Sheikh Saleh Kamel in 1969

The Year in Brief

Net profit for the year increased by 32.6% to US$26.09 million (1999: US$19.67 million), reflecting both improved performance and an improvement in general economic conditions. Total assets increased by 22.97% to US$539.44 million (1999: US$438.67 million). Funds under management increased by 9.3% to US$497.98 million (1999: US$455.60 million). This is partly because of an increase in the value of managed assets, and partly a result of new fund launches and an increase in new investments. Total investments increased by 7.42%, with strong growth in murabaha contracts (up 63.5%), real estate investment (up 28.6%), in equities (up 11.0%) and in the capital of Islamic banks and companies (up 14.9%). Retained earnings increased by 15.26% to US$11.35 million (1999: US$9.85 million) and the General Reserve by 15.09% to US$15.99 million (1999: US$13.90 million). Total expenses increased by 13.7% to US$9.65 million (1999: US$8.49 million) with expenses being 27% of net revenues (1999: 30.2%).

Business Highlights

• The Company has invested in new communications technology, and now offers a web site to customers (www.altawfeek.com). It is planned that a full on-line investment service will be offered shortly.
  
  
• During the year the Al-Sukoor Investment Fund was launched, one of the first Islamic investments to be denominated in Euros. This fund invests in Shari'a compliant European equities, entailing the exclusion of 60.9% of all European equities from the potential investment universe.
  
  
• The Al-Baraka General Fund, the longest running fund (and largest with AUM of US$145 million), investing in a range of economic activities in the Arabian Gulf region provided a return of 2.93% to 'A' investors (short notice) (1999: 3.33%); 4.92% to 'B' investors (3 month liquidity) (1999: 5.57%) and 6.43% to 'C' investors (annual liquidity) (1999: 7.19%). Other funds had asset balances of:
  
  
  • Lebanon Reconstruction Fund: US$115 million (down 3.68%)
  • International Leasing Fund: US$10.1 million (down 25.95%)
  • US Real Estate Fund: US$42.9 million (down 13.3%)
  • Children Investment Fund: US$0.569 million (up 62%)
  • GCC Leasing Fund I: US$109 million (up 19.6%)
  • GCC Leasing Fund II: US$36.3 million (new)
  • Al-Safwa Int'l. Equity Fund: US$21.8 million (up 25.54%)
  • Al-Nukhba Asia Equity Fund: US$17.5 million (up 69.7%)
    
    
• The Company has introduced a program of executive career planning and specialised training courses, and encourages staff to enrol in both long and short-term training programs, both at home and overseas in subjects that include banking, finance, administration, computer sciences and the English language. Staff are also encouraged to pursue higher academic courses such as Masters degrees and financial institution diplomas.