New Hedge Fund To Help Muslims Save For Hajj

Jun 9 2011 | 2:18pm ET

Two companies have launched a hedge fund designed to fund Muslims' trips to Mecca.

The Hajj Fund is designed to allow Muslims to save for the trip to the Saudi Arabian city where Muslim prophet Muhammed first proclaimed Islam. Able-bodied Muslims who are able to afford it are required to go on Hajj at least once in their lifetime.

Given that requirement, the fund's managers, AmanahRaya Capital Group and Fattan Finance, expect that as many as one million Kazakhs will invest in the fund, which aims to return between 6% and 8% annually. The fund expects to be able to send about 200 people to Mecca over the next two years.

"This Hajj Fund is actually a fund to enable the Muslim community in Kazakhstan to have a saving program to enable them to perform Hajj, the fifth pillar of Islam," co-manager Ahmad Rodzi Pawanteh told Bloomberg News.

As befits such a pious enterprise, the Hajj Fund will be Shariah-compliant, investing primarily in real estate and stocks.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of