Ijara/Leasing Funds

The figure below shows the Ijara fund structure. Ijara funds typically incorporate periodical redemption features. The redemption frequency profile of an asset management product is important to investors in general and even more so to Islamic institutions with limited recourse to an interbank alternative. The investment exit strategy for Ijara funds has
usually been underwritten by the product sponsor, who will acquire asset holdings from the investor or arrange asset sales on a best effort or matched basis.

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