Islamic Global Real Estate Securities Fund SPC - National Bank of ...

Private Placement MemorandumIV. SUMMARY OF PRINCIPAL TERMSThe following information is presented as a summary and is qualified in its entirety by the Memorandum and Articlesof Association of the Fund, the Subscription Application signed by each investor, the Fund’s agreements with theDistributor, the Fund Administrator, the Fund Manager, the Fund Advisor, Idara International Ltd., The Bank ofNew York, the other information included in this Placement Memorandum, and the Confidential Private PlacementMemorandum of the Wafra-Pramerica Fund. A more detailed description of the Wafra-Pramerica Fund and of aninvestment in the Wafra-Pramerica Fund can be found in the Confidential Private Placement Memorandum of theWafra-Pramerica Fund, which each prospective investor may obtain from the Distributor upon request.FundIslamic Global Real Estate Securities Fund SPC, an open-ended, Shariah-compliant, exempted segregatedportfolio company with limited liability incorporated in the Cayman Islands in March 2008.Investment ObjectiveThe objective of the Fund is to provide its shareholders with long-term growth through investing in a diversifiedportfolio of global Real Estate Securities.The Fund has two Portfolios: the Class A Portfolio and the Class B Portfolio. Investors may invest in eitheror both Portfolios, subject to the approval of the Distributor. Each Portfolio constitutes a separate investmentfund, the assets and liabilities of which will be segregated and separately identifiable from the assets and liabilitiesof the Fund.Substantially all of the assets of the Class A Portfolio will be invested by the Fund in the Class A SegregatedPortfolio of the Wafra-Pramerica Fund. Substantially all of the assets of the Class B Portfolio will be investedby the Fund in the Class B Segregated Portfolio of the Wafra-Pramerica Fund.The Real Estate Securities in which both portfolios of the Wafra-Pramerica Fund invest are intended to complywith the Shariah Criteria and to be geographically diversified, and are not intended to have a focus on anyparticular real estate sector, but there can be no assurance that these objectives will be achieved. Althoughthe Investment Advisor expects the two portfolios of the Wafra-Pramerica Fund to be invested in many of thesame Real Estate Securities, the Investment Advisor also expects there to be differences either in the Real EstateSecurities held in the two portfolios or in the relative amounts invested by the two portfolios in any particularReal Estate Security.The principal difference between these two portfolios is that the Class A Segregated Portfolio of the Wafra-Pramerica Fund may incur Portfolio Leverage on a Shariah-compliant basis. Such Portfolio Leverage wouldbe in addition to any Property Leverage affecting the entities in which the Wafra-Pramerica Fund invests orthe properties of such entities, which Property Leverage is to be in compliance with the Shariah Criteria. TheClass B Segregated Portfolio of the Wafra-Pramerica Fund will not incur any Portfolio Leverage. There are alsodifferences in the fees charged to investors in the two Portfolios.Investors can choose to invest in either Portfolio based on their risk appetite and return objectives. The ClassA Portfolio may produce a higher return if asset values are rising because of the Portfolio Leverage that may beincurred by the corresponding portfolio of the Wafra-Pramerica Fund. Leverage, even if effected on a Shariahcompliantbasis, also increases the risk of loss, so an investment in the Class A Portfolio will carry more risk ifasset values are dropping because of the Portfolio Leverage that may be incurred by the corresponding portfolioof the Wafra-Pramerica Fund.17