BNP Paribas Islamic Fund -Equity Optimiser

(a sub-fund of BNP Paribas Islamic fund)

March 2007

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Table of contents

1.Product Highlights 3

2.Investment Process 7

3.Performance 13

4.Appendices 17• Sharia Supervisory Committee

• BNP PAM Structured & Indexed Investments

1PRODUCT HIGHLIGHTS

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BNP Paribas Islamic Fund

> BNP Paribas Asset Management launches a thematic umbrella fund which is Sharia compliant

• One of the first Sharia compliant Luxembourg Fund UCITS III, part I

• A fund open to all investors

> The activities of the fund shall at all times be compliant with Islamic principles controlled by a Sharia Supervisory Committee. This committee is composed of well-known and highly commended scholars (refer to Appendices slide 18) and provides validation of the set-up «Fatwa», continuous supervision and adjudication of the fund.

> BNP Paribas Asset Management presents its first sub-fund “BNP Paribas Islamic -Equity Optimiser”, an open-ended equity fund optimising a major Islamic index (Dow Jones Islamic Market Titans 100 Index) retaining only high-dividend-paying stocks among the world’s largest global companies.

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Access to the most liquid Islamic stocks….

> A positive environment for global equity markets:

• Low inflation, relatively low valuations and robust M&A activity are all positive factors.

Furthermore, the economic activity is slowly becoming more balanced across the major regions.

> A reliable investment universe: The Dow Jones Islamic Market Titans 100 Index

• This DJ Islamic Market Titans 100 index consists in the 100 largest international companies (50 from USA, 25 from Europe and 25 from Asia Pacific) in terms of float-adjusted US market capitalisation, which are all Sharia compliant. As such, the index is designed to benefit from the potential growth of the global economy.

Due to the criteria based upon the Islamic principles and the market capitalisation, the sectors that represent the index are currently limited.

Source: Dow Jones. Composition as of the end of September 2006

No. of companies by sectorwithin DJ Islamic Market Titans 100 Index

No. of companies by sector within the optimised basket (30 stocks)

Basic Materials 12

Consumer Goods 12

Consumer Services 7

Health Care 18 Industrials 13

Oil & Gas 12

Technology 23

Telecoms 3 Telecoms 3

Basic Materials 5

Consumer, Cyclical 1

Consumer, Non-cyclical 9

Energy 7

Industrial 3

Technology 2

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…delivering the highest dividend yield

> A new investment concept: “high dividend stocks” chosen among 100 blue-chip stocks of the Index

• Companies with high dividend distribution policy have experienced an interesting increase of their stock price over the last few years

• Thanks to high dividends, those stocks tend to be better supported even in a bearish market environment

• Generating strong cash flows is a factor for quality companies

A suitable investment for investors looking for capital gains over medium to long term

• Index composition as of the end of December 2006

A highly disciplined and transparent investment process• Stocks are objectively and systematically selected from the base index components then carefully

supervised by experienced fund managers.

Access to the global equity market, optimising performance,

all within the Islamic principles

The Dividend Yields from the selection of 30 stocks are relatively high, compared to:

• the DJIM Titans 100 index (1.84%)

• the non-Islamic Index such as DJ Global Titans 50 (2.15%)

* Please refer to page 9 for the dividend yield calculation method

Source: Bloomberg

DJ Islamic Market Titans 100

Selection of 30 stocks*

DJ Global Titans 50

Average Dividen Yield 2.99% 1.74% 2.16%Max Dividen Yield 5.09% 5.09% 5.09%Min Dividen Yield 1.59% 0% 0%*Selection of 30 stocks within the DJM Titans 100 index

2INVESTMENT PROCESS

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What are sharia guidelines in a mutual fund?

> Particular investment guidelines compliant with UCITS III

• The fund cannot pay or receive any interest

• The fund will neither invest in fixed income assets nor money markets instruments

• The fund will not invest in equity securities which relate to any of the following sectors:

Conventional banking / life insurance Alcohol / tobacco Gaming / leisure Gambling Biotechnology companies involved in human / animal genetic engineering Arms manufacturing Pork production

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A transparent annual selection process

From the universe of the Dow Jones Islamic Market Titans 100 Index, we select at the end of September every year, 30 stocks that have distributed the dividend having the highest yield over the previous year.

100 large cap companies whose activities comply with Sharia guidelines

Basket: 30 companies with the highest

dividend yield

DJ Islamic Market Titans 100 Index

Each stock is equally weighted within the stock basket on the annual adjustment day (the last business day in September of each year)

The selected 30 stocks compose the basket for the year to come, until the next annual adjustment day. If one stock is no longer included in the DJ Islamic Market Titans 100 Index, the basket is rebalanced (please see on page 11)

The dividend of each stock will be reinvested.

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Composition of the basket as of the end of December 2006

Source: Dow Jones

Company Name Industry

1 VODAFONE GROUP PLC Communications

2 ENI SPA Energy

3 BRISTOL-MYERS SQUIBB CO Consumer, Non-cyclical

4 WOODSIDE PETROLEUM LTD Energy

5 TAIWAN SEMICONDUCTOR MANUFAC Technology

6 BP PLC Energy

7 MERCK & CO. INC. Consumer, Non-cyclical

8 DOW CHEMICAL Basic Materials

9 RINKER GROUP LTD Industrial

10 DU PONT (E.I.) DE NEMOURS Basic Materials

11 GLAXOSMITHKLINE PLC Consumer, Non-cyclical

12 POSCO Basic Materials

13 TOTAL SA Energy

14 PFIZER INC Consumer, Non-cyclical

15 BASF AG Basic Materials

16 HENNES & MAURITZ AB-B SHS Consumer, Cyclical

17 CHEVRON CORP Energy

18 KIMBERLY-CLARK CORP Consumer, Non-cyclical

19 ELI LILLY & CO Consumer, Non-cyclical

20 REPSOL YPF SA Energy

21 COCA-COLA CO/THE Consumer, Non-cyclical

22 SCHNEIDER ELECTRIC SA Industrial

23 NOKIA OYJ Communications

24 3M CO Industrial

25 CONOCOPHILLIPS Energy

26 ABBOTT LABORATORIES Consumer, Non-cyclical

27 CHINA MOBILE LTD Communications

28 UNITED MICROELECTRONICS CORP Technology

29 RIO TINTO LTD Basic Materials

30 SANOFI-AVENTIS Consumer, Non-cyclical

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Exceptional rebalancing rules

In order to comply with the investment restrictions of Luxembourg fund, we will adjust the equity basket, whenever these investment rules are broken:

• Whenever one stock represents more than 9% of the fund’s net assets.

• Whenever the total value of stocks exceeding 5% of the fund’s net assets globally represents more than 39% of the fund net assets

• In such a case, a part of the most valuable stock will be sold and its proceeds will be invested in the least valuable stock within the basket.

Whenever one stock is no longer included in the DJ Islamic Market Titans 100 Index

• The relevant stock will be sold and its proceeds will be invested in the 31st stock that was defined at the time of the annual adjustment process.

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Codes :

Dividend policy: Capitalisation

Subscription : Daily

NAV calculation date : Daily

Initial, minimum subscription unit and management fee:

Subscription fee: maximum 5%, not acquired by the fund

Redemption fee: no charge

Key Features

Category First initial price Minimum Subscription

Maximum Management fee (p.a)

Classic USD 1,000 1 unit 1.5%

Privilege USD 10,000 USD 1 million* 1.0%

Institutions USD 100,000 USD 3 million* 0.6%

* In the current prospectus, the minimun holdings for Privilege and Institutions categories are EUR 1 million and EUR 3 millions respectively; they will be corrected in the next version of the prospectus.

ISIN BLOOMBERG

Classic LU0245286777 BNPIEOC LX

Privilege LU0245286934 BNPIEOP LX

Institutions LU0245287403 Not available

3PERFORMANCE

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BNP Paribas Islamic Fund: An excellent start

BNP Paribas Islamic Fund vs. DJ Islamic Market Titans 1005th April 2006 – 31st January 2007

Performances stated are net of fees. Past performance is not a guide to future performance and the value of investments in the fund may go down as well as up. Investors may not get back the amount they originally invested.

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The result of the back test Historically outperforming the DJ Islamic Market Titans 100 Index (from 30/09/1996 to 05/04/2006)

Past performance is not a guide to future performance and the value of investments in the fund may go down as well as up. Investors may not get back the amount they originally invested. Hypothetical results have certain inherent limitations (e.g. they are designed with the benefit of hindsight). Hypothetical returns are not indicative of actual results that would have been achieved over the same period for the investment strategy or that will be achieved in the future.

(Net of 2% p.a. fee, gross of withholding taxes)

Except the bullish period between 1998-2000, the selection of 30 stocks has clearly outperformed the DJIM Titans 100 index.

The Sharpe Ratio: The higher the Sharpe Ratio, the better the fund's historical risk-adjusted performance.

Better performance with less volatility over the entire back testing period

Source: Bloomberg

50

100

150

200

250

300

350

400

30-Sep-96 30-Sep-97 30-Sep-98 30-Sep-99 30-Sep-00 30-Sep-01 30-Sep-02 30-Sep-03 30-Sep-04 30-Sep-05

Islamic Optimiser (DR Net) -2% fees

DJ Islamic Titan 100 DR

DJ Global Titan 50 DR

Perf annualised Volatility Sharpe Ratio Perf annualised Volatility Sharpe Ratio30 Sept 96 to 30 Sept 98 24,1% 13,8% 1,40 25,6% 15,2% 1,37 30 Sept 98 to 30 Sept 00 11,4% 14,5% 0,46 24,7% 17,1% 1,16 30 Sept 00 to 30 Sept 02 -0,8% 14,8% - 0,38 -26,7% 20,5% - 1,53 30 Sept 02 to 30 Sept 04 21,7% 13,3% 1,27 16,3% 13,8% 0,84 30 Sept 04 to 5th Apr 06 15,3% 9,3% 1,13 15,0% 8,6% 1,20

Performance 3 Months Volatility Sharpe 3 Months Performance 3 Months Volatility Sharpe 3 Months1st Jan 06 to 5th Apr 06 9,0% 9,1% 0,47 6,3% 9,3% 0,17

BNPP Islamic Equity Optimiser (30) DJ Islamic Market Titans 100 Index

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The back-test was conducted:

• From September 1996 to the fund launch date to compare with DJ Islamic Market Titans 100 Index.

The comparison between the optimised basket and the DJIM Titans 100 index over the same period is based on the following parameters:

• The basket performance with Net Dividend Reinvested

• For the DJIM Titans 100 Index, we incorporated a hypothetical dividend yield of 2% reinvested

The stock basket is based on the Index composition as of 31 January 2006, applied for the whole period of back-tests, i.e. the basket was rebalanced annually to select 30 biggest dividend payers for each corresponding year.

The back-test did not take into account minor exceptional rebalancing that might have taken place, nor the withholding tax on the dividends of the holding stocks imposed by Luxembourg regulation.

The results are net of the 2.0% fee per annual (the maximum Total Expense Ratio).

The method of the back-test

4Appendices - Double expertise

Sharia Supervisory Committee

BNP PAM Structured & Indexed Investments

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Dr. Nizam Yaquby - Bahrain – Independent Sharia Consultant, Manama, Bahrain

Dr. Yaquby is a prominent Islamic scholar educated at McGill University in Canada and the University of Wales. He has studied under the guidance of some of the world's pre-eminent Islamic scholars. He has over two decades of experience in teaching Islamic business subjects and has authored several research papers on Islamic banking. He serves as a Sharia advisor to a number of international financial institutions and insurance including, The Dow Jones Islamic Index.

Dr. Abdul Sattar Abu Ghuddah – Syria (based in Saudi Arabia)

Dr. Abu Ghuddah is an Islamic scholar educated in Damascus and Al Azhar University, Cairo. He sits on the Sharia Board of several financial institutions around the world, including that of the Dow Jones Islamic Index. Dr. Abu Ghuddah has researched and published numerous papers on Islamic banking. He is a member of the International Islamic Fiqh Academy as well as the Islamic Accounting & Auditing Standards Board.

Dr. Mohamed Daud Bakar – Malaysia

Dr. Daud Bakar is an Islamic scholar educated at the University of Kuwait and at the University of St. Andrews in Scotland. Dr. Daud Bakar is the Deputy Rector and an Associate Professor in Islamic Law, at the International Islamic University in Malaysia. He has published a considerable number of research papers and has participated in numerous seminars and conferences on Islamic banking and finance. Dr. Daud Bakar is also, a Sharia consultant and advisor for several financial institutions around the world including, Bank Negara Malaysia and the International Islamic Financial Market in Bahrain.

The Fund’s Sharia supervisory committee3 recognised scholars and their biographies

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> A dedicated organisation:

• 16 years experience in structured & indexed investments.

• A team of 33 specialists dedicated to structured & Indexed investments (4 located in Hong-Kong), which is supported by the legal and risk control department.

• An open architecture which allows access to our long experience and services for our clients.

• Validated BNP PAM Asset Manager rating of AM2+ by Fitch Ratings.

> A high and steady increase of the AUM since 2000:

• 186 Structured & Indexed funds managed

• € 19.5 bn of AUM (as of June 2006)

• In 2005, 2/3 of structured funds launched fornon-resident investors (mainly in Asia)

BNP Paribas Islamic Equity Optimiser Managed by the Structured & Indexed Investment Team of BNP PAM in Paris

BNP PAM Structured & Indexed Investments: a significant track record

33 Professionals

BusinessSolutions

QuantitativeAnalysis

Risk Department

Paris

Marketing and

Client Support

Legal Department

London Paris Luxembourg

Management Structuring

Business solutions

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DisclaimerMarketing:This document has been produced for informational purposes only and does not constitute, is not part of and must not be considered as an offer to sell or subscribe, or as a solicitation of any kind to buy or subscribe for unit of BNP Paribas Islamic Fund (the « Fund »); nor shall it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever, nor be taken as investment advice.

The Fund has been authorised as an undertaking for collective investment in transferable securities (UCITS) in Luxembourg. Its marketing is authorised, at present, in Luxembourg and its units may be offered and sold in all of that country. Steps have been or will be taken to allow the public offering of the units in Bahrain, Kuwait, Qatar, Saudi Arabia, Libyan, Singapore, Malaysia, Switzerland, Netherlands, France, Germany, Cyprus, Turkey, Spain and Portugal. No action has been taken which would permit the public offering of the shares in any other jurisdiction where such action would be required, in particular, in the United States, to US persons and in the United Kingdom. Prior to any subscription in a country in which BNP Paribas Islamic Fund is registered, investors should verify which compartments and which classes of shares are authorised for public sale there, as well as any legal constraints or restrictions there may be in connection with their subscription, purchase, possession or sale of the units of the Fund.

Investors considering subscribing for units should read carefully the most recent prospectus. Applications may only be made on the terms and conditions contained in the prospectus. The prospectus is available from BNP PARIBAS, local correspondents if any, or from the entities marketing the Fund. Investors should consult their own legal and tax advisors prior to investing in the Fund.

Given the economic and market risks, there can be no assurance that the Fund will achieve its investment objectives. The value of the units may go down as well as up. Performance figures are shown gross of subscription, redemption and conversion fees as well as taxes. Past performance is not a guarantee of future results.

For further information or to subscribe, contact an authorised distributor of the Fund. The list of authorised distributors is available from its registered office: BNP Paribas Islamic Fund, rue de Gasperich, 5826 Howald - Hesperange, Luxembourg.

Tax:The Fund is not subject to any tax other than an annual registration tax in Luxembourg (0.01% to 0.05% of its average quarterly net assets, depending upon the compartment) and any taxes on income received on investments, which may be withheld by the depositary according to their tax situation in their country of origin.

Subscribers must make and submit their own declarations in their country of tax residence. The attention of unitholders fiscally domiciled in France is drawn to their obligation to make a declaration of income in France which, resulting from switching between compartments of the Fund or converting into another class of shares in the same compartment, is subject to French capital gains tax on transferable securities.