Foresight Sust Regulatory News (FSF)

THE FAMILY SHARI'AH FUND LIMITED

(the "Company" or the "Fund")

The Family Shari'ah Fund Limited, a multi-asset class fund providing investors with exposure to a variety of Shari'ah compliant investments predominantly outside of the GCC region, is pleased to announce its unaudited half year results for the six month period ended 30 June 2011.

A full copy of the half year results, which have been reviewed by the auditors, the financial timetable and the latest monthly investment manager's report are also available on the Fund's website (www.familyshariahfund.com).

For further information, please contact:

INVESTMENT MANAGER'S REPORT

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2011

As outlined in the Annual Report for the year ended 31 December 2010, The Family Office Company B.S.C. (c) (the "Investment Manager") was positive on the global economy recovering going into 2011. However, the Investment Manager was aware of the various risks that could hinder or slow the recovery process; these risks are still present today and center around US weak employment recovery, the downgrading of the US credit rating, the European sovereign crisis and emerging market inflation.

The Investment Manager adopted a pro-cyclical approach in the first half of 2011 and aims to balance both the liquid and illiquid portion of the portfolio and ensure diversification across asset classes. The NAV as at the end of June 2011 was US$ 0.9262 vs. US$ 0.8932 as at 31 December 2010. This represents a gain of 3.69% for the first six months of the year.

Cash holdings decreased over the first six months from 16.1% to 11.0%. This decrease in cash was mainly as a result of investments in public equity.

The portfolio allocation to islamic income decreased from 24.4% to 16.7% in the period. Given the low yields seen in the sukuk space and the low risk adjusted returns for corporate sukuks, the Investment Manager continued to reduce the Fund's sukuk exposure relative to its equity exposure. This turned out to be the correct decision as the DJ Sukuk index returned 3.5% vs. 6.2% for the MSCI AC World Islamic Index for the first six months of the year.

In public equity, the Investment Manager tactically traded the portfolio by taking advantage of the volatility seen in the market. In addition, the Investment Manager increased strategically the Fund's equity exposure by adding active managers who focus on generating returns through specific stock picking. The portfolio allocation to public equity increased from 25.5% to 33.8% in the half year.

In private equity, the Fund participated in an add-on to one existing transaction. Portfolio allocation to private equity increased from 16.0% to 17.7% in the period resulting from a mark up in private equity due to improvements in underlying companies.

In real estate, the Fund participated in one new transaction bringing the total number of transactions in real estate to ten. The portfolio allocation to real estate increased from 14.4% to 17.4% in the period.

The Investment Manager will continue the approach adopted at the beginning in the year by tactically trading the equity portfolio and participating on a long term basis to private equity and real estate transactions.

DIRECTORS' REPORT

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2011

The Directors present their report and unaudited interim condensed financial statements for The Family Shari'ah Fund Limited (the "Fund") for the six month period ended 30 June 2011.

Principal Activities

The principal activity of the Fund is to carry on the business of an investment company with the investment objective to provide investors with a diversified pool of Shari'ah compliant assets and consistent risk-adjusted returns over a market cycle via an active and diversified asset allocation programme. The Fund aims at geographic diversification of investments, predominantly outside the Gulf Cooperation Council states and enhances liquidity through trading of the Fund's shares on the AIM Market of the London Stock Exchange ("AIM").

Quotation

The Fund was admitted to trading on AIM on 25 July 2008.

Substantial Shareholding

At 30 June 2011, the Fund had notification that the following shareholders had a beneficial interest of 3% or more of the Fund's issued share capital:

Results for the period and state of affairs as at 30 June 2011

The interim statement of financial position as at 30 June 2011 and interim statement of comprehensive income for the six month period ended 30 June 2011 are set out below.

Dividend

No dividend was proposed or paid during the period.

Directors

The Directors, who served during the period and to the date of this report, are as follows:

*Retired by rotation and re-elected on 15 June 2010

**Retired by rotation and re-elected on 15 June 2011

Directors' Interests

The Directors do not have any shareholdings in the Fund or any options over shares in the Fund as at 30 June 2011. None of the Directors were granted or exercised any share options during the period.

Directors' Fees

The total amounts incurred as Directors' fees during the period were as follows:

Corporate Governance Statement

Whilst the Fund is not subject to the UK Corporate Governance Code, published by the Financial Reporting Council, which is applicable to companies listed on the main market of the London Stock Exchange (the "LSE"), the Directors recognise the importance of sound corporate governance. The Fund complies with the Corporate Governance Guidelines for Smaller Quoted Companies as published by The Quoted Companies Alliance (as far as such guidelines are appropriate to a company of its size and nature).

The Fund has adopted a code of conduct for its Directors' and key employees' share dealings, which the Directors consider is appropriate for the Fund given its nature as an AIM quoted investment company and as the Fund has no executive Directors and has no share option or incentive schemes. The Directors comply with Rule 21 of the AIM Rules for Companies as published by the LSE relating to Directors' dealings and, in addition, take all reasonable steps to ensure compliance by the Fund's applicable employees.

The Directors have established an Audit Committee and a Remuneration and Nomination Committee, each with formally delegated roles and responsibilities. The Audit Committee is comprised of all three of the independent non-executive Directors; Peter Robinson (Chairman), Christopher Dixon and Dr. Reinhard Klarmann. The Remuneration and Nomination Committee is comprised of Peter Robinson (Chairman), Christopher Dixon and William Morrison. The Committees meet as often as required but in any event at least once per year.

The Audit Committee is responsible for ensuring that the financial performance of the Fund is properly reported on and monitored and for meeting the auditors and reviewing the reports from the auditors relating to the financial statements and internal control systems.

The Remuneration and Nomination Committee, where appropriate given the size and nature of the Fund and the composition of the Board, reviews the performance of the executive and non-executive Directors and sets and reviews the scale and structure of their remuneration and the terms of their service agreements and letters of appointment with due regard to the interest of shareholders. No Director is permitted to participate in discussions or decisions concerning his own remuneration.

Shari'ah Supervisory Board

The Shari'ah Supervisory Board is responsible for ensuring that the Fund's activities are in compliance with Shari'ah law.

Statement of Directors' Responsibilities in respect of the Interim Condensed Financial Statements

The Directors are responsible for the preparation of financial statements for each financial period which present fairly the Fund's state of affairs as at the end of the period and the results of operations for the period then ended.

In preparing the interim condensed financial statements, the Directors are required to:

• ensure that the interim condensed financial statements comply with the Memorandum and Articles of Association of the Fund and the preparation and presentation of these is in accordance with International Accounting Standard 34 "Interim Financial Reporting";

• select suitable accounting policies and then apply them on a consistent basis;

• make judgments and estimates that are reasonable and prudent;

• prepare the interim condensed financial statements on the going concern basis unless it is inappropriate to presume that the Fund will continue in business;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information; and

• provide additional disclosures when compliance with the specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the Fund's financial position and financial performance.

The Directors are responsible for keeping proper accounting records, for safeguarding the assets of the Fund and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the Directors:

___________________ _____________________

Peter Robinson Abdulmohsin Al-Omran

Date: 24 August 2011

REPORT ON REVIEW OF INTERIM CONDENSED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF THE FAMILY SHARI'AH FUND LIMITED

Introduction

We have reviewed the accompanying interim condensed financial statements of The Family Shari'ah Fund Limited (the 'Fund') as at 30 June 2011, comprising of the interim statement of financial position as at 30 June 2011, the related interim statements of comprehensive income, changes in equity and cash flows for the six month period then ended and explanatory notes. The Fund's management is responsible for the preparation and presentation of these interim condensed financial statements in accordance with International Accounting Standard 34 'Interim Financial Reporting' ('IAS 34'). Our responsibility is to express a conclusion on the interim condensed financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing. Consequently, it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements are not prepared, in all material respects, in accordance with IAS 34.

Ernst & Young

24 August 2011

Manama, Kingdom of Bahrain

INTERIM STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2011 (Unaudited)

___________________ ___________________

Peter Robinson Abdulmohsin Al-Omran

Chairman Director

The attached explanatory notes 1 to 6 are an integral part of these interim condensed financial statements.

INTERIM STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2011 (Unaudited)

The attached explanatory notes 1 to 6 are an integral part of these interim condensed financial statements.

INTERIM STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2011 (Unaudited)

The attached explanatory notes 1 to 6 are an integral part of these interim condensed financial statements.

INTERIM STATEMENT OF CASH FLOWS

FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2011 (Unaudited)

The attached explanatory notes 1 to 6 are an integral part of these interim condensed financial statements.

NOTES TO THE INTERIM CONDENSED FINANCIAL STATEMENTS

30 JUNE 2011 (Unaudited)

1 ACTIVITIES

The Family Shari'ah Fund Limited (the "Fund") is a Shari'ah-compliant multi-asset class investment company. The Fund is a Cayman Islands exempted company and is not registered with the Cayman Islands Monetary Authority ("CIMA"). The Fund invests in a range of Shari'ah-compliant assets, products and investments. The Fund's strategy is to focus on providing specialised Shari'ah-compliant financial products that appeal to a growing market of investors who desire Shari'ah-compliant economic equivalents to conventional assets and instruments.

The address of the registered office of the Fund is SH Corporate Services Ltd., P.O. Box 61, 4th Floor, Harbour Centre, George Town, Grand Cayman, KY1, 1102, Cayman Islands.

The investment objective of the Fund is to achieve long-term capital appreciation from a Shari'ah-compliant, diversified, investment portfolio characterised by a moderate level of risk. The Fund operates under the overriding principle that all investments must be Shari'ah-compliant. The Fund's investment objectives are therefore devised so as to provide investors with a diversified pool of Shari'ah-compliant assets, consistent risk-adjusted returns over a market cycle via an active and diversified asset allocation programme, geographic diversification of investments and liquidity through trading of the Fund's shares on the AIM Market of the London Stock Exchange.

The activities of the Fund are subject to 'Islamic Investment Guidelines', as defined from time to time by the Shari'ah Supervisory Board ("SSB"). The SSB consists of two members.

The SSB is responsible for:

- reviewing and approving the 'Islamic Investment Guidelines' of the Fund;

- reviewing the Fund's investments to ensure that they are Shari'ah compliant;

- receiving reports from the Investment Manager to ensure adherence to the 'Islamic Investment Guidelines'; and

- advising the Directors on revenue purification and selecting appropriate charities.

The Family Office Company B.S.C. (c), a company incorporated in the Kingdom of Bahrain, is the investment manager of the Fund ("Investment Manager").

The Fund has appointed Apex Fund Services (Ireland) Limited (the "Administrator" or "Apex"), an Irish limited liability company, as its administrator.

The interim condensed financial statements of the Fund for the six month period ended 30 June 2011 were approved by the Board of Directors on 24 August 2011.

2 BASIS OF PREPARATION AND ACCOUNTING POLICIES

a) Basis of preparation

The interim condensed financial statements of the Fund for the six month period ended 30 June 2011 are prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting'.

The interim condensed financial statements do not contain all information and disclosures required for full financial statements prepared in accordance with International Financial Reporting Standards and should be read in conjunction with the Fund's annual financial statements for the year ended 31 December 2010. In addition, results for the six month period ended 30 June 2011 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2011.

b) Significant accounting policies

The accounting policies adopted in the preparation of the interim condensed financial statements are consistent with those followed in the preparation of the Fund's annual financial statements for the year ended 31 December 2010.

The amendments to the following standards and interpretations did not have any impact on the accounting policies, financial position or performance of the Fund:

Ø IAS 24, 'Related Party Disclosures (Amendment)'

Ø IAS 32, 'Financial Instruments: Presentation - Classification of Rights Issues'

Ø IFRIC 14, 'Prepayments of a minimum funding requirement (Amendment)'

Ø Improvements to IFRSs (issued in May 2010)

Ø IFRS 3, 'Business Combinations'

Ø IFRS 7, 'Financial Instruments: Disclosures'

Ø IAS 1, 'Presentation of Financial Statements'

Ø IAS 27, 'Consolidated and Separate Financial Statements'

Ø IFRIC 13, 'Customer Loyalty Programmes'

The Fund has not early adopted any other standard, interpretation or amendment that was issued but is not yet effective.

3 INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

These represent investments in instruments compliant with, or in compliance with, the principles and precepts of Shari'ah law as determined by theSSB. Investments are made in accordance with the investment policies as laid down in the revised 'Investing Policy' of the Fund.

The fair values of financial instruments are as follows:

4 COMMITMENTS

The Fund has a capital commitment to three related party unquoted funds; TFO Shari'ah Co-Investment Fund SPC ("SPECO"), TFO Real Estate Co-Investment Program ("RECO") and TFO Shari'ah SPD Fund ("SH SPD"), each representing a portfolio of assets. This capital commitment as at the statement of financial position date amounted to US$ 5.5 million to SPECO, US$ 8 million to RECO and US$ 1 million to SH SPD. The uncalled capital commitments as at the statement of financial position date amounted to US$ 0.5 million to SPECO, US$ 1.56 million to RECO and Nil to SH SPD (31 December 2010: US$ 0.5 million to SPECO, US$ 2.6 million to RECO and Nil to SH SPD). The timing of the capital call depends upon investment opportunities identified by the related party funds.

5 RELATED PARTY TRANSACTIONS

Parties are considered to be related if one party has the ability to control the other party or exercises significant influence over the other party in making financial or operational decisions. All transactions with related parties were in the normal course of business. The Investment Manager and related companies are deemed to be related to the Fund. Fees incurred with related parties during the period and amounts payable to related parties at the period end are disclosed below.

Balances and transactions with related parties included in these interim condensed financial statements are as follows:

* Investments made through investment vehicles that are managed by the Investment Manager.

6 SEGMENT REPORTING

For management purposes, the Fund is organised into six operating segments as mentioned below. Each segment engages in separate business activities and the operating results are regularly reviewed by the Investment Manager and Board of Directors, for performance assessment purposes and to make decisions about resources allocated to each segment. The Investment Manager is responsible for allocating resources available to the Fund in accordance with the overall business strategies as set out in the revised Investing Policy of the Fund. The segments are as follows:

·; Money market and cash (comprising of balance with bank)

·; Public equity (comprising of investments in equity funds, publicly quoted equities, ETFs tracking Islamic indices, etc.)

·; Private equity (comprising of investments in private placements, investment in private equity funds, etc.)

·; Islamic income and leasing (comprising of investments in Shari'ah compliant alternatives such as Sukuk, Musharakah, Ijarah etc.)

·; Real estate (comprising of investments in real estate, real estate funds, managed portfolio, etc.)

·; Alternative investments (comprising of investments in hedge funds, Shari'ah compliant wrapper instruments, etc.)

There have been no changes in reportable segments during the course of the period.

Financial information about the segments is as follows:

The following table analyses the segmental information of investments which form a majority of the total income:

The Fund's other assets, total liabilities, total equity and expenses are not considered part of the performance of an individual segment.

During the period there were no revenues from transactions within other operating segments.

The following table analyses the Fund's total income per geographical location:

The following table provides a reconciliation between total segment assets and total assets:

Notes to Editors

The Family Shari'ah Fund Limited is the first multi-asset class fund to gain admission to AIM and provides investors with exposure to a variety of Shari'ah Compliant investments predominantly outside of the GCC region.

The Company's investing policy, as defined by the AIM Rules, is available on the Company's website at www.familyshariahfund.com/investing_policy.html.