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Muscat: Bank Muscat, the leading financial services provider in the Sultanate of Oman, has launched Bank Muscat Al Tharwa Fund with an objective to provide investors from individuals and institutions with stable returns through regular dividend distributions along with capital appreciation.
The Fund will provide the benefits of diversification by investing in two key asset classes i.e. equity and fixed income and the allocation to these asset classes will be dynamically managed by an experienced asset management team at Bank Muscat, based on prevailing market conditions and objectives of the Fund. Accordingly, the Al Tharwa Fund will be the first of its kind offering in the Sultanate of Oman and it will provide investors with the opportunity to invest in both equity and fixed income securities, akin to a balance fund, across GCC regional and international markets. Bank Muscat Al Tharwa Fund is an open-ended fund regulated by the Financial Services Authority, Sultanate of Oman and is open for investment for investors from individuals and institutions.
The Initial Public Offering for the Fund will open on 1st September and will close on 12th September, 2024. The initial offer price for the Fund will be 101 baiza per unit, including issue expenses of 1 baiza per unit. The Fund would offer daily liquidity with no minimum holding period. Investors can subscribe to the Fund with a minimum subscription amount of OMR 50 and there is no maximum limit for investment. The Fund’s Net Asset Value (NAV) will be published daily on the websites of Bank Muscat, and Muscat Stock Exchange, allowing investors to track the value of their investments daily.
Bank Muscat customers who wish to subscribe to the Fund during the initial public offering period can download the subscription form from bank’s website viz www.bankmuscat.com and submit it to the nearest Bank Muscat or MeethaqIslamic Banking branch. Bank Muscat customers can also subscribe to the Fund through the Internet Banking platform of Bank Muscat. Interested investors may contact the Fund Management team via email at .
Being an open-ended fund, investors may redeem their units anytime through Internet Banking platform of Bank Muscat or by submitting duly filled and signed redemption forms to the nearest branch of Bank Muscat or Meethaq Islamic Banking, during the continuous offer period which would commence post allotment of units to investors.
The investment strategy of Bank Muscat Al Tharwa Fund is to maintain an optimal mix of equities and fixed income securities based on the prevailing market conditions and offer twin advantage of regular dividends as well as capital gains to investors. In addition, the design of the fund enables regular rebalancing of the allocation to equities and fixed income securities, to provide an inbuilt advantage of diversification for investors during changing market conditions and better manage the volatility. Accordingly, the Fund offers a comprehensive solution for investment as it allows an opportunity to minimize the volatility in investment portfolio while receiving regular dividends as well as capital appreciation by reaping the benefits ofan optimal asset allocation.
Please refer to the prospectus of Bank Muscat Al Tharwa Fund available at www.bankmuscat.com to understand the Fund’s details including key terms and conditions. Investors are also requested to refer to the key risk factors highlighted in the prospectus. It should be noted that the mutual fund returns are subject to market performance and past performance does not guarantee future performance.
Referring to the launch of the new fund, Khalifa bin Abdullah Al Hatmi, Deputy General Manager, Investment Banking and Capital Markets, Bank Muscat, said: "We are extremely delighted to introduce the Bank Muscat Al Tharwa Fund to the market. This launch of the Fund is a testament to our commitment to offering innovative and unique investment solutions that cater to the evolving needs of our investors. With the Fund's objective and focus on generating stable returns and capital appreciation through investing in equities and fixed-income instruments in the GCC and international markets, we are confident that it will offer individuals and institutions alike a compelling investment opportunity to generate income and capital appreciation."
Khalifa Al Hatmi added: “Bank Muscat Al Tharwa Fund offers an attractive and innovative investment option for investors to benefit from the investment expertise of Bank Muscat’s Asset Management team and a dynamic allocation to both equity and fixed income to benefit from various market opportunities.”
The primary objective of the Fund is to generate regular income and capital appreciation by investing in a diversified portfolio of equity and fixed income instruments in the GCC and international markets. Bank Muscat’s Asset Management team will be the Investment Manager of the Fund, being the largest asset manager in the Sultanate and one of the most experienced asset managers in the GCC region. The team has a proven track record of managing assets in both equities and fixed income across multiple funds and strategies. As a milestone of achievement, Bank Muscat Oryx Fund, the flagship GCC equity fund, managed by the Asset Management division of Bank Muscat since 1995, has delivered consistent performance across timeframes.
Times of Oman
