Muscat – Bank Muscat has lunched the Al Tharwa Fund, aimed at offering individual and institutional investors stable returns through regular dividend distributions and capital appreciation.

The primary goal of the new fund is to generate consistent income and capital growth by investing in a diversified portfolio of equities and fixed-income instruments across GCC and international markets.

The fund’s asset allocation between equity and fixed-income classes will be actively managed by Bank Muscat’s experienced asset management team, adapting to prevailing market conditions and the fund’s objectives, according to a press release.

Al Tharwa Fund is the first of its kind in Oman, providing investors with the opportunity to invest in both equity and fixed-income securities, similar to a balanced fund, across regional and international markets. The fund is open-ended, regulated by the Financial Services Authority, and available for investment to both individual and institutional investors.

The initial public offering (IPO) for the fund will open on September 1 and close on September 12, 2024. The initial offer price is set at 101bz per unit, including issue expenses of 1bz per unit.

Al Tharwa Fund offers daily liquidity with no minimum holding period. Investors can subscribe to the fund with a minimum investment of RO50, with no maximum investment limit.

Bank Muscat customers interested in subscribing during the IPO period can download the subscription form from the bank’s website and submit it to their nearest Bank Muscat or Meethaq Islamic Banking branch. Customers can also subscribe via the Bank Muscat internet banking platform.

The investment strategy of the Al Tharwa Fund is to maintain an optimal mix of equities and fixed-income securities, based on current market conditions, offering investors both regular dividends and capital gains. Additionally, the fund’s design allows for regular rebalancing of the allocation between equities and fixed-income securities, providing diversification benefits and better management of market volatility. This makes the fund a comprehensive investment solution, allowing investors to minimise portfolio volatility while receiving regular dividends and capital appreciation through optimal asset allocation.

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.”

He added, “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.”

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