GIB Opportunistic Indian Equity Fund

The initial subscription period closed early for the Shariah compliant GIB Opportunistic Indian Equity Fund. While this initial period was to be 40 business days from the 1^st September 2024 launch date, fund manager GIB Capital declared its closure effective the 16^th September 2024.

GIB Capital announced that SAR21.49 million (US$5.72 million) had been raised – well above the US$1 million target. Accordingly, the fund began operations as of the initial offer period closure date.

This open-ended feeder fund invests in the Mauritius-domiciled Tata Indian Sharia Equity Fund operated by Tata Asset Management Private. Classified as a high-risk investment, the minimum entry point for institutional investors is US$2.6 million with further subscriptions from US$10,000.For qualified retail investors, the initial minimum is US$2,000 while subsequent investments are from US$1,000.

The feeder fund is pitched to investors seeking capital growth and income from volatile equity markets, which could offer potential returns over the long term. There will not be any distributions as capital gains and cash dividends distributed in the target fund will be reinvested.

The target fund invests in diversified securities, representing the constituents of India’s Nifty 500 Sharia Index. With its investments mainly in the equities of Indian companies, IPOs and Global Depository Receipts issued by Indian or foreign companies, the fund does not invest in derivative contracts.

Shariah compliant financing may be obtained for up to 15% of the fund’s net asset value and for a maximum one-year period – should the cash flow be needed for investments and redemptions.

While fund is regulated under Saudi Arabian laws, it carries inherent risks involved with investing in India – related to that nation’s political, economic and social factors. As India has a double taxation avoidance agreement with Mauritius, any renegotiations could also affect the fund’s returns.

Since the fund is operating in US dollar terms, there are currency exchange risks involved. Further Saudi Zakat or taxes may be imposed – adding financial obligations on unitholders.

Further information on the Tata Indian Sharia Equity Fund, launched in 2010, can be obtained from IFN, our sister publication.

*Disclaimer:  The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.