Meethaq Equity Fund

The Meethaq Equity Fund is open to both local and expatriate individuals, plus institutions, who are keen to invest in Shariah compliant securities within the GCC region, particularly within the Oman sultanate. 

“In the last couple of years, there had been good amount of equity issuances and IPOs coming our way in the sultanate. It is a good opportunity for investors to gain advantage from these,” said Ali Ahmed Al Lawati, assistant general manager of Meethaq Corporate Banking at Bank Muscat.

With a minimum OMR50 (US$129.50) entry, this fund’s initial 10-day subscription period began on the 4^th August 2024. Subsequent subscriptions can be made via Meethaq Islamic Banking window, Bank Muscat and authorized sales partner Ubhar Capital.

Bank Muscat Asset Management oversees the open-ended Shariah compliant equity investment fund, with the prospectus mandating no plans for fund units to be listed on the Muscat Stock Exchange.

Investing at least 75% of its capital in Shariah compliant equities and related securities – such as convertible fixed income securities and warrants – the fund may also invest in new IPOs.

The remainder 25% will be invested in Shariah compliant instruments such as Sukuk and Shariah compliant short-term fixed income securities, money markets instruments/funds and bank accounts, including those managed by the investment manager.

As the fund’s main objective is to achieve long-term capital appreciation, along with dividend income, up to 15% of fund assets can be invested in Shariah compliant securities listed in the international markets and Shariah compliant mutual funds – together with hedging of its currency exposure.

With such diverse exposure, Ali Ahmed said: “For individuals, it’s like a simple investment plan where every month, they can set aside OMR50. We have to promote the culture of investing and not only spending.”

Restrictions that apply include the fund not holding more than 10% any specific issuer’s securities, nor allow such specific investments to exceed 10% of its net asset value (NAV). Further, the fund shall not borrow more than 10% of its NAV. The fund will also be closed if its total capital base falls below OMR500,000 (US$1.3 million).

*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.