30 November 2011
MUSCAT: BankMuscat, through its Asset Management Department, one of the leading fund managers in the Gulf Cooperation Council (GCC) region, recently launched the BM S&P GCC Large Cap Index Fund (BankMuscat Standard & Poor's Large Cap Index Fund), an index tracking fund directed at institutional investors aiming to tap into the attractive growth potential of the GCC region markets.
AbdulRazak Ali Issa, chief executive, said: "BankMuscat is always on the lookout for strategic investment products that reiterate our leading position in the region. We believe that GCC is entering a very interesting growth phase, with high oil prices resulting in budget surpluses, fast growing population and inflation under control.
The six regional markets have an aggregate market cap of $750 billion and stock markets are trading at valuations of 10x 2012 earnings. To enable institutional investors to seize this attractive opportunity, we have introduced the BM S&P GCC Large Cap Index Fund.
The objective of this fund is to track the performance of the S&P GCC Composite Large Cap Index, which consequentially results in a low expense ratio, low volatility and eliminates manager selection risk. In 2010, the S&P GCC Composite Large Cap Index delivered a return of 18.5 per cent against returns of 16.4 per cent by MSCI EM and 11 per cent by S&P 500."
Charbel Azzi, head of Client Coverage in the Middle East & Africa for S&P Indices, said: "Investments in the Pan Arab or Middle East and North African (Mena) region have become increasingly popular. The S&P GCC Large Cap Composite Index is a closely followed benchmark that meets the growing demand for investors looking to gauge the performance of blue chip companies in this important region."
Open-ended fund
The BM S&P GCC Large Cap Index Fund is an open-ended fund domiciled in Luxembourg that tracks the S&P GCC Large Cap Composite Index.
The BM S&P GCC Large Cap Index Fund invests in securities from companies listed in the S&P GCC Large Cap Composite Index in the same proportions as that of the Index and is calculated seven days a week, to display the actual trading days of the GCC markets. The BM S&P GCC Large Cap Index Fund invests in blue chip, highly liquid large stocks, which results in low trade cost and there is no concentration risk.
The S&P GCC Large Cap Composite Index is published by S&P Indices, one of the world's leading providers of investible and benchmark financial market indices. Over $1.25 trillion is directly indexed to Standard & Poor's (S&P) family of indices, which includes the S&P 500, the world's most followed stock market index, and the S&P Global BMI, an index with approximately 11,000 constituents.
The S&P GCC Large Cap Composite Index includes all six of the GCC markets -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) -- and is a sub-set of the S&P Pan Arab Index, an index that consists of the 11 Middle Eastern markets that are covered by S&P Indices (Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia and UAE).
The S&P GCC Large Cap Composite Index is one of the most widely tracked index for the GCC region and is composed of 67 stocks with a minimum cap of USD 500 million, reflecting the available float by foreign investment limits that apply to GCC residents.
Track record
With a track record of 17 years and $700 million assets under management, BankMuscat Asset Management (AMD) enjoys an undisputed dominant position in Oman, with funds rated by Standard & Poor's. The division was awarded the Lipper Award for the 'Best GCC fund in 2009', the 'Best Asset Manager in Oman in 2010' by Emea and the 'Oman Asset Manager of the Year' award for 2010 by Mena FM.
BankMuscat AMD offers a wide range of investment solutions in the Middle East and India and has an extensive ground presence in the GCC region through offices in Oman, Saudi Arabia (through subsidiary Muscat Capital), Kuwait and the UAE, BankMuscat Asset Management manages local and regional mutual funds, structured products, hedge funds, private equity funds and a real estate fund investing in Oman.
MUSCAT: BankMuscat, through its Asset Management Department, one of the leading fund managers in the Gulf Cooperation Council (GCC) region, recently launched the BM S&P GCC Large Cap Index Fund (BankMuscat Standard & Poor's Large Cap Index Fund), an index tracking fund directed at institutional investors aiming to tap into the attractive growth potential of the GCC region markets.
AbdulRazak Ali Issa, chief executive, said: "BankMuscat is always on the lookout for strategic investment products that reiterate our leading position in the region. We believe that GCC is entering a very interesting growth phase, with high oil prices resulting in budget surpluses, fast growing population and inflation under control.
The six regional markets have an aggregate market cap of $750 billion and stock markets are trading at valuations of 10x 2012 earnings. To enable institutional investors to seize this attractive opportunity, we have introduced the BM S&P GCC Large Cap Index Fund.
The objective of this fund is to track the performance of the S&P GCC Composite Large Cap Index, which consequentially results in a low expense ratio, low volatility and eliminates manager selection risk. In 2010, the S&P GCC Composite Large Cap Index delivered a return of 18.5 per cent against returns of 16.4 per cent by MSCI EM and 11 per cent by S&P 500."
Charbel Azzi, head of Client Coverage in the Middle East & Africa for S&P Indices, said: "Investments in the Pan Arab or Middle East and North African (Mena) region have become increasingly popular. The S&P GCC Large Cap Composite Index is a closely followed benchmark that meets the growing demand for investors looking to gauge the performance of blue chip companies in this important region."
Open-ended fund
The BM S&P GCC Large Cap Index Fund is an open-ended fund domiciled in Luxembourg that tracks the S&P GCC Large Cap Composite Index.
The BM S&P GCC Large Cap Index Fund invests in securities from companies listed in the S&P GCC Large Cap Composite Index in the same proportions as that of the Index and is calculated seven days a week, to display the actual trading days of the GCC markets. The BM S&P GCC Large Cap Index Fund invests in blue chip, highly liquid large stocks, which results in low trade cost and there is no concentration risk.
The S&P GCC Large Cap Composite Index is published by S&P Indices, one of the world's leading providers of investible and benchmark financial market indices. Over $1.25 trillion is directly indexed to Standard & Poor's (S&P) family of indices, which includes the S&P 500, the world's most followed stock market index, and the S&P Global BMI, an index with approximately 11,000 constituents.
The S&P GCC Large Cap Composite Index includes all six of the GCC markets -- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) -- and is a sub-set of the S&P Pan Arab Index, an index that consists of the 11 Middle Eastern markets that are covered by S&P Indices (Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia and UAE).
The S&P GCC Large Cap Composite Index is one of the most widely tracked index for the GCC region and is composed of 67 stocks with a minimum cap of USD 500 million, reflecting the available float by foreign investment limits that apply to GCC residents.
Track record
With a track record of 17 years and $700 million assets under management, BankMuscat Asset Management (AMD) enjoys an undisputed dominant position in Oman, with funds rated by Standard & Poor's. The division was awarded the Lipper Award for the 'Best GCC fund in 2009', the 'Best Asset Manager in Oman in 2010' by Emea and the 'Oman Asset Manager of the Year' award for 2010 by Mena FM.
BankMuscat AMD offers a wide range of investment solutions in the Middle East and India and has an extensive ground presence in the GCC region through offices in Oman, Saudi Arabia (through subsidiary Muscat Capital), Kuwait and the UAE, BankMuscat Asset Management manages local and regional mutual funds, structured products, hedge funds, private equity funds and a real estate fund investing in Oman.
© Times of Oman 2011
