The Net Asset Value (NAV) of the Muscat Fund, the country’s leading open-ended Oman focused fund appreciated by 16.7% in the first half of 2007, outperforming the overall market by 3.1%. Managed by BankMuscat’s Asset Management division, the fund offers investors easy access to a diversified basket of securities listed on the Muscat Securities Market (MSM).
The MSM is widely acknowledged to have been one of the best performing markets in the region over the past year and a half. The MSM Index has provided investors with over 270% returns in the last 5 years and is currently trading at a PE of 11.6, Price to Book of 2.5 and Dividend Yield of 3.8% on 2007 earnings. The expected growth for the current year is 20%.
With infrastructure projects worth over USD 15 billion, industrial projects in excess of USD 6 billion and over USD 3 billion going into utility projects and with much more in the pipeline, Oman’s economy is going through a strong growth phase. The Muscat Fund provides investors with access to these opportunities through its exposure to companies involved in these projects.
The fund also offers Systematic Investment Plan (SIP), a unique plan wherein investors can put in small sum every month without having to worry about timing the market.
As leaders in the local Asset Management Industry, BankMuscat AMD enjoys an outstanding track record that is the result of the division adopting disciplined investment processes, following sound operational systems and controls and being committed to meeting stringent ethical practices. During last 11 years of its operations, the asset management function of the bank has been instrumental in launching a range of investment products focused on local and regional markets and also across various asset classes. The Funds currently managed by the BankMuscat Asset Management include the Muscat fund (investing on the Muscat Sercurities Market), the Oryx Fund (focused on the GCC markets) and the BankMuscat MSCI® Kuwait Fund.
