xfdws BANKMUSCAT-MAN-LAUNCH sked Emerging Markets Datafile
September 08, 2003
BAHRAIN TRIBUNE
BAHRAIN
ENGLISH
BankMuscat, Man launch $20m fund, BAHRAIN TRIBUNE
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BankMuscat, SAOG, and Man Investments have again come together to launch a new capital-guaranteed structured product: Muscat IP 320 Ltd. The $20 million fund has a medium-term, annualized growth target of around 18 per cent with an annualized volatility of around 14 per cent.
Muscat IP 320 investors enjoy the security of a capital guaranteed plus an annual coupon payable for the first three years, calculated on the face value of the bonds. The product is available to investors to October 15. The product also benefits from a profit lock-in feature and is offered in both dollars and Omani-riyal (RO) classes.
”Muscat IP 320 has been carefully structured in order to harness the performance potential of three core investment styles of Man Investments: arbitrage, fund of hedge funds and managed futures,” a BankMuscat statement explained. “This product is available in dollar and RO class bonds and features a capital-guarantee structure that returns a minimum of 100 per cent of the initial investment at maturity and an annual coupon payable for the first three years, fixed at 3 per cent for Omani riyal-denominated bonds and 2.5 per cent for dollar-denominated bonds.
”In addition, a profit lock-in feature may be used to elevate the guaranteed amount at maturity, subject to trading profits,” the statement added. “Investors have benefited from the relationship between BankMuscat and Man Investments for over a decade.
”Muscat IP 320 is the latest addition in the innovative Muscat IP product family which was established over three years ago with the launch of Muscat-IP 220 Guaranteed Fund Ltd. This product has delivered returns of 85.5 per cent since its inception compared to a return of-21.3 per cent for world stocks and 37 per cent for world bonds over the same timeframe, thus making it a valuable diversification tool for investors looking to improve the risk-reward profile of a traditional stock and bond portfolio.
”BankMuscat will also provide capital guarantees for Muscat IP 320 that ensure investors of a 100 per cent return on their initial investment with regard to bonds held at maturity,” the statement underlined. “Our relationship with Man has helped us meet the ever increasing demand of our clients for quality hedge-fund products,” Abdul Razak Ali Issa, BankMuscat chief executive, said.
”BankMuscat clients have come to know and trust Man’s product structuring and management skills which have resulted in significant investments in these products. The launch of Muscat IP 320 is in keeping with our endeavor to continually create value for our clients.
”Muscat IP 320 provides investors with the opportunity to benefit from a carefully structured product with an extremely sound risk and return objectives over the medium term”, Antoine Massad, Man Investments head of Middle East and Asia, stressed. “The product has a number of attractive aspects for any level of investor including a built-in guarantee, profit lock-in feature, increased investment exposure and valuable portfolio-diversification properties.”
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