An extraordinary fund for extraordinary times
Masraf Al Rayan QSC is the founder of the Shari’a compliant ‘Al Rayan GCC Fund’ which was launched in 2010 and is solely managed by Al Rayan Investment. Based on continuous and rigorous top-down and bottom-up analysis, Al Rayan GCC Fund invests in a select number of companies across the GCC, based on a 24-month investment horizon. Al Rayan GCC Fund has two classes, ‘Q’ and ‘F’. The Q-Fund is denominated in Qatari Riyal and is open to Qatari individual and institutional investors, while the F Fund is denominated in US Dollars and is open to all investors.
GCC equities are the primary focus
Al Rayan GCC fund focuses on GCC listed equities which offer medium to long term value. Within the GCC, the fund concentrates on Qatar, UAE and the Kingdom of Saudi Arabia, markets which offer companies with better corporate governance, superior trading liquidity and have stronger prospects. In addition to equities, the fund can also invest in Shari’a compliant fixed income and money market instruments.
Al Rayan GCC Fund targets absolute, rather than relative return. The mandate for the fund manager is to be thoughtful, to seek outstanding investment opportunities and to discriminate on investment entry and exit points.
To help achieve impressive 24-month capital appreciation, investors are ‘locked-in’ for the first six months as early withdrawals may impede the fund’s investment strategy.
The fund’s target is to achieve more than 24% absolute return over each 2 year period.
Low fees, enhanced performance
Al Rayan GCC Fund’s fees have been kept to a minimum to enhance investor returns. The fund’s charges are as follow:
- 1.One-off subscription fee up to 1%
- 2.Management fee of 1.25% per annum
- 3.Performance fee of 20% above the hurdle rate of 24%, over a 2 year period. This fee is charged to ensure the fund manager’s interests are aligned with investors, where a hurdle rate of 24% is set. If the fund delivers more than 24% in absolute return over a 24-month period, the fund manager is eligible to share in 20% of the excess with investors.
Q Fund is denominated in Qatari Riyal and is only for Qatari investors:
- QAR 100,000 for individual investors
- QAR 1,000,000 for institutional investors
F Fund is denominated in US Dollars for all investors:
- US$30,000 for individual investors
- US$ 300,000 for institutional investors