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, countries where aggressive government spending is driving strong economic growth. In addition to equities, the fund can also invest in Shari’a compliant GCC fixed income and money market instruments.
Al Rayan GCC Fund targets absolute, not relative return. The mandate for ARI 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.
Low fees, enhanced performance
Al Rayan GCC Fund’s fees have been kept to a minimum to enhance investor returns. The one-off subscription fee is a maximum of 1% and the management fee is 1.25% per annum. A performance fee is charged to ensure the fund manager’s interests are aligned with investors: if the fund manager delivers more than 24% in absolute return over each 24-month period, it is eligible to share in 20% of the excess with the fund manager. For example, if the fund returns 30% over a two-year period, the fund manager will receive 1.2% of the gains: 20%*(30% - 24%).
Al Rayan GCC Fund minimum subscription
- Q Fund is denominated in Qatari Riyal and is only for Qatari investors, with a minimum investment of QAR 100,000 (QAR 1,000,000 for institutions).
- F Fund is denominated in US Dollars for all investors, with a minimum investment of US$30,000 (US$ 300,000 for institutions).