Al Mal launches Dh1 billion fund

DUBAI — Al Mal Capital PSC, a Dubai-based investment company, yesterday announced the launch of a Dh1 billion equity fund that is projected to earn an annual return of 25 to 30 per cent over a three-year period.

By Isaac John (Chief Business Editor)

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Published: Wed 1 Mar 2006, 9:52 AM

Last updated: Sat 4 Apr 2015, 3:26 PM

Targeted at high networth and institutional investors, the Al Mal UAE Equity Fund, priced at Dh1 per unit, is designed as an institutional product with a minimum subscription of Dh1 million per investor.

Approved by the UAE Central Bank, the open-ended fund seeks to achieve medium to long-term capital growth and a reasonable level of income by investing primarily in equities on the local stock market. "However, where appropriate, investments may also be made in equities listed on stock exchanges in other GCC countries or elsewhere and in other securities," said Naser Nabulsi, Executive Chairman of Al Mal Capital — a multi-line investment firm set up with a capital base of Dh333 million, and backed by a group of regional founding shareholders and experienced bankers as co-founders.

Nabulsi said his upbeat projection of high return is based on the buoyancy on the market, which is backed by strong fundamentals including a vibrant domestic economy, high oil price revenues, and stronger VDU flows. "The market scenario bodes well for medium to long term investors," he said.

The fund's initial subscription period is from March 1 to April 1. It is the first of many new products to be brought by Al Mal, which was licensed by the Central Bank last year. The fund will be available to all nationalities, with continuous monthly subscription and redemption of units with two weeks prior notice," said Nabulsi.

He said Al Mal Capital would be responsible for the asset allocation and risk management of the fund, as well as the administration, execution and custody. The Advisory Committee for the fund is made up of Mohammed Saeed Al Qassimi, Salem Abdulla Salem, Mohammed Abdulla Al Sari, Adel Al Hosani, Amjad Dweik, Naser Nabulsi and Blair Look. Decisions regarding security selection and market timing will be advised by Hosani, a UAE market expert who currently manages private assets in excess of Dh8 billion.

"We have assembled a group inside Al Mal Capital with many years of experience, through market conditions of all types, to work on the fund's risk management and strategy," he said.

"Our Advisory Committee of seven seasoned industry professionals are all founders of Al Mal Capital and have a great deal to contribute to our fund, by their knowledge of the local economy and companies."

To underscore Al Mal's commitment to the fund, the firm is co-investing Dh100 million alongside investors, he pointed out.

Issue prettify is Dh1.02 per unit, inclusive of a two per cent subscription fee. Management fee is 1.5 per cent of the net asset value while performance fee is 20 per cent above a hurdle rate of 10 per cent, Nabulsi said.

"We think that sophisticated investors will appreciate our value proposition: Al Mal Capital will work together as fund manager with the advisors we have enlisted, with a goal of achieving consistent outperformance versus the markets", said Blair Look, head of Asset Management at Al Mal Capital.

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