MUSCAT - BankMuscat’s Muscat Fund rating has been upgraded to AA by Standard and Poor’s. The top rating by the world’s leading independent credit rating agency reinforces the superlative performance of the Fund in challenging situations.

The S&P rating upgrade for BankMuscat Muscat Fund endorses the methodical and structured approach focusing on investment in profitable companies with good management. The Fund is among the first two Omani mutual funds, both managed by BankMuscat, to be rated by S&P.

Saleh Al Habsi, Chairman of BankMuscat Muscat Fund, said: “I am very pleased that S&P has upgraded the rating of BankMuscat Muscat Fund to AA. This reflects the consistency of performance of the fund and also the ability of the fund manager. BankMuscat Muscat Fund is an excellent vehicle for investors to participate in the Oman stock market.”

BankMuscat Muscat Fund has proved successful at anticipating changes to index constituents and using phased buying/selling strategies to minimise volatility. Favored companies have strong growth prospects, quality management, competitive performance and attractive valuations.

The fund's tracking error is the lowest for several years. Stock selection has been the main driver of returns, helped by timely phasing strategies on constituent changes in the benchmark. Relative to peers, returns have been respectable.  The fund has taken steps to move to an external custodian.

BankMuscat Asset Management Department (AMD) is one of the largest fund managers in the region. With a track record of 15 years and approximately US$ 906 million assets under management, BankMuscat AMD enjoys a dominant position in the asset management business in Oman. 

BankMuscat Muscat Fund, launched in 1995 and regulated by the Capital Market Authority, is the first and only MSM index tracker fund in Oman. The objective of the fund is to outperform MSM 30 index by investing in benchmark stocks. The open-ended fund which offers daily subscription and redemption has consistently outperformed its benchmark.

BankMuscat Asset Management also manages funds investing in Kuwait (BankMuscat MSCI® Kuwait Fund, India (BankMuscat India Fund), structured products, hedge funds, private equity funds and a real estate fund investing in Oman. The division offers discretionary portfolio management service to suit varied clients, including pension funds, global funds, high net worth individuals, corporations and other entities.