VISION AL KHAIR GCC Fund (Shariah Compliant)Open-ended FundThis advertisement is a summary of the Prospectus of Vision Al Khair GCC Fund (Shariah Compliant), approved by the CMA vide its Administrative Decision No. 72/2012خ dated 30/12/2012. Wherein the terms of this summary contradict, with the official version in Arabic, the Arabic version shall prevail.
Vision Al Khair GCC Fund (Shariah Compliant) is an open-ended investment Fund established in the Sultanate of Oman and constituted as a Joint Investment Account managed by Vision Investment Services Co. SAOC (“Vision”) as per the Regulations of the Capital Market Authority (“CMA”), Sultanate of Oman, under the guidance of the Fund’s Management Body.
Name of the Fund VISION AL KHAIR GCC Fund (Shariah Compliant)
Nature of Fund A Fund investing in the listed securities in the GCC and MENA region which are in compliance with Islamic Shariah principles
Address Post Box 712, Al Hamriya, Postal Code 131, Sultanate of Oman
Fund Structure Open Ended Fund
Fund Denomination Rial
Nominal Value of Unit RO 1.000 (One Rial only)
Fund Size Minimum size RO 2 million
Shariah Shariah (for the purpose of this prospectus) refers to the guidelines prescribed under Islam related to investments, financials and commercial operations
Promoter’s Commitment 5% of the initial units subscribed.
Initial Subscription Period January 10, 2013 to February 10, 2013
Initial Subscription Price Units will be available for subscription during the Offering Period at a price of RO 1.020 per Unit (including an amount of RO 0.020 per Unit towards issue expenses)
Minimum Investment The minimum investment in the Initial Offer shall be 100 units and in multiples of 100 thereafter
Eligibility for Investment The Fund is open for subscription to both Omani and non-Omani investors including individuals, companies, institutions, Pension Funds, Government and semi-Government organizations
Investment Objectives and Policy The objective of the Fund is to achieve capital appreciation and income generation by providing its Unit holders an opportunity to invest in the listed securities of the GCC economies that are compliant to Shariah principles
The Fund will follow a dynamic allocation policy with investments spread across a diversified range of industries across GCC
Investment Manager Vision Investment Services Co. SAOC
Shariah Advisor Shariyah Review Bureau W.L.L.
External Auditor of Investment Manager
KPMG, Oman
Administrator Vision Investment Services Co. SAOC
Custodian National Bank of Oman, Sultanate of Oman
Legal Advisors Rajab Al-Khathiri & Associates (Lawyers & Legal Consultants)
Auditors Ernst & Young, Oman
Net Asset Value (NAV) The Net Asset Value of the Fund will be calculated on each Business Day and published in at least one Arabic and one English newspaper. The first NAV of the Fund will be published one month subsequent to the Incorporation of the Fund
Risk Factors An investment in the Fund involves risks. Investors should note that while all efforts would be taken by the Investment Manager to achieve the Fund objectives, there is no assurance that the same would be met. Please refer to Chapter 19 of the Prospectus for Risk Factors
Management Fee The Investment Manager will receive from the Fund, a Management Fee of 1.5% per annum of the Net Asset Value of the Fund, accrued daily and payable monthly in arrears
Performance Fee The Investment Manager shall be entitled to a Performance Fee of 15% over and above an annual return of 10%, calculated and payable annually in arrears
Taxation As per the current taxation laws in Oman, the income of the Fund is exempt from the Taxation Law. However, the Fund may be taxable in other jurisdictions in respect to income derived from such jurisdictions
Subscription Banks National Bank of OmanBank SoharAhli Bank
INVESTMENT OBJECTIVE
The objective of the Fund is to achieve capital appreciation and income generation by providing its investors an opportunity to invest in the listed securities of the GCC economies that are compliant to Shariah principles.
The Fund will follow a dynamic allocation policy with investments spread across a diversified range of sectors across GCC.
INVESTMENT RATIONALE
Over the past three decades, GCC economies have witnessed an unprecedented economic transformation which had a positive impact on the socio economic factors. The GCC region is blessed with enormous oil and gas reserves and plays an important role in the world as a largest producer and exporter of petroleum products. Hydrocarbon exploration and production forms the backbone of growth in these economies. GCC economies lay emphasis on diverting their annual budgetary spends towards education, housing and development of the industrial sector. The GCC countries have continued to implement policy reforms to accelerate non-oil growth as a measure to reduce exposure to volatility in oil price and create employment opportunities for a rapidly increasing population. The GCC countries provide investors with an opportunity to benefit from the growing economies; ably supported by strong demographics, diversification to non oil sectors and healthy financial reserves.
The securities that are in compliance with Shariah principles have outperformed the broader market consistently over a period of time with lower volatility. In the past, Shariah compliant equities and asset classes have been perceived as an investment vehicle only for the growing class of people who practice Islam in specific countries. However, this viewpoint is fast changing with Shariah compliant assets perceived as an investment vehicle of choice with a diverse set of investors with a view of growth potential and robust business framework.
This makes an attractive investment case not only for investors focused on Islamic products but also for conventional investors (both institutions & individuals) who are seeking capital appreciation with lower risk. FUND’S MANAGEMENT BODY MEMBERS
The Fund shall be managed and supervised by the Fund’s Management Body in accordance with the provisions of the articles of association. There shall be seven members in the Fund’s Management Body, including the Chairman and Vice Chairman.
Members of the Fund’s Management Body
• Mr.AliMalallahAliHabibAlLawati• Mr.AliMohammedJuma• Mr.GhanemSulaimanAlGhenaiman• Mr.GhassanbinKhamisAlHashar• Mr.MustafaAhmedJaffer• Mr.SalahAbdullahAlZakwani• Mr.TalalSaidAlMamari
SHARIAH ADVISOR
ShariyahReviewBureauW.L.L.(SRB)hasbeenappointedastheShariahAdvisorbytheFund’sManagementBody.SRBshallsuperviseand advise on the Shariah commissioning processes while overseeing the consultation, certification and compliance development.
Shariah Scholars for the Fund
TheShariyahReviewBureauW.L.L.(SRB)hasappointedthefollowingdistinguishedmembersasShariahScholarsfortheFund:
• Sheikh Walid Bin Sulaiman Al Qurry• Sheikh Osama Saad Bahar• Dr. Sheikh Saleh Shalhoob
TERMS OF THE OFFER AND SUBSCRIPTION
Eligibility for investment in the Fund
The Fund is open for subscription to both Omani and non-Omani investors including individuals, companies, institutions, Pension Funds, Government and semi-Government organizations.
Prohibitions with regard to the applications for subscription
ThesubscriberstotheUnitsissuedasmentionedhereundershallnotbepermittedtoparticipateinthesubscription:
• Applicationsmadeunderjointnames,includingtheapplicationsmadeinthenameoflegalheirs-whereas,theyortheirlegalattorney would be required to apply in their personal names.
Subscription Forms
The Prospectus and Subscription Forms for Initial Subscription can be obtained from the branches of the collecting banks or from the office of the Issue Manager. The Fund shall be open for subsequent subscription on any business day, 30 days after the publication of the first NAV of the Fund. The Subscription Form for subsequent subscription can be obtained from the Administrator’s office.
Subscription Price
The Initial Subscription Price is Rial 1.000 plus Subscription Fee of 20 Baisa per Unit.
Subscription on behalf of minor children
• Anypersonofanagelessthan18yearsasonthedateofsubscriptionshallbetreatedasminor.
• Onlythefathermaysubscribeonbehalfofhisminorchildren.
• Ifthesubscriptionismadeonbehalfofaminorbyanypersonotherthanthefather,he/sheshallberequiredtoattachavalidlegal Power of Attorney issued by the competent authorities, authorizing him/her to deal in the Funds of the minor through sale, purchase and investment.
Subscription Period
TheInitialSubscriptionPeriodshallcommenceonJanuary10,2013at8.00am(GMT+04.00),andendonFebruary10,2013attheclosure of the bank’s normal working hours.
Units will be available for subsequent subscription on submission of the Subscription Form on any Business day, 30 days after the publication of the first NAV of the Fund. The duly filled Subscription Form shall be submitted to the Administrator along with the payment.
Documentation Required
• Submissionofadocumentconfirmingcorrectnessofthebankaccountnumberasprovidedforintheapplicationforsubscription.
• CopyofavalidPowerofAttorneydulyendorsedbythecompetentlegalauthorities,intheeventthesubscriptionisonbehalfofanother person (except in case of subscription made by the father on behalf of his minor children).
Refund of the sums pertaining to the rejected applications
During the initial subscription, the Issue Manager undertakes to refund the sums covered under the applications for the subscription that are rejected, through the banks receiving the subscription by transferring them to the subscriber’s respective bank account provided for in the Subscription Forms, within 15 (fifteen) business days from the Closing date upon the allotment of Units. However, if the Issue Manager fails to refund the Funds, he shall undertake to pay penalty in the form of interest as per the rates applicable to the Bank Deposits for the total period of delay until the date of transfer.
Mode of Subscription
• The subscribers shall be responsible for furnishing all their particulars, ensuring correctness and validity of the informationprovided for in the Subscription Forms.
• Thesubscribersshallbe required,beforefillingtheSubscriptionForms, toperusetheProspectusandreadtheconditionsandprocedures governing the subscription with total care and importance.
• ThesubscribersshallberequiredtofillinthecompleteSubscriptionFormsandfurnishalltheirparticularsasrequiredintheform,including the civil status number, passport number, date of birth in case of minor children, Commercial Registration number in case of companies, etc.
• The subscribers applying for Units shall be required to submit the Subscription Forms to one of the banks receiving thesubscriptions (as referred to in the Prospectus) and make payment towards the Units before the closing date as specified in the Prospectus; ensuring that the documents in support of the information furnished, as referred above are enclosed.
• Incaseofpaymentofthevalueofthesubscriptionbycheque/demanddraft,itshallbeinfavourof“Vision Al Khair GCC Fund”.
Receiving Subscriptions
The Subscription Forms for the initial subscription shall be accepted at all branches of the following banks during their official workinghoursonly:
• National Bank of Oman• Bank Sohar• Al Ahli Bank
Acceptance of the applications for subscription
The banks receiving the initial subscription shall neither receive nor accept the applications for subscription under the following circumstances:
• IftheSubscriptionFormdoesnotbearthesignatureofthesubscriber;
• IncaseoffailuretopaythefullvalueoftheUnitssubscribedinaccordancewiththeconditionsprovidedforintheProspectus;
• IfthevalueoftheUnitssubscribedispaidthroughchequeandifthesameisdishonouredforwhateverbethereason;
• IftheSubscriptionFormsaresubmittedunderjointnames;
• IfthesubscriberhassubscribedthroughmorethanoneSubscriptionForminthesamename;
• IfthesupportingdocumentsreferredtointheProspectusarenotenclosedwiththeaSubscriptionForm;
• Iftheapplicationdoesnotcontainalltheparticularsofthebankaccountofthesubscriber;
• IfanyparticularsofthebankaccountheldbythesubscriberasprovidedforintheSubscriptionFormarenotedtobeincorrect;
• If theparticularsof thebankaccountprovided for in theapplicationare foundtobenot relevant to thesubscriber,with the exception of the applications submitted in the name of minor, who are allowed to make use of the particulars of the bank accounts held by their father;
• IncaseoffailuretohavethePowerofAttorneyattachedwiththeapplicationasprovidedforinthisProspectusinrespectofthe person who subscribes and signs on behalf of another person (with the exception of a father who subscribes on behalf of his minor children);
• IftheapplicationhasnotcompliedwiththelegalandorganizationalrequirementsasprovidedforintheProspectus.
Refusal of subscription applications
In case of initial subscriptions, the Issue Manager may reject the subscription applications under any of the conditions referred to above, after securing the approval of CMA and submission of a comprehensive report furnishing the details of the subscription applications that are required to be rejected and reasons behind such rejection.
If, in case of initial subscriptions, it is observed by the Issue Manager that there are subscription applications that bear the same civil status number or the same bank account number (with the exception of minor children) all such applications shall be rejected treating them as repeated.
Promoter’s Commitment
The promoters of Vision Investment Services Co. SAOC have committed to participate in the Fund by subscribing to 5% of its Initial Units, and have further committed not to redeem any Units for three years from the initial opening date of the Fund.
ENQUIRIES
Vision Investment Services Co National Bank of Oman
Persons to be contacted Jagdish Jaiswal Gopal Krishnan Karuppiah
Email ID [email protected] [email protected]
Phone Number +96824726020 +96824778610
Fax Number +96824726010 +96824778993
Bank Sohar Ahli Bank
Persons to be contacted Nadia Al Balushi Sulaiman Ali Al Hinai
Email ID [email protected] [email protected]
Phone Number +96824730221 +96824577081
Fax Number +96824662156 +96824567841
TIMELINE
Procedure Date
Commencement of Subscription 10/01/2013
Closing of Initial Subscription 10/02/2013
Due date for the Issue Manager to receive the subscription applications from collecting banks
17/02/2013
Notifying CMA of the outcome of the subscription and proposal with regard to the allotment
21/02/2013
Approval of CMA with regard to the proposal for the allotment 27/02/2013
Completion of the allotment procedures and refund of the money received on applications rejected
28/02/2013
Incorporation of the Fund As per the CMA approval
Publication of First NAV As per the CMA approval
Commencement of subsequent subscription of units 30 days after the publication of first NAV of the Fund
Investment Manager
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