BankDhofar Debuts Money Market Fund Promising High-Quality, Low-Risk Investments
Harnessing its extensive expertise in Oman’s banking and capital markets, BankDhofar has unveiled a new initiative designed to provide investors with stable and consistent returns. BankDhofar’s Money Market Fund (“BDMMF” or “Fund”), the newest launch from the Bank’s Asset Management Department, is an open-ended investment fund approved by the Financial Services Authority (FSA) of the Sultanate of Oman.
As a premier money market fund, BDMMF invests in low-risk securities, offering returns that typically reflect short-term market returns. The Fund’s primary objective is to maximize returns while ensuring the preservation of capital and daily liquidity. It achieves this by investing in liquid, high-quality securities issued by banks, governments, quasi-government entities, and other organizations primarily in Oman and the GCC.
The new Fund exemplifies BankDhofar’s commitment to enhancing the core value propositions underpinning its products and services that cater to the evolving needs of its diverse clientele. The Bank’s customer base encompasses not only life-stage banking segments, such as Children, Minor, Youth and Ladies, but also Premier Priority and Private Banking segments. At the same time, BankDhofar remains steadfast in delivering an exceptional customer experience across all customer touch-points across its vast network of branches and digital channels alike.
Affirming the Fund’s commitment to delivering competitive market returns, Mr. Abdul Hakeem bin Omar Al Ojaili, CEO of BankDhofar, said: “The Fund offers daily liquidity, allowing investors quick access to their cash and providing much-needed flexibility in financial management. Our diligent investment team continuously monitors market conditions and adjusts the fund's portfolio to optimize returns while effectively managing risks. Recognizing the critical role of diversification in risk mitigation, BDMMF boasts a well-rounded portfolio. The Fund has also appointed well experienced industry leaders as part of the Fund Management Body.”
BDMMF, the inaugural fund from BankDhofar’s Asset Management Department, showcases the bank’s renowned expertise and solid track record in Oman’s banking sector. This fund is the first in a series of planned launches aimed at reinforcing Bank Dhofar’s presence in the investment arena. The fund is open for subscription to institutions, citizens and residents, with a minimum investment requirement of OMR 1,000.
The Fund focuses on a diverse mix of conventional and sharia-compliant instruments such as Call Accounts, Fixed Deposits, Certificates of Deposit, Government-issued Treasury Bills, Commercial Papers, Short-Term Bonds and Sukuks, Murabaha, Wakala, Money Market Funds, and other short-term liquid instruments.
Furthermore, the Fund will exclusively invest in instruments denominated in Omani Riyal, various GCC currencies, United States Dollar, Great British Pound, or Euro. Emphasizing safety and liquidity, the Fund maintains exceptionally high credit-quality standards. BankDhofar’s Asset Management Team leverages its unparalleled capabilities to assess and manage risks, ensuring the safeguarding and protection of unitholders’ assets.
Commenting on the Fund’s successful launch, Mr. K. Gopakumar, Deputy CEO of BankDhofar, stated: “BDMMF is designed as a strategic cash management tool for both institutions and individuals to earn market-based returns with the benefit of daily liquidity. With an unwavering commitment to excellence and a deep understanding of market dynamics, our experienced Asset Management team has meticulously curated a diverse portfolio that is well-positioned to navigate the complexities of today's financial landscape.”
BankDhofar’s Money Market Fund enriches the Asset Management team’s comprehensive suite of services, which includes investment fund management, discretionary and non-discretionary portfolio management, and fund administration. Key products encompass money market, fixed income, real estate, equities, and alternative assets, all designed to help investors achieve their targeted returns across both conventional and sharia-compliant strategies.
Notably, the Fund’s launch comes amid a major expansion of BankDhofar’s branch and ATM network to cover all key parts of the Sultanate, in line with its commitment to be closer to its customers. Revamped branches now boast world-class design and layout standards aimed at ensuring a superior experience for customers. Visitors and customers alike can now enjoy significantly enhanced privacy, hospitality, and a personalized experience throughout their visit to these branches. With a network of 126 branches and over 360 ATMs, CDMs, and FFMs (as of July 2024), BankDhofar continues to solidify its presence for the convenience of its esteemed clientele.
