Al Ramz pitches primary market access in dual-fund launch

Jumping the primary market queue: DFM-listed brokerage and investment firm Al Ramz Corporation is opening up two new GCC-focused funds targeting fixed-income instruments and equities across the region to the public, it said in a press release. Investors have until Wednesday, 13 May to subscribe to the open-ended vehicles — namely the Horizons GCC Sukuk Fund and the Fortitude GCC Equity Fund — through Al Ramz’s website and app.

SOUND SMART- Open-ended mutual funds don’t typically come with a ticker. Investors subscribe directly to the fund and get units priced at net asset value (NAV), rather than trading in and out on an exchange. These two follow that playbook, more akin to a traditional mutual fund than an ETF, where units change hands intraday, and prices move with the market.

If the book doesn’t fill: Both funds include a fallback second subscription window lasting until 15 June if minimum capital thresholds are not met, according to their prospectuses here (pdf) and here (pdf). The maximum fund size is capped at USD 2 bn for the sukuk vehicle and at AED 2 bn for the equity fund, giving Al Ramz room to scale AUM quickly if demand materializes.

A bid for allocations

This is essentially a play on access to GCC primary markets. The Fortitude equity fund is designed to secure institutional equity for investors who are typically crowded out of oversubscribed regional IPOs — at least before the Iran war threw a wrench in IPO momentum. Its fixed-income sibling, Horizons, offers similar entry into primary-market sukuk that often sell out before reaching the secondary market.

Why launch an IPO fund into a lull? Al Ramz is likely playing the next cycle. With IPO activity on pause, the funds are effectively collecting dry powder to deploy once the backlog of listings starts to move again — which analysts expect could happen in 2H.

ALSO- The move underscores the firm’s shift from a brokerage-led model toward a more vertically integrated asset manager, building out distribution and market access alongside its recent expansion into market-making in Bahrain and Oman.

What’s under the hood

The USD-denominated Horizons GCC Sukuk Fund is pitched as the defensive leg, targeting shariah-compliant investment-grade sovereign and corporate sukuk across the GCC. Its strategy is duration-led, with a weighted average maturity of around seven years, and is strictly limited to investment-grade credit. Fees come in at 1% annually on NAV, alongside a 1% subscription fee and no exit charges. The fund requires a minimum USD 5 mn to launch and a minimum commitment of USD 10k per investor.

The AED-denominated Fortitude GCC Equity Fund takes the opposite end of the risk spectrum, targeting an absolute return of 8% per year through active exposure to listed GCC equities and IPO participation, according to its prospectus. Its strategy is more aggressive, with a 1.25% management fee and a 20% performance fee on returns above the 8% hurdle, alongside a 1% entry fee. While not exchange-traded, the fund offers weekly liquidity and redemptions. It requires a minimum AED 10 mn to launch.

ADVISORS- Emirates NBD Capital will provide custody services for the funds, while Deloitte & Touche was tapped as auditor and Al Tamimi & Co as counsel. Apex Fund Services will act as unit registrar, transfer agent, and administrative service provider, while Minhaj Advisory was tapped as a shariah supervisory company for the sukuk fund.