Bahrain International Bank (BIB) launched its second index fund tracking Gulf shares on 19 September. The Muscat Index Fund is a closed- end fund which aims to achieve the average performance of the MSM index.

The Muscat fund will be set up as a joint investment account, which will be listed on the Omani bourse and can be up to 49 per cent foreign owned. It plans to raise more than RO 3 million ($8 million), and the net asset value (NAV) will be publisheweekly.

The Dilmun Index Fund was the first fund of this kind launched by BIB, and was listed on the Bahrain stock exchange on 20 September. The fund allows foreigners to invest in all the shares on the Manama bourse for the first time by buying units in the fund.

The fund was closed on 3 July, having raised about BD 3.75 million ($10 million). The bank says the fund is now almost fully invested, and the NAV prior to listing was BD 0.997 ($2.64) a unit.