|
SAUDI ARABIA: Looking to
capitalize on Saudi Arabia’s growth, AlKhair Capital has rolled out a
Shariah compliant initial public offerings (IPOs) fund targeting public
joint stock companies in the primary markets of Saudi Arabia, the wider
Middle East and Africa.
“Saudi Arabia is the third-fastest growing economy in the G20, with an
annual average growth of 5% average over the past decade and the IMF
promising strong growth in the years ahead. UAE-Saudi bilateral trade
accounted [for] US$19 billion in 2014, which is 50% of the total value of
overall trade with the GCC,” said the firm in a statement.
Khalid Al-Mulhim, CEO of AlKhair Capital, said that the fund is designed to
achieve long-term capital growth, as well as achieving a performance that
exceeds the guiding index performance, the AlKhair Capital IPO Index.
Apart from investing in shares of joint stock companies during the IPO
period or in new shares of listed companies which have not completed three
years since their listing in the secondary markets in Saudi and the MENA
region, the AlKhair Capital IPOs Fund will also invest in Islamic money
market instruments (Murabahah, Ijarah and Wakalah) rated ‘B’ (S&P and
Fitch), ‘B2’ (Moody’s) or higher.
While AlKhair does not necessarily limit its exposure to solely rated
instruments (in the absence of a credit rating, the fund manager accesses
the underlying investment based on the financial position and cash flows of
issuers), the credit rating requirement differs from the strategy of its
maiden Sukuk fund launched last year, which invests in non-rated
assets/companies – a move to widen the pool of potential fixed income
assets (See Fund Focus Vol 10 Issue 37: ‘AlKhair Capital diversifies
portfolio with debut Sukuk Plus Fund’).
|
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.