Al-Rajhi Capital (ARC), one of the largest asset managers in Saudi Arabia and a regional investment firm, has launched the “Al-Rajhi MSCI Saudi Multi-Factor Index Fund.” This fund is classified as an open-ended fund that aims to achieve medium- to long-term capital growth by tracking performance of the MSCI’s Saudi Multi-Factor Index, which complies with ARC’s Shariah board rules.
As Al-Rajhi Capital’s first “passive” fund, it has been designed and built to have low-cost structure and provide investors easy access to the broader Saudi market.
Megren Al-Kulaibi, head of asset management at Al-Rajhi Capital, said: “This fund was created to meet growing investor needs for a low-cost and efficient way to access the Saudi equity market from a long-term perspective. As a provider of innovative investment solutions, we are pleased to offer this rules-based, transparent alternative to investors. The fund targets both institutional and retail investors who are looking for a broader allocation to Saudi equity market from a strategic allocation or savings perspective.”
Robert Ansari, head of Middle East coverage at MSCI, said: “MSCI is pleased to have developed the MSCI Saudi Multi-Factor Index. Global interest from investors in multi-factor investing continues apace as they seek an alternative approach to the Saudi Arabian equity capital market and transparent routes to efficiently access this emerging market via various financial instruments.”