RIYADH, 3 December 2007 — The CMA has granted Jadwa Investment approval to offer two new Shariah-compliant international funds that employ the innovative concept of multi-manager investment. These two funds, the Jadwa World Equity Fund and Jadwa Emerging Markets Equity Fund, are the first-of-their-kind in the Kingdom, and their approval is a significant milestone in the Shariah- compliant asset management industry.
The approval followed the launch of a strategic alliance between Jadwa Investment and Russell Investments last May. The companies have jointly formed the Russell Jadwa Shariah-compliant Funds plc, a Dublin-based umbrella fund company that aims to offer Shariah-compliant investments.
Ahmed Al-Khateeb, managing director & CEO of Jadwa Investment, said “the key feature of these two funds is the innovative multi-manager strategy. Some of the world’s leading managers will manage the assets of these two funds, and they will do so in accordance with Shariah guidelines. These are the first multi-manager funds to be approved in the Kingdom, and the first Shariah- compliant multi-manager funds to be offered here.”
Fadi Tabbara, vice president of asset management, added that “the launch of these two funds comes at a time that we believe is opportune for long-term investment in the global developed and emerging equity markets. Additionally, these funds will provide our clients with the opportunity to diversify their investment portfolios across the developed and emerging markets, thereby reducing the sharp volatility of investments observed in any single equity market.”
The CMA’s approval of these two international funds is an important addition to the list of products and services offered by Jadwa in the asset management field. Jadwa has launched a range of mutual funds that comply with Shariah guidelines, including Saudi Equity, GCC Equity, Arab Markets Equity and Murabaha Funds. Recently Jadwa launched a global Sukuk Fund that was the first in the region, and the second in the world. Jadwa also offers discretionary portfolio services in the Saudi, GCC and Arab equity markets.