EFG Hermes, Saudi Arabia’s top-rank asset manager has launched Hasaad, a Sharia-compliant Saudi equity fund for local and foreign investors, who are seeking superior Sharia-complaint returns, EFG Hermes said in a statement Monday.
Hasaad is an open-ended freestyle equity fund that aims to generate medium-to-long-term capital appreciation by investing in Sharia-compliant equities listed on the Saudi Arabian Stock Exchange, Tadawul, the statement added.
The market is due to open directly to qualified foreign institutions on 15 June 2015; at present, non-resident foreigners can only invest in Saudi equities indirectly, either through funds or swap agreements, according to the statement.
“The fund has a freestyle investment strategy, which gives the fund manager more flexibility in deciding on the number of holdings and equity exposure level in an effort to achieve strong absolute returns," said Majed Kabbara, Head of Asset Management at EFG Hermes KSA.
Hasaad is expected to generate strong returns over the medium to long term, especially with its potential inclusion in the MSCI Emerging Markets Index,” noted Kabbara.
