AL Rajhi Capital (ARC), one of the largest asset managers in Saudi Arabia and a leading 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’s rules.

As Al Rajhi Capital’s first “passive” fund, it was designed and built to have low-cost structure and provide investors easy access to broader Saudi market. As a multi factor passive fund, it uses a rule-based, disciplined and transparent investment process to outperform the market unlike active funds which rely on traditional stock selection and management approach.

The Al Rajhi MSCI Saudi Multi Factor Index Fund is also the first passive fund in the market using the MSCI Saudi Multi Factor Index’s combination of three customized underlying MSCI Factor indices: Quality, Momentum and Enhanced Value (‘‘Component indices’’). Each Component Index in the MSCI Saudi Multi Factor Index is attributed equal weight at each rebalancing date.

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, added: “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.”

Established in 2008, Al Rajhi Capital is one of the largest providers of financial services in Saudi Arabia, providing a comprehensive range of innovative financial solutions across brokerage, asset management, investment banking and advisory services. Al Rajhi Capital is the top-ranked broker and one of the largest asset managers in the KSA.

For more than 45 years, MSCI’s research-based indices and analytics have helped the world’s leading investors build and manage better portfolios. Clients rely on MSCI’s offerings for deeper insights into the drivers of performance and risk in their portfolios, broad asset class coverage and innovative research.

MSCI’s line of products and services includes indices, analytical models, data, real estate benchmarks and ESG research. MSCI serves 99 of the top 100 largest money managers, according to the most recent P&I ranking. — SG