Eyeing a listing on the Saudi Exchange (Tadawul) by the 25th July 2024 for its SC Multi Asset Traded Fund, Sedco Capital achieved its SAR300 million (US$79.93 million) minimum subscription target when the extended offer period closed on the 27th June 2024.
Classified as high-risk, this Shariah compliant closed-end investment fund with a 99-year term, plus a further extension option, seeks to invest in multiple asset classes for capital growth and semi-annual income distribution.
The target allocations are 80% liquid assets and 20% illiquid assets – with the latter focused on global private equity investments. For liquid assets, the fund will allocate to local and global public equities and the rest on local and global fixed income assets, including money market and Sukuk.
| Investment allocation for the SC Multi Asset Traded Fund | ||||
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Asset class | Description | Target allocation of total fund |
| Liquid | 80% | International public equities | Securities listed on international markets of various sizes and sectors, whether through direct investments and/or through investment funds, which may include: • IPOs • Tradable rights issue • Index funds | 25% |
| Local public equities | Securities listed in local markets of various sizes and sectors through direct investments, investments funds, as follows: • Investments in IPOs • Investments tradable rights issue • Investments index funds | 15% | ||
| Global Sukuk | Investment in debt instruments such as local and international Sukuk | 20% | ||
| Money market | Investment in money market transactions, Murabahah transactions, etc | 20% | ||
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20% | Global private equity | Local and international private equity, which may include: • Investment funds • Direct investments | 20% |
| Source: Sedco Capital | ||||
For liquid assets, the proposed composite index benchmark tracks specific weights allocations on the Dow Jones Islamic Market World Index (60%), Total Return Dow Jones Sukuk Index (20%) and the rest on the 30-Day Moving Average (S&P 1-Month).
While the absolute income strategy is applied for local equities, the fund manager can opt for either active or passive investment strategies with international equities – with the latter preferred for companies with a large market capitalization, which will represent a large segment for this fund.
There are no restrictions on exposure to a specific sector or geographic region. Investing in private funds is allowed, capped at 25% of the net asset value (NAV). At least ‘BBB-’ or higher credit ratings would typically apply for debt and money market instruments, but the fund is allowed to invest up to 10% of its NAV in unrated investments.
Investments of minimum SAR100 (US$26.65) are restricted to Saudi Arabian nationals and qualified residents, including corporate bodies and recognized foreign entities. The fund can continue to attract investors until its maximum size of SAR1 billion (US$266.44 million).
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| SC Multi Asset Traded Fund | |
| Fund manager | Saudi Economic and Development Securities Company (Sedco Capital) |
| Launch date | 19th May 2024 |
| Asset class | Mixed assets |
| Base currency | Saudi riyal (SAR) |
| Composite benchmark | Dow Jones Islamic Market World Index (60%), Total Return Dow Jones Sukuk Index (20%); 30-Day Moving Average (S&P 1-Month) |
| Investment objective | Capital growth and periodic income distribution in the long-term by investing in a diversified portfolio of local and international private and public investments compatible with Shariah guidelines. |
| Distribution | Semi-annual |
| Listings | Saudi Market (Tadawul) by the 25th July 2024 |
