In seeking a less risky investment route for exposure to US equities, which have experienced significant volatility since January 2025, the Saudi Economic and Development Securities Company (Sedco Capital) launched a feeder fund that taps into an Europe-based offering.
With the offering open from the 6th July 2025 for 20 business days, the Sedco Capital US Equities Feeder Fund is an open-ended, Shariah compliant vehicle which invests in the Luxembourg-domiciled Passive Equities US SC Fund, a UCITS-regulated master fund.
The master fund invests in a broad basket of Shariah compliant US-listed equities that are constituents of the Dow Jones Islamic Market US 5/40/10 Capped Index. While not directly investing in individual stocks, the feeder fund approach gains indirect exposure to selected US firms across various sectors.
“This feeder structure enables broader access to international Shariah compliant equities,” said a Sedco Capital representative. “We prioritize oversight of index tracking and risk factors, including currency exposure and governance standards.”
The strategy is part of a broader effort by Sedco Capital to increase the availability of international investment options for investors in Saudi Arabia and beyond.
As a passively managed fund, its strategy is to replicate the index composition, thereby maintaining alignment with sector allocations across industries such as technology, healthcare and consumer goods. The initial unit price is SAR10 (US$2.67).
Classified as high risk, the fund targets investors with a long-term horizon seeking capital appreciation. Structured to allow daily dealings in Saudi riyal from Sunday to Thursday, the fund is non-distributing, with returns reinvested to support long-term capital growth.
*Disclaimer: The opinions and viewpoints expressed in this Fund Profile do not constitute as recommendations for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| Sedco Capital US Equities Feeder Fund | |
| Fund manager | Saudi Economic and Development Securities Company |
| Launch date | 6th July 2025 |
| Asset class | Equities via open-ended index fund |
| Base currency | Saudi Arabian Riyal (SAR) |
| Initial investment | SAR10 (US$2.66) |
| Unit price | SAR10 (US$2.66) |
| Investment objective | Capital growth |
| Benchmark | Dow Jones Islamic Market US 5/40/10 Capped Index |
| Risk profile | High |
| Distribution | Reinvested to compound long-term capital growth |
| Management fee | 0.8%, additional 0.1% annual fee applies for the master fund |
Source: Sedco Capital
