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- Targeting fund size of at least SAR 300 million and up to SAR 1 billion, to be listed on the Saudi Exchange
- Subscription period open from 19 May until 6 June 2024 with possibility of extension by 10 business days
Jeddah, Saudi Arabia: SEDCO Capital, a global Shariah-compliant and ESG-led asset management and investment advisory firm (or “the Firm”), today announced the launch of the public offering of the SC Multi Asset Fund (“the Fund”) to be listed on the main market of the Saudi Exchange (Tadawul). The target size of this closed-end investment fund is a minimum of SAR 300 million up to a maximum of SAR 1 billion.
The Shariah-compliant Fund seeks to provide investors with long-term capital growth and semi-annual income distribution by investing in a diversified portfolio of local and global private and public market investments. The Fund will leverage SEDCO Capital’s combined expertise in local and international Fixed Income, Public Equities, and Private Equity investments. As the Fund Manager, SEDCO Capital will diversify the Fund's investments across multiple asset classes, taking into account the appropriate asset allocation of the Fund’s assets, return requirements, risk levels associated with the invested securities, market trends, economic conditions, and their suitability for the Fund's objectives.
The target allocations are 80% liquid assets and 20% illiquid assets. Within liquid assets, the Fund will target allocations of 60% local and global public equities and 40% local and global income assets including money market and sukuk. The illiquid asserts will focus on global private equity investments. The proposed composite benchmark is comprised of 60% DJIMT Index, 20% DJ Sukuk TR Index and 20% 30d MVA of 1m SIBID.
| Type | Allocation | 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:
| 25% |
| Local Public Equities | Securities listed in local markets of various sizes and sectors through direct investments, investments funds, as follows:
| 15% | ||
| Global Sukuk | Investment in debt instruments such as local and international Sukuk. | 20% | ||
| Money Market | Investment in money market transactions, Murabaha transactions, etc. | 20% | ||
| Illiquid | 20% | Global Private Equity | Local and International private equity, which may include:
| 20% |
The Offering Period is from 19 May 2024 until 6 June 2024 with the possibility of an extension of 10 business days. The Offer Price is SAR 10 per unit with a minimum subscription of SAR 100. The appointed receiving banks are Alinma Bank, Al Rajhi Bank, Arab National Bank (ANB), Banque Saudi Fransi (BSF), Riyad Bank, and Saudi National Bank (SNB). The Fund operator and custodian is BSF and the lead manager is Aljazira Capital.
Samer Abu Aker, CEO of SEDCO Capital, said: “At SEDCO Capital, we are excited about the launch of our breakthrough SC Multi Asset Fund. In recent years, we’ve witnessed the enthusiasm of retail investors to participate in public markets and increasingly in private markets, which haven’t always been accessible to this investor segment. We believe this product clearly demonstrates our dedication to providing current and potential clients with innovative and competitive Shariah-compliant investment solutions that will be actively managed by SEDCO Capital’s team of world class professionals.”
Multi-asset funds are an efficient instrument to provide investors with a diversified investment portfolio across different geographies, sectors, and asset classes. They allow for active management of asset allocations within the fund's asset allocation limits and for sustainable income distribution due to the diversity of underlying asset classes that collectively generate income in different market environments.
Participation in the SC Multi Asset Fund is available for the following investor categories:
- Natural persons who hold Saudi nationality and citizens of the Gulf Cooperation Council countries.
- Natural persons residing in the Kingdom of Saudi Arabia under the identity of a resident.
- Institutions, companies, investment funds and other entities and legal persons based in the Kingdom of Saudi Arabia and the Gulf Cooperation Council countries.
- Qualified Foreign Financial Institutions in accordance with the Rules for Qualified Foreign Financial Institutions Investment in Listed Securities issued by the Board of the CMA.
- Other investors who may be permitted by the CMA to own equities listed on the Exchange.
The following table shows the time periods of the steps taken between the Initial Offering of the Fund Units and the trading of the Units:
| Initial Offering Period | The Fund's Units will be offered on the date of 19/5/2024 to 6/6/2024 of (15) Business Days) |
| Extension of Initial Offering Period | Extension for a period similar to the Initial Offering Period of (10) Business Days) |
| Issuing a statement of the results of the offering to the Capital Market Authority | (10) Business Days from the date of expiry of the Initial Offering Period or any extension thereof |
| Announcement of the status of Units allocation to Subscribers | (10) Business Days from the date of expiry of the Initial Offering Period or any extension thereof |
| Refund of Oversubscription (if any) | (10) Business Days after the notification of the Unit’s allocation status to Subscribers. |
| Listing and Commencement of Trading of Units on the Market | (20) Business Days after the end of the Offering Period |
For complete information about the Fund please visit www.sedcocapital.com
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About SEDCO Capital
SEDCO Capital is a global, Shariah-compliant, and ESG led asset management and investment advisory firm. Our investment philosophy is underpinned by three Ps: principles, partnership, and performance. We provide clients with investment solutions through a dynamic asset allocation process across diversified asset classes that deliver strong risk-adjusted returns. By adopting a global view to investing while looking through the lens of our proprietary Prudent Ethical Investment (PEI) approach, an integration of Shariah-compliant and Responsible Investment principles, we provide our clients with unparalleled global access to investments across developed and emerging markets, including Saudi Arabia, in alignment with their investment objectives. In 2014 we proudly became the first Saudi company and the world’s first Shariah-compliant asset manager to become signatory to the UN Principles of Responsible Investment (UNPRI) and we continue to be recognized for our commitment to responsible investments. SEDCO Capital oversees more than SAR 30 billion in total assets under management and administration and is headquartered in Jeddah with offices in Riyadh, Dubai, London, and Luxembourg. SEDCO Capital is licensed by the Capital Market Authority (License No. 11157-37).
The Firm’s headquarters is in South Tower, Red Sea Mall, King Abdulaziz (Malik) Road, PO Box 13396 Jeddah 21491, Saudi Arabia. Find out more at www.sedcocapital.com.
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