Abu Dhabi-based asset manager ADS Investment Solutions has launched a new smart beta fund tracking Saudi Arabian stocks.

The company said in a press statement that the dollar-denominated fund would be domiciled within Abu Dhabi Global Market and had an annual management fee of 0.4 percent.

Smart beta funds are funds which track a stockmarket index, but which attempt to beat the performance of simple index tracking funds by making adjustments to incorporate a specific strategy, such as reducing exposure to trading volatility.

Dr. Ryan Lemand, senior executive officer and board member for ADS Investment Solutions, said: “Our wealth management and asset management clients are hungry for high-quality access to Saudi Arabian equities at a time when the economy is going through many positive changes. We have responded with the launch of the FTSE ADS Saudi Minimum Variance Fund, which is our first step in making smart beta strategies widely available to investors in the region."

Shares in Saudi Arabia's stock market, Tadawul, were added to index provider FTSE Russell's Emerging Markets index from February this year, and to MSCI's Emerging Markets index earlier this month. Read more here

(Writing by Michael Fahy; Editing by Mily Chakrabarty)

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