Al-Rajhi Capital said that the newly launched multi asset conservative fund is the third fund within its balanced fund range and it applies the same investment allocation strategy but with a lower level of risk.
According to the investment bank, the fund can invest up to 15% of its assets in equity funds and hold up to 100% in commodity Mudaraba funds. Within these limits, it has the flexibility to change allocation to growth assets and defensive assets according to market conditions.
The fund’s aim is to provide a capital preservation and growth in assets with a lower risk framework by creating a balanced portfolio of equities and Murabaha. The fund uses top down asset and country allocation combined with its in-house managers’ investment expertise to determine the optimum assets allocation.
According to the Al-Rajhi Capital, the fund’s benchmark are: 15% against a range of equity indices; and 85% against the SIBOR 3 month’s index.
Al Rajhi Capital CEO Gaurav Shah said that this new fund complements its existing range of balanced funds by offering further choice to investors who have a lower risk tolerance and lower appetite for capital fluctuations.
"The fund aims to generate steady incremental performance from the Murabaha exposure while adding capital through opportunistic exposure to the equity sector, using the range of investment vehicles available for the market circumstances," Shah said.
