The newly launched multi asset conservative fund is the third fund within its balanced fund range. The new fund can invest up to 15% of its assets in equity funds and hold up to 100% in commodity Mudaraba funds.
According to Al-Rajhi Capital, the fund uses top down asset and country allocation combined with its in-house managers’ investment expertise to determine the optimum assets allocation.
The fund’s benchmark is as follows: 15% against a range of Equity indices; and 85% against the SIBOR 3 month’s index.
Al Rajhi Capital CEO Gaurav Shah said 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.
"The Al Rajhi Multi Asset Conservative Fund seeks to build on Al Rajhi Capital’s strong and proven asset allocation and risk management capability to capture some of equity’s gains and generate positive performance for investors without having to face all of its volatility," he added.
