SEDCO Capital, a leading asset management and investment advisory firm focused on Shariah-compliant and environmentally and socially conscious investing, has proudly announced the initiation of its public offering for the SC Multi Asset Fund. This closed-end investment fund, with aspirations to gather between SAR 300 million and SAR 1 billion, is slated for listing on the Saudi Exchange’s primary market.
The firm is inviting subscriptions for the fund starting on May 19, 2024, and will keep the window open until June 6, 2024, with a provision to stretch the period by an additional 10 business days if necessary.
The SC Multi Asset Fund is designed to offer investors both long-term capital appreciation and biannual income distributions. The fund’s strategy involves a diversified mix of both local and international investments across private and public markets. To achieve its investment objectives, SEDCO Capital will employ its expertise to manage the fund’s allocations, considering factors such as asset class, return expectations, risk profiles, market dynamics, and economic climate.
SEDCO Capital’s allocation strategy targets 80% in liquid assets and 20% in illiquid assets, with a particular emphasis on private equity at a global scale. The liquid asset portion will be further broken down into 60% in local and global public equities and 40% in income-generating assets such as money markets and sukuk. The fund’s benchmark is a composite of the DJIMT Index (60%), DJ Sukuk TR Index (20%), and the 30-day MVA of 1-month SIBID (20%).
Asset Class Diversification:
- Liquid Assets: Constituting 80% of the fund, including international public equities, local public equities, global sukuk, and money market assets.
- Illiquid Assets: Making up 20% of the fund, primarily focused on global private equity investments.
The fund’s offering price stands at SAR 10 per unit, with a minimum subscription threshold of SAR 100. Among the designated receiving banks for the fund are Alinma Bank, Al Rajhi Bank, Arab National Bank, Banque Saudi Fransi, Riyad Bank, and Saudi National Bank. Banque Saudi Fransi will act as the fund’s operator and custodian, while Aljazira Capital is the lead manager.
Samer Abu Aker, CEO of SEDCO Capital, expressed his enthusiasm about the fund, highlighting its role in expanding access to private and public markets for retail investors, which has traditionally been a challenging frontier for this segment. He underscored the firm’s commitment to delivering innovative, competitively managed Shariah-compliant investment opportunities.
Multi-asset funds serve as a vehicle for investors seeking a diversified investment portfolio that spans various geographies, sectors, and asset classes, enabling active management within the fund’s asset allocation limits and consistent income generation across different market conditions.
Eligible investors for the SC Multi Asset Fund include Saudi nationals, GCC citizens, residents of Saudi Arabia, institutions, companies, investment funds, and qualified foreign financial institutions, as well as other investors authorized by the CMA to own listed equities.
The following timeline delineates the key milestones from the initial offering of the fund units to the commencement of trading on the market:
- Initial Offering Period: May 19, 2024, to June 6, 2024 (15 business days).
- Potential Extension of Initial Offering Period: Additional 10 business days.
- Issuance of the offering results statement to the Capital Market Authority and allocation announcement to subscribers: Within 10 business days post-initial offering period or its extension.
- Refund of oversubscription (if applicable): 10 business days after units allocation notification to subscribers.
- Listing and commencement of trading of units on the market: 20 business days following the end of the offering period.
SEDCO Capital prides itself as a global Shariah-compliant and ESG-centric asset management and advisory firm, managing assets in excess of SAR 30 billion. The firm, headquartered in Jeddah, is present in Riyadh, Dubai, London, and Luxembourg, and is celebrated for its adherence to responsible investment principles, being a UNPRI signatory since 2014.
