Milltrust International Group has announced that it has given Sedco Capital, a Saudi Arabia-based asset manager, the mandate to manage a Ucits MENA fund.
This is the first time that a Saudi firm has won an international mandate under the Ucits IV framework. Milltrust, an Emerging Markets focused asset manager, said that it hoped that today’s announcement will help bring focus to Saudi Arabia’s vision to open up its capital market and ultimately gain inclusion on the MSCI Emerging Market Index.
The fund aims to achieve long term returns for international investors by investing primarily in companies in the MENA region through a portfolio of equity securities under the Ucits IV framework. The fund will offer daily liquidity.
In partnership with Milltrust, Sedco Capital is the first Saudi based asset management firm to be awarded a mandate to manage MENA & Saudi equities under a Ucits platform.
In line with Saudi Arabia’s 2030 vision to diversify the economy, improve the business environment, as well as creating opportunities and increasing foreign direct investment from 3.8% to 5.7% the CMA has agreed to change some of the rules for foreign investment and to open the Saudi Arabia’s capital market under the economic diversification plan.
Sedco Capital said that it believes that these developments are inviting for international capital that is seeking significant capital appreciation through the transformation and reform of the economy which has the Saudi Stock Exchange at its core.
“The launch of the fund comes at an exciting time as the [Saudi Arabian] Kingdom is opening its doors to welcome investors from all around the world to diversify the Saudi economy and broaden investor base”, said Hasan Al-Jabri, chief executive at Sedco Capital.
Milltrust is a global investment organisation located in London and Singapore focused on emerging markets.
Sedco Capital currently manages assets in real estate, equities and other businesses with a total AUM of about US$5.1bn. It is also the first Saudi asset manager and the first fully sharia compliant asset manager to be a signatory of the United Nations Principles of Responsible Investing (UNPRI) and has the largest sharia compliant investment fund platform through its Sedco Capital Global Funds platform.