Abu Dhabi-based fund manager ADS Investment Solutions (ADSI) is to launch what it claims is the first Saudi-focused smart beta fund.
According to ADSI, the launch is a result of growing demand for investment vehicles with an exposure to Saudi stocks, following the inclusion of the Saudi stock exchange in a number of prominent emerging market indices.
FTSE ADS Saudi Minimum Variance Fund has been developed in partnership with FTSE Russell and the two have jointly created the FTSE ADS Custom Minimum Variance Index upon which the fund be based.
The US dollar-denominated fund will be domiciled in the Abu Dhabi Global Markets financial centre and provide daily liquidity with annual management fees of 0.40%.
“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 change,” said Ryan Lemand, senior executive officer and board member at ADSI.
The fund launch is the “first step in making smart beta strategies widely available to investors in the region” said Lemand.
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