Global Investment House- Saudia (Global) announced today that its equity funds, Global Saudi Equity Fund and Global Sharia Compliant Equity Fund (Al-Noor), have recorded competitive returns since their inception.
Global Saudi Equity Fund, a conventional fund launched on 31 January 2009, aims to achieving long term capital growth with predefined and controlled levels of risk, by investing in stocks listed on the Saudi stock exchange. The fund has recorded 24.8% since its inception till 16 May 2009 outperforming the Tadawul All Shares Index (“TASI”) by 2.2%.
On the other hand, the Global Saudi Sharia Compliant Equity Fund (Al-Noor) was launched on 7 March 2009 and invests in equities listed on the Saudi Stock Exchange that are Sharia compliant. The fund has recorded returns of 36% since its inception till 16 May 2009. It is worth mentioning that there are 28 Sharia compliant Saudi Equity funds which are all listed on Tadawul website and managed by investment companies.
Mr. Zeyad Awad Head of Saudi Asset Management in Global Saudia said, “The fund’s strong performance is attributable to the team’s research driven investment approach and vast experience in managing equities in the Saudi market. Our value-oriented investment process has proven to be successful. Detailed analysis is conducted to identify attractive investment opportunities in an effort to outperform the market. The market volatility currently being witnessed has served to further reinforce the value of sound investment strategies followed by Global in the Saudi equity market and our commitment to long term investing.”
Investing in equities for the long term has historically generated superior returns compared to other asset classes. For example, Saudi equities have witnessed annualized compounded returns exceeding 12% over the past ten years despite the significant losses experienced in the Saudi market in the last several years.
Mr. Awad added, “The Saudi stock market currently trades at attractive valuations, and offers a strong potential for above-average returns over the long-run capitalizing on government foreign reserves, solid macroeconomic outlook and strong government support for the economy through various fiscal measures (particularly the expansion of spending on infrastructure projects). In addition, the Saudi economy is set to strongly benefit from any recovery in international markets and the strengthening of oil prices.”
Mr. Awad ended, “Investors should focus on the long term fundamentals of the Saudi economy which remain very favorable. Carefully selected mutual funds should prove to be an effective means of investing in the Saudi market for the long term. In addition to solid research capability, professionally managed funds provide better diversification as their size and scale allow them to invest in a cautiously selected broad based portfolio of companies across various sectors with the objective of maximizing return and minimizing risk.”
About Global Investment House-Saudia
Global Investment House-Saudia is a full-fledged investment company incorporated in Saudi Arabia, and falls under the regulation of the CMA at Riyadh. Global in Saudi is expected to position itself among the most competitive investment houses in the Kingdom, offering a wide range of investment solutions & products with distinguished added value services that exceeds clients’ expectations.
Investment in the Funds is subject to the Terms & Conditions for each fund.
