Al-Rajhi Capital, the investment banking subsidiary of Al-Rajhi Bank and one of the leading asset managers in the Kingdom of Saudi Arabia, announced the launch of the " Al-Rajhi Multi Asset Conservative Fund'', an open-ended fund classified under the ''Balanced Funds'' category.

The newly launched Multi Asset Conservative Fund is the third fund within its balanced fund range. The new fund applies the same proven investment allocation strategy but with a lower level of risk. It can invest up to 15 per cent of its assets in equity funds and hold up to 100 per cent in commodity Mudaraba funds. Within these limits, it has the flexibility to change allocation to growth assets and defensive assets according to market conditions.

The fund’s aim is to provide a high level of capital preservation and growth in assets with a lower risk framework by creating a balanced portfolio of Equities and Murabaha. The fund uses top down asset and country allocation combined with our 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
• 85% against the SIBOR 3 month’s index

Commenting on the fund launch, Mr. Gaurav Shah, CEO of Al Rajhi Capital, stated “This new fund complements our existing range of balanced funds by offering further choice to investors who have a lower risk tolerance and lower appetite for capital fluctuations. 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.”

Alongside the launch, Al Rajhi Capital is offering a special launch incentive whereby the subscription fees are waived for all new subscriptions during the launch period which starts from 4th June 2011 and ends on 29th June 2011.

Al Rajhi Capital launches the Multi Asset Conservative Fund

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