Riyadh - Sharikat Mubasher: The Hong Kong-based CSOP Asset Management Company launched the first-ever CSOP Saudi Arabia exchange-traded fund (ETF) with an initial capital of $1 billion, a recent statement revealed.
The CSOP Saudi Arabia EFT invests primarily in a portfolio correlated to the FTSE Saudi Arabia Index, which has a market capitalization of more than $270bn and aims to align with the Saudi Vision 2030 project.
This fund was part of broader efforts to foster global investment engagements and represented a significant move to strengthen the financial ties between Asia and the Middle East.
The Saudi Public Investment Fund (PIF) was an anchor investor in the fund; however, CSOP Asset Management did not reveal how much of the $1bn initial fundraising came from the PIF.
The CSOP Saudi Arabia EFT will primarily use a physical representative sampling strategy by investing up to 100% of its NAV in a representative portfolio of securities that collectively correlate with the Underlying Index.
It will also use a synthetic representative sampling strategy as an ancillary strategy by investing no more than 50% of its NAV in financial derivative instruments, including futures and swaps.
One of the main objectives of the CSOP Saudi Arabia EFT is to unlock investment products in one of the world’s fast-growing major economies via Saudi Arabia’s equity market.
Moreover, the CSOP Saudi Arabia EFT is forecasted to open new avenues for investors and contribute to the dynamic landscape of international finance.
It should be mentioned that the CSOP Saudi Arabia EFT was recently listed on the Hong Kong exchange.
CSOP Asset Management manages public and private funds and provides investment advisory services to Asian and global investors.
