We offer a broad range of mutual funds (local, regional and international) and
discretionary portfolio management for high income and affluent individuals as well
as corporate and institutional clients, seeking to get the best possible growth
and/or return for their capital. In addition, we have developed an investment saving
program and provide research services to corporate clients.
The main aim of this service is to produce superior risk-adjusted investment returns
by providing alternative (including Shari'a compliant) investment solutions tailored
to your needs.
The following types of funds are available:
- Equity Funds aim to achieve long term capital growth, principally through
investment in a basket of equity securities in the local and international markets.
Some of the equity funds invest in individual countries, while others in regions
and others in specified sectors such as Technology, Real Estate and Telecommunication.
Equity Funds tend to carry a high level of risk.
- Bond Funds aim to achieve a regular income with the possibility of capital
growth through investment in a collection of floating and fixed income securities
issued by governments, government agencies, large corporations, and multi-national
companies. Bond Funds tend to carry a medium level of risk.
- Money Market Funds aim to seek capital preservation with the objective of
realizing a competitive short term return. Money Market Funds invest in short-term
money market instruments which are highly liquid. Money Market Funds tend to
carry low levels of risk.
- Trade Commodity Funds aim to seek capital preservation with the objective
of realizing competitive short term returns through investing in short term
Murabaha deals. The fund will invest in financing the purchase of goods that
are compliant with Sharia from established suppliers against immediate payment,
and sell them to reputable organizations, on deferred payment terms. The difference
between the purchase and sale prices will be the fund's profit margin. Trade
Commodity Funds tend to carry low levels of risk.
- Balanced Funds aim for long-term growth of invested capital while achieving
consistent income with medium levels of risk. These funds invest their assets
in a several asset classes with different levels of risk. Some asset classes
have high levels of risk such as equities, while others have medium levels of
risk such as fixed income and others have low levels of risk such as money market.
- Capital Protection Funds are investment vehicles with low levels of risk
which invest in different assets, such as shares, market indices, fixed income
assets, commodities, currencies and interest rates. One of the distinguishing
characteristics of these investments is that most or all of the capital of the
investor is guaranteed while delivering the participation promised in the performance
of the underlying asset. The returns are not guaranteed and the total return
could be zero subject to the performance of the underlying assets in the fund.
These funds are suitable for investors who cannot risk their capital for personal,
regulatory or investment objective constraints.
Fund of Funds
Riyad Capital Fund of Funds are divided into different investment funds that enable
investors to invest their money in several Riyad Capital mutual funds as one group
according to the investor objectives. Investors will not own units in the underlying
funds which form each fund of funds, but own units in the selected fund of funds
itself.
These funds provide excellent diversification benefits, meet investors' needs and
enable them to obtain exposure to different capital markets. Also, the investors
in these funds will take advantage of the asset allocation skills of professional
managers. These funds have different expected returns with different levels of risk
which are designed to fulfill different investor requirements.
Management of Private Portfolios
Riyad Capital provides portfolio management services for institutions and high net-worth
investors. The process starts with discussion with the client to determine investment
objectives, returns, risks, time constraints and/or other requirements. This discussion
leads to an agreed upon investment policy and accordingly the portfolio manager
will allocate portfolio assets to different asset classes that achieve the client's
goals and objectives.
The portfolio manager will either have a full authority to execute transactions
on behalf of the clients as in the case of Discretionary Portfolio Management Services
or will only provide investment advice to the clients under the Non-Discretionary
Portfolios Management Services.
Investment Saving Program
Saving Programs at Riyad Capital entitles company employees to invest their savings
in different investment portfolios which satisfies their personal needs and achieve
good investment returns. The program essential characteristics are as follows:
- Select certain Riyad Capital investment products that satisfy employees
needs and objectives.
- The company employees will subscribe as group and the company will deduct
a certain amount of the employees salaries each month.
- The employee is allowed to move from one investment product to another subject
to certain conditions.
Information Services
Riyad Capital has a research unit that has a data base of listed companies, mutual
funds, equity markets indices, economic indicators and figures that affect the local
and international markets. The research unit provides investors with reports, analysis,
benchmarks to help them in their investment decisions. The research unit also provide
investors with data on the international markets and the global economy and advice
them in their investment selections to achieve better returns.
