Shuaa Capital is preparing to launch a money market fund following the announcement of a major new mandate, Mena FM can reveal.
The fund is set to launch at the end of October, and will have a “money market plus” structure combining fixed income exposure with money markets, commercial paper and bank deposits. “You can’t have a pure money market fund because you won’t make anything,” managing director of Shuaa Asset Management, Nadi Bargouti, told Mena FM.
The fund will target 13% annual returns with monthly liquidity, and will be available only to institutional and ultra-high-net-worth individuals. Bargouti added that the company is also approaching the Saudi Arabian CMA about obtaining private placement of the fund in the Saudi market.
The launch comes as Shuaa rebuilds its business following a tough couple of years. On 2 October, the firm signed an alliance with the UAE’s National Bonds to manage its new equity portfolio. National Bonds, which is worth AED4.7bn ($1.27bn), has appointed Shuaa to manage and gradually grow its Shariah-compliant GCC equity exposure on an ongoing basis. As part of the deal, Shuaa will offer National Bonds’ products to its staff and clients.
Bargouti confirmed that Shuaa is working on a number of other mandates, including GCC endowments and fixed income mandates, through its association with National Bonds. “It has been a tough year and we really wanted a big win,” said Bargouti, adding that he believes the company now has “the strongest balance sheet in the market”.
In the past week, Shuaa has made some major changes to its senior management structure. Michael Philipp has been appointed CEO, taking over from Sameer Al Ansari, while head of brokerage Walid Shihabi has resigned.
