BlackRock and HSBC launch Saudi investment funds

Prominent asset managers BlackRock and HSBC have launched dedicated Saudi Arabia investment funds, according to the Financial Times.

When asked by Argaam, BlackRock confirmed the report.

BlackRock and HSBC Global Asset Management have each launched exchange traded funds (ETFs) in April that will track the MSCI Saudi Arabia 20/35 Capped Index, which focuses on mid and large-cap companies in the Kingdom.

The HSBC unit, which manages $451 billion, said the launch was “in response to interest from international investors following the inclusion of Saudi Arabian equities into global indices”.

MSCI will include the country in its influential emerging markets index this summer and Saudi Arabia’s stock market was also recently admitted into emerging market indices run by FTSE Russell and S&P Dow Jones.

BlackRock’s new product is a Ucits version of an ETF available for US investors. It said its launch was in response to “significant client demand . . . in anticipation of the MSCI index inclusion”.