*Majed Al Khalidi from Riyadh
The assets of investment funds in local and foreign bonds and sukuk were amounted to SR 6.2 billion at the end of the first quarter of this year, down 11.3 per cent from the same period last year, which is the lowest level in three years.
According to a report by the Saudi Arabian Monetary Agency (SAMA), the assets of local and foreign bonds and Sukuk were accounted for about 5.2 percent of the total assets of the funds that were approved by the Capital Market Authority at the end of the first quarter of 120.08 billion riyals. Though, they constituted 6.7 per cent during the same period last year.
Domestic bonds and Sukuk account for about 80 per cent of the total assets of bonds and Sukuk that held by investment funds, compared to 20 per cent of foreign bonds and Sukuk.
Investment funds are defined as investment vehicles that collect and manage the capital of a group of investors in accordance with a specific investment strategy and objectives.
The funds include a portfolio of selected securities based on specific benchmarks and criteria that meet IFAD's investment objectives, as well as the diversification advantage of the Fund's investor, which reduces the overall risk level of the investment.
Investment funds raised their assets in domestic and foreign equities by the end of the first quarter of 2018 by about 20 percent, compared to the first quarter of last year.
Investment funds increased their real estate assets by the end of the first three months of this year, by about 200 per cent, compared to the same period in 2017.
Domestic and foreign equities account for 21.85 percent of total fund assets at the end of the first quarter of 2018, compared to 20.90 percent at the end of the first quarter of last year.
Domestic stocks account for about 80.2 percent of total shares that were held by Investment Funds, compared to 22 percent for foreign stocks.
While real estate assets accounted for 7.3 per cent of the total assets of Investment Funds by the end of the first quarter of this year, compared with 2.8 per cent for the same period.
Total assets of investment funds were amounted to SR 120 billion at the end of the first quarter of this year, registering an increase of 14.9 percent compared to 104.5 billion riyals.
* Economic Reports Unit
