Shuaa Asset Management, the asset management arm of Shuaa Capital, has expanded its client offering with the launch of two investment strategies which adapt to market conditions.
The Constant-Mix and the Dynamic Proportion Portfolio Shield strategies have been developed to soften the effects of volatile markets and offer downside risk protection while providing attractive returns.
Sameer Al-Ansari, chief executive officer of Shuaa Capital, says: "We have developed these new investment strategies recognising the difficult market conditions in which investors have to operate. This is very much in line with our group wide strategy of broadening our product base to ensure we are offering innovative solutions that match client requirements and the market cycle."
Nadi Bargouti (pictured), head of Shuaa Asset Management, adds: "These two strategies are dynamically managed to ensure exposure while reducing risk. Working in all market conditions, they offer a combination of risk diversification and protection as well as monthly liquidity typically available in closed-end product form. We have had very positive feedback for both strategies during pre-launch marketing and look forward to introducing them to current and prospective clients."
Both strategies are medium-term horizon investment management services aimed at institutional and high net worth investors. They are open-ended and offer clients monthly liquidity, with one-week notice.
The Constant-Mix strategy provides exposure to baskets of Mena equities, bonds and money market instruments with the added benefit of managing volatility to match the risk profile of the client. There are three Constant-Mix profiles allowing clients the opportunity to choose different levels of risk: aggressive, balanced and conservative. The Constant-Mix portfolios are rebalanced on a monthly basis such that the allocation to each basket of equities, fixed income and money market securities are adjusted according to market conditions.
The Dynamic Proportion Portfolio Shield strategies provide exposure to a Mena equity basket with a variable participation factor that adjusts to market conditions. The DPPS equity basket participation level increases in favourable market conditions and decreases in unfavourable conditions, providing protection from the risk of a drop below a target floor.
Shuaa Asset Management is launching the investment strategies to investors principally in Qatar, Saudi Arabia and the United Arab Emirates.