Morgan Stanley Saudi Equity Fund
 
Morgan Stanley Saudi Equity Fund

Morgan Stanley Saudi Equity Fund

 
 
 
 
 

To provide long-term capital appreciation and growth by investing in securities listed on the Saudi Stock Exchange, Tadawul and in securities offered in the course of an Initial Public Offering (IPO) in the Kingdom of Saudi Arabia.

 

The manager of the Morgan Stanley Saudi Equity Fund (Fund Manager) employs an active investment strategy by selecting securities which it believes will appreciate in value based on an analysis of sector and/or the expected return or growth of individual securities.

When selecting security investments for the Morgan Stanley Saudi Equity Fund, the Fund Manager adopts a long-term approach, focusing on the market price of a company’s securities relative to the Fund Manager’s evaluation of the company’s potential long-term earnings, asset value and cash flow potential.

 

The Riyadh-based team believes that fundamentals-driven, stock-specific investing when carried out within the context of broad Saudi macroeconomic themes can be successful in creating value for investors. Furthermore, the current mix between retail and institutional investors creates intrinsic price anomalies that can be a potential source of additional returns. The team believes it can best exploit these anomalies by applying a top-down sector allocation and bottom up stock selection approach.

 

Risk management is an integral part of the investment process, conducted at stock, sector and portfolio levels. At the stock level, the team focuses on developing a comprehensive understanding of company’s fundamentals to minimize exposure to high risk or speculative stocks. At a sector level, the team monitors sector and industry allocations, with benchmark deviations confined to a defined range. At a portfolio level, tracking error is monitored.

 
 
Pricing & Performance
Past performance is not indicative of future results. Please click here for additional performance disclosures and important information, which should be reviewed carefully.
 

As of 31-May-2018

As of 12-Jun-2018

As of 31-May-2018

As of 12-Jun-2018


Performance of 100 Saudi Riyals invested
Performance of 100 Saudi Riyals invested

    
 
 
Average Annual Total Returns As of 31-May-2018 As of 31-Mar-2018
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Fund (%) 28.81 0.81 14.82 -- 14.90
Tadawul All Share Index (%) 18.77 -5.56 1.97 -- 4.72
1 YR 3 YRS 5 YRS 10 YRS Since Inception
Fund (%) 21.14 4.33 15.21 -- 14.39
Tadawul All Share Index (%) 12.41 -3.57 2.01 -- 4.40
2013 2014 2015 2016 2017
Fund (%) 44.87 27.55 -3.51 9.91 2.13
Tadawul All Share Index (%) 25.50 -2.37 -17.06 4.32 0.22
 
Average Annual Total Returns
As of 31-May-2018
TIMEFRAME Fund (%) Tadawul All Share Index (%)
1 Yr 28.81 18.77
3 Yrs 0.81 -5.56
5 Yrs 14.82 1.97
10 Yrs -- --
Since Inception 14.90 4.72
As of 31-Mar-2018
TIMEFRAME Fund (%) Tadawul All Share Index (%)
1 Yr 21.14 12.41
3 Yrs 4.33 -3.57
5 Yrs 15.21 2.01
10 Yrs -- --
Since Inception 14.39 4.40
TIMEFRAME Fund (%) Tadawul All Share Index (%)
2013 44.87 25.50
2014 27.55 -2.37
2015 -3.51 -17.06
2016 9.91 4.32
2017 2.13 0.22
Past performance is not indicative of future results.
 
 
Risk/Return Statistics

TIMEFRAME:
    FUND Index
Alpha (%) 6.37 --
Beta 0.93 1.00
Correlation 0.96 1.00
Tracking error (%) 4.47 --
Information ratio 1.43 --
Past performance is not indicative of future results.
 
 
 
 
Composition As of 31-Mar-2018
  Fund
Financials 42.23
Materials 23.15
Health Care 9.28
Real Estate 6.85
Industrials 4.66
Consumer Staples 4.51
Telecommunication Services 3.36
Consumer Discretionary 3.10
Energy 2.02
Cash & equivalents 0.82


 
 
Portfolio Management Team
Head of Saudi Arabian Equity Team
24 years industry experience
Vice President
10 years industry experience
Vice President
11 years industry experience
 
 
 

Past performance is not a guarantee of future performance. The value of the investments and the income from them can go down as well as up and an investor may not get back the amount invested. There are special risk considerations associated with investing in emerging country securities including (1) restrictions on foreign investment, (2) currency fluctuations, (3) potential price volatility and lesser liquidity of shares, (4) political and economic risks, (5) settlement systems may be less well organized and less developed. There are also varying levels of government supervision and regulation of exchanges, financial institutions and issuers in various countries. In addition, accounting, auditing, financial and other reporting standards are not equivalent to those of more developed countries, and therefore less information may be available than in more developed countries.

Funds that specialize in a particular region or market sector are more risky than those which hold a very broad spread of investments. Where portfolio concentration is in one sector it is subject to greater risk and volatility than other portfolios that are more diversified and the value of its shares may be more substantially affected by economic events.

These investments are designed for investors who understand and are willing to accept these risks. Performance may be volatile, and an investor could lose all or a substantial portion of his or her investment.

Please click this hyperlink to the Information Memorandum for further information regarding the principle risks, terms and conditions of investing in the Morgan Stanley Saudi Equity Fund.

 
 

WAM is the weighted average maturity of the portfolio. The WAM calculation utilizes the interest-rate reset date, rather than a security's stated final maturity, for variable- and floating- rate securities. By looking to a portfolio's interest rate reset schedule in lieu of final maturity dates, the WAM measure effectively captures a fund's exposure to interest rate movements and the potential price impact resulting from interest rate movements.

 

WAL is the weighted average life of the portfolio. The WAL calculation utilizes a security's stated final maturity date or, when relevant, the date of the next demand feature when the fund may receive payment of principal and interest (such as a put feature). Accordingly, WAL reflects how a portfolio would react to deteriorating credit (widening spreads) or tightening liquidity conditions.

 

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