The Asset Management Group (AMG) of MASIC oversees all indirect investments, covering major asset classes that can be structured in a Shariah compliant manner. The main investment activities of the Asset Management Group are summarized below.
The Asset Management Group invests in traditional investments—such as public equities—inside and outside Saudi Arabia, utilizing managed accounts. Public equities are liquid and offer MASIC the benefits of exposure to many markets in a low-cost manner. MASIC seeks to outperform its benchmarks by increasing its exposure to undervalued markets while reducing its exposure to overvalued markets. MASIC also achieves outperformance by investing across different strategies, such as the unconstrained strategy, quantitative strategy and small cap strategy.
The Asset Management Group also invests in alternative investments internationally, to achieve return targets in excess of those found in traditional asset classes. Alternative asset classes include private equity funds, real estate funds and income generating funds. Private equity funds are illiquid in nature but provide MASIC exposure to companies inaccessible through public equity markets. Real estate funds give MASIC exposure to income-yielding properties and real estate developments globally. Finally, income generating funds often have low correlation to traditional investments (such as public equities) and generate healthy cash yields. This category includes equipment leasing funds, trade finance funds and shipping finance funds. The cash yields generated from such investments can reach the double digits.