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State Street Global Advisors has launched an exchange traded fund that will offer European investors access to Saudi Arabian government bonds.
The Ireland-domiciled SPDR JPMorgan Saudi Arabia Aggregate Bond Ucits ETF invests in liquid, dollar-denominated and Saudi riyal-denominated government and quasi-government debt, including sukuk bonds.
The US-based asset manager said the ETF was the first dedicated Saudi Arabia fixed-income Ucits ETF in Europe.
The vehicle tracks the JPMorgan Saudi Arabia Aggregate index, which JPMorgan developed “in close collaboration” with the asset management arm of financial services giant State Street.
This article was previously published by Ignites Europe, a title owned by the FT Group.
The ETF has been registered for sale across much of Europe, including France, Germany, Italy, Spain and the UK.
It is tradable on Frankfurt and London’s stock exchanges with a total expense ratio of 0.37 per cent.
Emmanuel Laurina, head of the Middle East, Africa and official institutions at SSGA, said the ETF would offer investors “cost-effective access to the fast-growing fixed-income market in Saudi Arabia”.
“As the kingdom continues to diversify its economy through energy transition, infrastructure and other growth initiatives, we believe there are appealing investment themes for international investors to capture through a diversified exposure to Saudi bonds.”
SSGA, the world’s fourth-largest money manager with more than $4.7tn in assets, added that growth of the Saudi bond market had accelerated over recent years, driven in part by the kingdom’s Vision 2030, a government programme that aims to diversify the economy, society and culture.
Franklin Templeton in October launched an actively managed Saudi Arabia-focused bond strategy for European investors, the Franklin Saudi Arabia Bond Fund, as well as a Saudi Arabian equity ETF.
*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at igniteseurope.com.
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Publish date : 2024-12-29 21:00:00
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