Notice Regarding Approval of “SBI Saudi Arabia Equity Exchange Traded Fund,” the First ETF from SBI Asset Management
SBI Global Asset Management Co., Ltd. hereby announces that its subsidiary SBI Asset Management Co., Ltd. (hereinafter “SBI Asset Management”) will establish and start managing its first ETF (Exchange Traded Fund) “SBI Saudi Arabia Equity Exchange Traded Fund” (hereinafter “the ETF”).
SBI Asset management has been considering expansion into the ETF business with a focus on various investment targets. With the SBI Group (the group of companies under SBI Holdings, Inc.) strongly committed to the broad public-private economic cooperation between Japan and Saudi Arabia announced in late May 2024 based on the “Vision 2030” announced by Saudi Arabia in 2016, SBI Asset Management has decided to launch Japan’s first Saudi Arabian stock index-linked ETF as its first ETF offering. The ETF will be managed with the goal of achieving investment results that are linked to the “MSCI Saudi Arabia Index (yen equivalent basis) *1” through investment in the “SBI Saudi Arabia Equity Index Mother Fund” (hereinafter “the Mother Fund”).
| Name of ETF (Code) | SBI Saudi Arabia Equity Exchange Traded Fund (273A) |
| Reference Index | MSCI Saudi Arabia Index (yen equivalent basis) * |
| Report Date | Twice a year (March 24 and September 24) |
| Fund Overview | SBI Saudi Arabia Equity Exchange Traded Fund will invest primarily in the beneficiary certificates of the SBI Saudi Arabia Equity Index Mother Fund, with the objective of achieving investment results that are in line with the MSCI Saudi Arabia Index (yen equivalent basis). |
| Trust Fee (Incl. tax) | 0.1925% p.a. |
The ETF received approval for the listing from the Tokyo Stock Exchange today. The scheduled listing date is October 31, 2024, and the ETF will be available for trading on the exchange through securities companies nationwide from this date. Saudi Arabia has been implementing its “Vision 2030” economic reform program, and the growth potential of the stock market may increase along with Saudi Arabia’s economic growth. Through the establishment and management of the ETF, we believe that we will be able to provide investors with investment opportunities in the Middle East, with which they were previously unfamiliar, and provide them with opportunities to diversify their portfolios and build assets in the long-term.
Based on the “Customer-centric Principle,” we will continue to examine ETFs that meet the needs of investors and contribute to their optimal asset building by endeavoring to improve performance through high-quality and low-cost funds.
1: MSCI Saudi Arabia Index is an index developed by MSCI Inc. to measure the performance of the large and mid-cap segments of the Saudi Arabian market and covers approximately 85% of the free float adjusted market capitalization in Saudi Arabia. MSCI Saudi Arabia Index (yen equivalent basis) is based on the MSCI Saudi Arabia Index (including dividends after tax), converted to yen by the trustee company.
Supplement Materials
- The structure of SBI Saudi Arabia Equity Exchange Traded Fund (simplified illustration
About Saudi Arabia
- Saudi Arabia is promoting diversification and private sector growth through its “Vision 2030” economic reform program.
- We are focusing on the groundbreaking and concrete national policy of Saudi Arabia, the world’s largest oil-producing great Middle Eastern Arab nation, to achieve sustainable economic growth by addressing three key challenges outlined in its “Vision 2030” announced in 2016: (1) a non-oil-dependent economy, (2) job creation, and (3) efficient government.
- The Saudi Arabian market is developing rapidly due to reforms aimed at addressing the three challenges. Saudi Arabia is implementing a number of policies to achieve its “Vision 2030” economic reform program, which shows steady progress. As the progress of the economic reform program, the Saudi Arabian market is developing rapidly, and investment opportunities are expected to grow.
For further information, please contact:
SBI Global Asset Management Co.Ltd. Administration Dept
Email: sbigam@sbiglobalam.co.jp