Offerings Explore SEDCO Capital’s wide range of asset management, advisory, and discretionary portfolio management services

Services

Asset Management

SEDCO Capital's world-class asset management capabilities span global markets to give investors access to the most attractive asset classes. Our asset management teams are populated by a top-notch team of global experts – resulting in a long track record of market-beating performance.

Advisory

The Advisory function offers institutional grade investment advice, and has become a trusted partner for clients’ investment needs regionally and internationally. Clients benefitting from SEDCO Capital’s Advisory function construct their own portfolios from SEDCO Capital’s investment products, and are backed by SEDCO investment team’s insights, market intelligence and support. The Advisory team offers clients advice on global financial markets. It also constructs and manages client portfolios, creates asset allocations based on client investment risk profiles, and offers relationship managers a holistic view of global markets. In 2016, the Advisory function further developed its world-class advisory process for offering institutional grade investment advice to clients. The department’s goal for the year was to continue being a trusted supporting partner for clients’ investment needs regionally and internationally. Through the year, the department conducted an outreach program where it attended investor conferences worldwide to highlight the specific needs and technicalities of investing in the Shariah universe. The Advisory team also branched into Malaysia to establishing constructive dialogue with public and semi-public entities, Shariah compliant asset managers and Islamic banks in the country. Simultaneously, the department forged new links with government-related entities and financial institutions in the GCC area while continuing a healthy dialogue with institutional clients in Europe and the US. Internally, the team published Sharia Asset Allocation profiles for use in client portfolios and developed investor risk questionnaires to better serve different clients risk appetites. While a number of SEDCO Capital clients have moved from advisory to more comprehensive discretionary portfolio management, Advisory remains a key component of SEDCO Capital’s investment services. The Advisory arm is expected to expand aggressively as new clients come on board in 2017 and beyond.

Discretionary Portfolio Management

SEDCO Capital offers its clients world-class Discretionary Portfolio Management (DPM) services by allocating investments towards promising opportunities on their behalf. In response to market preferences, SEDCO Capital offers High Net Worth Individuals (HNWIs) tailored DPM services as opposed to Private Placements or Public Funds. We create tailor-made investment strategies for clients based on risk profiles and expected returns, and combine these with proactive portfolio management and a competitive fee structure. The DPM team has created exciting investment instruments to cater to investor preferences for global public equities. An ethical defensive equity strategy combines a value tilt with a focus on large and mid-cap healthcare and consumer staples. Another strategy explores ethical and secular investments that prioritise sustainability and resource optimisation. The Discretionary Portfolio expanded significantly in 2014, when a number of clients upgraded from advisory to DPM services – a testament to SEDCO Capital’s market reputation. SEDCO Capital also brings its investment instruments to a global ethical investor audience through its Luxembourg platform. In 2014, our Luxembourg offerings were expanded to include the flagship SEDCO Capital GCC Equities strategy. Since, we have launched three high-conviction strategies targeting public equities in regional markets. SEDCO Capital has also expanded its private placement fund activities to deliver specialised investment strategies based on clients’ risk-return profiles and target allocations. In a sign of the importance of regional real estate to SEDCO Capital’s DPM portfolio, a dedicated regional real estate team has been spun off to satisfy strong market demand. Through 2017 and beyond, we will expand our regional DPM offerings with a focus on equities and real estate - taking full advantage of our market reputation and expertise in these sectors. And as always, ethical investing and compliance will remain a key focus area, and remain integrated throughout our investment processes.

Product

  • Saudi/MENA Real Estate

  • International Real Estate

  • MENA Liquid Assets Strategies

  • International Equities

  • Private Equity

Saudi/MENA Real State

SEDCO Capital’s Real Estate Asset Management division curates exciting opportunities in the MENA real estate market for its clients. It offers Shariah-compliant investments and portfolio strategies that deliver optimised risk-adjusted returns to our investors.

Our portfolio caters to investor appetites across all risk-return investment profiles, and invests in diversified assets across all sectors – such as retail, education, office, hospitality, residential, healthcare and mixed-use properties.


SEDCO Capital’s MENA Real Estate Team (SCMRET) combines SEDCO’s 40-year track record with the expertise of a specialist team that possess over 50 years of cumulative experience. We have built a market-leading reputation in selecting assets with proven growth potential situated in prudently selected locations, and are known for our multi-sector knowledge and understanding of the regional correlation between real estate and capital markets.


Strategy

The team’s strategy optimises the asset mix by combining lower risk/return investments with higher risk/return profiles to enhance overall performance while reducing risk. Lower risk-return strategies include core and core+, while offerings further on the risk-return curve take advantage of value-add, opportunistic and Build-to-Suit (BTS) strategies. We also create private fund structures and SPVs for private clients, while curating public portfolios for retail investors.

 

We also specialise in generating strong real estate returns by matching top-down research-driven portfolio management with bottom-up specialist real estate investment capabilities. All our offerings are tailored to clients’ risk profiles and objectives.

 

Products:

We manage two attractive income-generating funds, and are constantly innovating attractive new products to match investor needs.

 

SEDCO Capital Real Estate Income Fund I (“SCREIF I”)

Strategy

Core/Core+ by investing in various higher yielding properties delivering regular distributions

Launch Date

2011

Number of Assets

8

Locations

Jeddah and Riyadh

Sectors

Mixed-Use, Retail, Office, Hospitality, and Residential

 

 

SEDCO Capital Real Estate Income Fund I (“SCREIF II”)

Strategy

Core/Core+ with a focus on protected long term lease terms, quality tenants with strong covenants in defensive sectors with defensive structures

Launch Date

2015

Number of Assets

9

Locations

Dammam and Riyadh

Sectors

Retail, Automotive and Education

 

Opportunistic Risk adjusted Products

At the higher end of the risk/return spectrum, we offer opportunistic real estate strategies including ground-up developments with core risk stability. These products have been bundled into a BTS Fund strategy that will become available to private investors by early 2017.

Value Add Risk adjusted Products

SCMRET enhances core returns with more opportunistic propositions such as value-add. These offerings will be launched in early 2017 through SEDCO Capital’s Diversified REIT - a fund publicly listed and traded on Tadawul, and benefitting from excellent sectorial and geographic diversification.

International Real Estate

SEDCO Capital’s International Real Estate team is engaged in the active management and development of a diverse commercial real estate portfolio consisting of retail, office, multifamily, senior living, industrial and healthcare assets. 

With over USD 1.2 billion in assets under management across the US, Asia, MENA and Europe, we are known for hands-on approach to investment, innovation, service excellence and prudence.


We meet client interests through three strategies: core assets, core markets, and opportunistic investing. We are recognised for our ability to select exceptional properties that deliver capital appreciation and income generation with low downside risk.


There are many reasons that make us an investment partner of choice for Middle Eastern clients wanting to diversify their international investments. We have built exceptional relationships in key markets, which give us global reach. Our team’s multi-disciplinary capabilities help us respond rapidly to market movements while carefully assessing risk. We also adhere a fundamental investment philosophy and strategy that emphasises risk control and downside protection.

Through 2016, we focused on attractive risk-return acquisitions in developed markets including France, the UK, the US and Australia. We also developed a programme of long-lease properties specifically purchased for clients. In 2017 and beyond, we will continue focusing on our long-lease US portfolio, acquiring new properties that can be leased to blue-chip brands, and divesting full-potential properties on favourable terms.

MENA Liquid Strategies

SEDCO Capital’s dedicated MENA Liquid Asset team was established in 2014 with the remit of creating innovative products to explore rewarding opportunities in money markets, equities and fixed-income products.   The team relies on an expert MENA Equities fund manager backed by three equity analysts and two fixed-income analysts. Collectively, the team has a decade-long track record of managing money in MENA equities and fixed income products.

Public Funds

SEDCO Capital have launched its first public fund, the Elite Flexi Saudi Equities Fund, which is an open-ended fund that aims for long-term capital appreciation by investing in companies’ equities listed in the Saudi Stock Market; in addition to investing in the Initial Public Offerings (“IPOs”) in the Middle East and North Africa Countries, consistent with the Shariah Investment Guidelines approved by SEDCO Capital’s Shariah Supervisory Board.

Announcement Date : 22/06/2017
Valuation Performance
Fund Name Date of Inception Price of Inception Current Price As of % from previous valuation %YTD%Since Inception
Elite Flexi Saudi Equities Fund
25/05/2016 100.0000 111.4363 21/06/2017 2.79 % 2.16 % 11.44 %

Equities: we have built a robust portfolio of MENA public equity strategies that reward clients with high performance and low risk profiles


Money Market: our money market offerings explore Shariah-compliant instruments that meet investor preferences and generate optimised returns


Fixed Income our fixed income team creates sukuk strategies that prioritise regular income streams for our investors

Equities:

We have built a robust portfolio of MENA public equity strategies that reward clients with high performance and low risk profiles. Some of our offerings include the:

SC GCC Equities Fund: This MENA-dedicated fund was launched in 2014 and given the target of outperforming its market benchmark. In 2014, the fund answered this remit by outperforming by 1.21%. It bettered its performance further in 2016 to outperform the benchmark by 1.87%.

Elite Flexi Saudi Equities Fund: This high-conviction Saudi public equities fund is regulated by the CMA and creates market returns that are capped by volatility. This enables the fund to capture most of the market upside while being very defensive on the downside. The fund was launched in 2016, and closed the year up by 9%.

Milltrust SEDCO MENA Fund: This high-conviction benchmark-indifferent MENA fund aims to generate benchmark outperformance in the long term. In 2016, the fund closed up 4.5% despite fluctuations in Saudi indices through the year.

 

 

Money Market:

Our money market offerings explore Shariah-compliant instruments that meet investor preferences and generate optimised returns. Some of our offerings include the:

SC Treasury Fund: This USD-dominated fund invests in MENA-based money market instruments that are Shariah compliant.

SC Treasury Money Market Fund: This SAR-dominated fund invests predominantly with GCC-based banks through Murabaha agreements.

 

 

Fixed Income:

Our fixed income team creates sukuk strategies that prioritise regular income streams for our investors. Our offerings include the:

SC Global Sukuk Fund: This global Sukuk fund invests mainly in MENA and Southeast Asia, and focuses on Shariah compliant USD-based investment grade tradable credit.

International Equities

SEDCO Capital’s International Equity division is responsible for overseeing the SEDCO Capital Luxembourg family of funds - which consists of 11 diversified instruments managed by renowned asset managers. Our Luxembourg strategies invest in world-class global public equities and listed real estate.

In 2016, our international equity team upgraded to a core-satellite strategy for its family of Luxembourg instruments. The core, representing the bulk of our investments, is passively managed to follow the market benchmark –which reduces cost overheads and active risk for our investors. We have expanded our core through three regional passive funds through 2016.


Meanwhile, our proactive satellite strategy delivers an actively managed, more specialised approach designed to outperform the benchmark. The satellite strategy is designed to catalyse higher returns further along the risk curve to meet a wide range of investor appetites. The SEDCO fund portfolio currently includes six satellites that are set to outperform the general market over the longer term.


Through 2017 and beyond, our International Equities team will bolster its satellite strategy by adding innovative new instruments that will facilitate our ambition of comprehensively outperforming the market.

Private Equity

SEDCO Capital has been offering its clients access to rewarding private equity investments through a dedicated team since 1997. Since 2004, our private equity arm has delivered a net IRR of 13% and a net realised IRR of 24% through a portfolio of funds, co-investments and direct investments directed towards capital growth.

During our two-decade long track record in private equity, our offerings have evolved from purely early-stage investments in developed markets to a geographically diversified portfolio of fund investments and direct and co-investments.


To date, we have committed USD 1.6 billion across managers investing in emerging and developed markets. Today, we have a strong network of over 50 General Partners (GPs) representing our interests in over 500 portfolio companies.


Our private equity team comprises 6 dedicated senior professionals in the private equity group with diversified backgrounds and a wealth of experience gained in established global institutions. The core team is supported by specialists in operations, legal, compliance, and product development.

Our portfolio includes:

Direct/Co-Investments

Our extensive network of GPs puts us in a unique position to access proprietary deal flow across the globe. Our dedicated direct/co-investment programme invests in mid-market companies across specific sectors - such as consumer, education, healthcare, industrial, and tech-enabled industries. Our primary target markets include the U.S., Europe and Asia.

In 2016 alone, we completed 5 direct/co-investments that include:

  • A top-tier manufacturer of aluminium die-casting and machining products based in Korea. The Company operates 14 manufacturing facilities across 7 countries in Asia & North America.

  • The operator of the largest chain of dialysis centres in India, with 68 outlets spanning 15 states and 48 cities across the country. Collectively, the chain conducts over 40,000 dialysis sessions on a monthly basis.

  • The largest medical scribe provider in the U.S., with 12,000 scribes and 1,300+ sites across 50 states, collectively assisting with 25 million patient encounters annually.

  • A leading provider of cloud‐based software delivering sales tax, excise, VAT, and other transactional tax compliance solutions for small and medium sized businesses both in the U.S. and internationally.

  • A specialty juice business based in China focused on the production of healthy beverages.

 

Income Generating Private Investments (IGPI)

Our IGPI programme focuses on leasing, private debt and infrastructure opportunities to complement our funds and direct/co-investment programs. While the latter are oriented towards capital gains, our IGPI initiatives invest in income-generating assets focusing on developed markets.

Since inception, our IGPI instruments have garnered tremendous interest from institutional and individual investors. Our IGPI investments benefit from a general non-correlation with other asset classes – which means our clients are hedged against inflation and interest rate fluctuations, and also benefit from strong downside risk protection.

Our experience in designing Shariah compliance structuring gives us an edge in pioneering flexible instruments that help us access complex investments in a Shariah-compliant manner.

Our current IGPI programme includes a partnership with a U.S.-based manager with a 30-year track record in equipment leasing to Fortune 1000 companies in the U.S. Other opportunities include private debt to high-quality mid-market companies in the U.S. and Europe. Our infrastructure opportunities include renewable energy investments backed off-take agreements extending over 20 years.