ADS Investment Solutions licences new FTSE Russell Saudi Arabia index
- New FTSE ADS Custom Saudi Minimum Variance Index developed in collaboration with Abu Dhabi-based ADS Investment Solutions
- ADS Investment Solutions to launch ETF tracking the index to be listed on Abu Dhabi Securities Exchange
- Index designed to minimise volatility of the FTSE Saudi Arabia All Cap Index
- Reflects growing demand from investors for benchmark and analytic solutions to facilitate investments into Saudi Arabia
FTSE Russell, the global index, data and analytics provider, announced today that it has launched a new Saudi Arabia-focused index. The FTSE ADS Custom Saudi Minimum Variance Index has been developed in collaboration with Abu Dhabi-based international financial services company, ADS Investment Solutions. The index has been licensed by ADS Investment Solutions for a new exchange traded fund (ETF), incorporated in Abu Dhabi Global Market (ADGM), to be listed on Abu Dhabi Securities Exchange
The FTSE ADS Custom Saudi Minimum Variance Index employs a rules-based approach and has been designed to minimise the volatility of the FTSE Saudi Arabia All Cap Index, based on historical return information. The index has been carefully constructed with constraints applied to enhance diversification and to avoid over concentration to any particular stock or sector.
The launch follows FTSE Russell’s recent interim country classification review and announcement confirming that Saudi Arabia will be promoted to Emerging Market status. FTSE Russell will begin including Saudi Arabian domestic stocks into the FTSE Emerging Index from March 2019. Saudi Arabia will be the largest Middle East market in the FTSE Emerging Index with an overall weighting of c. 2.7%. Within the FTSE Global All Cap Index, Saudi Arabia is projected to have an index weight of c. 0.25%. Due to this large projected size within the FTSE Emerging Index, FTSE Russell proposes to implement the inclusion of Saudi Arabia in several tranches to assist index trackers in their ability to efficiently replicate the underlying benchmark change. The inclusion is expected to be fully completed by December 2019.
Mark Makepeace, CEO, FTSE Russell:
“FTSE Russell has a strong track record of innovating for its global customers, creating a variety of custom products to capture different aspects of the market. We are delighted to collaborate with ADS Investment Solutions, to support the development of the local capital markets and the growing demand for investment in the Middle East. We look forward to continuing to collaborate with leading providers such as ADS Investment Solutions to bring new index-linked strategies to the market.”
Mahmood Ebraheem Al Mahmood, Chairman of ADS Investment Solutions:
“This strategic step is crucial for the financial services market in the region. The creation of a new fund platform in ADGM will open the door for local and regional investors, allowing them to capitalise on opportunities through trading in this local market. This initiative is in line with the strategic visions of Saudi Arabia and the United Arab Emirates to be key players in the financial services industry. We are keen to join efforts with FTSE Russell to offer our investors the opportunities to invest in the Saudi market. This approach is supported by our long history and experience in the financial services sector.”
For further information:
Lucie Holloway / Alex Ritterman
+44 (0)20 7797 1222
Notes to editors:
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $15 trillion is currently benchmarked to FTSE Russell indexes. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.
A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group.
For more information, visit www.ftserussell.com
About ADS Investments Solutions Ltd
ADS Investment Solutions Ltd. (“ADSI”), established in the Abu Dhabi Global Markets is the asset management arm of ADS Securities. By combining innovation and investing expertise ADSI aims to deliver long term value for investors across asset classes.
Established in 2011 ADS Securities is part of the ADS Holding Group and in a short period of time has established itself as a leading forex, bullion and online trading firm. It is regulated and licensed by the UAE Central Bank, and has a paid-up capital of $585 Million USD. ADS Securities is headquartered in Abu Dhabi, the capital of the UAE, in Hong Kong as ADS Securities Hong Kong Limited, regulated by the SFC (AXC847), in Singapore as ADS Securities Singapore Pte, and in the United Kingdom as ADS Securities London Limited, authorised and regulated by the FCA (577453).
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