Alistithmar for Financial Securities and Brokerage Company (Alistithmar Capital) is a significant participant in the financial companies business. The firm affords a variety of services and products reminiscent of asset administration, brokerage, and funding banking. Over the previous couple of years, the firm has achieved vital progress in AUM with a broadened product and companies providing and has delivered superior efficiency.
Setting the benchmark
Alistithmar Capital’s public fairness funds have considerably outperformed their respective benchmarks in 2020. This was a repeat of the stellar efficiency of those funds in 2019. This success was a results of leveraging the firm’s analysis capabilities, fund managing expertise, and dynamic funding philosophy. In reality, Alistithmar Capital’s public fairness funds demonstrated superior efficiency towards their respective benchmarks not solely on an annual foundation but additionally over longer time horizons. In the three-year and five-year classes these funds continued to supply vital extra returns (see Fig 1, 2 and three).
The funds’ performances not solely stood out towards the respective benchmark but additionally towards their respective friends. Alistithmar Capital’s flagship funds, SAIB Saudi fairness fund and SAIB Saudi firm fund, each ranked in the high quartile towards their respective friends in 2020. Similarly, at the finish of 2020 these funds additionally ranked in the high quartile in the three years and 5 years classes, respectively. This showcases the funding staff’s adaptive decision-making and constant choice talents.
A enhance in enterprise
On the enterprise dimension facet, Alistithmar Capital skilled a major progress in the worth of the belongings they handle. By the finish of 2020 the firm’s AUM elevated to SAR 21bn ($6bn) from SAR 5bn ($1bn) at the finish of 2017 (see Fig 4). Alistithmar Capital’s AUM enhance in the reference interval was up 298 % and has notably outpaced the business’s AUM enhance of 56 % throughout the similar interval.
Furthermore, the firm’s rating has improved from being ranked 13th by the finish of 2017 to being ranked seventh by the finish of 2020 in phrases of AUM. This was additionally seen in Alistithmar Capital’s AUM share of whole AUM the place it has elevated to three.Four % from 1.three % for the similar interval.
This enhance in worth and share displays traders’ appreciation of the firm’s superior efficiency and excellent customer support.
Regarding the actual property division of the agency, Alistithmar Capital has efficiently launched a collection of personal actual property funds, all of which supplied its traders a singular alternative to take part in prime actual property investments in Saudi Arabia. The newest actual property fund launched was Kaden Alistithmar fund with a dimension of SAR 2bn ($533m), which invested in high-quality income-generating actual property belongings. The fund was totally subscribed earlier than the finish of the subscription interval, reflecting traders’ confidence in the firm.
The Saudi authorities launched the financial sector improvement programme in 2017 aiming to develop the financial sector. In relation to the asset administration business particularly, the programme set various objectives reminiscent of rising the worth of managed belongings, attracting international traders and rising funding merchandise, from which Alistithmar Capital was in a position to construct a technique to learn, as displayed by a surge in AUM and product providing.
In phrases of the Alistithmar Capital brokerage unit, the firm was in a position to efficiently execute shoppers’ transactions of over SAR 70bn ($18.6bn) yearly from the interval 2017–20. In addition, the agency was in a position to preserve its main place in a rising market. The Saudi fairness market traded worth registered a compound annual progress charge (CAGR) of round 36 % throughout this era. Despite this exceptional enhance in worth traded, the agency sustained its rating in the high 10 in every of the years for the interval in query.
Furthermore, Alistithmar Capital elevated its market share in the US towards Saudi rivals, ensuing in fixed progress because of the agency’s superior execution capabilities and customer support.
It is essential to acknowledge the adjustments happening in the brokerage business. The Saudi market hit an essential milestone when it was included in various international fairness indices (the MSCI Emerging Markets Index, FTSE Russell Emerging Markets and S&P Dow Jones Emerging Market Indices) throughout the interval. This improvement resulted in an elevated variety of international traders and a major enhance in buying and selling actions. Nevertheless, Alistithmar Capital has continued to construct up its capabilities all through the years to learn from such a development, as evidenced by the profitable dealing with of the annual transaction worth in addition to persevering with to keep up a number one place in the business.
In the coming years, the path for the Saudi market has been set. The Saudi Arabian Capital Market Authority, the Saudi financial markets regulator, not too long ago introduced its strategic plan for 2021–23. They purpose to additional develop the Saudi market and make it a horny marketplace for native and international investments. The most important pillars of this technique are to facilitate funding, encourage funding, promote confidence and construct capability. The plan affords many thrilling particulars reminiscent of rising the AUMs as a proportion of GDP from 17 % in 2019 to 27 % in 2023, in addition to rising the variety of listings yearly.
This enhance in worth and share displays traders’ appreciation of the firm’s superior efficiency and excellent customer support
Alistithmar Capital goals to leverage its experience to develop its personal methods primarily based on these governmental strategic plans in order that it cannot solely profit, but additionally reply extra successfully to any future adjustments in the Saudi financial markets panorama. The firm will proceed to speculate in individuals, processes, and methods to cater to a fair wider vary of clientele.
It is Alistithmar Capital’s persevering with mission to create worth for its traders by delivering excellent efficiency, rising the worth of belongings underneath administration, sustaining a number one place in brokerage, rising product choices and refining the total buyer expertise.
Meeting the expectation of present prospects has at all times been a precedence and in order to proceed serving successfully, in addition to attracting new shoppers, Alistithmar Capital will leverage its present technological capabilities, adopting new know-how the place essential, to refine and develop its attain. The firm is wanting ahead to exploring the future alternatives in the Saudi Arabian financial markets.