Published: July 13, 2010
Investment strategies respond to market conditions.
SHUAA Capital, a Dubai-based financial services firm, has launched two investment strategies to meet clients’ risk appetites and attract investors looking for greater security.
Nadi Bargouti, head of the firm’s asset management division, tells emeafinance the firm faces a “challenging” market with a lack of liquidity and “non-existent” confidence.
To address this, SHUAA Asset Management has created two strategies aimed at institutional and high-net worth investors. Its Constant-Mix provides exposure to baskets of MENA equities, bonds and money market instruments while managing volatility to match the client’s risk profile.
Its Dynamic Proportion Portfolio Shield (DPPS) includes a variable participation factor that adjusts to market conditions, allowing a greater level of investment in equities when the markets perform well.
Bargouti says these strategies were created after research highlighted varying degrees of enthusiasm for risk among the firm’s clients. Their goal is to soften the effects of volatile markets and offer downside protection.
“Working in all market conditions, [the strategies] offer a combination of risk diversification and protection as well as monthly liquidity typically available in closed-end product form,” Bargouti says.
The firm launched Constant-Mix and DPPS in early July and Bargouti is already confident of their success, noting that SHUAA has received positive feedback from its pre-launch marketing, which is backed by an “aggressive” sales campaign. He adds that the initiatives are long-term propositions: “These [strategies] will be available for clients going forward as they have no time frame. It is an ongoing strategy.”