ASB Capital Launches 'ASB Liquidity Fund' for Short-Term Cash Management and Investment
ASB Capital, an asset and wealth management firm, announced the launch of the ASB Liquidity Fund, a Sharia-compliant money market fund focused on providing daily liquidity, preserving capital, and minimizing volatility, while targeting returns commensurate with risk levels.
The company manages assets worth $10.2 billion. The fund invests in a diversified portfolio of high-quality short-term deposits and sukuk issued by governments, government entities, banks, and other eligible issuers in Gulf Cooperation Council (GCC) countries and the Middle East and North Africa (MENA) region.
The fund’s portfolio is actively managed to maintain low volatility and target higher risk-adjusted returns, offering investors an investment solution that combines diversification and liquidity management within a single portfolio.
The company stated that the fund aims to address challenges associated with short-term cash management, including tracking yield rates, managing maturity dates, and reinvesting deposits, by consolidating these operations within a single investment portfolio.
It added that the fund’s launch expands ASB Capital’s investment platform to cover investor needs across various risk and liquidity levels, ranging from daily liquidity requirements and cash management to longer-term investments in public and private markets.
Rafiq Al-Nayyid, Managing Director of ASB Capital, said the fund’s launch represents a step in developing the company’s investment platform across different risk levels, noting that it provides investors with a liquidity management tool alongside the company’s capabilities in public and private markets.
For his part, Hussein Abdulhaqq, Treasury Chief Executive Officer at Al-Salam Bank, said the fund responds to the need of institutions, companies, and individual investors to efficiently manage available cash while maintaining liquidity and capital. He pointed out that combining active management, diversification, and daily liquidity within a single solution reduces the complexities associated with managing multi-maturity deposits.
The fund’s launch comes as part of ASB Capital’s expansion in offering investment solutions for liquidity and short-term cash management, with a focus on Sharia-compliant instruments.
