If successful, the move, which is subject to regulatory approvals, could be followed by global distribution of the funds.
HSBC currently has 20 Saudi-based portfolios, with a range of strategies that span the relatively mainstream, Global Emerging Markets, to more specialist and esoteric products, such as the Saudi Construction and Cement Equity Fund and Saudi Petrochemical Equity Opportunities Fund.
Assets under management across the range are some $4.4bn and HSBC said its Saudi business currently has a local market share of more than 22%.
Daniel Rudd, head of MENA wholesale for HSBC Global Asset Management, said: “These funds represent an opportunity for investors to add greater diversification and more targeted geographical and sector-based asset allocation to their portfolios.”
Outlining the case for Saudi-based investments, Rudd highlighted that the country continued to record GDP growth during the financial crisis, further noting that the positive outlook for oil prices would benefit the Saudi economy, the growth of which is strongly linked to the commodity.
According to HSBC, the Saudi Petrochemical Equity Opportunities Fund returned 12.71% over the past year.
