Saudi public funds’ assets fell 5% thanks to decline in money markets

The value of Saudi Arabia public mutual funds’ assets decreased by 5.06 percent in Q1 this year compared to the previous quarter, according to data released by Capital Market Authority.

Assets’ value decreased to SR215.7 billion ($57.51 billion) from SR227.17 billion in the last quarter of 2021.

The decrease is mainly attributed to a decline in the value of funds’ investment in money market instruments, which had the highest share in funds’ assets at 54.6 percent in Q1 2022.

The value of assets in this investment category decreased by 10 percent from the previous quarter. It totaled SR117.75 billion in Q1 2022 down from SR130.8 billion despite adding one additional fund to this type of investment during this quarter.

Debt Instruments also decreased in value by 8.74 percent from last quarter, but increased by 51.52 percent compared to Q1 last year.

The public mutual funds lost around 20,500 subscribers in the first quarter this year compared to last quarter. 

This decrease is mainly driven by funds dedicated to Real Estate Investment Funds where the number of subscribers decreased by 23,900 during this period.

Equity public funds that constitute 13 percent of public funds’ assets increased in value by 12.61 percent compared to last quarter. 

However, if compared to the same period last year, the value of this investment category recorded a 20.23 percent increase in Q1 2022. 

Domestic equities make up the majority of equity investments of public mutual funds, constituting 74.6 percent in Q1 of 2022 in total assets value, increasing by 19.33 percent from the previous quarter.

On the other hand, private mutual funds’ assets grew 13 percent from the fourth quarter of 2021, having totaled SR335.5 billion in Q1 this year. 

The value of assets held by private funds also grew by nearly 30 percent compared to the first quarter of 2021. 

Equities made up 61.54 percent of private funds investments totaling SR206.48 billion in Q1 2022, followed by real estates with 29.42 percent share and totaling SR98.69 billion.