SNB Capital Launches Saudi Arabia’s First Target Date Funds

Logo of SNB Capital

SNB Capital, the largest asset manager in Saudi Arabia, has launched the Kingdom’s first portfolios of Target Date Funds (TDFs), marking a first-of-its-kind milestone in the Kingdom’s savings and investment industry.

This is the first time this globally recognized savings and investment structure will be available in the Saudi market, underscoring the SNB Capital’s leadership in developing first-to-market investment solutions that combine international best practices with local market expertise.

Initially available to SNB Capital’s institutional clients, TDFs, also known as lifecycle portfolios, are collective investment vehicles designed to help investors achieve long-term financial objectives with simplicity and discipline through a defined investment plan. These goals can include retirement, funding higher education, purchasing property, or any other major life milestone that requires structured savings.

Each portfolio corresponds to a specific year (for example, 2030, 2040, or 2050), allowing investors to select the portfolio closest to the year in which the unitholder expects to achieve a specific financial goal, such as retirement.

TDF portfolios automatically rebalance over time to ensure adequate diversification and reflect the evolving risk tolerance of unitholders as they approach their target date. During the initial phase of its lifecycle, portfolios  are weighted toward growth-oriented assets, such as equities, before gradually shifting toward lower-risk assets such as sukuk and money markets as the target date approaches.

SNB Capital’s TDFs are compliant with Shariah guidelines and are fully invested across global and local equities, fixed income, and money market to deliver a well-diversified exposure and provide a long-term solution for financial planning.

“The launch of SNB Capital Target Date Fund’s portfolios reflect our commitment to bringing first-to-market products that align with international standards while addressing the specific needs of the Saudi market. By combining global and regional diversification with dynamic allocations and Shariah-compliant structures, SNB Capital is broadening the range of innovative investment solutions available to institutional clients who require disciplined, professionally managed products tailored to local market dynamics,” said SNB Capital CEO Rashed Sharif.

Looking ahead, SNB Capital is also planning to broaden the availability of Target Date Funds to individual investors, making this pioneering solution accessible to a wider range of market participants.