First Trust Financials AlphaDEX becomes the largest shareholders of Freedom Holding after Timur Turlov

Rhea-AI Summary

First Trust Financials AlphaDEX Fund (NASDAQ: FXO) has become the second-largest shareholder of Freedom Holding Corp. (NASDAQ: FRHC), following its acquisition of 185,000 shares. The investment makes FXO the largest institutional investor after CEO Timur Turlov, with FRHC now representing a 1.22% weighting in the fund's underlying index.

The investment highlights Freedom Holding's strong fundamentals and growth potential. S&P Global Ratings has revised the outlook for FRHC's core subsidiaries from "Stable" to "Positive" while maintaining their 'B+/B' credit ratings. The parent company's rating remains at 'B-' with a Stable outlook. Additionally, the Stanford Graduate School of Business has included FRHC as its first Central Asian case study.

Positive

• Became second-largest shareholder of FRHC with significant institutional investment
• S&P Global revised outlook to Positive for core subsidiaries
• Inclusion in Stanford Business School curriculum as first Central Asian case study
• Successful expansion of product range and digital transformation

Negative

• Parent company maintains lower B- rating with only Stable outlook

Insights

Financial Markets Analyst

First Trust ETF's significant investment in Freedom Holding signals growing institutional confidence amid improved credit outlook and corporate expansion.

The acquisition of 185,000 shares of Freedom Holding Corp. (FRHC) by the First Trust Financials AlphaDEX Fund (FXO) represents a significant institutional validation for the company. This transaction has positioned FXO as the second-largest shareholder after CEO Timur Turlov, with FRHC now commanding a 1.22% weighting in the underlying index.

This development is particularly noteworthy because the AlphaDEX methodology employs rigorous fundamental screening for growth and value factors. The inclusion signals that Freedom Holding has demonstrated strong financial metrics that satisfy institutional-grade investment criteria. The company's selection through this quantitative screening process effectively serves as third-party validation of its financial health and growth trajectory.

The upgraded outlook from S&P Global Ratings, revising Freedom Holding's core subsidiaries from "Stable" to "Positive" while maintaining their 'B+/B' credit ratings, provides additional evidence of improving financial fundamentals. Credit rating improvements typically precede enhanced access to capital markets and potentially lower borrowing costs.

The company's inclusion in Stanford's academic curriculum as a case study—reportedly the first from Central Asia—adds an intangible reputational benefit that could enhance brand recognition among sophisticated financial professionals. This trifecta of institutional investment, improved credit outlook, and academic recognition collectively suggests Freedom Holding is gaining credibility within professional financial circles, potentially expanding its investor base beyond retail participants.

NEW YORK, July 7, 2025 /PRNewswire/ -- As part of its scheduled portfolio rebalancing, the First Trust Financials AlphaDEX Fund (NASDAQ: FXO) acquired 185,000 shares of Freedom Holding Corp. (NASDAQ: FRHC), adding them to its portfolio. As a result of this transaction, the fund has become the second largest shareholder of the company, following its founder and CEO, Timur Turlov. FRHC now holds a 1.22% weighting in the index that underlies the fund's structure.

FXO is an exchange-traded fund (ETF) that tracks the performance of the StrataQuant Financials Index. This index includes companies from the financial services sector that are selected using the AlphaDEX methodology. This methodology screens stocks based on fundamental growth and value factors, highlighting Freedom Holding's appeal as a company with significant growth potential and robust investment fundamentals.

"We are pleased to see that Freedom Holding has attracted the attention of such institutional investors as First Trust. This is a confirmation that our strategy of sustainable growth, digital transformation and building a full-fledged financial ecosystem resonates with the professional investment community," commented CEO Timur Turlov.

FRHC's inclusion in the fund indicates a high evaluation of the company's business momentum, especially given its ongoing development of a comprehensive financial ecosystem. In recent months, Freedom Holding has significantly expanded its product range, strengthened its market presence, and continued to transform its platforms digitally. These initiatives, alongside strong financial performance, have led to an enhanced investment rating and a more robust position within the S&P index. International credit rating agency S&P Global Ratings has recently revised the outlook on Freedom Holding Corp.'s core operating subsidiaries from "Stable" to "Positive," while affirming their credit ratings at 'B+/B'. The revised outlook applied to Freedom Finance JSC, Freedom Finance Europe Ltd., Freedom Finance Global PLC, and Freedom Bank Kazakhstan JSC. The rating of the parent company, Freedom Holding Corp., was affirmed at 'B-' with a Stable outlook.

The addition of FRHC to FXO's portfolio serves as further confirmation that Freedom Holding meets the stringent selection criteria of leading institutional investors and continues to solidify its position as one of the most promising players in the financial sector. The Stanford Graduate School of Business has included a case study on Freedom Holding Corp. in its academic curriculum- the first case of its kind from Central Asia to be studied at one of the world's leading universities.

About Freedom Holding Corp.

Freedom Holding Corp. is an international financial and technology group listed on the Nasdaq (ticker: FRHC). The company offers investment, banking, insurance, and digital services through its integrated platform, Freedom SuperApp. The group operates in 22 countries, including Kazakhstan, the United States, Cyprus, Poland, Spain, Uzbekistan, and Armenia. The Company's principal executive office is located in New York City. Freedom Holding Corp. is regulated by the U.S. Securities and Exchange Commission (SEC).

Contact: 
Public Relations
Natalia Kharlashina
Freedom Holding Corp.
prglobal@ffin.kz
+77013641454

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SOURCE Freedom Holding Corp.

FAQ

How many shares of Freedom Holding (FRHC) did First Trust Financials AlphaDEX Fund acquire?

First Trust Financials AlphaDEX Fund acquired 185,000 shares of Freedom Holding Corp.

What is Freedom Holding's (FRHC) weighting in the First Trust Financials AlphaDEX Fund?

FRHC holds a 1.22% weighting in the StrataQuant Financials Index that underlies the fund's structure.

What is S&P's current credit rating for Freedom Holding's (FRHC) subsidiaries?

S&P Global maintains a B+/B credit rating for FRHC's core subsidiaries with a Positive outlook, while the parent company is rated B- with Stable outlook.

Who are the largest shareholders of Freedom Holding (FRHC)?

The largest shareholders of FRHC are CEO Timur Turlov (largest) and First Trust Financials AlphaDEX Fund (second-largest).

What recent academic recognition did Freedom Holding (FRHC) receive?

Freedom Holding became the first Central Asian company to be included as a case study in Stanford Graduate School of Business's academic curriculum.