To provide long term capital growth by investing in Saudi equities and REITs during the initial public offering period and listed equities in Tadawul All Share Index (TASI). Fund also investing in rights issue, public investment funds with similar investment strategy, IPO funds, and money market funds in the main Saudi stock market that comply with the Shariah Committee's regulations and licensed by the Capital Market Authority.
The Fund's objective is to invest actively in shares without linked to a specific index or relative weights of market indices. The Fund aims to capital growth so the fund will not distribute any cash dividends to investors as the profits realized will be reinvest in the Fund.
The fund's benchmark will be the BMK Saudi Equity Index, which is compliant with the Shari'a Committee's guidelines issued by Ideal Rating. The index will be used as benchmark for comparing fund performance. The investment and indicator components will updated quarterly. The indicative indicator information can also be obtained through the Fund Manager's website.
In order to manage risk, the Fund will diversify its portfolio investment by investing in a variety of key market sectors for Saudi equities. The Fund's investments will be mainly on Saudi equities that comply with Shariah Committee rules, including initial public offering and rights issue for listed companies in the main Saudi stock market with a minimum of 50% and up to 100% of the total assets of the Fund. The fund also has the right to invest a maximum of 30% of its total assets value in traded real estate investment funds (REIT) in Saudi equities main market, Also, the fund can invest a maximum of 25% of the fund's total assets in IPO funds and other investment funds with similar investment strategy that invest in local stocks.
The fund is entitled to invest in money market instruments that comply with Shariah Committee rules directly by investing in Murabaha and trade finance contracts with high liquidity and low risk issued by a party organized by the Saudi Arabian Monetary Agency or a similar regulatory body outside the Kingdom. These instruments will be selected based on Moody's credit rating with at least A category.The fund is also entitled to invest in money market funds with a maximum 50% of the fund's total assets after studying and analyzing the returns and risks of the target fund.
BMK Saudi FreeStyle Equity Fund Sharia Compliant
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Saudi Free Style Equity Fund Sharia Compliant PERF