Al Rajhi Real Estate Monthly Distributions Fund

Al Rajhi Real Estate Monthly Distributions Fund is an open-ended public investment fund of unlimited duration in the multi-asset category, and is compliant with the Shariah guidelines approved by the Shariah Supervisory Committee of the Fund Manager.

The Fund provides investors with exposure to the Saudi real estate sector while targeting monthly income distributions, with distributions, if any, becoming due on the 26th of each calendar month, along with the possibility of distributing realized capital gains in full or in part. The Fund achieves this objective primarily through investments in real estate investment trusts (REITs) and shares of companies in the real estate management and development sector, in addition to initial public offerings, rights issues, and remaining offerings related to the sector in the Main Market and the Parallel Market (Nomu).

The Fund’s policy is characterized by broad flexibility in asset allocation, with investments in shares of companies in the real estate management and development sector, initial public offerings, rights issues, and remaining offerings ranging from 0% to 80% of the Fund’s net assets.

It may also allocate 0% to 80% to investment funds with similar objectives and strategies offered through public offerings, 0% to 60% to investments in and funds of debt instruments, and 0% to 40% to cash and money market instruments and funds.

In addition, the Fund may invest 0% to 30% in shares and offerings of companies listed in other sectors, and up to 10% in other investment funds with similar objectives and strategies offered through private placements.

The Fund Manager may hold more than 40% of the Fund’s assets in cash or money market instruments and funds under exceptional circumstances. The Fund’s investments are primarily concentrated in the Saudi market, with the possibility of investing in the Gulf, Arab, and global markets in accordance with the Fund’s policy.

The Fund is classified as high risk, which is largely associated with the nature of its investments and the concentration of part of its investments in the real estate sector and equities, and the fluctuations in the markets that may accompany them.