Aljazira GCC Income Fund

Aljazira GCC Income Fund is a Shariah-compliant open-ended public investment fund managed by Aljazira Capital (Aljazira Financial Markets Company). It primarily invests in shares of companies listed in the markets of the Gulf Cooperation Council (GCC) countries that are characterized by cash dividend distributions or are expected to achieve earnings growth, and may also invest in similar investment funds. The Fund aims to achieve long-term capital growth, distribute dividends received from companies, and achieve a return exceeding the growth rate of its benchmark. The Fund is classified as having a high risk level.

Aljazira GCC Income Fund adopts an active management approach based on fundamental analysis of companies’ shares, sectors, and markets.

The Fund Manager may determine investment concentration ratios and market and geographic weights according to market conditions and the interests of unitholders, provided that concentration in a single market does not exceed 40% of the Fund’s assets. If a market’s weight in the benchmark exceeds this percentage, the maximum becomes that market’s benchmark weight plus 10 percentage points.

The allocation to shares listed in GCC equity markets ranges from 0% to 100%, while the allocation to similar investment funds ranges from 0% to 25%, and cash may reach 100% of the Fund’s assets. The Fund’s ownership in any investee fund may not exceed 20% of the net asset value of that fund, provided that the investee fund is approved by the regulatory authorities and complies with the applicable Shariah standards.

Investment in the shares of a single issuer may not exceed 10% of the Fund’s net asset value. If the market weight of a listed company exceeds 10% of the total market capitalization of the Fund’s investment universe of listed companies, the investment in that company may be increased to its market weight, subject to a maximum of 20% of the Fund’s net asset value. The investment universe of Shariah-compliant companies is reviewed and updated on a quarterly basis by the Shariah Committee.

The Fund may invest up to 15% of its assets in GCC Sukuk and GCC Sukuk funds. It may also invest in Real Estate Investment Trusts (REITs) and rights issues, and invest available liquidity in short- or long-term Murabaha transactions in GCC currencies through GCC banks, provided that this does not conflict with the Fund’s objectives.

The Fund’s benchmark is the S&P GCC Composite Shariah Index (SPSHG), issued by S&P Dow Jones Indices. The index measures price changes in equities listed in GCC markets that comply with Shariah standards. It is used as a reference for comparing the Fund’s performance, and the market weights in the benchmark are also used to determine the maximum concentration in each GCC market in accordance with the investment policy.

The Fund distributes the cash dividends received in full to unitholders at least twice a year. Investors registered on the last valuation day of May and November are entitled to the distributions, which are deposited into their accounts with the Fund Manager within ten business days from the entitlement date.

Subscription and redemption requests are accepted from Sunday to Thursday, excluding official holidays in the Kingdom, while dealing and valuation take place on Mondays and Thursdays each week. The deadline for receiving requests is 4:00 p.m. on the business day preceding the dealing day, and redemption proceeds are paid no later than the end of the fourth business day following the dealing day on which the request was executed.