Aljazira Saudi Equities Fund

Aljazira Saudi Equities Fund is a Shariah-compliant open-ended public investment fund managed and operated by Aljazira Capital (Aljazira Financial Markets Company). The Fund aims to provide investors with the opportunity to invest in the Saudi stock market and to achieve capital growth exceeding the growth rate of its benchmark. For this purpose, the Fund invests in a diversified portfolio of shares of companies listed in the Saudi market and compliant with its Shariah standards.

The Fund Manager adopts an active management approach and multiple strategies that adapt to changing economic conditions, with the aim of achieving long-term capital growth. This is based on company research and analysis, such as return on investment and price-to-earnings ratio, as well as public and proprietary economic research from internal and external sources.

The Fund invests in both the Main Market and the Parallel Market, in the primary and secondary markets. Its investment scope includes Real Estate Investment Trusts (REITs) and rights issues. It may also invest available liquidity in short- or long-term Murabaha transactions, and invest in shares of Bank Aljazira, the owner of the Fund Manager, or its affiliates.

The Fund does not invest in derivatives, including Futures, Options, and Swaps, nor does it invest in preferred shares.

The Fund Manager has the right to determine the allocation to Saudi equities according to market conditions. The allocation to listed equities ranges from 0% to 100% of the Fund’s assets, and the same applies to cash, while the allocation to similar investment funds may reach a maximum of 25%, provided that the Fund’s ownership in any investee fund does not exceed 20% of that fund’s net assets.

Investment in the shares of a single issuer may not exceed 10% of the Fund’s net assets. An exception applies to a stock whose market weight exceeds 10% of the investment universe of Shariah-compliant companies, in which case its allocation may be increased to match its market weight. The Shariah Committee reviews and updates this investment universe every quarter. The Fund may obtain financing of up to 10% of its net assets, provided that it does not conflict with Shariah standards and without pledging any of the Fund’s assets against any loans.

The benchmark of Aljazira Saudi Equities Fund is the S&P Saudi Shariah-Compliant Equities Index, issued by S&P Dow Jones Indices. The index measures price changes in equities listed in the Saudi market and compliant with Shariah standards.

Subscription and redemption requests are accepted from Sunday to Thursday, excluding official holidays in the Kingdom, and the deadline for receiving requests is 4:00 p.m. on the business day preceding the dealing day. Redemption proceeds are paid within four business days from the end of the dealing day on which the request was executed. The Fund targets retail clients, qualified clients, and institutional clients.