Al Rajhi Growth and Dividends Fund

Al Rajhi Growth and Dividends Fund is one of the leading Saudi equity funds that combines two key objectives sought by many investors: achieving long-term capital growth while providing periodic cash income distributions. The fund follows an active investment strategy focused on selecting Shariah-compliant Saudi companies that offer strong growth potential alongside the ability to generate sustainable cash dividends, making it suitable for investors seeking to combine capital appreciation with recurring income within a single investment portfolio.

The fund follows a flexible investment policy that primarily focuses on investing in companies listed on the Saudi Stock Exchange, while also allowing participation in initial public offerings (IPOs) whenever the fund manager identifies attractive investment opportunities. It also uses the S&P Saudi Arabia Shariah Dividend Index as its benchmark for performance measurement, while company selection is based on fundamental analysis aimed at achieving the best balance between expected growth, cash dividend distributions, and long-term financial sustainability.

The Al Rajhi Growth and Dividends Fund primarily invests in equities, initial public offerings, and rights issues, allocating between 50% and 100% of its net assets to these investments. It may also hold up to 50% of its assets in cash and money market instruments and funds. In addition, the fund may invest up to 30% in other investment funds with similar objectives and strategies, and up to 20% in income-generating securities and Real Estate Investment Traded Funds (REITs). Under exceptional circumstances, the fund manager may increase the allocation to cash and money market instruments beyond 50%. Furthermore, the combined investment in other funds and money market funds may not exceed 50% of the fund’s net asset value. The fund manager may also lend fund assets up to 30% of the net asset value, obtain Shariah-compliant financing of up to 15% of the net asset value, and use financial derivatives for hedging and efficient portfolio management purposes, provided such exposure does not exceed 10% of the fund’s net asset value.

The Al Rajhi Growth and Dividends Fund aims to achieve capital growth while providing semiannual cash dividend distributions whenever distributable profits are available. Distribution eligibility is determined on the last calendar day of April and October, and distributions are paid within five business days from the entitlement date.