Osool & Bakheet IPO Trading Fund Sharia Compliant

Osool & Bakheet IPO Trading Fund Sharia Compliant is an open-ended public investment fund that focuses on initial public offering (IPO) shares and recently listed companies on the Saudi Exchange, investing in accordance with Shariah principles. It is managed by Osool & Bakheet Investment Company and is classified as a high-risk fund.

The fund aims to grow capital by achieving positive added value compared to its benchmark, while seeking to assume the lowest possible level of risk.

The fund’s core investment universe includes shares of Saudi joint-stock companies listed on the market for the first time through IPOs, shares of companies that have been listed for no more than five years, or shares of the 20 most recently listed companies on the market. The fund aims to invest in these categories in accordance with its investment strategy and the terms and conditions governing it. If a stock exceeds the five-year listing period and is no longer among the 20 most recently listed companies, the fund manager is required to correct any excess in its weighting within the period specified in the terms and conditions.

The investment policy allows for portfolio diversification, with up to 50% of net assets invested in shares of small- and mid-cap Saudi companies, up to 30% in listed REIT units, and up to 30% in shares of companies listed on the Parallel Market (Nomu). The fund may also invest up to 50% in publicly offered investment funds licensed by the Capital Market Authority, and up to 50% in cash and short-term deposits with banks with maturities of less than three months, in accordance with the approved terms and conditions and Shariah controls.

The fund measures its performance against its custom Shariah-compliant IPO index developed by IdealRatings. The index aims to measure the performance of IPO shares available to investment funds, in line with the fund’s investment universe, and is calculated using the free-float methodology.

Subscriptions and redemptions are available daily on Saudi Exchange business days. Subscription requests submitted before the Main Market closes, following payment of the full amount, are executed at the unit price as of the close of the next dealing day. The minimum amount for initial subscriptions, additional subscriptions, and redemptions is SAR 10,000. Redemption proceeds are transferred before the end of the sixth business day following the relevant valuation day.

There are no standard subscription or redemption fees. However, an early redemption fee of 1.75% of the value of the redeemed units applies if redemption takes place less than 30 calendar days after the subscription date. No early redemption fee applies after 30 days.