Osool & Bakheet Parallel Market Equity Trading Fund

Osool & Bakheet Parallel Market Trading Equity Fund is an open-ended public investment fund that aims to achieve long-term capital growth by investing in shares of companies listed on the Saudi Parallel Market (Nomu), in addition to shares of Saudi small- and mid-cap companies listed on the Main Market. The fund is managed by Osool & Bakheet Investment Company and is classified as a high-risk fund.

The fund's strategy is to achieve long-term absolute returns through equity investments, with the ability to invest up to 100% of its assets in shares of companies listed on Nomu. The minimum investment in Nomu shares is 25% if the number of listed companies is fewer than 5, 35% if the number ranges from 6 to 9 companies, and 50% if the number exceeds 9 companies.

The fund may also invest up to 75% of its assets in shares of Saudi small- and mid-cap companies listed on the Main Market, up to 50% in publicly offered investment funds licensed by the Capital Market Authority, and up to 50% in cash and short-term bank deposits with maturities of less than three months. The fund's investments are subject to the Shariah guidelines approved by its Shariah Committee.

The fund measures its performance against its custom Shariah-compliant Parallel Market index developed by IdealRatings. The index serves as a benchmark for comparing the fund's performance with that of Shariah-compliant shares listed on the Parallel Market (Nomu).

The fund management fee is 2% annually. An early redemption fee of 3% of the value of redeemed units applies if redemption takes place less than 30 calendar days from the subscription date. No redemption fee is charged on subscriptions held for more than 30 days.

Subscriptions and redemptions are available on Mondays and Thursdays, with a minimum amount of SAR 1,000 for subscriptions, additional subscriptions, and redemptions. Subscription requests must be submitted and the full subscription amount paid before 3:00 PM Saudi time on the day preceding the dealing day, while redemption requests must be submitted before 3:00 PM Saudi time on the dealing day. Subscriptions and redemptions are executed at the unit price at the close of the following dealing day. The unit price is announced on the business day following the dealing day, and redemption proceeds are transferred before the close of business on the sixth day following the relevant dealing day.