SAB Invest Saudi Equity Income Fund

SAB Invest Saudi Equity Income Fund combines the objectives of long-term capital growth and income distribution and is classified as a high-risk equity fund. It is an open-ended public investment fund managed by SAB Invest, investing in shares of Saudi companies that comply with Shariah principles and are approved by its Shariah Committee.

Distributable income is determined at the end of March and September each year. Unit holders registered on the last valuation day of the relevant month are entitled to the distribution. Distributions are paid within 20 business days from the end of March or September and are credited to the account designated by the unit holder. The fund’s performance assessment takes total return, including distributions, into consideration.

SAB Invest Saudi Equity Income Fund follows an active investment strategy based on analyzing companies’ fundamentals and continuously reviewing their portfolio weightings. It invests between 90% and 100% of its net assets in Shariah-compliant Saudi equities, including rights issues and initial public offerings (IPOs). It may allocate up to 10% to each category of cash, Murabaha transactions and Shariah-approved Murabaha funds, as well as other investment funds with similar objectives or strategies.

The allocation to cash and Murabaha may be increased to 100% under exceptional circumstances. The fund may also obtain Shariah-compliant financing of up to 10% of its net assets for a period not exceeding one year.

Companies in which the fund invests are also reviewed for Shariah compliance following the release of quarterly financial statements. Shares that no longer comply with Shariah principles are sold within 90 days, or at the earliest possible opportunity if liquidity is limited. The fund measures its performance against the S&P Saudi Arabia Domestic Shariah Total Return Index, provided and calculated by S&P. The index is calculated based on the free-float market capitalization of its constituents. It includes most companies listed on the Saudi stock market, alongside listed equity and real estate funds, while excluding certain companies based on criteria such as liquidity and size. As a total return index, it takes into account the cash distributions of its constituents when calculating performance.

Subscription and redemption: The deadline for receiving requests is 4:30 PM Saudi Arabia time on Sunday for Monday valuation, and Tuesday for Wednesday valuation. The minimum subscription and redemption amount is SAR 10. Redemption proceeds are paid before the end of the second business day following the applicable valuation day.