SNB Capital Saudi Nomu Market Fund

SNB Capital Saudi Nomu Market Fund is an open-ended public equity fund compliant with Shariah guidelines. It aims to achieve long-term capital growth by investing primarily in shares of companies listed on the Parallel Market (Nomu), in addition to shares of small and medium-sized companies listed on the Main Market, in accordance with the Shariah guidelines approved by the Fund’s Shariah Committee.

The Fund is classified as a high-risk investment due to the nature of investing in Nomu Market shares and the associated volatility and liquidity risks. The Fund’s investment in shares of Saudi companies listed on the Nomu Market, including initial public offerings, rights issues, and Real Estate Investment Traded Funds (REITs), in addition to shares of companies that have transferred from Nomu to the Main Market for up to 5 years from the date of transfer, ranges between 50% and 100% of the Fund’s net assets.

The Fund may invest up to 40% of its net assets in shares of small and medium-sized companies, initial public offerings, and rights issues listed on the Main Market, in addition to Exchange-Traded Funds (ETFs) licensed by the Capital Market Authority and Real Estate Investment Traded Funds (REITs) listed on the Main Market, provided that all are compliant with Shariah guidelines. It may also invest up to 30% in shares of other Saudi companies listed on the Main Market and compliant with Shariah guidelines.

The Fund may also invest up to 30% in public investment funds that invest in the Saudi equity markets, are licensed by the Capital Market Authority, and are compliant with Shariah guidelines, including funds managed by the Fund Manager. It may also invest up to 35% in cash, Money Market funds, Sukuk funds, public debt instruments, and Money Market transactions compliant with Shariah guidelines.

The Fund uses the SNB Capital Growth Shariah Index TR as its benchmark. The Index is calculated based on the free-float shares of companies compliant with Islamic Shariah principles listed on the Nomu Market, in addition to companies that have transferred to the Main Market for 5 years from the date of transfer.

SNB Capital Saudi Nomu Market Fund is suitable for investors seeking long-term capital growth and willing to accept the high level of risks associated with investing in equity markets. The Fund’s terms and conditions indicate that shares of companies listed on the Nomu Market may have lower liquidity and higher volatility compared to Main Market shares. Some companies may also be newly established or have a short operating history and limited human and financial resources, which may increase investment risks and fluctuations in the Fund’s unit price.