Logo of Al Rajhi Capital
Al Rajhi Capital started offering the Al Rajhi Real Estate Monthly Distributions Fund as of Nov. 26.
The offering extends for 45 business days until Jan. 25, 2024, at an initial price of SAR 10 per offered unit.
The fund manager is entitled to end the initial offering period before the mentioned date in the event of raising the minimum subscription limit of SAR 10 million, and the fund has the right to extend the subscription period for 15 business days after notifying the Capital Market Authority (CMA).
The fund is an open-ended investment fund that aims to distribute income on a monthly basis by investing mainly in real estate traded funds and stocks of real estate management and development sector companies, in addition to debt instruments, money market instruments and other investment funds that comply with the Sharia Supervisory Committee's regulations, including real estate traded funds, real estate funds, traded funds and exchange traded funds.
Distributions, determined by the fund manager, if any, are due by the fund on a monthly basis, on the 26th day of each calendar month. The fund manager will distribute income received from the investments and is also entitled to fully or partly distribute the realized capital gains. Distributions will be paid before the end of the fifth business day following the record date for the shareholders of record, as the value of the unit will decrease by the amount distributed.
The CMA approved on Nov. 7 to float the fund units in a public offering.
|
Fund Details |
|
|
Fund |
Al Rajhi Real Estate Monthly Distributions Fund |
|
Fund Manager |
Al Rajhi Capital |
|
Fund’s Features |
The fund is an open-ended investment fund that aims to distribute income on a monthly basis by investing mainly in real estate traded funds and stocks of real estate management and development sector companies, in addition to debt instruments, money market instruments and other investment funds that comply with the Sharia Supervisory Committee's regulations, including real estate traded funds, real estate funds, traded funds and exchange traded funds. |
|
Cash Distributions |
Monthly |
|
Virtual Size |
SAR 10 mln |
|
Minimum Subscription |
SAR 10 |
|
Minimum additional subscription |
SAR 1 |
|
Start of Offering |
Nov. 26, 2023 |
|
End of Offering |
Jan. 28, 2024 |
|
Inception Date |
Four days maximum after end of offering |
|
Benchmark |
S&P Real Estate Shariah Index (80%) and cyber index (20%) |
|
Management Fees |
The Fund manager is entitled to management fees of 1.25% annually of the net asset value. |
|
Subscription Fees |
The fund manager is entitled to a subscription fee of a maximum of 1% of the value of each subscription |
The fund mainly invests in the Saudi market. The fund manager can, however, invest in global, Arab and GCC markets.
|
Type of Assets |
||
|
Type of Asset |
Minimum Limit |
Maximum Limit |
|
Securities, IPOs, right issues, secondary offerings of listed companies in real estate development in Main and Nomu-Parallel Markets. |
-- |
80 % |
|
Offered funds with similar strategies and objectives |
-- |
80 % |
|
Investments and Debt Instruments |
-- |
60 % |
|
Cash & Money Market instruments |
-- |
40 % |
|
Securities, public offerings, right issues, secondary offerings of listed companies in other sectors in Main and Nomu-Parallel Markets. |
-- |
30 % |
|
Other funds in private placements with similar strategies and objectives |
-- |
10 % |
*The fund manager can, in exceptional conditions, own over 40% of the fund assets in the form of cash and money market instruments.
Comments
{{DisplayName}}
{{ElapsedTime}}