Each unit is treated as an ordinary share in the net assets of the fund. Loading fund assets into investment fund units managed by the fund manager or other fund managers.
The Main Risks of Investing in the Fund
The Fund's investments are based on prudent risk diversification without violating the Fund's investment objectives, policies and General Terms and Conditions. Provide the Fund's board with periodic reports on the Fund's operational risk and the risk of violating investment restrictions.
Equity Market Risk: Investing in public equity are associated with increased volatility; the risk inherent in equity investing is higher than Murabaha and money market investments or other types of short-term
The MSCI Europe Islamic M-Series (Net Total Return USD) index is based on a weighted average free float adjusted market capitalization to measure the performance of companies in the segment of large and mid-cap companies listed on European markets and compliant with Sharia law.
Issuer Specific Risk: This includes changes in the performance of the issuer or counterparty due to changes in management or financial conditions of, or changes in political and economic environment,
Securities that are affected by the status of the issuer, which may cause the value of its shares to decline and therefore adversely affect the Fund's performance and the unit price. Geopolitical risk: This is the risk of changes in political conditions and applicable laws in the countries in which the Fund invests or in neighboring countries, which could have a negative impact.
Geopolitical Risk: This is the risk of changes in political conditions and applicable laws in the countries in which markets the Fund is investing or in neighbouring countries, which may have adverse impact
Economic Risk: This is the risk of changes in the economic conditions such as recession, inflation, and decrease in oil prices, which may have adverse effect on the Fund’s performance
Interest Rate Risk: The Fund’s Investments may affect due to changes in return rates including interest rates as well as returns on investments and securities marked to market may be affected negatively
Financing Risks: In case the Fund Manager borrows for the purpose of investment, the Fund may not be able to repay the amounts borrowed on time for reasons beyond the control of the Fund Manager,
Risks of Investment in Other Funds: The other investment funds in which the Fund invests may be exposed to risks similar to those set out in this paragraph, which may adversely affect the Fund's
Risk of Suspension of Trading: Non-compliance by companies listed with the relevant Law and its implementing regulations may lead to suspension of trading of the shares of such companies, which
Risk of Heavy Redemptions: This is the risk of large and sometime continuance redemptions by Unitholders which may cause the Fund Manager to liquidate assets of the Fund at less favourable
Risks of dependence on the Fund Manager's Personnel: The Fund's performance depends largely on the capabilities and skills of the Fund Manager’s employees, which may significantly affect the
Conflict of Interest Risk: This risk arises in situations that affect the objectivity and independence of the Fund Manager's investment decisions due to a personal interest. This may adversely impact the
Natural Disaster Risk: These include volcanoes, earthquakes, hurricanes, floods and natural phenomena which are beyond the control of the Fund Manager, and cause considerable damage to
Natural disasters may adversely affect various economic and investment sectors, which may lead to a decline in the Fund's performance and unit price. Benchmarking Risk: The Fund may not achieve a return in line with the index given the Fund Manager's commitment to regulatory requirements which may limit its ownership in some.
Benchmark Tracking Risk: The Fund may not achieve a return in conformity with the index given the commitment of the Fund Manager to regulatory requirements which may limit its ownership in some
Mechanism for Assessing Risks
Targeted Class for Investing in the Fund
Investment Restrictions / Limitations
Currency
Fees, Charges and Expenses
If the size of the Fund is greater than one USD 100 million, the Fund will be charged (1.25) basis points. Custody and accounting costs are calculated on each valuation day and deducted from the Fund monthly.
Remuneration of the Independent Fund’s Board Members: Each independent member of the Fund Board receives USD 37,333.33 annually, divided by the number of open-ended funds
In addition, each transaction will be subject to a transaction fee ranging from USD (5 to USD 190) depending on the market in which the Fund invests. The Fund will be charged an administration fee of (1.5) basis points if the Fund Size is USD. 100 million or less. Compensation of the Independent Fund Board Members: Each independent member of the Fund's Board of Directors receives USD 37,333.33 annually, divided by the number of open-end funds.
Auditor’s Fees: USD 8,684.80 annually, calculated on each Valuation Day and deducted semi- annually
Custody and accounting fees: The annual custody fee ranges from (0.15 to 60) basis points of the total fund assets under custody. In addition, transaction costs will be charged for each transaction for the total Fund assets in custody.
Shariah Committee Services Fees: USD 7,200 annually, calculated on each Valuation Day and deducted semi-annually
Capital Market Authority Fees: USD 2,000 annually, calculated on each Valuation Day and deducted annually
Publishing Fund’s Information on Tadawul Website Fees: USD 1,333.33 annually, calculated on each Valuation Day and deducted annually
Calculated on each valuation day based on the fund's assets and divided by the number of open public investment funds. The fund manager reserves the right to waive all or part of the subscription fee at its own discretion. Hypothetical example illustrating all fees, charges paid from the fund's assets or unitholders based on the fund's currency.
Valuation and Pricing
The VAT is applied to the Fund in accordance with the VAT Act and its implementing regulations. Management fees are calculated and subtracted from the output of the previous step and the result is the Net Asset Value of the Fund. Net Asset Value of the Fund = (Total Asset Value - Fixed Fees and Actual Operating Expenses) - (Management Fees).
Dealings
When subscribing to a Fund, the client signs the Subscription Form and the Fund Terms and Conditions via one of the branches. The fund manager must suspend the subscription and redemption of units if the Authority orders such suspension. If the fund manager reasonably believes that such suspension is in the best interests of the unitholders of the fund.
Distribution Policy
The transfer of Participations to other investors is subject to the CML, its implementing regulation and the related regulations in the Kingdom of Saudi Arabia. The Minimum Subscription and the Additional Subscription through the Individual Savings Program (ISP): USD 26, which is approximately equal to SAR 100. The minimum amount that the Manager intends to raise, and the actions to be taken if that minimum is not reached.
Reporting to Unitholders
Other notices, if any, are sent to the postal and/or e-mail address and/or SMS and/or fax as indicated in the Fund Manager's records. The fund manager accepts the provision of audited financial statements at the end of each financial year. The fund's audited annual financial statements are available to unitholders free of charge and upon request.
Unitholders Register
Meeting of Unitholders
If the quorum requirements are not met, the fund manager must call another meeting by announcing it on its website and any other website accessible to the public in accordance with the controls established by the authority and must send a written notice to all shareholders and the custodian gives at least (5) days' notice of the second meeting. Method of voting: Every unit owner may be entitled to appoint a proxy to represent him at a meeting between unit owners. The fund manager can conduct the shareholder meetings and its discussions and voting on decisions through modern technology.
Unitholders’ Rights
The second meeting is considered valid regardless of how many units are represented at the meeting. Each shareholder may be entitled to exercise one vote at the shareholder meeting for each share held by the shareholder at the time of the meeting. The Fund Manager's policy regarding voting rights is available on the Fund Manager's website and the Tadawul website.
Unitholders’ Liability
Units Characteristics
Changes to the Fund’s Terms and Conditions
The fund manager must obtain the approval of the fund's board before making any non-fundamental change. The fund manager must send notice to unitholders and disclose details of the fundamental changes on its website and on any other website available to the public in accordance with the controls established by the authority (10) days before the change takes effect. The fund manager must send notice to the CMA and unitholders and disclose details of non-fundamental changes on its website and on any other website available to the public in accordance with the controls set by the authority (10) days before the change. becomes effective.
Termination of the Fund
The fund manager must notify the Authority and unitholders, and disclose on its website and any other publicly available website, in accordance with controls established by the Authority, any non-material changes to the fund (10) days in advance for the change to take effect. . Details of all Fundamental Changes and Non-Fundamental Changes must be included in the fund's next report prepared by the fund manager in accordance with Article (76) of the Investment Fund Regulations. If the fund is terminated, the fund manager cannot receive any fees deducted from the fund's assets.
Fund Manager
Summary of the fund manager's financial information for the previous financial year (in thousands of Saudi Riyals). The fund manager may authorize one or more third parties or affiliates as sub-managers of the fund. The fund manager must inform the authority about the results of the unitholders' meeting within (2) days from the date of its convening.
Fund Operator
Cancellation, withdrawal or suspension by the Authority of the authorization(s) of the fund manager to carry out management and operational activity of funds or management of investment activity according to the Regulations of Capital Market Institutions;. The fund administrator's request to the Authority to cancel the relevant authorization for carrying out the administrative activity of investments and the operation of funds or the administrative activity of investments; The fund operator must keep books and records related to the operation of the fund.
Custodian
The fund operator may delegate one or more third parties or affiliates as a fund sub-operator. Functions to which the operator has delegated to a third party. The subfund operator carries out the valuation of the fund's assets. The remuneration of the fund sub-custodian will be paid by the custodian from its own resources.
Fund Board
Monitoring and, where appropriate, approving or ratifying any conflicts of interest that the fund manager has identified in accordance with the Investment Funds Regulations. Ensuring that the fund manager fulfills its obligations in the best interest of the unitholders, in accordance with the Investment Funds Regulations and the Terms and Conditions of the Fund. Keeping minutes of meetings that provide all discussions and facts of meetings and decisions made by the board of directors of the fund.
Shariah Committee
Total Riba deposits exceed (33%) of the market value of the company's shares or total assets. It is not allowed to invest in shares of companies whose total Riba deposits exceed (33%) of the company's total assets. The Fund Manager will provide the fund's investors with the method of accounting for the market value of the company's shares and non-Shariah-compliant income; at their request and free of charge.
Investment Advisor Not applicable
The Fund will invest in the funds in accordance with IdealRating's Global REITs, which comply with Sharia guidelines. Murabaha, Mudarabah and Musharaka transactions in addition to others, like the Shariah Committee; or who represents it, approved on their structure. The Fund may invest in Sukuk, Murabaha transactions, financial certificates and mutual funds which conduct their investments in accordance with Sharia guidelines.
Distributor
Auditor
there are potential pending and significant allegations of the auditor's professional conduct relating to audit functions; The board of the fund determines that the auditor does not have sufficient qualifications and experience to satisfactorily perform the audit function; or The authority, at its discretion, instructs the fund manager to replace the auditor appointed in relation to the fund.
Fund’s Assets
Complaints Procedures
Other Information
This does not limit the right of the Fund Regulatory Authority (CMA) to access the Fund's data for legal oversight. The Fund Manager will comply with the Anti-Money Laundering and Terrorist Financing Regulations issued by the CMA Board under Resolution No. However, under Saudi law, the Fund Manager may not inform unitholders of suspected transactions reported to competent official authorities.
Additional Information Requirements for Certain Types of Funds
There is no guarantee that the fund and the performance of the index are accurate or identical
The circumstances that may lead to errors in tracking the indicator performance
The Benchmark
Circumstances that may affect the accuracy and completeness of the Indicator’s calculation The Fund Manager or Index Provider MSCI Inc. shall not be liable for any delay or failure in the
Termination of Index by the Index Provider
The Margin of deviation factor for the index
Unitholder Declaration
Fund’s Financial Disclosure
