Voting Right Polices
Introduction:
Alawwal Invest manages mutual funds for the benefit of unitholders. The company has developed this descriptive guide to clarify the policies relating to voting rights, Ordinary and Extra-Ordinary General Assembly Meeting voting, as well as voting on any decisions relating to securities in which Alawwal Investment funds invest in.
Votes will be exercised in the best interest of unitholders, taking into consideration the Capital Market Authority (CMA) regulations and legislation.
Policies:
1- Fund manager will exercise voting rights in the best interest of the unitholders, taking into consideration relevant factors including; but not limited to: conflict of interest, the effect on the stock and the costs related to the decisions.
2- These polices are applied to all funds managed by Alawwal Invest.
3- After consulting Compliance manager/committee the Fund manager will decide on exercising its voting rights based on its independent judgment.
4- Records will be kept documenting whether or not voting rights are exercised, along with reasoning.
5- An authorized employee from AlAwwal Invest will represent AlAwwal mutual funds in General Assembly Meetings.
6- Any conflict of interest, if any, resulting from the votes will be evaluated. And Mutual Fund Board and compliance manager/committee will be informed.
7- Voting rights are exercised and belong to the fund manager, not unitholders, therefore, unitholders have no right to obligate the fund manager to vote in any way.
8- Any change or amendment to this policy requires prior approval of the Mutual Fund Board.
