Mutual Funds
Al Rajhi Bank offers a number of funds that allow you to invest in both national and international markets.
Balanced Fund 1
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through investment in various Al Rajhi funds with their different return and risk profile (minimum 75% in commodities and the rest in one or more of Al Rajhi equity funds).
Features
- Date of launch : December 1998 , unit price : USD 100
- Risks: investment in shares entails high risks due to fluctuations in prices of shares and currencies in the market in addition to currency risks. Such risks are mitigated by the policies applied by Fund management through diversification of the fund portfolio with respect to country diversification and different economic sectors in addition to selection of companies known for their strong financial position.
- Minimum subscription amount : 2000 $
- Minimum Additional subscription: 1000 $
- Minimum redemption : 1000 $
- Evaluation : weekly.
- Days of business : Sunday through Wednesday.
- Redemption payment : Sunday following the day of accepting the request for redemption at the rate announced at that time.
- Currency of the fund : US Dollar .
- Subscription fees 2% of subscription amount.
- Management Fees : None.
Local Shares Fund
Objectives: Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through investment primarily in local shares mainly and other shares in the region as a secondary alternative.
Features
- Date of launch : July 1992 , unit price : SR 5000
- Risks : investment in shares entails high risks and investment in local shares is subject to this rule also. Risks may include single country risk and investors should be aware that investment depends on external factors and forces including expectations of future market conditions. Fund management is focused on minimizing such risks through diversification of the fund portfolio and investing in companies known for their strong financial position. Investment in the shares of the region will minimize risks when conditions are not suitable for investment in local shares.
- Minimum subscription amount : one unit.
- Minimum Additional subscription: one unit.
- Evaluation : daily.
- Days of business : Saturday through Wednesday.
- Redemption payment : On the second working day after receipt of request.
- Currency of the fund : Saudi Riyal.
- Subscription fees : 1% of subscription amount.
- Management fees : 1.5 % of the fund assets annually.
Global Equity Fund
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through investment in shares of international companies in North America, West Europe ,and South East Asia
Features
- Date of launch : December 1996 , unit price : USD 100
- Risks : investment in shares entails high risks due to fluctuations in prices of shares and currencies in the market. Fund management is focused on minimizing such risks through diversification of the fund portfolio with regard to geographical distribution and different economic sectors in addition to selection of companies known for their strong financial position.
- Minimum subscription amount : 2000 $.
- Minimum Additional subscription: 1000 $
- Minimum redemption : 1000 $
- Evaluation : weekly.
- Days of business : Sunday through Wednesday.
- Redemption payment : Sunday following the day of accepting the request for redemption at the rate announced at that time.
- Currency of the fund : US Dollar.
- Subscription fees : 0.5% of subscription amount.
- Management fees : 1.5 % of the fund assets annually.
Balanced Fund 2
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through investment in various Al Rajhi funds with their different return and risk profiles (minimum 40% in commodities and the rest in one or more of Al Rajhi share funds).
Features
- Date of launch : December 1998 , unit price : USD 100
- Risks: investment in shares entails high risks due to fluctuations in prices of shares and currencies in the market in addition to currency risks. Such risks are mitigated by the policies applied by Fund management through diversification of the fund portfolio in terms of countries and different economic sectors in addition to selection of companies known for their strong financial position.
- Minimum subscription amount : 2000 $
- Minimum Additional subscription: 1000 $
- Minimum redemption : 1000 $
- Evaluation : weekly.
- Days of business : Sunday through Wednesday.
- Redemption payment : Sunday following the day of accepting the request for redemption at the rate announced at that time.
- Currency of the fund : US Dollar.
- Subscription fees 2% of subscription amount.
- Management Fees : None.
Commodity Mudarabah Fund SAR
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through plans to deal in variety of commodities trades according to deferred payment conditions.
Features
- Date of launch : June 2000 , unit price : SR 100
- Risks: fund deals are short term deals including certain degree of risks due to fluctuations of prices of commodities in the international market related to political developments and other factors that affect monetary policies in some countries. This has influence over the value and profits of the fund units.
- Minimum subscription amount : 7500 SAR.
- Additional subscription : 3750 SAR.
- Evaluation : daily.
- Days of business : Saturday through Wednesday.
- Redemption : 3750 SAR
- Redemption payment : On the third working day after receipt of request.
- Management charges : the bank obtains the Mudarib share which is 12% of net profits and the remaining amount goes to fund unit holders.
- Currency of the fund : Saudi Riyal.
International Small Capitalization Fund
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through investment in international small capitalization companies whose capital does not exceed one billion dollar in the main markets.
Features
- Date of launch : December 1999 , unit price : USD 100
- Risks: investment in shares entails high risks due to fluctuations in prices of shares and currencies in the market in addition to currency risks. Such risks are mitigated by the policies applied by Fund management through diversification of the fund portfolio with respect to country diversification and different economic sectors in addition to selection of companies known for their strong financial position.
- Minimum subscription amount : 2000 $
- Minimum Additional subscription: 1000 $
- Minimum redemption : 1000 $
- Evaluation : weekly.
- Days of business : Sunday through Wednesday.
- Redemption payment : Sunday following the day of accepting the request for redemption at the rate announced at that time.
- Currency of the fund : US Dollar .
- Subscription fees : 1.5% of subscription amount.
- Management fees : 1.5 % of the fund assets annually
European Fund
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through investment in shares of international companies in Europe
Features
- Date of launch : December 1996 , unit price : USD 100
- Risks : investment in shares entails high risks due to fluctuations in prices of shares and currencies in the market. Fund management is focused on minimizing such risks through diversification of the fund portfolio with regard to and different economic sectors in addition to selection of companies known for their strong financial position.
- Minimum subscription amount : 2000 $.
- Minimum Additional subscription: 1000 $
- Minimum redemption : 1000 $
- Evaluation : weekly.
- Days of business : Sunday through Wednesday.
- Redemption payment : Sunday following the day of accepting the request for redemption at the rate announced at that time.
- Currency of the fund : US Dollar.
- Subscription fees : 1% of subscription amount.
- Management fees : 2.5 % of the fund assets annually.
Ladies Fund
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through investment in various Al Rajhi funds with their different return and risk profile (minimum 25% in commodities and the rest in one or more of Al Rajhi equity funds). To encourage
Features
- Date of launch : May 2001, unit price : USD 100
- Risks: investment in shares entails high risks due to fluctuations in prices of shares and currencies in the market in addition to currency risks. Such risks are mitigated by the policies applied by Fund management through diversification of the fund portfolio with respect to country diversification and different economic sectors in addition to selection of companies known for their strong financial position.
- Minimum subscription amount : 2000 $
- Minimum Additional subscription: 1000 $
- Minimum redemption : 1000 $
- Evaluation : Monthly. (Last business day of each month).
- Days of business : The last half of every month.
- Redemption payment : On the fourth day of the 2nd month
- Currency of the fund : US Dollar .
- Subscription fees 1.5% of subscription amount.
Children Fund
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through investment in various Al Rajhi funds with their different return and risk profile (minimum 15% in commodities and the rest in one or more of Al Rajhi equity funds). To encourage parents to invest for their children.
Features
- Date of launch : May 2001, unit price : USD 100
- Risks: investment in shares entails high risks due to fluctuations in prices of shares and currencies in the market in addition to currency risks. Such risks are mitigated by the policies applied by Fund management through diversification of the fund portfolio with respect to country diversification and different economic sectors in addition to selection of companies known for their strong financial position.
- Minimum subscription amount : 2000 $
- Minimum Additional subscription: 200 $
- Minimum redemption : 200 $
- Evaluation : Monthly. (Last business day of each month).
- Days of business : The last half of every month.
- Redemption payment : On the first day of the 2nd month
- Currency of the fund : US Dollar .
- Subscription fees 1.5% of subscription amount.
- Management Fees : None.
Commodity Mudarabah Fund - EURO
Achieve continued increase in investors capital in the long term without distribution of profits which will be re-invested with the capital, through plans to deal in a variety of commodities trades on deferred payment basis.
Features
- Date of launch : November 2002 , unit price : EURO 100 $
- Risks : fund deals are short term deals including a certain degree of risk due to fluctuations of prices of commodities in the international markets related to political developments and other factors that affect monetary policies in some countries. This has influence over the value and profits of the fund units.
- Minimum subscription amount : 2000 $
- Additional subscription : 1000 $
- Evaluation : daily.
- Days of business : Saturday through Wednesday.
- Min Redemption : 1000 $
- Redemption payment : On the third working day after receipt of request.
- Management charges : the bank receives the Mudarib share which is 16% of net profits and the remaining amount goes to fund unit holders.
AL-Rajhi First Real Estate Fund
Fund goals
The fund goal is to maximize the capital by investment in real estate throw bought a pure lands under important factors like location , future of land , adding value and income of investment .then development them by essence services , basic improvement , then lay out them. After that sell the land by cash to make profit for customers . AL-Rajhi company will be the manager of the fund and it will be corporate with a choice real estate company with big experience as a council , improver , and marketer for the fund assets
Profits dived and capital recovery
The real estate activity is known by cost of out come investment at start of the project, when the project is complete the project began to harvest profits after selling . The fund manager is not make any profit divide at the beginning age of the project , until there to come cash flows after lands sold and make profit , then the fund manager will be available to make divides from the selling process , until the fund capital is recover.
Exist of the fund
AL-Rjhi first real estate fund is divided as a closing fund , which mean the investors cant allowed to take their money during the fund age . But it is allowed to transfer the units between the fund units holders or for a persons out of the fund , and the fund manager cant determine the units price , he is just responsible to documentation the transfer between the seller and the buyer
Investment Risks
Although there is an expectations for an increase in the real estates demand, but in some contestations it may demand is less for the pure land, which may slow the fund leach until sold out all the lands. The fund manager will aim to avoid these risks by make the economic and technical studies by an experience specialists. Also there may be decrease in the value of the fund assets if a shake happened to the real estate markets at the time of selling.
Characterize of The Fund
- Fund kind : closing not allowed to receive money during fund age
- Capital of fund : 500 million Riyals
- Coinage of fund : Saudi riyal
- Fund age : 3 years
- Minimum amount of subscription: 375000 Saudi Riyal
- Unit price at foundation time : 100 Saudi Riyal
- Estimate of fund units: every six months
- Rate of subscription : 0.5%
- Management fee: 0.2%
Al Rajhi India & china Equity Fund
'Al Rajhi India & china Equity Fund' ('the fund', hereafter) is an open-ended fund which invests in publicly traded stocks in Indian & Chinese markets that are in compliance with the guidelines of 'Al Rajhi Sharia Board'. The fund is targeted to the investors seeking capital appreciation over long term.
Allocation of Assets of the Fund
The fund is highly flexible in allocating assets. Besides, asset allocation among India & china markets is reviewed on a regular basis with emphasis on markets featuring the best investment opportunities. At the same time, the advantage of diversification among these markets and across the various sectors is sought to be maintained to lower the risk.
Risks
The assets of 'the fund' are allocated to various sectors. Investment in 'the fund' is a long term investment involving a certain degree of risk because the returns are associated with the performance of companies and economies of the countries where such investments are made. To minimize risk, investments of 'the fund' are diversified and spread over various sectors. In this regard, it is to be noted that stock markets in general are volatile in nature and previous performance does not necessarily guarantee similar performance in the future.
Fund Benchmark
The performance of 'the fund' is compared against the India & China benchmark stock index duly devised by Al Rajhi Banking & Investment Corporation, consisting of companies which comply with the guidelines approved by the Al Rajhi Sharia Board.
Fund Features:
- Fund Currency: US Dollars
- Minimum Investment Amount: $ 2000
- Minimum Additional Investment Amount: $ 1000
- Minimum Redemption Amount: $ 1000
- Valuation: Weekly
- Dealing Days: Saturday through Wednesday
- Execution of Subscription and Redemption Requests: Following Sunday
- Subscription Fee: 1%
- Management Fee: 2% annually
- Performance fee: the fund manager receives a 10% performance fee on the net profit in excess of 15% annualized return
Al Rajhi GCC Equity Fund
'Al Rajhi GCC Equity Fund' ('the fund', hereafter) is an open-ended fund which invests in publicly traded stocks in GCC markets that are in compliance with the guidelines of 'Al Rajhi Sharia Board'. The fund is targeted to the investors seeking capital appreciation over long term.
Allocation of Assets of the Fund
The fund is highly flexible in allocating assets. Besides, asset allocation among various markets is reviewed on a regular basis with emphasis on markets featuring the best investment opportunities. At the same time, the advantage of diversification among these markets and across the various sectors is sought to be maintained to lower the risk.
Risks
The assets of 'the fund' are allocated to various GCC countries. Investment in 'the fund' is a long term investment involving a certain degree of risk because the returns are associated with the performance of companies and economies of the countries where such investments are made. To minimize risk, investments of 'the fund' are diversified and spread over various sectors. In this regard, it is to be noted that stock markets in general are volatile in nature and previous performance does not necessarily guarantee similar performance in the future.
Fund Benchmark
The performance of 'the fund' is compared against the GCC benchmark stock index duly devised by Al Rajhi Banking & Investment Corporation, consisting of companies which comply with the guidelines approved by the Al Rajhi Sharia Board.
Fund Features:
- Fund Currency: Saudi Riyal
- Minimum Investment Amount: SR 5,000
- Additional Investment Amount: SR 2,000
- Minimum Redemption Amount: SR 1,000
- Valuation: Weekly
- Dealing Days: Saturday through Wednesday
- Execution of Subscription and Redemption Requests: Following Sunday
- Subscription Fee: 1%
- Management Fee: 1.75% annually
- No other fees.
Al Rajhi Petrochemicals and Cement Stocks Fund
The Al Rajhi Petrochemicals and Cement Stocks Fund is an open-ended fund. It provides an investment channel that suits the individual and corporate investors who wish to achieve growth for their capital through long-term investments in stocks of Petrochemical and Cement sectors companies listed on the Saudi Stock Market (Tadawul).
Fund Characteristics
• Managed by a professional team specializing in asset management.
• Capturing high earning potential of Petrochemical and Cement Sectors.
• Shariah Compliance ensured by Al Rajhi Shariah Board.
Investment Strategy
The Fund invests mainly in the Petrochemical and Cement sectors of the Saudi Stock Market that comply with Shariah principles in their dealings.
The Fund may invest in other sectors with a maximum of 15% of its net assets value.
Investment Risks
The Fund invests in securities with a long term horizon and there may be a certain degree of risk associated with it, the impact of which is reflected on the net assets value of the Fund. These risks may include the following:
• The Fund invests predominantly in equities of selected companies of two sectors only and its performance is highly related to these sectors.
• The net asset value of the Fund may be affected by changes in the general market conditions, factors and forces affecting capital market.
The investor should be aware that the Fund’s unit price is subject to rise or fall at any time. Additionally, previous performance of the Fund may not necessarily be considered as a guarantee for any similar performance in future.
Fund Benchmark
The performance of the Fund is measured against a customized benchmark index which is composed of all Shariah compliant stocks of petrochemical and cement sectors.
Fund Features
• Fund Type: Open Ended Equity Fund – Shariah Complaint
• Base Currency: Saudi Riyal
• Minimum Subscription Amount: SAR 10,000
• Minimum Additional Subscription: SAR 2,000
• Minimum Redemption: SAR 2,000
• Valuation: Twice a week - Sunday & Tuesday
• Subscription / Redemption: Daily - Saturday through Wednesday
• Subscription Fees: 2%
• Management Fees: 1.75%