Subscription to units of Albilad MSCI US Tech ETF started Jan. 12

Logo of Albilad MSCI US Tech ETF

The subscription to Albilad MSCI US Tech ETF began on the Main Market (Tadawul) on Jan 12, with the offering period to last for 30 business days, ending on Feb. 22.

 

Last August, the Capital Market Authority (CMA) gave the green light to Albilad Capital to float units of Albilad MSCI US Tech ETF on Tadawul.

 

The minimum amount to commence the fund operations is SAR 10 million, and in the event that the minimum amount is not collected during the IPO period, the fund manager must return to the unitholders the subscription amounts and any returns resulting from their investment without any discount. The fund manager has the right to extend the IPO period for 30 business days with the right to close it prior to that date.

 

Albilad MSCI US Tech ETF is an open-ended public and Shariah-compliant ETF that aims to track and simulate the performance of the MSCI USA Islamic Tech Index before calculating any dividend, fees or charges. It invests in both the US and Saudi capital markets.

 

The fund's investment objectives are to achieve long-term growth and capital gains through the passive management of a basket of US-listed stocks compliant with the standards of the Shariah Supervisory Committee (SSC), and concentrated in the technology sector, in order to seek a level of performance that matches the benchmark index before calculating any distributions, fees or expenses. The fund will invest at least 95% of its net asset value in the shares of these companies.

 

The ETF will invest a maximum of 5% of the fund's net asset value in investment-grade money market transactions concluded with a regulated party licensed by the Saudi Central Bank (SAMA) or a similar supervisory authority outside the Kingdom, and money market funds licensed by the CMA or a similar regulatory authority, including funds managed by the fund manager, to pay any expenses or financial obligations.

 

The fund targets individuals, legal investors and government entities wishing to invest inactively in US technology stocks, and who meet the conditions for investment in this fund, taking into account the fund's investment objectives and the risks associated with investing in the fund.

 

Here is the most important information about Albilad MSCI US Tech ETF:

 

Fund’s Profile

Fund 

Albilad MSCI US Tech ETF

Fund type

Open-ended public and Shariah-compliant ETF

IPO period

30 business days starting from Jan. 12, 2023 and ending on Feb 22, 2023. The fund manager has the right to extend the IPO period for a similar period and the right to close it before that date.

Investment objectives

To achieve long-term growth and capital gains through the passive management of a basket of US-listed stocks compliant with the SSC standards, and concentrated in the technology sector, in order to seek a level of performance that matches the benchmark index before calculating any distributions, fees or expenses

Targeted IPO size

1 mln units

Minimum targeted funds

SAR 10 mln

Unit price

SAR 10

Minimum for in-kind subscription

100,000 units of the current fund units. The investor shall bear through the fund manager a subscription fee of a maximum of 1% of the total value of the invested amount, except for the initial offering period, where the minimum subscription is 20,000 units of the fund and a subscription fee of a maximum of 1% of the total value of the invested amount.

Minimum for cash subscription

100,000 units or SAR 1 mln, whichever is higher. The investor shall bear in cash through the fund manager a subscription fee up to of 1% of the total value of the invested amount, except for the initial offering period, where the minimum subscription is 20,000 units of the fund, with subscription fees of a maximum of 1% of the total value of the invested amount.

Maximum subscription

No subscription limit

Custodian fees

0.05% of the fund's net asset value for listed and unlisted securities and investment fund units annually. While 0.03% of the fund's net asset value is charged for money market transactions, calculated on each calendar day and deducted on a monthly basis

Fund manager

Albilad Capital

Market maker

Albilad Capital or any licensed financial market institution that enters buy and sell orders continuously during trading hours for the purpose of providing liquidity to the traded units of the ETF.

Fund duration

There will be no fixed duration of the fund's operation and no maturity date for the fund.

Dividend distribution policy

The fund manager will reinvest the dividend resulting from the investment in the fund's assets, and accordingly the fund will not distribute any periodic dividend to the unitholders.

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

{{comment.DisplayName}} حساب موثّق

{{comment.ElapsedTime}}
loader Train
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Popular Links

Quick Links

Join Us

Argaam.com Copyright © 2024, Argaam Investment, All Rights Reserved
Call Request