A look at Al Rajhi MSCI Saudi Multi Factor Index Fund

Al Rajhi MSCI Saudi Multi Factor Index Fund is a new open-ended fund aimed at achieving medium- to long-term capital growth by tracking performance of the MSCI’s Saudi Multi-Factor Index.

The MSCI’s Saudi Multi-Factor Index complies with Al Rajhi Capital’s Shariah board’s rules.

The vehicle was designed to have low-cost structure and provide investors easy access to the broader Saudi market.

Fund Details
Fund name	Al Rajhi MSCI Saudi Multi Factor Index Fund
Fund manager	Al Rajhi Capital
Fund type	Public, Open-ended
Qualified subscribers	Any qualified natural or juridical person
Fund term	Open term
Currency	SAR
Risk	High
Investment purpose	A public open-ended fund that aims to achieve medium to long term capital growth by tracking the performance of the MSCI Saudi Multi-Factor Index, which is compliant with the fund’s Shariah Board
Unite price at the beginning of the issue	SAR 10
Minimum subscription limit*	SAR 2,000
Minimum additional subscription limit*	SAR 1,000
Minimum refund limit*	SAR 1,000
Minimum balance limit*	SAR 2,000
Subscription fees	NA
Management fees	1% of net fund’s assets annually
Dealing fees	The fund pays commissions and trading fees resulting from transactions, purchases and sale of securities according to prevailing market commissions paid to brokers, financial markets and regulators
Other fees	The fund will bear the necessary and actual expenses for its management, audit fees, custody fees, publishing fees, regulatory fees, board members 'remuneration, indicative index fees and other expenses.

The below is an example of the fees’ calculation mechanism. The invested cash stands at SAR 100,000, and the fund’s size reaches around SAR 10 million, with an annual return of 10 percent.

Total fund assets	Fund’s fees & expenses (SAR)	Investor’s fees & expenses (SAR)
Subscription fees	NA	-
Custody fees	Charged to fund manager	-
Independent board members’ remuneration	Charged to fund manager	-
Audit fees	Charged to fund manager	-
Regulatory fees	Charged to fund manager	-
Tadawul fees	Charged to fund manager	-
Indicative index fees	Charged to fund manager	-
Management fees	100,000	1,000
Total annual fees & expenses*	100,000	1,000
Assumed return 10%+ capital	11,000,000	110,000
Net assumed investment at fiscal year end	10,900,000	109,000

*All fees in the example are not VAT inclusive.

* The fund pays commissions and trading fees resulting from transactions, purchases and sale of securities according to prevailing market commissions paid directly to brokers, financial markets and regulators. These commissions and fees are disclosed in the fund’s annual financial statements.

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