Professional Documents
Culture Documents
(07069-37), in
accordance with the Authorized Persons Regulations issued by the CMA.
Prospectus
Salik Ahmed
CEO
Ashraf BinAli
Head of Compliance & AML
Notices
This prospectus reflects the terms and conditions under which Samba Capital and Investment
Management Company (Fund Manger) provides investment management services to
subscribers. These terms and conditions and appendices thereof constitute the agreement
between the fund manager and the subscriber.
This agreement shall be legally binding, and shall govern the basis on which the Fund
Manager shall provide its services to subscribers. This agreement supersedes any other
previous agreements entered into between the Fund Manager and subscriber.
The Fund Manager may take, or cancel, any action that it may deem appropriate to ensure
compliance with any regulations issued by CMA, and the Fund Manger shall not bear any
responsibility in connection thereof towards the subscriber or any third party.
The Fund is an open-end one aiming at long-term capital growth through investment in the
shariah compliant listed Saudi shares with the promise of cash distributions
If the subscriber is an individual, the conditions of the this agreement shall be binding on his
heirs, successors, executor, directors and personal representatives, trustees, assignees and
the subscriber's acceptance of the terms and conditions herein, shall not automatically lapse
by his death or disability. Similarly, if the subscriber is a legal entity, this agreement shall not
automatically lapse by his death, disability, insolvency, bankruptcy or liquidation of any of its
partners or shareholders. Notwithstanding the above, the Fund Manager may, at its own
discretion, suspend any related transactions in connection with these terms and conditions ,
until it receives an order from the court or a power of attorney authorizing any of the heirs,
executors, directors, personal representatives, trustees or assignees allowing to affect such
transactions.
Potential investors have to read this document carefully before making any investment
decision related to this Fund, and they should not take the Fund Manager's opinion as a
recommendation to hold units in the fund. They should also understand that fund's risk level is
high (see the paragraph related to the Fund risks in the Fund terms and conditions).
The Fund Manager shall exercise reasonable care during selection of the representative and
affiliates, banks, agents, dealers, custodians, funds or investments, but it will not take any
responsibility for any loss, damage or obligations or expenses that the subscriber may suffer
due to failure of any of the above mentioned parties to perform their duties properly, at all
times, unless such failure is attributable to deliberate default or gross negligence.
The Fund Managers responsibility shall be limited to exerting his best endeavors to make the
above mentioned parties to rectify any error they may commit. Under all circumstances, the
Fund Manager shall not take any responsibility for any direct, indirect or consequent loss or
damage, either attributable to any mistake, default or deliberate negligence, liquidation,
bankruptcy, insolvency, or any other financial failures that may be inflicted by the above
mentioned persons, and the Fund Manager shall take the necessary actions for recovery of
any losses.
The Fund Manager and affiliates, may disclose the information in its possession or any
information about the subscriber as may required by law, or for the purpose of performance of
the services under this agreement.
The Funds terms and conditions were issued on 25/05/2011. And the latest version has been
updated on 12/06/2014
Fund Prospectus
Fund Manager
Samba Capital & Investment Management Company
CR 1010237159
Kingdom Tower, Olaya
P.O. Box 220007, Riyadh 11311
Kingdom of Saudi Arabia
www.Sambacapital.com
800 755 7000
Custodian
Samba Capital & Investment Management Company
CR 1010237159
Kingdom Tower, Olaya
P.O. Box 220007, Riyadh 11311
Kingdom of Saudi Arabia
www.Sambacapital.com
800 755 7000
Auditor
Ernst and Young
Faisaleyah Tower Floor 6
P.O. Box 2732, Riyadh 11461
Kingdom of Saudi Arabia
www.ey.com
+966 1 273 4740
Fund Summary
Fund currency
Risk Level
Benchmark Index
SAR
High
S&P index for Saudi equities
compliant with Shariah provisions.
Purpose
Long-term capital growth through
investment in the Shariah compliant
listed Saudi shares with the promise
of cash distributions
Minimum subscription amount
SAR 5000
Minimum
additional
subscription SAR 2500
amount
Minimum redemption amount
SAR 2500
Subscription and Redemption
Twice a week
Last date for subscription and 12:00 pm Sunday for Mondays
redemption
valuation and 12:00 pm Tuesday for
Wednesdays valuation
Dealing / valuation days
Every Monday and Wednesday
Payment of the value of redeemed Within four business days from
units to subscribers
Valuation day
Subscription fees
None
Management fees
1.75 % annually
1st Year 1.5 % of the net asset value
Redemption fees
2nd Year - 1.00 % of the net asset value
3rd Year - 0.50 % of the net asset value
4th Year and above - no load
Other fees
Offering date
Initial unit price
Table of Contents
Definitions
Terms and conditions
Fund name
Fund Manager address
Fund starting date
Regulator
Terms and conditions issue date and latest update to the same
Subscription
Fund currency
Purpose
Main investment strategies
Main Risks for investment in the Fund
Fees and charges
Dealing Fees
Fund Board of Directors
Fund Manager
Custodian
Auditor
Financial statements
Unit characteristics
Other information
Islamic investment funds
Fund Manager's Investment in the Fund
Subscription and redemption procedures
Fund assets Valuation
Liquidation and appointment of a liquidator
Termination of the Fund
Reporting to the unit holders
Conflict of interests
Voting rights policies
Amendment of terms and conditions
Complaints
Applicable law
Compliance with the investment regulations
Financial disclosure summary
Appendix of Sharia'h directives
6
7
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7
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7
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7
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10
10
11
12
12
12
13
13
14
15
15
17
17
17
17
18
18
18
18
18
19
19
20
Definitions
1- "Jurisdiction" or Authority means the Capital Market Authority which is
established under the Capital Market law promulgated by Royal Decree
No. (M/30) dated 2/6/1424H. It is a government authority having legal
personality and financial and administrative autonomy. It reports
directly to the President of the Council of Ministers. It regulates and
develops the Capital Market, and issues rules, directives and
instructions for implementing the Capital Market law and regulations.
2- Affiliates mean the parent company and any of its subsidiaries or
affiliates of the Fund Manager.
3- Fund means Al Ataa Saudi Equity Fund.
4- Fund Manager or (Samba Capital) means Samba Capital and
Investment Management Company.
5- "Regulations/Implementing Regulations mean laws, regulations, rules,
procedures, instructions, directives issued by CMA dealing with
implementation of the Capital Market law or other applicable laws in the
Kingdom, or any law applied by CMA.
6- Net Asset Value means total net assets value of the Fund after
deduction of the total Funds obligations (including fees paid to the
Fund Manager) from the total Fund assets value.
7- Unit price will be calculated by dividing the total net assets of the
Fund on the total number of its units outstanding on the relevant
valuation date
8- Subscriber means each investor in the Fund. Investor may be a
natural person or a legal entity.
9- Samba means Samba financial Group.
10- Valuation day means the day in which the net value of the Fund
Assets is defined for the purpose of purchase, redemption or transfer of
the units.
2. Fund
Address
CR 1010237159
Kingdom Tower , Olaya
P.O. Box 220007, Riyadh 11311
Kingdom of Saudi Arabia
www.Sambacapital.com
800 755 7000
Manager's
4. Regulator
6. Subscription
7. Fund Currency
SAR.
If payment for the unites was by any other currency
than SAR, it shall be changed to SAR, based on the
current exchange rate applicable by Samba at that
time, and purchase shall be effective as from
collecting of the amount in SAR, based on the unit
price.
8. Fund Objectives
9. Main Investment
Strategies
local equities.
(2) The Fund shall invest not less than 90% of its
assets in the shares of Saudi listed companies
compliant with Shariah provisions, in the normal
market conditions. The balance shall be retained in
the form of cash or short term Murabaha.
(3) Investment shall be made in certain shares
through progressive analysis which depends on the
long-term value and the expected growth. The
Manager shall assess companies and study the
profits, the assets value and cash flows of the
relevant company and also the earning multiples and
profit margins and liquidation value of the company.
(4) The Fund Manager shall visit the eligible
companies, as may be necessary for additional
information.
(5) The Fund Manager may maintain a substantial
portion or all of the Fund assets in the form of cash or
in the form of short or long-term Murabaha
investments in, if he believes that the market
conditions or the economic situation is not relatively
fit for investment.
(6) The Fund Manager may seek Shariah compliant
finance for the Fund, provided that any borrowed
amount shall not exceed 10% of the net Asset value,
except borrowing from its manager or any of its
affiliates to cover redemptions.
10. Main Risks of
investment in the
Fund
and
Regulations.
14.
Board
Directors
of
Bander
Negaithan
Mohammed Ajay
Al-Jazzar
Makhaji
Beji
Tak
Tak
X
Irfan
Said
Saba
Capital
Investment
Funds
International
Trade
Finance
Fund (Sunbullah
USD)
International
Trade
Finance
Fund (Sunbullah
SAR)
Al
Musahem
Saudi
Equity
Fund
Al Razeen SAR
Liquidity Fund
Al Razeen USD
Liquidity Fund
Al Raed Saudi
Equity Fund
Izdihar
China
Equity Fund
Al-Fareed Saudi
Equity Fund
Al-Raed
GCC
Fund
Al
Musahem
GCC Fund
Samba
Real
Estate Fund
Al Ataa Saudi
Equity Fund
Americas Equity
Fund
Europe
Equity
Fund
Asian
Equity
Fund
Global
Equity
Fund
Al
N
afees
Global
Commodities
Equity Fund
The Board of directors tenure shall commence with the inception of the Fund
for three renewable years, and the functions and responsibilities of the board
members shall include but not limited to:
Management
17. Auditor
19.
Characteristics
Unit
Management
Subscription:
Subscribers who are interested in purchasing units in
the Fund may complete and handle to the Fund
Manager the relevant form which is obtainable from
Samba Capital, with authorization to debit their
accounts with Samba. Subscription in the Fund shall
be through purchase of units based on the valuation
price, as defined herein. The Fund Manager may, at
its sole discretion, deny subscription of any person in
the Fund, if such subscription, among other things, is
violating any law or the regulations which are
enforced by regulators from time to time.
The Funds units shall be valued on twice a week
basis based on the closing price of the capital
markets on Monday and Wednesday, noting that the
deadline for acceptance of subscription applications
shall be before 12 P.M., on Sunday and Tuesday,
and the prevailing price shall be applied on the
following valuation day.
Redemption:
a) Redemption requests may be made on the form
which is obtainable from Samba capital centers or
through alternative channels (e.g. Samba Capital
phone, Samba Capital Online).
b) Redemption shall not be less than SAR 2500.
The maximum period of time that may lapse between
redemption by the unit holder and payment of
redemption proceeds, shall be four business days
following the valuation day.
26. Termination
28.
Conflict
Interests
of
should be sought.
29. Voting
Policies
Rights
30. Amendment of
Terms & Conditions
31. Complaints
296,575,636
20,383,110
14.55 SAR
3,684,032
997.00
7,500.00
3,047.00
56,452.00
5,000.00
158,037.54
25,000.00
0.014%
0.053%
All fees and expenses are calculated on every evaluation day and deducted
as quarterly payments
Unit price
change rate
Benchmark
change rate
Date
Unit Price
Inception
10.00
Benchmark
Dec 11
10.63
6.27%
10.12
1.17%
Dec 12
11.94
12.35%
10.91
7.81%
Dec 13
14.52
34.55%
13.44
23.21%
10.00
Annual
Change in unit Change
in
cumulative return price
benchmark
Since 1 year
12.35%
7.81%
Since 3 years
60.64%
34.39%
Since 5 years
NA
NA
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
34.55%
23.21%
12.35%
6.27%
6.27%
Dec-11
2.63%
Dec-12
Unit Price
Dec-13
Benchmark
The Benchmark index shall be S&P index for Shariah compliant Saudi
equities.
Disclaimer:
Neither the past performance of the fund nor the past performance of the
index is an indication of how the fund will perform in the future
There is no guarantee for unitholders that the funds absolute performance or
its performance relative to the index will repeat or match past performance.
Declaration:
I/We, have read the prospectus and appendices related to the Fund and fully
understood contents thereof, and we agree on them, and we have obtained a
copy of the same and affixed our signature on it.
: ____________________
Signature
: ____________________
Date
: ____________________
2. Alcohol
3. Cloning
4. Financials, except:
a. Islamic Banks
b. Islamic Financial Institutions
c. Islamic Insurance Companies
5. Gambling
6. Pork
7. Pornography
8. Tobacco
9. Trading of gold and silver as cash on deferred basis
During the selection process, each companys latest financial statement is reviewed
to ensure that the company is not involved in any non-Shariah compliant activities,
regardless of whether the latest statement is a quarterly, semi-annual or annual
statement. If the latest statement is available in all three of these frequencies an
annual statement will likely be used, as these are more likely to be audited. Those
that are found to be non-compliant are screened out. The above industries are not
considered Islamic and would not be appropriate for investment for observant
Muslims.
2. Accounting-Based Screens
After excluding companies with non-compliant business activities, the rest of the
companies are examined for compliance in financial ratios, as certain ratios may
violate compliance measurements. Three areas of focus are leverage, cash, and the
share of revenues derived from non-compliant activities. All of these are subject to
evaluation on an ongoing basis.