Saudi Fransi Capital (BSF Capital)’s Algorithm Enhanced Saudi Equity Trading Fund is a Shariah compliant public equity vehicle that uses systematic, data-driven models to deliver medium- to long-term capital growth across Saudi-listed equities.
Publicly offered from the 3rd September 2025, this open-ended fund’s strategy focuses primarily on equities listed on the Saudi Stock Exchange’s Main Market (Tadawul) and the Parallel Market (Nomu) – aiming to achieve medium- to long-term growth, where all profits are automatically reinvested.
Participation in IPOs and rights issues is also permitted. A minimum of 80% must be held in Tadawul-listed equities while a 15% cap applies for Nomu-listed securities.
The fund may consider investing in licensed public equity funds, REITs and ETFs – with a 10% limit. This cap also applies to investments in financial derivatives for hedging purposes.
A higher 20% ratio is allowed for holdings in money market funds and other approved Shariah compliant instruments – including short-term bank deposits and money market transactions concluded with a counterparty regulated by the Saudi Central Bank.
“Our approach is grounded in disciplined, data-driven portfolio construction,” said a representative from BSF Capital. “By applying statistical and scientific methodologies, the fund is able to forecast risk and returns, optimize portfolio weights and manage costs efficiently.”
The fund seeks to outperform its benchmark – the S&P Saudi Arabia Shariah Domestic Total Return Index – by deploying proprietary algorithmic strategies that analyze expected returns, liquidity and risk, while integrating both fundamental and technical signals.
While most investment decisions are executed in line with the system’s output, the fund manager retains discretion to override the model in exceptional circumstances such as severe market dislocations or unexpected geopolitical events, to safeguard unitholders’ interests.
Units are offered in two non-transferable classes. Class A targets institutional investors, with a minimum initial entry of SAR25 million (US$6.67 million), while additional subscriptions and redemptions are to be in multiples of SAR100,000 (US$26,667).
Class B is designed for broader investor participation, with a minimum subscription of SAR2,000 (US$533), with additional subscriptions and redemptions set at SAR1,000 (US$267) multiples. The nominal value of each unit at launch was SAR10 (US$2.67).
3% of the total subscription amount is payable upfront. Management fees are at 1.25% per annum of NAV for Class A unitholders and 1.75% per annum for Class B unitholders.
*Disclaimer: The opinions and viewpoints expressed in this Fund Profile do not constitute as recommendations for any fund highlighted. The information presented is not investment advice and should not be treated as such.
| Algorithm Enhanced Saudi Equity Trading Fund | |
| Fund manager | Saudi Fransi Capital (BSF Capital) |
| Launch date | 3rd September 2025 |
| Asset class | Equities |
| Base currency | Saudi Arabian Riyal (SAR) |
| Initial investment | Class A: SAR25 million (US$6.67 million) Class B: SAR2,000 (US$533) |
| Unit price | SAR10 (US$2.67) |
| Investment objective | Seeks to achieve medium- to long-term capital growth by outperforming its benchmark index |
| Benchmark | S&P Saudi Arabia Shariah Domestic Total Return Index |
| Risk profile | High |
| Distribution | Automatically reinvested |
| Subscription fee | 3% |
| Management fee | Class A (1.25%), Class B (1.75%) |
Source: BSF Capital
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