Derayah Opportunistic Saudi Equity Fund

Following its launch on the 12^th August 2024, the Derayah Opportunistic Saudi Equity Fund is an open-ended public equity fund that aims to grow investors’ capital in the long term.

Managed by Riyadh-based Derayah Financial, the fund will be investing primarily in public equities, including IPO stocks, in the Saudi main stock market (Tadawul) and the parallel market (Nomu), as well as global markets.

Other investments given focus include exchange-traded funds (ETFs), real estate traded funds, traded index funds and money market funds in Saudi riyals. A 10% cap on the fund’s net asset value (NAV) applies on placements in investment funds offered privately.

Further, the fund can seek to invest in money market transactions plus Murabahah and trade finance contracts characterized by high liquidity and low risk. No more than 10% of the fund’s NAV can be placed in any single issuer.

The fund’s performance will not be linked to any index and the S&P Saudi Arabia Shariah TR Index will be used as a reference. Profits gained will be reinvested, not distributed, to unitholders as these are considered to be an essential part this capital growth fund.

The initial offering period is from the 19^th August 2024 to the 31^st October 2024, or earlier if the fund manager receives a minimum SAR3 million (US$798,870). Units are priced at SAR10 (US$2.66) each with a minimum SAR100 (US$26.63) investment at any point.

*Disclaimer:  The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.