SICO Kingdom Equity Fund

The Fund focuses on securities listed in Saudi Arabia, allowing investors to benefit from the kingdom’s growing equity market. Its bottom-up approach focuses on stock picking to achieve long-term capital appreciation and actively seeks out investment opportunities rather than a passive index-weighted approach.

Fund Proposition

SICO Kingdom Equity Fund (SKEF) provides an opportunity for investors to benefit from the growing equity market of Saudi Arabia.

Investment Objective

The primary objective of the Fund is to seek long-term capital appreciation. The Fund will aim to achieve this investment objective by investing in equity securities listed in Saudi Arabia. However, from time to time, the Fund may also invest in equity-related, hybrid and debt instruments originating from Saudi Arabia.

Investment Strategy

Since its inception SKEF has been one of the top performing funds in the region. Key to the Fund's performance has been its investment philosophy.

SKEF adopts a bottom-up investment approach which is backed by a research-intensive investment process. The Fund invests in companies that the Investment Team believes are fundamentally undervalued, and have a sufficient margin of safety in order to limit the downside risk of the investment.

Investment Process

The investment process is underpinned by fundamental research which is spearheaded by an in-house team of analysts. As bottom-up stock pickers, the Investment Team primarily focuses its efforts on understanding the fundamentals of the business, assessing the quality of management, and evaluating the downside risk to investment.

Risk Management

A dedicated risk management team closely monitors the performance of the Fund to ensure adherence to internal and external guidelines.

The Fund is also reviewed regularly by the Asset Management Committee which comprises senior management of SICO BSC(c). The Committee meets regularly to confirm that the Investment Manager adheres to the risk return parameters of the Fund.

SKEF is audited annually by external auditors and is regulated by the Central Bank of Bahrain.

Subscription

Subscription to the Fund is carried out on a weekly basis. A completed Subscription Agreement should be submitted at least two business days prior to such subscription date. Units will be offered on each Subscription Day at the Net Asset Value (NAV) per unit as calculated on the relevant Valuation Day, provided that the minimum initial subscription is USD 100,000.

Redemption

Units of SKEF can be redeemed on a weekly basis, provided that the Redemption Request Form is received at least two business days prior to the relevant Redemption Day.

Dividend Policy

It is the intention of the Fund Company to declare and distribute dividends to Unit holders on an annual basis. However, the Directors reserve the right, at their sole discretion, not to pay dividends at all over the life of the Fund.

Fees and Expenses

The Fund’s Units are subject to the following fees and expenses:

  • Management Fee: The Investment Manager will receive a fixed management fee of 1.50% per annum.
  • Administration Fee: The Administrator will be entitled to a fee not exceeding 0.25% of the NAV per annum, subject to a minimum
  • Custodian Fee: The Custodian will be entitled to a fee not exceeding 0.30% of the NAV per annum, subject to a minimum.

Reporting

The Investment Manager publishes a monthly report detailing the Net Asset Value, asset allocation, key statistics, sectoral breakdown, and top holdings of the Fund.

Potential Risk Factors

Investment in the Fund carries significant risk and should be regarded as long term in nature, and only suitable for investors who understand the risks involved, and who are able to withstand the loss of all or part of their invested capital.

The value of an investment in the Fund may decrease as well as increase, and there is no assurance that the Fund will be profitable or that investors in the Fund will recover any of their invested amounts. Please refer to the section “Risk Factors” in the Information Memorandum for more details.

Contact Details

For further information, please contact:

Marketing:
Telephone: +973 1751 5000
Email: assetmanagement@sicobank.com