Al Yusr Saudi Equity Fund - Alawwal Invest
Al Yusr Saudi Equity Fund Fact Sheet Investment Policy
As of 30 Jun 2016
Fund Performance
The fund invests in listed Saudi Arabian equities excluding non-Shariah compliant Companies shares and in short-term Morabaha instruments. The fund is actively managed, dividend income is a secondary consideration, it favors sectors and companies with above-average earnings growth prospects. The fund’s objective is to achieve longterm capital appreciation. Fund Manager Comments The Shariah compliant Saudi equity return measured by S&P Saudi Arabian Shariah total return index was (8.58%) during the 2nd quarter of 2016. For the same period, AlYusr Saudi Equity Fund returned (5.1%), underperforming the benchmark by (3.57%). The rise in the Market was driven by the oil price rally after making a new low in the first quarter. Globally, growth is a main concern with Chinese economy struggling to keep up growth rate and Brexit adding more uncertainty to the global markets.
YTD 1 Year 3 Years 5 Years Since Inception 22-Jul-1995 CAGR (3 Years) CAGR (5 Years)
Fund
Benchmark*
Alpha
-2.46% -24.86% 16.56% 34.44% 631.93% 5.24% -2.46%
0.09% -22.74% -8.53% 11.08% N/A -2.93% 0.09%
-2.56% -2.12% 25.09% 23.36% N/A 8.17% -2.56% *Source: S&P Dow Jones
Asset Allocation - Agri. & Food Industries Sector - Banks & Financial Services Sector - Building & Construction Sector - CASH - Cement Sector - Hotel & Tourism Sector
Fund Characteristics
- Industrial Investment Sector
22-Jul-1995 SAR10 Saudi Riyal Saudi Riyal 1.50% 1.95% 0.50% In case of redemption within one month of Sub Minimum Initial Subscription SAR 5,000 Min Required for Additional Subscription or Redemption SAR 2,000 Price Announcement Day Every Business Day Cut-off Time for Subscription & Redemption 12 Noon Every Day Redemption Payment Period from Announcement Day 1 Business Day Benchmark S&P Saudi Arabian Shariah total return index
- Petrochemical Industries Sector
Date of Inception Unit Price at Inception Fund’s Base Currency Fund’s Currency of Exposure Subscription Fee Annual Management Fee Redemption Fee
- Real Estate Development Sector - Retail Sector - Telecom. & Info. Technology Sector - Transport Sector - Insurance Sector
Top 3 Holdings
SAVOLA Group
Alinma
Key Benefits • Way to exploit the potential of major Shariah-compliant companies in the Saudi market • Offers the investor broad diversification within the Saudi Stock Market • Taps into the expertise of proven investment specialists
Yamamah Cement
Investor Profile
4.50%
• High risk tolerance: willing to tolerate price fluctuation • Long term investment strategy
Investment Universe
• Shariah-complaint companies in the Saudi stock market • Companies with high dividend yield, low price to book value, future potential growth, good return on equity and attractive price earning ratio
Fund Performance vs. Benchmark*
5.00%
5.50%
6.00%
Portfolio Statistics (3 Years) Sharpe Ratio Volatility (Sigma) Treynor Ratio Tracking Error Correlation Beta Information Ratio
Fund
Benchmark
0.15 21.55% 0.04 4.88% 98.12% 0.89 1.67
-0.21 23.69%
Portfolio Statistics (1 year)
108 103
Sharpe Ratio Volatility (Sigma) Treynor Ratio Tracking Error Correlation Beta Information Ratio
98 93 88 83 78 73 68
Fund
Benchmark
-0.99 27.09% -0.31 5.01% 99.02% 0.87 -0.42
-0.82 30.10%
Major Market Indices
63 58
Yusr Saudi Equity Fund
Benchmark
TASI S&P 500 Dow Jones NASDAQ FTSE 100 Nikkei 225 MSCI World
YTD -8.82% 6.34% 5.78% 3.09% 7.72% -12.60% 3.55%
Al Yusr Saudi Equity Fund Fact Sheet Disclaimer Alawwal Invest is an authorized person under CMA license number 07077-37. This material is for information purpose only and is not to offer or solicitation to buy or sell any security, enter into any transaction or to participate in any trading activity. This brief statement cannot disclose all the risks and other significant aspects of the markets. Mentioned Figures refer to the past. Past performance is not a reliable indicator of the future results. It should not be assumed that the methods, techniques, or indicators presented herein will be profitable or that they will not result in losses. Investing in Alawwal funds is not the same as placing deposit with a bank, Alawwal has no obligation to redeem units at the subscription value of as the underlying net asset value can go down as well as up. Alawwal funds may invest in equities and therefore be subject to high fluctuations in value. Each fund's performance can deviate substantially from that of its benchmark. Focusing intentionally on individual sectors may entail additional risks. Investors may get back less than he or she originally invested. Fees mentioned in the T&C will be applied. Changes in currency rates may have an adverse effect on the value, price or income of this security. To ensure proper understanding of the fund and its suitability for you according to your risk tolerance, we recommend that you seek a specialized investment advisor. More information about the fund and the risk associated with investing in them are available in the terms and conditions applicable to that fund and should be read carefully before investing. These terms and conditions can be obtained from any of Alawwal’s branches or Alawwal’s website. At any time Alawwal or its affiliates may have a position in the underlying securities or provide significant advice or securities business services to the issuer of those securities.
Glossary Net Asset Value (NAV) Value of an investment fund unit corresponding to the market value of the fund’s assets on a set reference date, minus liabilities and divided by the number of units outstanding. Benchmark Index against which an investment fund’s performance is measured. Also called a reference index. Alpha Alpha measures the difference between a portfolio’s actual returns and its benchmark’s return. A positive alpha means the fund has outperformed its benchmark. A negative alpha means that the fund has underperformed the benchmark. CAGR The year-over-year growth rate of an investment over a specified period of time. The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered. Sharpe ratio The sharp ratio expresses how much higher (or lower) a return an investor can expect compared to the risk-free rate of interest (e.g. interest rates on savings accounts) per unit of risk (volatility). The risk-free rate of interest varies from currency to currency. Volatility A statistical measure of the dispersion of returns for a given security or market index. Volatility can be measured by using the standard deviation. Commonly, the higher the volatility, the riskier the security. Treynor Ratio A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. The Treynor ratio is calculated as: (Average Return of the Portfolio - Average Return of the Risk-Free Rate) / Beta of the Portfolio
Tracking Error A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. Correlation A measure of the degree to which the price trends of various investment categories or instruments move in the same direction. The correlation quantifies the strength of the relationship as a figure between -1 and +1. The closer the coefficient is to 1, the stronger the correlation. If the coefficient is -1, the investments and the benchmark move in opposite directions. If the value is 0 , there is no correlation . Beta A measure of risk which indicates the sensitivity of an investment, such as an investment fund, to fluctuations in the market, as represented by the relevant benchmark. For example, a beta of 1.2 tells us that the value of an investment fund can be expected to change by 12% if the market is forecast to move by 10%. The relation is based on historical data and is only an approximation . However, the closer the correlation between the benchmark and the investment fund, the better this approximation.
Information ratio Measures a fund manager’s success of active portfolio management. Quotient of the mean relative return and the standard deviation of relative return (tracking error). Information ration is usually annualized.
As of 30 Jun 2016
Fund Performance
The fund invests in listed Saudi Arabian equities excluding non-Shariah compliant Companies shares and in short-term Morabaha instruments. The fund is actively managed, dividend income is a secondary consideration, it favors sectors and companies with above-average earnings growth prospects. The fund’s objective is to achieve longterm capital appreciation. Fund Manager Comments The Shariah compliant Saudi equity return measured by S&P Saudi Arabian Shariah total return index was (8.58%) during the 2nd quarter of 2016. For the same period, AlYusr Saudi Equity Fund returned (5.1%), underperforming the benchmark by (3.57%). The rise in the Market was driven by the oil price rally after making a new low in the first quarter. Globally, growth is a main concern with Chinese economy struggling to keep up growth rate and Brexit adding more uncertainty to the global markets.
YTD 1 Year 3 Years 5 Years Since Inception 22-Jul-1995 CAGR (3 Years) CAGR (5 Years)
Fund
Benchmark*
Alpha
-2.46% -24.86% 16.56% 34.44% 631.93% 5.24% -2.46%
0.09% -22.74% -8.53% 11.08% N/A -2.93% 0.09%
-2.56% -2.12% 25.09% 23.36% N/A 8.17% -2.56% *Source: S&P Dow Jones
Asset Allocation - Agri. & Food Industries Sector - Banks & Financial Services Sector - Building & Construction Sector - CASH - Cement Sector - Hotel & Tourism Sector
Fund Characteristics
- Industrial Investment Sector
22-Jul-1995 SAR10 Saudi Riyal Saudi Riyal 1.50% 1.95% 0.50% In case of redemption within one month of Sub Minimum Initial Subscription SAR 5,000 Min Required for Additional Subscription or Redemption SAR 2,000 Price Announcement Day Every Business Day Cut-off Time for Subscription & Redemption 12 Noon Every Day Redemption Payment Period from Announcement Day 1 Business Day Benchmark S&P Saudi Arabian Shariah total return index
- Petrochemical Industries Sector
Date of Inception Unit Price at Inception Fund’s Base Currency Fund’s Currency of Exposure Subscription Fee Annual Management Fee Redemption Fee
- Real Estate Development Sector - Retail Sector - Telecom. & Info. Technology Sector - Transport Sector - Insurance Sector
Top 3 Holdings
SAVOLA Group
Alinma
Key Benefits • Way to exploit the potential of major Shariah-compliant companies in the Saudi market • Offers the investor broad diversification within the Saudi Stock Market • Taps into the expertise of proven investment specialists
Yamamah Cement
Investor Profile
4.50%
• High risk tolerance: willing to tolerate price fluctuation • Long term investment strategy
Investment Universe
• Shariah-complaint companies in the Saudi stock market • Companies with high dividend yield, low price to book value, future potential growth, good return on equity and attractive price earning ratio
Fund Performance vs. Benchmark*
5.00%
5.50%
6.00%
Portfolio Statistics (3 Years) Sharpe Ratio Volatility (Sigma) Treynor Ratio Tracking Error Correlation Beta Information Ratio
Fund
Benchmark
0.15 21.55% 0.04 4.88% 98.12% 0.89 1.67
-0.21 23.69%
Portfolio Statistics (1 year)
108 103
Sharpe Ratio Volatility (Sigma) Treynor Ratio Tracking Error Correlation Beta Information Ratio
98 93 88 83 78 73 68
Fund
Benchmark
-0.99 27.09% -0.31 5.01% 99.02% 0.87 -0.42
-0.82 30.10%
Major Market Indices
63 58
Yusr Saudi Equity Fund
Benchmark
TASI S&P 500 Dow Jones NASDAQ FTSE 100 Nikkei 225 MSCI World
YTD -8.82% 6.34% 5.78% 3.09% 7.72% -12.60% 3.55%
Al Yusr Saudi Equity Fund Fact Sheet Disclaimer Alawwal Invest is an authorized person under CMA license number 07077-37. This material is for information purpose only and is not to offer or solicitation to buy or sell any security, enter into any transaction or to participate in any trading activity. This brief statement cannot disclose all the risks and other significant aspects of the markets. Mentioned Figures refer to the past. Past performance is not a reliable indicator of the future results. It should not be assumed that the methods, techniques, or indicators presented herein will be profitable or that they will not result in losses. Investing in Alawwal funds is not the same as placing deposit with a bank, Alawwal has no obligation to redeem units at the subscription value of as the underlying net asset value can go down as well as up. Alawwal funds may invest in equities and therefore be subject to high fluctuations in value. Each fund's performance can deviate substantially from that of its benchmark. Focusing intentionally on individual sectors may entail additional risks. Investors may get back less than he or she originally invested. Fees mentioned in the T&C will be applied. Changes in currency rates may have an adverse effect on the value, price or income of this security. To ensure proper understanding of the fund and its suitability for you according to your risk tolerance, we recommend that you seek a specialized investment advisor. More information about the fund and the risk associated with investing in them are available in the terms and conditions applicable to that fund and should be read carefully before investing. These terms and conditions can be obtained from any of Alawwal’s branches or Alawwal’s website. At any time Alawwal or its affiliates may have a position in the underlying securities or provide significant advice or securities business services to the issuer of those securities.
Glossary Net Asset Value (NAV) Value of an investment fund unit corresponding to the market value of the fund’s assets on a set reference date, minus liabilities and divided by the number of units outstanding. Benchmark Index against which an investment fund’s performance is measured. Also called a reference index. Alpha Alpha measures the difference between a portfolio’s actual returns and its benchmark’s return. A positive alpha means the fund has outperformed its benchmark. A negative alpha means that the fund has underperformed the benchmark. CAGR The year-over-year growth rate of an investment over a specified period of time. The compound annual growth rate is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered. Sharpe ratio The sharp ratio expresses how much higher (or lower) a return an investor can expect compared to the risk-free rate of interest (e.g. interest rates on savings accounts) per unit of risk (volatility). The risk-free rate of interest varies from currency to currency. Volatility A statistical measure of the dispersion of returns for a given security or market index. Volatility can be measured by using the standard deviation. Commonly, the higher the volatility, the riskier the security. Treynor Ratio A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless investment per each unit of market risk. The Treynor ratio is calculated as: (Average Return of the Portfolio - Average Return of the Risk-Free Rate) / Beta of the Portfolio
Tracking Error A divergence between the price behavior of a position or a portfolio and the price behavior of a benchmark. Correlation A measure of the degree to which the price trends of various investment categories or instruments move in the same direction. The correlation quantifies the strength of the relationship as a figure between -1 and +1. The closer the coefficient is to 1, the stronger the correlation. If the coefficient is -1, the investments and the benchmark move in opposite directions. If the value is 0 , there is no correlation . Beta A measure of risk which indicates the sensitivity of an investment, such as an investment fund, to fluctuations in the market, as represented by the relevant benchmark. For example, a beta of 1.2 tells us that the value of an investment fund can be expected to change by 12% if the market is forecast to move by 10%. The relation is based on historical data and is only an approximation . However, the closer the correlation between the benchmark and the investment fund, the better this approximation.
Information ratio Measures a fund manager’s success of active portfolio management. Quotient of the mean relative return and the standard deviation of relative return (tracking error). Information ration is usually annualized.
