IMSF Q4 2015 Factsheet.xlsx - Itqan Capital
Fact sheet - 31 December 2015
NAV per unit SAR 10.8740
Key Facts Fund Manager
Itqan Capital
Fund Class
Capital Preservation
Currency
Saudi Riyal (SAR)
Fund Type
Open-ended Fund
Fund Category
Diversified Public Fund
Subscription
Every working day
Redemption
Thursday & Monday
Valuation Days
Sunday & Tuesday
Redemption Payment
Within 2 working days of next valuation day
Unit Value @ Inception
SAR 10
Commencement
4-Aug-2008
Fund Manager Commentary Itqan Murabahat and Sukuk Fund continued to strongly outperform its mandated benchmark and comparable peers in Q4 2015, achieving an annualized return of 2.39% for the period. This adds to the Fund's stellar run in 9M 2015 and raises the Fund's total return since inception and accumulative alpha to 8.74% and 4.46% respectively. The long pending decision by the Fed on interest rate increase remained in limelight through most of the quarter. Though almost 70% of the fixed income traders expected a hike in this quarter, the magnitude of the increase and the pace of hikes dominated the talk. On the broader perspective the pressure and the concerns on the emerging economies that started building up in the 3rd quarter remained in the limelight in the 4th quarter as well not only keeping their respective equity markets in pressure but also keeping the bond prices in pressure as well, thereby pushing up the yields in fixed income space in these markets disproportionate to the rate hike expectation by the Fed. In GCC markets, an unanticipated two notch downgrade of Saudi Arabia by S&P to A+ and a potential downgrade of Bahrain to the speculative grade
Performance and Benchmark
spurred the selling spree. Towards the end of the quarter, the market finally breathed a respite with only a moderate increase of 0.25% by the Fed as well as the comfort that the subsequent increases would be at a moderate pace. In the GCC, the market finally rejoiced maintenance of the credit rating of Bahrain as well as the announcement of prudent fiscal measures by the respective national governments. In this context, the Fund Manager remained highly cautious in the overall fund management. Significant redemptions from the portfolio at the beginning of the quarter rather kept the fund manager defensive during the quarter. With the Murabaha rates already starting to rise, the fund manager expects to re-deploy the maturing Murabahas at improved rates across GCC. The fund achieved a strong quarterly performance in spite of the higher market volatility and sell-off. Going forward, the Fund Manager will maintain an active asset allocation approach to maintain its performance as the top performing money market fund in the Saudi
Performance and Benchmark- Since August 2008 IMS Fund
Benchmark
Asset Allocation
Alpha < 1 m; 9%
9.00%
Benchmark
Three months SIBID
Risk Level
Low-Medium
8.00%
Management Fee
0.25% annually of NAV
7.00%
Admin & Unit Processing fee
0.15% annually of NAV
Other Fees
0.10% annually of NAV
External Auditor
Ernst & Young
5.00%
Bloomberg Ticker
ALDLIQS AB
4.00%
1 yr.+; 45%
1- 3 m; 5%
3- 6 m; 20%
6.00%
Morningstar SecID
F00000PW83
Reuters Code
LP65135696
Zawya Code
TFGADLS.IF
6- 9 m; 21% 9m-1 yr.; 2%
3.00%
Fund
Benchmark
2010
0.30%
-0.29%
2011
0.65%
0.25%
2012
0.82%
0.76%
2013
0.83%
0.78%
2014
1.78%
0.82%
2015
2.38%
0.76%
Since Inception
8.74%
4.28%
Accumulative Alpha
4.46%
Fund Objectives Itqan Murabahat & Sukuk Fund (SAR) is a public diversified fund aimed at realizing Shariahcompliant superior returns while preserving capital participation, providing investors with the facility of redemption upon need and with the best method of risk management. In order to achieve its investment objectives, the Fund will primarily invest in a diversified portfolio of high-quality Shariah-compliant short- and medium-term investment instruments including: commodity Murabaha-based transactions, various kinds of listed Sukuk, and units of investment funds investing primarily in Murabahat transactions and/or Sukuk.
CASH 0% FUNDS 0%
2.00% SUKUK 45%
1.00% 0.00%
MURABAHAT 55%
SAR 52%
USD 41%
-1.00%
Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15
Fund Ranking: No. # 1 in KSA (as per Tadawul)
Itqan Capital, authorized by CMA, license # 07058-37, PO Box 8021, Jeddah , Elite Al Shatea, Al Malik Road, KSA. Tel. +966 12 234 7000, Fax. +966 12 234 7222, Toll Free 800 30 30 800
Disclaimer: Neither the past performance of the investment fund nor the past performance of the index is an indication of how the investment fund will perform in the future. There is no guarantee for unit holders that the investment
BHD 6%
www.itqancapital.com A member of Al Baraka Banking Group
NAV per unit SAR 10.8740
Key Facts Fund Manager
Itqan Capital
Fund Class
Capital Preservation
Currency
Saudi Riyal (SAR)
Fund Type
Open-ended Fund
Fund Category
Diversified Public Fund
Subscription
Every working day
Redemption
Thursday & Monday
Valuation Days
Sunday & Tuesday
Redemption Payment
Within 2 working days of next valuation day
Unit Value @ Inception
SAR 10
Commencement
4-Aug-2008
Fund Manager Commentary Itqan Murabahat and Sukuk Fund continued to strongly outperform its mandated benchmark and comparable peers in Q4 2015, achieving an annualized return of 2.39% for the period. This adds to the Fund's stellar run in 9M 2015 and raises the Fund's total return since inception and accumulative alpha to 8.74% and 4.46% respectively. The long pending decision by the Fed on interest rate increase remained in limelight through most of the quarter. Though almost 70% of the fixed income traders expected a hike in this quarter, the magnitude of the increase and the pace of hikes dominated the talk. On the broader perspective the pressure and the concerns on the emerging economies that started building up in the 3rd quarter remained in the limelight in the 4th quarter as well not only keeping their respective equity markets in pressure but also keeping the bond prices in pressure as well, thereby pushing up the yields in fixed income space in these markets disproportionate to the rate hike expectation by the Fed. In GCC markets, an unanticipated two notch downgrade of Saudi Arabia by S&P to A+ and a potential downgrade of Bahrain to the speculative grade
Performance and Benchmark
spurred the selling spree. Towards the end of the quarter, the market finally breathed a respite with only a moderate increase of 0.25% by the Fed as well as the comfort that the subsequent increases would be at a moderate pace. In the GCC, the market finally rejoiced maintenance of the credit rating of Bahrain as well as the announcement of prudent fiscal measures by the respective national governments. In this context, the Fund Manager remained highly cautious in the overall fund management. Significant redemptions from the portfolio at the beginning of the quarter rather kept the fund manager defensive during the quarter. With the Murabaha rates already starting to rise, the fund manager expects to re-deploy the maturing Murabahas at improved rates across GCC. The fund achieved a strong quarterly performance in spite of the higher market volatility and sell-off. Going forward, the Fund Manager will maintain an active asset allocation approach to maintain its performance as the top performing money market fund in the Saudi
Performance and Benchmark- Since August 2008 IMS Fund
Benchmark
Asset Allocation
Alpha < 1 m; 9%
9.00%
Benchmark
Three months SIBID
Risk Level
Low-Medium
8.00%
Management Fee
0.25% annually of NAV
7.00%
Admin & Unit Processing fee
0.15% annually of NAV
Other Fees
0.10% annually of NAV
External Auditor
Ernst & Young
5.00%
Bloomberg Ticker
ALDLIQS AB
4.00%
1 yr.+; 45%
1- 3 m; 5%
3- 6 m; 20%
6.00%
Morningstar SecID
F00000PW83
Reuters Code
LP65135696
Zawya Code
TFGADLS.IF
6- 9 m; 21% 9m-1 yr.; 2%
3.00%
Fund
Benchmark
2010
0.30%
-0.29%
2011
0.65%
0.25%
2012
0.82%
0.76%
2013
0.83%
0.78%
2014
1.78%
0.82%
2015
2.38%
0.76%
Since Inception
8.74%
4.28%
Accumulative Alpha
4.46%
Fund Objectives Itqan Murabahat & Sukuk Fund (SAR) is a public diversified fund aimed at realizing Shariahcompliant superior returns while preserving capital participation, providing investors with the facility of redemption upon need and with the best method of risk management. In order to achieve its investment objectives, the Fund will primarily invest in a diversified portfolio of high-quality Shariah-compliant short- and medium-term investment instruments including: commodity Murabaha-based transactions, various kinds of listed Sukuk, and units of investment funds investing primarily in Murabahat transactions and/or Sukuk.
CASH 0% FUNDS 0%
2.00% SUKUK 45%
1.00% 0.00%
MURABAHAT 55%
SAR 52%
USD 41%
-1.00%
Aug-08 Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15
Fund Ranking: No. # 1 in KSA (as per Tadawul)
Itqan Capital, authorized by CMA, license # 07058-37, PO Box 8021, Jeddah , Elite Al Shatea, Al Malik Road, KSA. Tel. +966 12 234 7000, Fax. +966 12 234 7222, Toll Free 800 30 30 800
Disclaimer: Neither the past performance of the investment fund nor the past performance of the index is an indication of how the investment fund will perform in the future. There is no guarantee for unit holders that the investment
BHD 6%
www.itqancapital.com A member of Al Baraka Banking Group
