January-2017 Alinma Multi-Assets Defensive Fund
Alinma Multi-Assets Defensive Fund Approved by Alinma Sharia Board
January-2017
C. R. No. 1010269764 | CMA License No. 09134 - 37
Fund's Objectives & Strategy
Market Outlook & Commentary
Fund seeks to balance between equity and fixed income asset classes by investing at most 25% of Fund's assets into local equity market. Fund adopts a variety of investment strategies, which aims to achieve optimal distribution of assets types to neutralize impact on return. The Fund invests in the following asset class: Equity, Murabaha, Structured Products, Sukuk and Funds.
The Saudi market ended January down by 1.51% (up 3.00% for December) closing at the level of 7,101.86 (down 1.51% YTD). The two largest sectors in the market after applying the new sectors structure in accordance with GICS, Materials and Banks ended the month up by 0.02% (up 0.02% YTD) and down by 1.21% (down 1.21% YTD) versus last month respectively. Other sectors closed the month between up by 6.97% (Insurance) and down 11.32% (Transportation). Market capitalization decreased by 1.39% to SAR 1,658.62 billion while average daily traded value decreased sharply by 18.00% versus last month to SAR 4,488.81 million. The market movement during the month was affected by the announcement of the Saudi Budget, stability in oil prices in addition to corporate quarterly results. Brent price decreased for this month by 3.32% closing at 55.58 USD/bar while average of the month was 55.95 USD/bar, slightly up by 0.67% from last month average (OPEC’s basket ended the month down by 2.08% to 52.19 USD/bar while average of the month was 52.40 USD/bar, up 1.41% versus last month). On interest rate issue, On interest rate issue, FOMC, as expected, kept its rate fixed on the February 1st meeting. On the local market and as a reflection of the continuing stability in local liquidity, average of the Saudi Interbank rate for 6 months for January was 2.20022% p.a. (down by 1.05% versus last month) and closing at 2.17700% p.a.
Fund's Information
Performance & Risk Parameters
Asset Type Risk Level
Open-ended Fund Low to Medium
Fund Manager
Alinma Investment Company
Fund Listing
Saudi Arabia
Launch Date
May 4, 2013
Benchmark
30% equity and 70% Sibor 6 months
Inception Price (SAR)
10.00
Unit Price (SAR)
11.82
AUM (SAR)
35,211,060.88
Base Currency
Saudi Riyal
Initial Investment Subsequent Investment Subscription & Redemption
Monday and Wednsday of every week
Subscription Fees
1.5% of subscribed amount
Management Fees
1.0% per annum
BM
Redemption Fee
1% if Exit Before 1 Month
Gap
Sharia Board
Yes
Bloomberg Code
AMUDEFF AB Equity
130
120 110 100 90
Fund
Fund
1M -0.32%
3M 2.5%
YTD -0.3%
5,000 indivisual/20,000 institution
BM
-0.17%
5.6%
Min of 1,000 individual/10,000 institution
Gap
-0.15% -3.1% 2016 1.5%
Fund
Abbreviations * YTD: Year To Date
* SD: Standard Deviation
* SI: Since Inception
* Avg R: Average Return
* BM: Benchmark
BM
1Y 2.5%
2Y 2.7%
SI 18.2%
-0.2%
8.5%
-1.2%
6.6%
-0.1%
-6.0%
3.9%
11.6%
2015 4.6%
2014 5.6%
4.9%
-3.9%
-0.4%
-3.4%
8.5%
6.0%
Avrg R
SD
Sharpe*
Alpha**
Beta**
Correlation**
Fund
4.6%
5.1%
0.61
2.3%
0.67
0.66
BM
1.7%
5.0%
0.05
* Free interest rate is taken to be the Saudi Interbank Average 12M ** relative to benchmark
Asset Class Distribution
Note: Statistics are based on Inception Date
Murabaha Tenor Distribution
10.0%
8.4% 23.5%
19.6% 48.5%
Cash
< 1M
Equity
1M-3M
Murabaha
3M-6M
Sukuk
6M-9M
Fund
< 12M
90.0%
Equity Sector Allocation
Top Holding
Stock
Code 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sector
1120
Al Rajhi
Banks
2010
SABIC
Materials
2260
Sahara Petrochemical
Materials
4250
Jabal Omar
Real Estate Mgmt & Dev't
1150
Alinma
Banks
Materials
Banks
Health Care Equipment & Svc
Real Estate Mgmt & Development
Telecommunication Services
Transportation
Food & Beverages
Energy
Consumer Services
Capital Goods
Consumer Durables & Apparel
Retailing
Pharma, Biotech & Life Science
Utilities
Diversified Financials
7010
STC
Telecommunication Services
Food & Staples Retailing
Media
Commercial & Professional Svc
4031
SGS
Transportation
Real Estate Investment Trust
Insurance
2270
SADAFCO
Food & Beverages
Disclaimer This material was produced by Alinma Investment, a firm regulated by the Capital Market Authority of KSA. Past performance is not a guide to future returns. All the information contained in this document is believed to be reliable but may be inaccurate or incomplete. A full explanation of the characteristics of the investment is given in the prospectus. Any opinions stated are honestly held but are not guaranteed. The outlook expressed in this fact sheet represents the views of the fund manager at the time of preparation and are not necessarily those of the Alinma Investment as a whole. They may be subject to change and should not be interpreted as investment advice. The document is meant for financial promotion and does not provide you with all the facts you need to make an informed decision about investing and hence is not intended to constitute investment advice. The information provided should not be considered as a recommendation or solicitation to purchase, sell or hold these securities. It should also not be assumed that any investment in these securities was or will be, profitable .Alinma Investment accepts no liability for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. Alinma Investment shall have no responsibility or liability whatsoever in respect of any inaccuracy in or omission from this or any other document prepared by Alinma Investment for, or sent by Alinma Investment to any person and any such person shall be responsible for conducting his own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this or other such document. Alinma Investment is authorized and regulated by the Capital Market Authority(CMA) in the Kingdom of Saudi Arabia.
Head Office اإلدارة العامة P. O. Box 66333 . ب.ص Riyadh 11576 الرياض KSA المملكة العربية السعودية Tel +966 (11) 218 5999 هاتف Fax +966 (11) 218 5970 فاكس www.alinmainvestment.com
January-2017
C. R. No. 1010269764 | CMA License No. 09134 - 37
Fund's Objectives & Strategy
Market Outlook & Commentary
Fund seeks to balance between equity and fixed income asset classes by investing at most 25% of Fund's assets into local equity market. Fund adopts a variety of investment strategies, which aims to achieve optimal distribution of assets types to neutralize impact on return. The Fund invests in the following asset class: Equity, Murabaha, Structured Products, Sukuk and Funds.
The Saudi market ended January down by 1.51% (up 3.00% for December) closing at the level of 7,101.86 (down 1.51% YTD). The two largest sectors in the market after applying the new sectors structure in accordance with GICS, Materials and Banks ended the month up by 0.02% (up 0.02% YTD) and down by 1.21% (down 1.21% YTD) versus last month respectively. Other sectors closed the month between up by 6.97% (Insurance) and down 11.32% (Transportation). Market capitalization decreased by 1.39% to SAR 1,658.62 billion while average daily traded value decreased sharply by 18.00% versus last month to SAR 4,488.81 million. The market movement during the month was affected by the announcement of the Saudi Budget, stability in oil prices in addition to corporate quarterly results. Brent price decreased for this month by 3.32% closing at 55.58 USD/bar while average of the month was 55.95 USD/bar, slightly up by 0.67% from last month average (OPEC’s basket ended the month down by 2.08% to 52.19 USD/bar while average of the month was 52.40 USD/bar, up 1.41% versus last month). On interest rate issue, On interest rate issue, FOMC, as expected, kept its rate fixed on the February 1st meeting. On the local market and as a reflection of the continuing stability in local liquidity, average of the Saudi Interbank rate for 6 months for January was 2.20022% p.a. (down by 1.05% versus last month) and closing at 2.17700% p.a.
Fund's Information
Performance & Risk Parameters
Asset Type Risk Level
Open-ended Fund Low to Medium
Fund Manager
Alinma Investment Company
Fund Listing
Saudi Arabia
Launch Date
May 4, 2013
Benchmark
30% equity and 70% Sibor 6 months
Inception Price (SAR)
10.00
Unit Price (SAR)
11.82
AUM (SAR)
35,211,060.88
Base Currency
Saudi Riyal
Initial Investment Subsequent Investment Subscription & Redemption
Monday and Wednsday of every week
Subscription Fees
1.5% of subscribed amount
Management Fees
1.0% per annum
BM
Redemption Fee
1% if Exit Before 1 Month
Gap
Sharia Board
Yes
Bloomberg Code
AMUDEFF AB Equity
130
120 110 100 90
Fund
Fund
1M -0.32%
3M 2.5%
YTD -0.3%
5,000 indivisual/20,000 institution
BM
-0.17%
5.6%
Min of 1,000 individual/10,000 institution
Gap
-0.15% -3.1% 2016 1.5%
Fund
Abbreviations * YTD: Year To Date
* SD: Standard Deviation
* SI: Since Inception
* Avg R: Average Return
* BM: Benchmark
BM
1Y 2.5%
2Y 2.7%
SI 18.2%
-0.2%
8.5%
-1.2%
6.6%
-0.1%
-6.0%
3.9%
11.6%
2015 4.6%
2014 5.6%
4.9%
-3.9%
-0.4%
-3.4%
8.5%
6.0%
Avrg R
SD
Sharpe*
Alpha**
Beta**
Correlation**
Fund
4.6%
5.1%
0.61
2.3%
0.67
0.66
BM
1.7%
5.0%
0.05
* Free interest rate is taken to be the Saudi Interbank Average 12M ** relative to benchmark
Asset Class Distribution
Note: Statistics are based on Inception Date
Murabaha Tenor Distribution
10.0%
8.4% 23.5%
19.6% 48.5%
Cash
< 1M
Equity
1M-3M
Murabaha
3M-6M
Sukuk
6M-9M
Fund
< 12M
90.0%
Equity Sector Allocation
Top Holding
Stock
Code 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Sector
1120
Al Rajhi
Banks
2010
SABIC
Materials
2260
Sahara Petrochemical
Materials
4250
Jabal Omar
Real Estate Mgmt & Dev't
1150
Alinma
Banks
Materials
Banks
Health Care Equipment & Svc
Real Estate Mgmt & Development
Telecommunication Services
Transportation
Food & Beverages
Energy
Consumer Services
Capital Goods
Consumer Durables & Apparel
Retailing
Pharma, Biotech & Life Science
Utilities
Diversified Financials
7010
STC
Telecommunication Services
Food & Staples Retailing
Media
Commercial & Professional Svc
4031
SGS
Transportation
Real Estate Investment Trust
Insurance
2270
SADAFCO
Food & Beverages
Disclaimer This material was produced by Alinma Investment, a firm regulated by the Capital Market Authority of KSA. Past performance is not a guide to future returns. All the information contained in this document is believed to be reliable but may be inaccurate or incomplete. A full explanation of the characteristics of the investment is given in the prospectus. Any opinions stated are honestly held but are not guaranteed. The outlook expressed in this fact sheet represents the views of the fund manager at the time of preparation and are not necessarily those of the Alinma Investment as a whole. They may be subject to change and should not be interpreted as investment advice. The document is meant for financial promotion and does not provide you with all the facts you need to make an informed decision about investing and hence is not intended to constitute investment advice. The information provided should not be considered as a recommendation or solicitation to purchase, sell or hold these securities. It should also not be assumed that any investment in these securities was or will be, profitable .Alinma Investment accepts no liability for any loss arising from the use of this document or its contents or otherwise arising in connection therewith. Alinma Investment shall have no responsibility or liability whatsoever in respect of any inaccuracy in or omission from this or any other document prepared by Alinma Investment for, or sent by Alinma Investment to any person and any such person shall be responsible for conducting his own investigation and analysis of the information contained or referred to in this document and of evaluating the merits and risks involved in the securities forming the subject matter of this or other such document. Alinma Investment is authorized and regulated by the Capital Market Authority(CMA) in the Kingdom of Saudi Arabia.
Head Office اإلدارة العامة P. O. Box 66333 . ب.ص Riyadh 11576 الرياض KSA المملكة العربية السعودية Tel +966 (11) 218 5999 هاتف Fax +966 (11) 218 5970 فاكس www.alinmainvestment.com
