MEFIC LOCAL EQUITY FUND â DECEMBER 2015
MEFIC LOCAL EQUITY FUND – DECEMBER 2015 Fund Background
Performance Review
MEFIC Capital launched MEFIC Local Equity Fund on May 2015. MEFIC Local Equity Fund is an open end Shariah compliant mutual fund which can invest in Shariah compliant large cap equities & IPOs
During the month of December, the global markets continue downward trend due to concerns surrounding China’s manufacturing activity slowdown. The GCC markets were under pressure due to OPEC’s decision of not cutting oil supply. Also, there were massive cuts in spending announced by the GCC governments. In KSA, there was a spending cut of over 2% compared to last year’s budgeted spending. However, the fund continued to outperform the market and since inception alpha stood at by 3.90% . Going forward, we believe the Saudi market would be under stress due to falling oil prices, unstable political situation in the region and slow down in economic growth.
Fund Facts
Performance
4th
Fund Type Risk Level Custodian Auditors Benchmark Listing Valuation Days Announcement Days Min Initial Investment Min Add Investment Min Redemp. Amount Management Fees Subscription Fees Other Fees Early Red. Charges
Open End High MEFIC Capital KPMG S&P Shariah Index TADAWUL Monday & Thursday Tuesday & Sunday SAR 10,000 SAR 10,000 SAR 10,000 1.5% per annum 1.5% 1.5% per annum 1.5%(Redeem in a month)
Fund Allocation Bank, 6.9% Insurance, 7.8% Cash, 37.4%
Telecommu nication, 7.0%
Agriculture & Food, 13.5%
Cement, 2.0%
Petrochemi cals, 6.0%
Retail , 11.3%
Transportat ion, 8.1%
Performance
1M
3M
Since Inception
Fund
-1.67%
-5.27%
-23.50%
S&P Shariah Index
-4.77%
-5.89%
-27.41%
TASI
-4.53%
-6.65%
-29.15%
Fund Performance Alpha
3.90%
Fund Performance 5%
0.93% 0% 0% 0% -3.12% 0% 0.04% -5% -5.52% -0.68% -6.85% -10%
Since Inception Return Comparison with TASI
-4.40% -5.45% -6.74%
-15%
-19.34%
-20%
-19.25%
-22.36% -22.86% -22.89%
-25%
-24.10%
-25.80% -26.97%
-30% -35% May-15
-22.54%
MEFIC LOCAL EQUITY FUND
June-15
July-15
TASI
August-15
S&P SAUDI Shariah Index
September15
October-15
-22.21%
-23.50%
-23.77% -25.79%
-27.41% -29.15%
November- December-15 15
Contact Information
MEFIC Website
www.mefic.com.sa
Tadawul
www.Tadawul.com.sa 7758, 1st Floor Al Mada Building, King Fahad Road, Riyadh, Saudi Arabia
Address Phone
00966 11 218 6666
Email
[email protected]
Disclaimer All investments in Mutual Funds are subject to market risks. The NAV of the fund units may go up or down based on the market conditions. Past performance is not necessarily indicative of future results. The investors are advised in their own interest to carefully read the Terms & Conditions of the fund in particular the risk disclosures and warning statements mentioned therein.
2
Performance Review
MEFIC Capital launched MEFIC Local Equity Fund on May 2015. MEFIC Local Equity Fund is an open end Shariah compliant mutual fund which can invest in Shariah compliant large cap equities & IPOs
During the month of December, the global markets continue downward trend due to concerns surrounding China’s manufacturing activity slowdown. The GCC markets were under pressure due to OPEC’s decision of not cutting oil supply. Also, there were massive cuts in spending announced by the GCC governments. In KSA, there was a spending cut of over 2% compared to last year’s budgeted spending. However, the fund continued to outperform the market and since inception alpha stood at by 3.90% . Going forward, we believe the Saudi market would be under stress due to falling oil prices, unstable political situation in the region and slow down in economic growth.
Fund Facts
Performance
4th
Fund Type Risk Level Custodian Auditors Benchmark Listing Valuation Days Announcement Days Min Initial Investment Min Add Investment Min Redemp. Amount Management Fees Subscription Fees Other Fees Early Red. Charges
Open End High MEFIC Capital KPMG S&P Shariah Index TADAWUL Monday & Thursday Tuesday & Sunday SAR 10,000 SAR 10,000 SAR 10,000 1.5% per annum 1.5% 1.5% per annum 1.5%(Redeem in a month)
Fund Allocation Bank, 6.9% Insurance, 7.8% Cash, 37.4%
Telecommu nication, 7.0%
Agriculture & Food, 13.5%
Cement, 2.0%
Petrochemi cals, 6.0%
Retail , 11.3%
Transportat ion, 8.1%
Performance
1M
3M
Since Inception
Fund
-1.67%
-5.27%
-23.50%
S&P Shariah Index
-4.77%
-5.89%
-27.41%
TASI
-4.53%
-6.65%
-29.15%
Fund Performance Alpha
3.90%
Fund Performance 5%
0.93% 0% 0% 0% -3.12% 0% 0.04% -5% -5.52% -0.68% -6.85% -10%
Since Inception Return Comparison with TASI
-4.40% -5.45% -6.74%
-15%
-19.34%
-20%
-19.25%
-22.36% -22.86% -22.89%
-25%
-24.10%
-25.80% -26.97%
-30% -35% May-15
-22.54%
MEFIC LOCAL EQUITY FUND
June-15
July-15
TASI
August-15
S&P SAUDI Shariah Index
September15
October-15
-22.21%
-23.50%
-23.77% -25.79%
-27.41% -29.15%
November- December-15 15
Contact Information
MEFIC Website
www.mefic.com.sa
Tadawul
www.Tadawul.com.sa 7758, 1st Floor Al Mada Building, King Fahad Road, Riyadh, Saudi Arabia
Address Phone
00966 11 218 6666
[email protected]
Disclaimer All investments in Mutual Funds are subject to market risks. The NAV of the fund units may go up or down based on the market conditions. Past performance is not necessarily indicative of future results. The investors are advised in their own interest to carefully read the Terms & Conditions of the fund in particular the risk disclosures and warning statements mentioned therein.
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