November-2017 Alinma Multi-Assets Defensive Fund AWS
Alinma Multi-Assets Defensive Fund Approved by Alinma Sharia Board
November-2017
C. R. No. 1010269764 | CMA License No. 09134 - 37
Fund's Objectives & Strategy
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. Market Outlook & Commentary The Saudi market ended November up by 1.00% on monthly basis (down by 4.79% for October) closing at the level of 7,003.97 (down 2.86% YTD), and trading between the maximum 7,003.97 and the minimum 6,925.65. Market’s P/E, P/B, and DY as of end of month were approximately 16.61, 1.6, and 3.40% respectively (as reported by Bloomberg) compared to 15.44, 1.75, and 2.30% respectively for emerging markets (represented by MSCI EM Index covering large and mid-cap companies across emerging markets countries). The two largest sectors in the market, Materials and Banks, ended the month up by 2.24% (down 2.94% YTD) and 2.11% (up 4.88% YTD) versus last month respectively. Other sectors closed the month between up by 2.25% (Real Estate Mgmt & Dev’t) and down by 16.10% (Diversified Financials). Market capitalization increased slightly by 0.82% to SAR 1,659.08 billion versus last month while average daily traded value increased sharply for this month by 18.18% to SAR 3,420 million. After a good third quarter results, several other factors affected markets in general. Oil prices continued to improve amid the talks between OPEC and Non-OPEC countries to extend OPEC-led oil production cut till the end of 2018 which was agreed upon by end of their meeting on November 30th. However, the major news during the month was the creation of a Saudi anti-corruption committee on the first week of the month which could result in returning more than USD100 billion back to the country assets. Fight of corruption sharply affected some stocks owned or managed by detained persons related to this corruption crackdown.
Brent price increased again this month by 2.77% (up 6.57% YTD) closing at 62.63 USD/bar while average of the month was 62.59 USD/bar, up by 9.04% from last month average. On the other hand, OPEC’s basket ended the month also up by 4.32% to 61.06 USD/bar (up 14.56% YTD) while average of the month was 60.74 USD/bar, up by 9.44% versus average of last month. On interest rate issue, FOMC and as expected kept its funds rate with no change at the range from 1% to 1.25% at its meeting on November 1st. However, it is highly expected to increase this rate by 0.25% to the range 1.25% to 1.50% in the coming meeting to be held on December 13th. Average of the Saudi Interbank rate for 6 months for November was 2.05619% p.a. (slightly up by 0.48% versus last month average) and closing at 2.06250% p.a. Regarding IPOs, shares of Al Mashaar REIT were offered on the main market starting from November 1st while shares of Gulf Steel Work Factory Co. were offered on Nomu market starting from November 27th. In addition, Mulkia Gulf Real Estate REIT was listed on the main market on November 5th.
Fund's Information
Performance & Risk Parameters
Fund 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)
11.90
AUM (SAR)
17,537,940.42
Base Currency
Saudi Riyal
Initial Investment (SAR)
5,000 indivisual/20,000 institution
Subsequent Investment (SAR)
Min of 1,000 individual/10,000 institution
Subscription & Redemption
Monday and Wednsday of every week
Subscription Fees
1.5% of subscribed amount
Management Fees
1.0% per annum
Redemption Fees
1% if Exit Before 1 Month
Sharia Board
Yes
Bloomberg Code
AMUDEFF AB Equity
130 120
110 100 90
Fund
* YTD: Year To Date
* SD: Standard Deviation
* SI: Since Inception
* Avg R: Average Return
3M -0.07%
YTD 0.40%
1Y 1.27%
BM
0.50%
-0.67%
0.33%
1.19%
3.72%
Gap
-0.02%
0.60%
0.07%
0.08%
-2.52%
Fund
* BM: Benchmark
2Y 1.21%
SI 19.02% 7.12%
2016 1.46%
2015 4.60%
11.90% 2014 5.56%
BM
4.85%
-3.92%
-0.41%
Gap
-3.40%
8.52%
5.96%
Fund
Abbreviations
BM
1M 0.48%
Avrg R
SD
Sharpe*
Alpha**
Beta**
Correlation
Fund
3.88%
4.72%
0.48
1.94%
0.68
0.68
BM
1.51%
4.69%
-0.02
* Risk-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 2.6%
9.2%
17.8% 23.3%
16.6%
Cash
< 1M
Equity
1M-3M
Murabaha
3M-6M
Sukuk
6M-9M
Fund
< 12M 82.2%
48.4%
Equity Sector Allocation
Top Equity Holdings
Stock
Code 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Materials
Banks
Food & Beverages
Health Care Equipment & Svc
Real Estate Mgmt & Dev't
Energy
Insurance
Telecommunication Services
Pharma, Biotech & Life Science
Capital Goods
Commercial & Professional Svc
Transportation
Consumer Durables & Apparel
Consumer Services
Media
Retailing
Food & Staples Retailing
Diversified Financials
Utilities
REITs
Sector
1120
Al Rajhi
Banks
2010
SABIC
Materials
1150
Alinma
Banks
4250
Jabal Omar
Real Estate Mgmt & Dev't
1211
MA'ADEN
Materials
Disclaimer This material is produced by Alinma Investment Company, a firm authorized and regulated by the Capital Market Authority of Kingdom of Saudi Arabia. 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.
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
November-2017
C. R. No. 1010269764 | CMA License No. 09134 - 37
Fund's Objectives & Strategy
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. Market Outlook & Commentary The Saudi market ended November up by 1.00% on monthly basis (down by 4.79% for October) closing at the level of 7,003.97 (down 2.86% YTD), and trading between the maximum 7,003.97 and the minimum 6,925.65. Market’s P/E, P/B, and DY as of end of month were approximately 16.61, 1.6, and 3.40% respectively (as reported by Bloomberg) compared to 15.44, 1.75, and 2.30% respectively for emerging markets (represented by MSCI EM Index covering large and mid-cap companies across emerging markets countries). The two largest sectors in the market, Materials and Banks, ended the month up by 2.24% (down 2.94% YTD) and 2.11% (up 4.88% YTD) versus last month respectively. Other sectors closed the month between up by 2.25% (Real Estate Mgmt & Dev’t) and down by 16.10% (Diversified Financials). Market capitalization increased slightly by 0.82% to SAR 1,659.08 billion versus last month while average daily traded value increased sharply for this month by 18.18% to SAR 3,420 million. After a good third quarter results, several other factors affected markets in general. Oil prices continued to improve amid the talks between OPEC and Non-OPEC countries to extend OPEC-led oil production cut till the end of 2018 which was agreed upon by end of their meeting on November 30th. However, the major news during the month was the creation of a Saudi anti-corruption committee on the first week of the month which could result in returning more than USD100 billion back to the country assets. Fight of corruption sharply affected some stocks owned or managed by detained persons related to this corruption crackdown.
Brent price increased again this month by 2.77% (up 6.57% YTD) closing at 62.63 USD/bar while average of the month was 62.59 USD/bar, up by 9.04% from last month average. On the other hand, OPEC’s basket ended the month also up by 4.32% to 61.06 USD/bar (up 14.56% YTD) while average of the month was 60.74 USD/bar, up by 9.44% versus average of last month. On interest rate issue, FOMC and as expected kept its funds rate with no change at the range from 1% to 1.25% at its meeting on November 1st. However, it is highly expected to increase this rate by 0.25% to the range 1.25% to 1.50% in the coming meeting to be held on December 13th. Average of the Saudi Interbank rate for 6 months for November was 2.05619% p.a. (slightly up by 0.48% versus last month average) and closing at 2.06250% p.a. Regarding IPOs, shares of Al Mashaar REIT were offered on the main market starting from November 1st while shares of Gulf Steel Work Factory Co. were offered on Nomu market starting from November 27th. In addition, Mulkia Gulf Real Estate REIT was listed on the main market on November 5th.
Fund's Information
Performance & Risk Parameters
Fund 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)
11.90
AUM (SAR)
17,537,940.42
Base Currency
Saudi Riyal
Initial Investment (SAR)
5,000 indivisual/20,000 institution
Subsequent Investment (SAR)
Min of 1,000 individual/10,000 institution
Subscription & Redemption
Monday and Wednsday of every week
Subscription Fees
1.5% of subscribed amount
Management Fees
1.0% per annum
Redemption Fees
1% if Exit Before 1 Month
Sharia Board
Yes
Bloomberg Code
AMUDEFF AB Equity
130 120
110 100 90
Fund
* YTD: Year To Date
* SD: Standard Deviation
* SI: Since Inception
* Avg R: Average Return
3M -0.07%
YTD 0.40%
1Y 1.27%
BM
0.50%
-0.67%
0.33%
1.19%
3.72%
Gap
-0.02%
0.60%
0.07%
0.08%
-2.52%
Fund
* BM: Benchmark
2Y 1.21%
SI 19.02% 7.12%
2016 1.46%
2015 4.60%
11.90% 2014 5.56%
BM
4.85%
-3.92%
-0.41%
Gap
-3.40%
8.52%
5.96%
Fund
Abbreviations
BM
1M 0.48%
Avrg R
SD
Sharpe*
Alpha**
Beta**
Correlation
Fund
3.88%
4.72%
0.48
1.94%
0.68
0.68
BM
1.51%
4.69%
-0.02
* Risk-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 2.6%
9.2%
17.8% 23.3%
16.6%
Cash
< 1M
Equity
1M-3M
Murabaha
3M-6M
Sukuk
6M-9M
Fund
< 12M 82.2%
48.4%
Equity Sector Allocation
Top Equity Holdings
Stock
Code 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Materials
Banks
Food & Beverages
Health Care Equipment & Svc
Real Estate Mgmt & Dev't
Energy
Insurance
Telecommunication Services
Pharma, Biotech & Life Science
Capital Goods
Commercial & Professional Svc
Transportation
Consumer Durables & Apparel
Consumer Services
Media
Retailing
Food & Staples Retailing
Diversified Financials
Utilities
REITs
Sector
1120
Al Rajhi
Banks
2010
SABIC
Materials
1150
Alinma
Banks
4250
Jabal Omar
Real Estate Mgmt & Dev't
1211
MA'ADEN
Materials
Disclaimer This material is produced by Alinma Investment Company, a firm authorized and regulated by the Capital Market Authority of Kingdom of Saudi Arabia. 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.
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
