Logo of Albilad MSCI US Tech ETF
The subscription to Albilad MSCI US Tech ETF began on the Main Market (Tadawul) on Jan 12, with the offering period to last for 30 business days, ending on Feb. 22.
Last August, the Capital Market Authority (CMA) gave the green light to Albilad Capital to float units of Albilad MSCI US Tech ETF on Tadawul.
The minimum amount to commence the fund operations is SAR 10 million, and in the event that the minimum amount is not collected during the IPO period, the fund manager must return to the unitholders the subscription amounts and any returns resulting from their investment without any discount. The fund manager has the right to extend the IPO period for 30 business days with the right to close it prior to that date.
Albilad MSCI US Tech ETF is an open-ended public and Shariah-compliant ETF that aims to track and simulate the performance of the MSCI USA Islamic Tech Index before calculating any dividend, fees or charges. It invests in both the US and Saudi capital markets.
The fund's investment objectives are to achieve long-term growth and capital gains through the passive management of a basket of US-listed stocks compliant with the standards of the Shariah Supervisory Committee (SSC), and concentrated in the technology sector, in order to seek a level of performance that matches the benchmark index before calculating any distributions, fees or expenses. The fund will invest at least 95% of its net asset value in the shares of these companies.
The ETF will invest a maximum of 5% of the fund's net asset value in investment-grade money market transactions concluded with a regulated party licensed by the Saudi Central Bank (SAMA) or a similar supervisory authority outside the Kingdom, and money market funds licensed by the CMA or a similar regulatory authority, including funds managed by the fund manager, to pay any expenses or financial obligations.
The fund targets individuals, legal investors and government entities wishing to invest inactively in US technology stocks, and who meet the conditions for investment in this fund, taking into account the fund's investment objectives and the risks associated with investing in the fund.
Here is the most important information about Albilad MSCI US Tech ETF:
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Fund’s Profile |
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Fund |
Albilad MSCI US Tech ETF |
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Fund type |
Open-ended public and Shariah-compliant ETF |
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IPO period |
30 business days starting from Jan. 12, 2023 and ending on Feb 22, 2023. The fund manager has the right to extend the IPO period for a similar period and the right to close it before that date. |
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Investment objectives |
To achieve long-term growth and capital gains through the passive management of a basket of US-listed stocks compliant with the SSC standards, and concentrated in the technology sector, in order to seek a level of performance that matches the benchmark index before calculating any distributions, fees or expenses |
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Targeted IPO size |
1 mln units |
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Minimum targeted funds |
SAR 10 mln |
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Unit price |
SAR 10 |
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Minimum for in-kind subscription |
100,000 units of the current fund units. The investor shall bear through the fund manager a subscription fee of a maximum of 1% of the total value of the invested amount, except for the initial offering period, where the minimum subscription is 20,000 units of the fund and a subscription fee of a maximum of 1% of the total value of the invested amount. |
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Minimum for cash subscription |
100,000 units or SAR 1 mln, whichever is higher. The investor shall bear in cash through the fund manager a subscription fee up to of 1% of the total value of the invested amount, except for the initial offering period, where the minimum subscription is 20,000 units of the fund, with subscription fees of a maximum of 1% of the total value of the invested amount. |
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Maximum subscription |
No subscription limit |
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Custodian fees |
0.05% of the fund's net asset value for listed and unlisted securities and investment fund units annually. While 0.03% of the fund's net asset value is charged for money market transactions, calculated on each calendar day and deducted on a monthly basis |
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Fund manager |
Albilad Capital |
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Market maker |
Albilad Capital or any licensed financial market institution that enters buy and sell orders continuously during trading hours for the purpose of providing liquidity to the traded units of the ETF. |
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Fund duration |
There will be no fixed duration of the fund's operation and no maturity date for the fund. |
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Dividend distribution policy |
The fund manager will reinvest the dividend resulting from the investment in the fund's assets, and accordingly the fund will not distribute any periodic dividend to the unitholders. |
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