The Fund is an open-ended investment fund which aims to achieve capital growth, over the medium to long term, by investing in a portfolio of selected Saudi construction and cement equities in companies listed on the Saudi Equity Market. These include companies specializing in construction; production and/or merchandising of building materials; that perform and/or merchandise infrastructure projects and materials; and cement companies. The Fund performance will be compared to the SHBC Saudi Construction and Cement Equity Index performance. The Fund Manager may choose to invest excess cash of Fund in short-term money market instruments. The Fund is an income accumulation fund whereby its income will be reinvested and not distributed to the unit holders. The reinvestment of the Fund's income will be reflected in the value and price of the Units.
The Fund will follow a balanced investment strategy by investing in a portfolio of selected Saudi construction and cement equities in companies listed on the Saudi Equity Market. The Fund will adhere to the investment guidelines approved by the Board of Directors of the Fund. Depending on market conditions, the Manger may, with the approval of the Board, maintain part of all of the Fund's assets in the form of cash or short-term money market instruments.
The Maximum borrowing of the Fund that is intended to cover redemption requests must not exceed (10) Per Cent of its Net Asset Value, except in the case of borrowing from the Fund Manager or an affiliate to meet redemption requests.
The fund Manager will segregate and separately identify the securities and other assets of the Fund from those of the Company, the Manager and other Funds, and these will be maintained in well-known and reputable institutions as determined by the Fund Manager.