The Fund is an open-ended investment fund with the aim of achieving, over the medium to long term, capital growth by investing in a portfolio of Saudi petrochemical equities of companies listed on the Saudi Equity Market. The Fund's assets will be concentrated and actively managed in petrochemical companies aiming to achieve capital growth without a reference to a specific benchmark or weightings of petrochemical companies in the Saudi Equity Market.
The Fund Manager may choose to invest excess cash of the 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 an active investment strategy by investing in equities of Saudi petrochemical 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 Manager may, with the approval of the Board, maintain part or all of the Fund's assets in the form of cash or short-term money market instruments.
Fund Manager's Comments:
TASI has sustained its gains for the second month in a row, and close at 6,710.56 points, which is 2.25% higher than the previous month. Thus, Market performance YTD has recorded 1.36% positive return. The strong and healthy first quarter results of 2011 for the Saudi banks, petrochemical and retail companies' earnings along with the steadiness of oil prices above the USD 100/barrel level, have led to the upward performance in TASI during this month. The Petrochemical sector soared by 5.71% supported by the strong
earnings of SABIC.