What is the idea of ​​the Albilad Saudi Sovereign Sukuk ETF?

Albilad Saudi Sovereign Sukuk ETF is an open-ended public investment fund, compliant with Shari'a standards, regulated by the Capital Market Authority's.

What is the Fund's objective?

Albilad Saudi Sovereign Sukuk Fund seeks to replicate the performance of the Albilad Ideal ratings Sovereign Sukuk index, which consists of Saudi Riyals denominated Sukuk, listed in the main Saudi Stock Exchange (Tadawul) linked to a market maker with a maturity of 3 months or more. The fund will also seek to distribute monthly dividends to unit holders.

What is the Added Value of this ETF?

Long-term capital preservation and periodic dividends (monthly).

What is the Fund duration?

There will be no fixed term for the Fund and no maturity date.

What is the minimum subscription amount?

There will be no minimum to buy or sell the fund units however, units can be bought and sold through the Saudi stock exchange (Tadawul).

How much is the nominal unit value?

The nominal unit value at the time of the Fund inception is 10 Saudi Riyals.

How much is the subscription fee?

No subscription fees.

Can individuals and companies invest in the Fund?

Yes, subscription is available for all (individuals and institutions)

How can I subscribe?

Due to the fact that the Fund is traded, subscription and redemption is carried out through the execution of buying and selling of units in the stock market

What are the required documents to open an Investment Account and subscribe online?

If you have a Current Account at Bank Albilad, National ID Card for Saudis, passport and ID for GCC nationals, photocopies of residency for non-Saudis, in addition to filling and signing an investment account form electronically.

For more information, please call (92000 3636)

Units can also be purchased from the stock market (Tadawul) after the start of trading.

Who is the custodian of the Fund?

Riyad Capital

How are the assets of the Fund evaluated?

The Fund has two valuation points:

1. Net Asset Value at the end of the day (NAV): by calculating the total value of the Fund's assets based on the daily closing prices of the Sukuk, plus the available cash and any accrued profits and deduct any accrued fees and divide the result by the number of existing units.

​2. Intra-day Net Asset Value (iNAV): will be announced during trading hours and occurs every 15 seconds. As at the end of the last working day, the result is divided by the number of units in circulation.

Both NAV and iNAV of the unit will be announced on the fund manager's website. Accurate and up-to-date information for registered unit holders will be kept at Tadawul.

Can unit holders see the Fund's performance?

Unit holders reports will be sent to the mailing address, email, telephone and / or fax as indicated on the account opening form unless the Fund Manager is notified of any change in address. Annual and preliminary reports will be made available on the Fund Manager's website www.albilad-capital.com  and the Tadawul website www.tadawul.com.sa

What is the Fund's risk level?

Low to medium risk.

Does the Fund pay Zakat?

The Fund will not pay Zakat on behalf of subscribers.

Does the Fund pay any dividends?

The Fund will distribute cash dividends to investors periodically (monthly).

What are the previous experiences of Albilad Capital Asset Management?

Albilad Capital Asset Management Group offers a variety of products and services, including portfolio management and investment fund management. Asset Management provides clients with accurate information and data on their investments with the highest levels of transparency. The Group also publishes Fund unit prices as well as reports on the performance of Funds periodically.

What are the catalysts for the Fund's additional positive performance?

·         Reduced risk as the issuer of the Sukuk is the Government of Saudi Arabia

·         Periodic distributions

What are ETFs, when did they originate and how did they start?

These are mutual funds that follow an index and are divided into equal units that are traded in the financial market during trading periods. These funds combine the advantages of both mutual funds and equities.

What are the characteristics of ETFs?

Flexibility: ETFs are clearly characterized by their systems and the ease of dealing with their units - both buying and selling - similar to shares listed on the stock market.

Transparency: Securities data included in ETFs and NAVs can be provided.

Liquidity: The market maker provides buy and sell offers to enhance liquidity.

How are ETFs trading?

Investors can trade ETFs like any security by contacting any market brokers. These units are created and redeemed by the market maker or any licensed entity.

What is the unit price setting mechanism for ETFs?

The market maker provides buy and sell prices for ETF units close to the Net Asset Value (INAV).

How can I invest in ETFs?

Just like investing in stocks, there are two ways to invest in ETFs:

First: In the initial public offering (IPO) stage when ETF managers offer units of the ETF.

Second: through the financial market (secondary market) after the units of the Fund traded on the market.

What are the benefits of investing in ETFs?

The expected gains are like stocks.

Who is issuing ETFs units?

Asset Management firms licensed by the Capital Market Authority.

Are ETFs limited to stocks only?

ETFs are not limited to stocks, but may include sukuk or commodity such as gold and silver.

Are there limits to the ownership of ETFs?

ETFs are not subject to certain ownership limits as in shares.

Is there a minimum or maximum number of units that an investor can buy or sell in ETFs?

The minimum number of units through the Fund market is one unit, while the process of creating units is subject to the terms and conditions of the Fund itself.

What is the trading commission for ETFs?

Trading commission for ETFs is identical to the stock market commission. This commission is 15.5 basis points on each trade without a minimum commission.

Is the unit price of ETFs equal to the price of the constituent units?

The trading price of the units is subject to the supply and demand mechanism, while the NAV value is subject to the market value of the component assets of the unit.

Is there a relationship between the performance of the ETF and the performance of the Fund's shares in the market?

The performance of ETFs is linked to the performance of the underlying index, knowing that the unit price of the fund is based on NAV and not on the Sukuk prices of the index.

Will the ETF terms and conditions be issued before they are launched and traded in the primary and secondary markets?

Yes, the Fund Manager complies with the conditions of the Capital Market Authority for investment funds, including the disclosure of the terms and conditions of the Fund and is obliged to publish them in an appropriate period before the launch of the Fund.

How will ETFs be priced in the secondary market?

When the Fund is listed in the secondary market, the units will be priced at the net asset value and the current units will be subject to the bid and ask prices.

Can the ETF owner have the right to attend the Assembli​es and vote on their items?

The Funds are fully and directly managed by the Fund Manager and are subject to the terms and conditions of the investment funds issued by the Capital Market Authority and therefore do not hold general assemblies for these Funds.

Is investing in ETFs available to all categories and nationalities of investors?

Mutual funds are available to all categories and segments of investors licensed to trade securities.

​What are the risks faced by an investor in investing in ETFs?

An investor in ETFs is similarly exposed to the same risk of investing in the Fund's assets but less because of the diversity of the underlying assets.