Dubai, UAE — Alinma Investment Company has opened subscription to units of Alinma Emerging Markets Fund, a Shariah-compliant open public investment fund, for 60 days until August 31, Argaam said.
Alinma Emerging Markets Fund aims to achieve long-term capital growth by investing in global emerging market shares, approved by the fund’s Shariah Supervisory Committee.
The offering targets collecting SAR 187.5 million (about $50 million) in subscriptions. The fund will start operations on Sept. 14, or earlier if the minimum capital requirement of SAR 37.5 million is met.
The fund’s investment policy is mainly based on Shariah-compliant emerging global stock markets approved by the fund’s Shariah Supervisory Committee, Argaam reported. This is through passive investment in the fund’s benchmark components so that the fund’s performance is almost on par with that of the benchmark before fees and expenses.
Alinma Emerging Markets Fund will invest at least 90 percent of its assets in all or part of the stocks that make up the benchmark index, with the same weight, which may take some time based on the liquidity and trading conditions in emerging markets, and not necessarily to be achieved within a few days. In all cases, the fund manager will seek to reach this percentage as soon as possible.
The fund invests in Saudi riyal and other foreign currencies. The investments are evaluated based on the prevailing exchange rates.