0878$/ )81' ) $& 76 + ((7 6 · Al Rajhi India China Equity Fund 6 FUND OF FUNDS Al Rajhi Multi...

MUTUAL FUNDFACTSHEETSS e p t e m b e r 2 0 1 1

Al Rajhi Capital Head Office, King Fahd Road, P. O. Box 5561, Riyadh 11432, Kingdom of Saudi Arabia.

Tel.: +966 1 46 00 423 • Toll Free: 800 124 5858Email: [email protected] • URL: www.alrajhi-capital.com

EQUITYFUNDS PAGENO.

●● ●Al●Rajhi●Local●Shares●Fund● 1

●● Al●Rajhi●GCC●Equity●Fund● 2

●● Al●Rajhi●Petrochemical●and●Cement●Equity●Fund● 3

●● Al●Rajhi●Global●Equity●Fund● 4

●● Al●Rajhi●Global●Small●Cap●Equity●Fund● 5

●● Al●Rajhi●India●China●Equity●Fund● 6

FUNDOFFUNDS

●● Al●Rajhi●Multi●Asset●Growth●Fund● 7

●● Al●Rajhi●Multi●Asset●Balanced●Fund● 8

●● Al●Rajhi●Multi●Asset●Conservative●Fund●● 9

COMMODITYFUNDS

●● Al●Rajhi●Saudi●Riyal●Commodity●Fund● 10

●● Al●Rajhi●US●Dollar●Commodity●Fund● 11

●● Al●Rajhi●EURO●Commodity●Fund● 12

September●2011 1

DISCLAIMERAl●Rajhi●Capital●is●an●Authorized●Person●under●the●APR●with●license●number37-07068●granted●by●the●CMA.●Past●performance●is●neither●an●indication●nor●a●guarantee●of●future●returns.●The●value●of●units●and●income●from●them●can●go●up●or●down;●investors●may●receive●less●than●what●they●have●originally●invested.●Additionally,●fees●charged●on●funds●and●currency●exchange●rates●may●have●additional●adverse●effects.●Investors●should●consider●their●individual●and●financial●situation●prior●to●entering●into●a●specific●product/fund●and●should●seek●advice●from●investment●and●legal●professionals.●Detailed●and●specific●information●related●to●the●product●is●provided●in●the●terms●and●conditions●applicable●to●the●fund●which●should●be●read●and●understood●prior●to●entering●into●it.

CONTACTDETAILSAl●Rajhi●Capital●Head●Office,●King●Fahad●Road,●P.●O.●Box●5561,●Riyadh●11432,●Kingdom●of●Saudi●Arabia.Tel.:●●+966●1●46●00●423●●●●Toll●Free:●800●124●5858Email:●[email protected]●●●URL:●www.alrajhi-capital.com

Month●Ending●September●2011

OBJECTIVETo●achieve● long● term●capital● appreciation●by● investing● in● shares●of●Shariah● compliant●companies● listed● on● the● Saudi● Stock● Exchange● (Tadawul).● The● Fund● also● provides●liquidity●to●the●investors.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception

Number●of●months●with●positive●performance

6 19 30 70 122

Number●of●months●with●outperformance●against●benchmark

8 20 36 60 109

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund 1.51 -5.62 -2.15 -5.62 -2.89Benchmark 1.76 -6.52 -5.08 -6.52 -6.85CalendarReturns(%) 2006 2007 2008 2009 2010Fund -51.91 68.81 -44.17 16.64 13.67Benchmark -52.53 40.07 -56.40 31.51 9.11

CumulativeReturns(%) 1Year

3Years

5Years

10Years

SinceInception

Fund 2.10 -6.37 -13.17 188.90 168.36Benchmark -2.27 -16.46 -43.25 180.13 164.04AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund 2.10 -2.17 -2.79 11.19 5.29Benchmark -2.27 -5.82 -10.71 10.85 5.20

MANAGERCOMMENTARYGlobal● stock● markets● continued● to● decline,● at● the● back● of● distressing● concerns● over●slowdown● in●global●economic●growth,●stemming● largely● from● the●prolonged●debt●crisis●in● the●Euro● zone.●Despite● slump● in● global● stock●markets● and● declining● oil● prices,● the●Saudi●equity●market●gained●2.23%●for●the●month●of●September●2011,●mainly●driven●by●value●buying●and●anticipation●of●a●good●Q3●earnings●season.●The●Fund●posted●a●modest●gain●of●1.51%,●whereas●benchmark●climbed●by●1.76%●during● the●month.●The●positive●performance●can●be●attributed●to●overweight●positions●in●Retail,●Petrochemical,●Industrial●Investments●and●Building●&●Construction●sectors●as●well●as●the●underweight●position●in●the●Banking●sector.●The●Fund’s●management●continues●to●have●a●cautious●outlook●for●the●next●month●however●the●expectation●of●good●quarterly●results●by●corporate●sector●would●add●positivity.

FEATURES

Fund●Type● Open●Ended●Equity●FundFund●Domicile Saudi●ArabiaRisk●Level HighInception●Date Jul-92Inception●Price SAR●100●Per●UnitFund●Currency Saudi●RiyalsBenchmark S&P●Saudi●Shariah●IndexSubscription●Fee 2.00%Management●Fee 1.75%●AnnuallyPerformance●Fee 20%●Over●Benchmark●-●Quarterly●BasisMinimum●Subscription SAR●5,000Minimum●Additional●Subscription SAR●2,000Minimum●Redemption SAR●2,000Valuation●Frequency●&●Days● Daily●-●Saturday●to●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Prior●to●Valuation●DayAnnouncement●&●Payment●Day Following●the●Valuation●DayTrade●Execution● T●+●2●(Third●Business●Day)

LATESTAWARDSANDRANKINGS(As At 31 Dec 2010)●

●● ●

PRICEINFORMATION(EndofSeptember●2011)Net●Asset●Value●Per●Unit SAR 268.3591 ●●●●●▲Change●(MoM) SAR 3.9852 ●●+1.51%Total●Fund●Units● 1,664,983Total●Net●Assets● SAR 446,644,907.77

PERFORMANCE(CHART)

0

100

200

300

400

500

600

700

800

900

1000

2000 2002 2004 2006 2008 2010

Fund Benchmark

TOP5HOLDINGS

%FundCur.MonthSABIC 18.16Al●Rajhi● 16.34Etihad●Etisalat 8.06SAFCO 6.03Ma'aden 4.00

SECTORBREAKDOWN(%TotalNetAssets)

Petrochemical Industries

Banks and Financial

Telecom & Information Technology

Retail

Cement

Industrial Investment

Building & Construction

Agricultural & FOODEnergy and UtilitiesReal Estate DevelopmentCash

30

1910

9

8

8

54 11 4

STATISTICALANALYSIS

PERFORMANCE(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) 4.37 3.65 7.93 0.34 0.09Alpha●(%) 4.64 0.84 5.63 1.90 0.78RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Maximum●Drawdown●(%) -10.37 -32.06 -47.84 -62.47 -62.47Standard●Deviation●(%) 16.18 20.13 27.36 27.20 21.57Downside●Risk●(SSD)●(%) 9.79 15.39 18.74 19.30 14.81MARKETSENSITIVITY(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Beta 1.07 0.64 0.80 0.82 0.76REWARDTORISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio 0.20 -0.01 0.00 0.48 0.24Information●Ratio 1.49 0.11 0.58 -0.04 -0.05Tracking●Error 0.03 0.13 0.12 0.13 0.13

ALRAJHILOCALSHARESFUND

September●2011 2




OBJECTIVETo●achieve● long● term●capital● appreciation●by● investing● in● shares●of●Shariah● compliant●companies● listed●on●various●stock●exchanges● in●GCC●region.●The●Fund●also●provides●liquidity●to●the●investors.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


6 19 34 ●-●●● 42


11 24 39 ●-●●● 44

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund 0.95 -5.26 -3.77 -5.26 -5.18Benchmark 0.78 -6.68 -7.64 -6.68 -10.79CalendarReturns(%) 2006 2007 2008 2009 2010Fund -35.00 64.36 -42.44 12.70 13.60Benchmark -52.53 40.07 -59.43 18.18 11.46


3Years

5Years

10Years

SinceInception

Fund 1.55 -17.39 -0.46 ●-●●● -21.51Benchmark -5.49 -32.16 -53.57 ●-●●● -64.77AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund 1.55 -6.17 -0.09 ●-●●● -3.96Benchmark -5.49 -12.13 -14.23 ●-●●● -15.96

MANAGERCOMMENTARYOngoing●financial●crisis●in●Euro-zone●has●drawn●the●picture●for●the●month●of●Sep●2011.●Global●Equity●markets●witnessed●a●panic●sell●waves●driven●by●the●deep●concerns●over●Greece●default●and● Italy●downgrade●by●S&P●on●weak●economic●outlook● from●A+● to●A.●Oil●prices●declined●by●over●10%●during●the●month.●GCC●equity●markets●posted●a●mixed●performance●as●Saudi●equity●market●at●the●back●of●better●performance●by●the●stocks●in●Petrochemical●sector●gained●2.23%,●followed●by●Kuwait●which●gained●0.72%●and●Qatar●which● gained● 0.50%.● On● the● other● hand,● Dubai● led● the● laggards● by● declining● 4.07%●followed●by●Abu●Dhabi●which●declined●3.16%●and●Oman●which●declined●2.86%●during●the●month.●The●investors●are●anticipating●a●good●Q3●earnings●season●which●is●reflected●through●the●rational●value●buying.●The●Fund●gained●0.95%,●outperforming●the●benchmark●which●gained●0.78●%●in●the●month●of●Sep●2011.

FEATURES

Fund●Type● Open●Ended●Equity●FundFund●Domicile Saudi●ArabiaRisk●Level HighInception●Date Oct-05Inception●Price SAR●100●Per●UnitFund●Currency Saudi●RiyalsBenchmark S&P●GCC●Shariah●Composite●IndexSubscription●Fee 2.00%Management●Fee 1.75%●AnnuallyPerformance●Fee 20%●Over●Benchmark●-●Quarterly●BasisMinimum●Subscription SAR●5,000Minimum●Additional●Subscription SAR●2,000Minimum●Redemption SAR●2,000Valuation●Frequency●&●Days● Bi-weekly●-●Sunday●&●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Saturday●to●Tuesday●Announcement●&●Payment●Day Monday●&●SaturdayTrade●Execution● T●+●2●(Third●Business●Day)

LATESTAWARDSANDRANKINGS(As At 31 Dec 2010)●

●

PRICEINFORMATION(EndofSeptember2011)

Net●Asset●Value●Per●Unit SAR 78.4934 ●●●●●▲Change●(MoM) SAR 0.7368 ●●+0.95%Total●Fund●Units● 4,474,173Total●Net●Assets● SAR 351,611,808.99

PERFORMANCE(CHART)

0

20

40

60

80

100

120

140

2005 2006 2007 2008 2009 2010 2011

Fund Benchmark

TOP5HOLDINGS

%FundCur.MonthSABIC 12.04AL●RAJHI 9.46Mobily 5.15Qatar●Industries●● 4.64SAFCO● 4.21

GEOGRAPHICBREAKDOWN(%TotalNetAssets)

Saudi Arabia

Qatar

Oman

UAE

Kuwait

Cash

6516

65 2 7

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) 7.04 5.96 14.13 ●-●●● 12.00Alpha●(%) 7.69 2.45 8.62 ●-●●● 5.66RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Maximum●Drawdown●(%) -8.86 -39.93 -54.02 ●-●●● -54.02Standard●Deviation●(%) 13.73 22.65 22.94 ●-●●● 24.07Downside●Risk●(SSD)●(%) 8.62 18.58 18.17 ●-●●● 19.28MARKETSENSITIVITY(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Beta 1.08 0.67 0.59 ●-●●● 0.60REWARDTORISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio 0.17 -0.16 0.08 ●-●●● -0.09Information●Ratio 3.34 0.34 0.71 ●-●●● 0.57Tracking●Error 0.02 0.16 0.19 ●-●●● 0.19

ALRAJHIGCCEQUITYFUND

September●2011 3




OBJECTIVETo●achieve● long● term●capital● appreciation●by● investing● in● shares●of●Shariah● compliant●companies●listed●on●the●Saudi●Stock●Exchange●(Tadawul).●The●Fund●exclusively●invests●in●the●companies●doing●business●in●petrochemical●and●cement●sectors.●The●Fund●also●provides●liquidity●to●the●investors.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


7 22 ●-●●● ●-●●● 26


7 20 ●-●●● ●-●●● 27

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund 2.82 -8.24 -0.87 -8.24 1.76Benchmark 3.35 -9.50 -2.79 -9.50 0.36CalendarReturns(%) 2006 2007 2008 2009 2010Fund ●-●●● ●-●●● -46.75 27.50 13.83Benchmark ●-●●● ●-●●● -65.79 61.05 8.79


3Years

5Years

10Years

SinceInception

Fund 9.72 1.10 ●-●●● ●-●●● -18.92Benchmark 8.82 -4.06 ●-●●● ●-●●● -31.54AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund 9.72 0.37 ●-●●● ●-●●● -5.32Benchmark 8.82 -1.37 ●-●●● ●-●●● -9.41

MANAGERCOMMENTARYGlobal● stock● markets● continued● to● decline,● at● the● back● of● distressing● concerns● over●slowdown●in●global●economic●growth,●stemming●largely●from●the●prolonged●debt●crisis●in●the●Euro●zone.●Despite●slump●in●global●stock●markets●and●declining●oil●prices,●the●Saudi●equity●market●gained●2.23%●for●the●month●of●September●2011.●The●Petrochemical●sector●which●gained●4%●during●the●month●played●a●major●role●to●keep●TASI●in●the●green●while●the●Cement●sector●closed●up●with●a●modest●gain●of●1.88%.●The●investors●are●anticipating●a●good●Q3●earnings● season●which● is● reflected● through● the● rational● value●buying.●The●Fund●posted●a●modest●gain●of●2.82%●whereas●the●benchmark●gained●by●3.35%●during●the●month.●National● Industrialization● (2nd● largest● holding● in● the● portfolio)● and●SAFCO●(3rd●largest●holding●in●the●portfolio)●added●to●the●returns●as●the●stocks●posted●impressive●gains●of●11.61%●and●6.74%●respectively.●Global●macroeconomic● indicators●are●hinting●a● double-dip● recession.●The● Fund’s●management●will● actively● relentlessly●monitor● the●developments● and● will● maintain● adequate● cash● until● there● is● better● visibility● over● the●developments●in●the●global●markets.

FEATURES

Fund●Type● Open●Ended●Equity●FundFund●Domicile Saudi●ArabiaRisk●Level HighInception●Date Nov-07Inception●Price SAR●10●Per●UnitFund●Currency Saudi●RiyalsBenchmark Al●Rajhi●Saudi●Petrochemical●&●Cement●

Index●Calculated●by●S&P●Custom●IndicesSubscription●Fee 2.00%Management●Fee 1.75%●AnnuallyPerformance●Fee NilMinimum●Subscription SAR●10,000Minimum●Additional●Subscription SAR●2,000Minimum●Redemption SAR●2,000Valuation●Frequency●&●Days● Bi-weekly●-●Saturday●&●TuesdayCut-Off●Time●&●Day Before●5●PM●-●Wednesday●&●MondayAnnouncement●&●Payment●Day Sunday●&●WednesdayTrade●Execution● T●+●2●(Third●Business●Day)


Net●Asset●Value●Per●Unit SAR 8.1082 ●●●●●▲Change●(MoM) SAR 0.2225 ●●+2.82%Total●Fund●Units● 9,490,892Total●Net●Assets● SAR 77,178,985.61

PERFORMANCE(CHART)

30405060708090100110120

2007 2008 2009 2010Fund Benchmark

TOP5HOLDINGS

%FundCur.MonthSABIC 38.17National●Industralization 12.04SAFCO 9.88Saudi●Cement● 5.91Yammamah●Cement 5.47


76

20

2

3Petrochemical Industries

Cement

Building & Construction

Cash & Cash Equivalent

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) 0.91 1.74 ●-●●● ●-●●● 4.09Alpha●(%) 0.88 0.74 ●-●●● ●-●●● 0.69RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Maximum●Drawdown●(%) -10.76 -34.91 ●-●●● ●-●●● -50.85Standard●Deviation●(%) 20.47 23.00 ●-●●● ●-●●● 23.58Downside●Risk●(SSD)●(%) 13.07 18.46 ●-●●● ●-●●● 18.70MARKETSENSITIVITY(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Beta 1.00 0.72 ●-●●● ●-●●● 0.70REWARDTORISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio 0.54 0.13 ●-●●● ●-●●● -0.12Information●Ratio 0.36 -0.01 ●-●●● ●-●●● 0.17Tracking●Error 0.02 0.12 ●-●●● ●-●●● 0.13

ALRAJHIPETROCHEMICALANDCEMENTEQUITYFUND

September●2011 4




OBJECTIVETo●achieve● long● term●capital● appreciation●by● investing● in● shares●of●Shariah● compliant●international● companies● across● the● world.● The● fund● also● provides● liquidity● to● the●investors.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


7 25 39 78 114


6 14 26 51 75

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund -7.17 -12.92 -14.39 -12.92 -11.53Benchmark -8.09 -14.14 -15.04 -14.14 -10.95CalendarReturns(%) 2006 2007 2008 2009 2010Fund 15.86 12.49 -37.90 37.83 10.09Benchmark 16.47 18.21 -37.75 36.56 14.41


3Years

5Years

10Years

SinceInception

Fund -1.41 0.39 -0.79 35.26 47.88Benchmark -1.53 11.70 10.53 67.51 167.74AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund -1.41 0.13 -0.16 3.07 2.61Benchmark -1.53 3.76 2.02 5.29 6.71

MANAGERCOMMENTARYGlobal● stock● markets● continued● to● decline,● at● the● back● of● distressing● concerns● over●slowdown●in●global●economic●growth,●stemming●largely●from●the●prolonged●debt●crisis●in●the●Euro●zone.●The●Fund●declined●by●7.17%,●outperforming●the●benchmark●which●declined●by●8.09%●in●the●month●of●Sep●2011.●Stock●selection●in●the●Consumer●Discretionary●and●Information● Technology● sectors● contributed● to● the● outperformance.● However,● stock●selection●in●the●Materials●sector●and●an●overweight●position●in●the●Energy●sector●hurt●the●portfolio● returns.●Over● the● long-run,● the●Fund’s●management●believes● that●share●price●performance●will●ultimately●reflect●underlying●cash●flows,●as●well●as●the●capital-utilization●decisions● by● management● teams.● Looking● forward,● the● Fund’s● management● expects●two●possible●market●outcomes●of●either●substantial●upside●(if●sovereign●credit●problems●are● resolved●satisfactorily)● or● substantial● downside● (if● the●macro-economy● is●upended●by●fiscal● challenges).●While● there● is●no●clarity●on●when● these●macro●questions●will● be●resolved,●investors●will●ultimately●seek●opportunities●to●invest●in●companies●with●strong●fundamentals,●as●well●as●firms●that●do●not●rely●on●substantial●leverage●to●generate●return.●The●Fund’s●management●believes●that●the●companies●in●which●the●Fund●is●investing●are●positioned●to●deliver●on●their●specific●fundamentals●and●cash●flows.

FEATURES

Fund●Type● Open●Ended●Equity●FundFund●Domicile Saudi●ArabiaRisk●Level HighInception●Date Jul-96Inception●Price US●$●100●Per●UnitFund●Currency US●DollarsBenchmark Dow●Jones●Islamic●Market●TR●IndexSubscription●Fee 2.00%Management●Fee 1.50%●AnnuallyPerformance●Fee NilMinimum●Subscription US●$●2,000Minimum●Additional●Subscription US●$●1,000Minimum●Redemption US●$●1,000Valuation●Frequency●&●Days● Bi-weekly●-●Monday●&●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Sunday●to●Tuesday●Announcement●&●Payment●Day Tuesday●&●SaturdayTrade●Execution T●+●2●(Third●Business●Day)


Net●Asset●Value●Per●Unit US●$ 147.8756 ●●●●●▼Change●(MoM) US●$ -11.4291 ●●-7.17%Total●Fund●Units● 61,401Total●Net●Assets● US●$ 9,079,759.44

PERFORMANCE(CHART)

20

40

60

80

100

120

140

2000 2002 2004 2006 2008 2010

Fund Benchmark

TOP5HOLDINGS

%FundCur.MonthPfizer●Inc.● 3.81Chevron●Corporation● 3.65Intl.●Business●Machine●Corp. 3.58Wal-Mart●Stores●Inc. 3.25Intel●Corp● 2.89


22

20

1610

9

9

47 3

TechnologyEnergyHealthConsumer DiscProcessIndustryProduceManufactTelecom

OthersCash

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) 0.12 -3.63 -2.18 -2.23 -4.10Alpha●(%) -0.17 -2.72 -1.72 -1.28 -2.82RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio -0.04 0.12 0.05 0.20 0.12Information●Ratio -0.04 -0.32 -0.23 -0.24 -0.45Tracking●Error 0.03 0.10 0.09 0.09 0.09

ALRAJHIGLOBALEQUITYFUND

September●2011 5




OBJECTIVETo●achieve● long● term●capital● appreciation●by● investing● in● shares●of●Shariah● compliant●companies●across●the●world.●The●fund●exclusively●invests●in●small●cap●companies.●The●fund●also●provides●liquidity●to●the●investors.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


7 22 32 66 82


7 17 29 57 71

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund -7.48 -15.94 -14.75 -15.94 -8.84Benchmark -9.78 -18.33 -18.05 -18.33 -12.72CalendarReturns(%) 2006 2007 2008 2009 2010Fund 11.12 -1.99 -49.49 42.86 24.12Benchmark 13.49 8.03 -49.43 41.78 27.83


3Years

5Years

10Years

SinceInception

Fund 7.28 5.03 -16.76 46.77 15.72Benchmark 0.10 16.41 -6.38 70.62 51.80AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund 7.28 1.65 -3.60 3.91 1.19Benchmark 0.10 5.20 -1.31 5.49 3.44

MANAGERCOMMENTARYGlobal●stock●markets●continued●to●decline,●at●the●back●of●distressing●concerns●over●slowdown●in●global●economic●growth,●stemming●largely●from●the●prolonged●debt●crisis●in●the●Euro●zone.●The●Fund●declined●by●7.48%,●outperforming● the●benchmark●which●declined●by●9.78%● in● the●month●of●Sep●2011.●Stock●selection●in●the●consumer●discretionary●and●energy●sectors●added●to●performance●for●the●quarter,●while●stock●selection●in●the●materials●and●industrials●sectors,●along●with●no●exposure●to●the●financials●or●utilities●sectors,●detracted●from●returns.●The●Fund’s●management●has●reduced●the●number●of●holdings● in● the●portfolio● to● focus● on● highest-conviction● holdings.● The● Fund’s● management● remains● constructive● on●opportunities●in●the●small-cap●space●which●is●demonstrating●a●high●level●of●bifurcation●within●sectors●and●industries●amid●the●recent●volatility.●The●Fund’s●management●believes●companies●that●are●capable●of●generating●sustainable●returns,●free●cash●flows,●and●that●have●stable●margins●or●the●potential●to●expand●margins●will●continue●to●thrive,●versus●their●competitors.●Valuations●currently●appear●compelling,●but,●in●such●an●environment,●the●Fund’s●management●will●focus●on●stock-specific●growth●drivers●and●be●mindful●of●attractively●valued●companies●that●do●not●have●clear●growth●catalysts.

FEATURES

Fund●Type● Open●Ended●Equity●FundFund●Domicile Saudi●ArabiaRisk●Level HighInception●Date Jun-99Inception●Price US●$●100●Per●UnitFund●Currency US●DollarsBenchmark S&P●Small●Cap●Shariah●IndexSubscription●Fee 2.00%Management●Fee 1.50%●AnnuallyPerformance●Fee NilMinimum●Subscription US●$●2,000Minimum●Additional●Subscription US●$●1,000Minimum●Redemption US●$●1,000Valuation●Frequency●&●Days● Bi-weekly●-●Monday●&●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Sunday●to●Tuesday●Announcement●&●Payment●Day Tuesday●&●SaturdayTrade●Execution T●+●2●(Third●Business●Day)


Net●Asset●Value●Per●Unit US●$ 115.7151 ●●●●●▼Change●(MoM) US●$ -9.3581 ●●-7.48%Total●Fund●Units● 77,661Total●Net●Assets● US●$ 8,986,520.78

PERFORMANCE(CHART)

0

25

50

75

100

125

150

175

200

225

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Fund Benchmark

TOP5HOLDINGS

%FundCur.MonthGardner●Denver●Inc 6.93Gartner●Inc 6.54Family●Dollar●Stores●Inc● 4.84Ansys●Inc.● 4.44Towers●Watson●&●Co● 4.23


TechnologyConsumer DiscretionaryProducer ManufacturingHealthServicesEnergyOther

Cash

26

2213

13

8

79

2

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) 7.18 -3.55 -2.29 -1.58 -2.25Alpha●(%) 6.91 -1.86 -2.37 -0.21 -0.90RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio 0.50 0.20 -0.09 0.24 0.11Information●Ratio 1.12 -0.26 -0.19 -0.09 -0.09Tracking●Error 0.06 0.14 0.13 0.13 0.16

ALRAJHIGLOBALSMALLCAPEQUITYFUND

September●2011 6




ALRAJHIINDIACHINAEQUITYFUND

OBJECTIVETo●achieve● long● term●capital● appreciation●by● investing● in● shares●of●Shariah● compliant●companies●listed●on●stock●exchanges●of●India●and●China.●The●Fund●also●provides●liquidity●to●the●investors.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


4 21 34 ●-●●● 36


8 20 28 ●-●●● 30

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund -6.50 -12.93 -10.82 -12.93 -13.01Benchmark -8.19 -17.13 -17.90 -17.13 -18.44CalendarReturns(%) 2006 2007 2008 2009 2010Fund ●-●●● 52.74 -61.76 58.19 12.79Benchmark ●-●●● 69.88 -60.48 72.20 12.70


3Years

5Years

10Years

SinceInception

Fund -13.34 16.63 -2.86 ●-●●● -2.38Benchmark -17.38 -6.16 ●34.64● ●-●●● 47.68AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund -13.34 5.26 -0.58 ●-●●● -0.44Benchmark -17.38 -2.10 ●6.13● ●-●●● 7.46

MANAGERCOMMENTARYThe● risk● to●global● financial● stability●has● increased●substantially●due● to●heavy●public●debt●burden● and● weak● growth● prospects● in● most● of● the● developed● economies.● Slowdown● in●India’s●economic●growth●is●a●reflection●of●heightened●global●uncertainties,●elevated●inflation●and●consequent● rate●hikes●by● the●central●bank.● Indian●currency●has●depreciated●against●dollar,● which● indicates● movement● towards● perceived● safer● havens● in● view● of● growing●global● uncertainty.● However,● there● are● certain● positives● such● as● good●monsoons,● falling●crude●prices●and●potential●favorable●government●policy●actions●which●could●facilitate●further●economic●growth●of● the●country.●The●Chinese●equity●market●continued● to●correct●sharply●in● Sep● 2011● though● recent● macro● indicators● continue● to● confirm● the● strong● economic●momentum.● The● Fund● declined● 6.50%● outperforming● the● benchmark● which● declined● by●8.19%● in● the●month●of●Sep●2011.●The●month●of●September●witnessed●sharp● corrections●globally,●as●global●markets●were●under●heavy●selling●pressure● in● response● to● the● lack●of●policy●direction●as●a●result●of● the●Euro●debt●crisis,●and●the●disappointment● in●US●Federal●Reserve’s●choice●of●“Operation●Twist”●which●saw●the●reversal●of●the●2-year●long●USD●carry●trade.●The●Fund’s●management●believes●that●the●external●volatility●will●persist●in●near●term.●Nevertheless,● despite● the● problems●of● the● developed●economies,● emerging●markets● like●India●and●China●may●present●a●strong●case●for●investment●in●the●medium●to●long●term.

FEATURES

Fund●Type● Open●Ended●Equity●FundFund●Domicile Saudi●ArabiaRisk●Level HighInception●Date Apr-06Inception●Price US●$●10●Per●UnitFund●Currency US●DollarsBenchmark S&P●India●●●-●China●Shariah●IndexSubscription●Fee 2.00%Management●Fee 2.00%●AnnuallyPerformance●Fee NilMinimum●Subscription US●$●2,000Minimum●Additional●Subscription US●$●1,000Minimum●Redemption US●$●1,000Valuation●Frequency●&●Days● Bi-weekly●-●Monday●&●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Sunday●to●Tuesday●Announcement●&●Payment●Day Tuesday●&●SaturdayTrade●Execution T●+●2●(Third●Business●Day)


Net●Asset●Value●Per●Unit US●$ 9.7622 ●●●●●▼Change●(MoM) US●$ -0.6789 ●●-6.5%Total●Fund●Units● 1,007,776Total●Net●Assets● US●$ 9,838,107.80

PERFORMANCE(CHART)

0

50

100

150

200

250

300

2006 2007 2008 2009 2010 2011

Fund Benchmark

TOP5HOLDINGS-INDIA

%FundCur.MonthInfosys●Ltd. 5.90Mahindra●&●Mahindra●Ltd. 5.81Cummins●India●Ltd. 5.47GSK●Consumer●Healthcare●Ltd. 4.59Oil●&●Natural●Gas●Cororation. 4.49

TOP5HOLDINGS-CHINA

%FundCur.MonthChina●Mobile●(Hong●Kong)●●Ltd. 9.64CNOOC●Ltd. 9.27●Tencent●Holdings●Ltd. 6.42Mass●Transit●Railway●Corporation● 5.91HK●&●China●Gas 5.81

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) 4.05 7.36 -6.71 ●-●●● -7.91Alpha●(%) 0.45 4.53 -5.17 ●-●●● -5.96RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Maximum●Drawdown●(%) -14.93 -29.63 -64.30 ●-●●● -64.30Standard●Deviation●(%) 13.98 24.04 ●29.77● ●-●●● 28.72Downside●Risk●(SSD)●(%) 9.97 18.81 ●22.49● ●-●●● 21.68MARKETSENSITIVITY(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Beta 0.78 0.62 ●0.70● ●-●●● 0.70REWARDTORISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio -0.96 0.34 ●0.10● ●-●●● 0.10Information●Ratio 0.62 0.15 -0.43 ●-●●● -0.50Tracking●Error 0.07 0.16 ●0.20● ●-●●● 0.20

September●2011 7




ALRAJHIMULTIASSETGROWTHFUND

OBJECTIVETo●achieve●long●term●capital●appreciation●by●investing●in●units●of●select●Shariah●complaint●equity●and●commodity●funds.●The●Fund●invests●exclusively●in●Al●Rajhi●funds.●The●Fund●also●provides●liquidity●to●the●investors.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


7 24 35 77 96


7 19 31 69 89

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund -1.30 -5.48 -3.58 -5.48 -3.00Benchmark -4.85 -8.57 -9.11 -8.57 -6.48CalendarReturns(%) 2006 2007 2008 2009 2010Fund -6.32 23.44 -34.16 27.99 8.64Benchmark 11.08 12.04 -23.50 21.39 8.98


3Years

5Years

10Years

SinceInception

Fund 1.19 5.24 6.56 82.90 91.61Benchmark 3.81 9.18 11.42 49.07 49.69AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund 1.19 1.72 1.28 6.22 5.20Benchmark 3.81 2.97 2.19 4.07 3.19

MANAGERCOMMENTARYGlobal● stock● markets● continued● to● decline,● at● the● back● of● distressing● concerns● over●slowdown●in●global●economic●growth,●stemming●largely●from●the●prolonged●debt●crisis●in●the●Euro●zone.●The●liquidity●in●the●interbank●market●further●increased●during●the●month●as●most●banks●had●surplus●cash,●with● the●surge● in●deposits● that●were●far● in●excess●of●the●lending●and●investment●opportunities.●The●downward●trend●in●risky●assets●resulted●in●sharp●rally●in●safe●heaven●Treasuries.●The●fund●posted●a●decline●of●1.30%●outperforming●benchmark●which●slumped●by●4.85%●in●the●month●of●Sep●2011.●The●outperformance●can●be●attributed●to●underweight●position●in●equity●funds.●The●exposure●to●commodity●funds●contained●further●losses●in●the●midst●of●such●volatile●stock●market●conditions.●The●Fund’s●management●has●a●cautious●outlook●for●the●next●month.

FEATURES

Fund●Type● Open●Ended●Fund●of●FundsFund●Domicile Saudi●ArabiaRisk●Level Moderate●to●HighInception●Date Nov-98Inception●Price US●$●1●Per●UnitFund●Currency US●DollarsBenchmark Composite●Index●(40%●of●SAIBOR●3●Months●

+●30%●Dow●Jones●Islamic●Market●TR●Index●+●6%●S&P●GCC●Shariah●Composite●Index●+●24%●S&P●Saudi●Shariah●Index)●

Subscription●Fee 2.00%Management●Fee NilPerformance●Fee NilMinimum●Subscription US●$●2,000Minimum●Additional●Subscription US●$●1,000Minimum●Redemption US●$●1,000Valuation●Frequency●&●Days● Bi-weekly●-●Monday●&●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Sunday●&●TuesdayAnnouncement●&●Payment●Day Tuesday●&●SaturdayTrade●Execution T●+●2●(Third●Business●Day)


Net●Asset●Value●Per●Unit US●$ 1.9161 ●●●●●▼Change●(MoM) US●$ -0.0252 ●●-1.3%Total●Fund●Units● 7,930,424Total●Net●Assets● US●$ 15,195,485.07

PERFORMANCE(CHART)

50

75

100

125

150

175

200

2000 2002 2004 2006 2008 2010Fund Benchmark

ALLOCATIONBREAKDOWN(%TotalNetAssets)

Commodity SAR Fund

Local Share Fund

GCC Equity Fund

India China Equity Fund

Global Equity Fund

Petro-Cement Fund

Global Small CAP

39

1312

11

10

105

ASSETALLOCATION

%FundCur.MonthEquity●Funds 61.42Commodity●Funds 38.58

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) -2.62 -1.25 -0.91 2.15 2.00Alpha●(%) -0.19 -0.22 -0.32 2.97 2.52RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio 0.17 0.18 0.10 0.46 0.35Information●Ratio -0.28 -0.08 -0.06 0.25 0.24Tracking●Error 0.10 0.11 0.10 0.09 0.09

September●2011 8




ALRAJHIMULTIASSETBALANCEDFUND

OBJECTIVETo●achieve●long●term●capital●appreciation●by●investing●in●units●of●select●Shariah●complaint●equity●and●commodity●funds.●The●Fund●invests●exclusively●in●Al●Rajhi●funds.●The●Fund●also●provides●liquidity●to●the●investors.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


6 24 39 84 106


7 21 31 71 89

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund -0.26 -1.57 -0.78 -1.57 -0.36Benchmark -2.01 -3.58 -3.79 -3.58 -2.62CalendarReturns(%) 2006 2007 2008 2009 2010Fund 2.40 10.43 -10.41 9.93 4.19Benchmark 6.44 6.78 -9.42 8.86 3.94


3Years

5Years

10Years

SinceInception

Fund 1.47 6.57 13.66 81.85 103.58Benchmark -0.05 4.98 9.31 29.67 38.89AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund 1.47 2.15 2.59 6.16 5.70Benchmark -0.05 1.63 1.80 2.63 2.59

MANAGERCOMMENTARYGlobal●stock●markets●continued●to●decline,●at●the●back●of●distressing●concerns●over●slowdown●in●global●economic●growth,●stemming●largely●from●the●prolonged●debt●crisis●in●the●Euro●zone.●Despite●slump●in●global●stock●markets●and●declining●oil●prices,●the●Saudi●equity●market●gained●in●●September●2011,●mainly●driven●by●value●buying●and●anticipation●of●a●good●Q3●earnings●season.●The●commodity●market●was●highly●liquid●and●posed●good●opportunities●to●generate●returns.●●The●fund●posted●a●marginal●decline●of●0.26%●outperforming●benchmark●which●declined●by●2.01%●in●the●month●of●Sep●2011.●The●outperformance●can●be●attributed●to●underweight●position●in●equity●funds.●Within●equities,●higher●exposure●to●regional●equity● funds●also●contributed●to●positive●performance.●The●Fund’s●management●has●a●cautious●outlook●for●the●next●month.

FEATURES

Fund●Type● Open●Ended●Fund●of●FundsFund●Domicile Saudi●ArabiaRisk●Level ModerateInception●Date Nov-98Inception●Price US●$●1●Per●UnitFund●Currency US●DollarsBenchmark Composite● Index● (75%● of● SAIBOR● 3●

Months●+●12.5%●Dow●Jones●Islamic●Market●TR● Index● +● 2.50%● S&P● GCC● Shariah●Composite● Index● +● 10.00%● S&P● Saudi●Shariah●Index)●

Subscription●Fee 2.00%Management●Fee NilPerformance●Fee NilMinimum●Subscription US●$●2,000Minimum●Additional●Subscription US●$●1,000Minimum●Redemption US●$●1,000Valuation●Frequency●&●Days● Bi-weekly●-●Monday●&●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Sunday●&●TuesdayAnnouncement●&●Payment●Day Tuesday●&●SaturdayTrade●Execution T●+●2●(Third●Business●Day)

LATESTAWARDSANDRANKINGS(As At 31 Dec 2010)● ●

●


Net●Asset●Value●Per●Unit US●$ 2.0358● ●●●●●▼Change●(MoM) US●$ -0.0054 ●●-0.26%Total●Fund●Units● 22,629,393Total●Net●Assets● US●$ 46,068,917.87

PERFORMANCE(CHART)

50

75

100

125

150

175

200

2000 2002 2004 2006 2008 2010Fund Benchmark


Commodity SAR Fund

Commodity USD Fund

Local Share Fund

Global Equity Fund

GCC Equity Fund

Global Small CAP


Petro-Cement Fund

49

36

52 2 2

21

ASSETALLOCATION


STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio 0.46 0.46 0.39 1.03 0.86Information●Ratio 0.44 0.13 0.24 0.81 0.76Tracking●Error 0.03 0.04 0.03 0.04 0.04

September●2011 9




ALRAJHIMULTIASSETCONSERVATIVEFUND

OBJECTIVETo●achieve●capital●appreciation●commensurate●with●the●stated●risk●level●by●investing●in●the●equities●and●the●commodity●funds.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


●-●●● ●-●●● ●-●●● ●-●●● 1


●-●●● ●-●●● ●-●●● ●-●●● 3

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund 0.06 -0.63 ●-●●● -0.63 ●-●●●Benchmark -0.15 -0.95 ●-●●● -0.95 ●-●●●CalendarReturns(%) 2006 2007 2008 2009 2010Fund ●-●●● ●-●●● ●-●●● ●-●●● ●-●●●Benchmark ●-●●● ●-●●● ●-●●● ●-●●● ●-●●●


3Years

5Years

10Years

SinceInception

Fund ●-●●● ●-●●● ●-●●● ●-●●● -0.63Benchmark ●-●●● ●-●●● ●-●●● ●-●●● -0.95AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund ●-●●● ●-●●● ●-●●● ●-●●● -2.51Benchmark ●-●●● ●-●●● ●-●●● ●-●●● -3.74

MANAGERCOMMENTARYGlobal● stock● markets● continued● to● decline,● at● the● back● of● distressing● concerns● over●slowdown●in●global●economic●growth,●stemming●largely●from●the●prolonged●debt●crisis●in●the●Euro●zone.●The●liquidity●in●the●interbank●market●further●increased●during●the●month●as●most●banks●had●surplus●cash,●with●the●surge●in●deposits●that●were●far●in●excess●of●the●lending●and●investment●opportunities.●The●downward●trend●in●risky●assets●resulted●in●sharp●rally●in●safe●heaven●Treasuries.●The●fund●posted●a●modest●gain●of●0.06%●outperforming●benchmark●which●declined●by●0.15%●in●the●month●of●Sep●2011.●The●outperformance●can●be●attributed●to●underweight●position●in●equity●funds.●Within●equities,●higher●exposure●to●regional●equity●funds●also●contributed●to●positive●performance.●The●Fund’s●management●has●a●cautious●outlook●for●the●next●month.

FEATURES

Fund●Type● Open●Ended●Fund●of●FundsFund●Domicile Saudi●ArabiaRisk●Level LowInception●Date Jun-11Inception●Price US●$●100●Per●UnitFund●Currency US●DollarsBenchmark Composite● Index● ● (85%● of● SAIBOR● 3●

Months●+●3.75%●Dow●Jones●Islamic●Market●TR● Index● +● 3.75%● S&P● India● -● China●Shariah●Index●+●1.50%●S&P●GCC●Shariah●Composite● Index● +● 6.00%● S&P● Saudi●Shariah●Index)

Subscription●Fee 1.00%Management●Fee 10.00%Performance●Fee NilMinimum●Subscription US●$●2,000Minimum●Additional●Subscription US●$●2,000Minimum●Redemption US●$●1,000Valuation●Frequency●&●Days● Bi-weekly●-●Monday●&●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Saturday●&●TuesdayAnnouncement●&●Payment●Day Tuesday●&●SaturdayTrade●Execution T●+●2●(Third●Business●Day)


Net●Asset●Value●Per●Unit US●$ 26.4980 ●●●●●▲Change●(MoM) US●$ 0.0157 ●●+0.06%Total●Fund●Units● 116,490Total●Net●Assets● US●$ 11,575,325.33

PERFORMANCE(CHART)

Fund Benchmark


Commodity SAR Fund

Commodity USD Fund

Local Share Fund

GCC Equity Fund

Global Small CAP

Global Equity Fund


Petro-Cement Fund

47

45

5

11110

ASSETALLOCATION


STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) ●-●●● ●-●●● ●-●●● ●-●●● 1.23Alpha●(%) ●-●●● ●-●●● ●-●●● ●-●●● 2.19RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Maximum●Drawdown●(%) ●-●●● ●-●●● ●-●●● ●-●●● -0.69Standard●Deviation●(%) ●-●●● ●-●●● ●-●●● ●-●●● 1.21Downside●Risk●(SSD)●(%) ●-●●● ●-●●● ●-●●● ●-●●● 0.79MARKETSENSITIVITY(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Beta ●-●●● ●-●●● ●-●●● ●-●●● 1.24REWARDTORISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio ●-●●● ●-●●● ●-●●● ●-●●● -2.12Information●Ratio ●-●●● ●-●●● ●-●●● ●-●●● 4.70Tracking●Error ●-●●● ●-●●● ●-●●● ●-●●● 0.00

NA

September●2011 10




ALRAJHISAUDIRIYALCOMMODITYFUND

OBJECTIVEAchieve● steady● capital● growth● by● generating● reasonable● returns● and● provide● liquidity●thereon● through● direct/indirect● investment● in● Shariah● compliant● short-term● trading●instruments●denominated●in●Saudi●Riyals.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


12 36 60 120 136


12 35 55 90 95

Short-termReturn(%) 1Month 3Months 6Months QTD YTDFund 0.09 0.23 0.49 0.23 0.83Benchmark 0.04 0.10 0.24 0.10 0.38CalendarReturns(%) 2006 2007 2008 2009 2010Fund 4.93 4.41 3.07 1.59 1.26Benchmark 4.34 3.98 2.59 0.64 0.56


3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception

Fund 1.18 1.48 2.47 2.58 2.86Benchmark 0.52 0.75 1.83 2.20 2.58

MANAGERCOMMENTARYThe● liquidity● in● the● interbank●market● further● increased● during● the●month● of● Sep● 2011● as● most● of● the● banks●had●surplus● cash,●with● the● surge● in●deposits.●The●deposits●were● far● in●excess●of● the● lending●and● investment●opportunities,●amid●increase●in●credit●to●the●private●sector.●The●Fund●posted●YTD●gain●of●1.11%●(annualized)●for●the●month●of●Sep●2011,●outperforming●the●benchmark●by●0.51●basis●points●despite●low●yields●and●high●liquidity●in●the●market.●The●Fund’s●management●maintained●a●balance●between●long●deals●with●good●rates●and●liquidity●for●short●and●medium●duration●deals.●The●Fund’s●return●is●reflective●of●its●superior●performance●over●the●comparable●term● deposit● opportunities,● with● capital● preservation● and● daily● liquidity.● The● downward● trend● in● all● major● US●economic●indicators●in●Q3●resulted●in●sharp●rally●in●safe●heaven●Treasuries●and●a●major●sell-off●in●commodity●and●risky●assets.●The●credit●default●swaps●as●well●as●cash●spreads●tightened●during●the●month,●as●a●result●investors●took●the●opportunity●to●invest●in●fixed●income●by●deploying●the●surplus●cash.●The●interest●rates●are●expected●to●remain●unchanged●as●the●market●is●not●expecting●any●change●in●the●monetary●policy●in●the●coming●month.●The●Fund’s●management●is●well●positioned●to●achieve●attractive●gains●at●the●back●of●efficient●management●of●maturity●profiles●on●a●wider●base●of●counterparties,●in●Q4●2011.●The●Fund’s●management●aims●to●proactively●manage●the●credit,●duration●and●liquidity●risk,●through●prudent●credit●controls,●market●conditions●and●substantial●allocation●to●liquid●instruments.

FEATURES

Fund●Type● Open●Ended●Money●Market●FundFund●Domicile Saudi●ArabiaRisk●Level LowInception●Date Jun-00Inception●Price SAR●100●Per●UnitFund●Currency Saudi●RiyalsBenchmark SAIBOR●3●MonthsSubscription●Fee NilManagement●Fee 16.00%●of●ProfitsPerformance●Fee NilMinimum●Subscription SAR●7,500Minimum●Additional●Subscription SAR●3,750Minimum●Redemption SAR●3,750Valuation●Frequency●&●Days● Daily●-●Saturday●to●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Prior●to●Valuation●DayAnnouncement●&●Payment●Day Following●the●Valuation●DayTrade●Execution T●+●2●(Third●Business●Day)

LATESTAWARDSANDRANKINGS(As At 31 Dec 2010)● ●

●


Net●Asset●Value●Per●Unit SAR 137.6991 ●●●●●▲Change●(MoM) SAR 0.1218 ●●+0.09%Total●Fund●Units● 53,451,885Total●Net●Assets● SAR 7,360,276,476.19

PERFORMANCE(CHART)

100

110

120

130

140

2000 2002 2004 2006 2008 2010Fund Benchmark

MATURITYBREAKDOWN(%TotalNetAssets)

3-6 Months

1-3 Months

9-12 Months

6-9 Months

15-30 Days

8-14 Days

2-7 Days

26

2319

12

9

8 4

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception

Maximum●Drawdown●(%) 0.00 0.00 0.00 0.00 0.00Standard●Deviation●(%) 0.07 0.17 0.40 0.35 0.41Downside●Risk●(SSD)●(%) 0.05 0.08 0.25 0.21 0.25MARKETSENSITIVITY(Annualized)

1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception


September●2011 11




ALRAJHIUSDOLLARCOMMODITYFUND

OBJECTIVETo●achieve●steady●capital●growth●by●generating●reasonable●returns●and●provide●liquidity●thereon● through● direct/indirect● investment● in● Shariah● compliant● short-term● trading●instruments●denominated●in●US●$.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


12 36 60 120 249


12 36 60 120 197



3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception

Fund 1.20 1.35 2.34 2.33 3.46Benchmark 0.16 0.33 1.23 1.40 2.85

MANAGERCOMMENTARYThe● liquidity● in● the● interbank●market● further● increased● during● the●month● of● Sep● 2011● as● most● of● the● banks●had●surplus● cash,●with● the● surge● in●deposits.●The●deposits●were● far● in●excess●of● the● lending●and● investment●opportunities,●amid●increase●in●credit●to●the●private●sector.●The●Fund●posted●YTD●return●of●1.20%●(annualized)●for●the●month●of●Sep●2011●outperforming●the●benchmark●by●0.84●basis●points●at●the●back●of●some●good●deals●with●selective●counterparties.●The●Fund’s●return●is●reflective●of●its●superior●performance●over●the●comparable●term●deposit●opportunities,●with●capital●preservation●and●daily●liquidity.●The●downward●trend●in●all●major●US●economic●indicators●in●Q3●2011●resulted●in●sharp●rally●in●safe●heaven●Treasuries●and●major●sell-off● in●commodity●as●well●as●risky●assets.●The●credit●default●swaps●as●well●as●cash●spreads●tightened●consequent●to●investors’●preference●to●invest●in●fixed●income●by●deploying●the●surplus●cash.●The●market●is●expecting●medium●to●high●demand●in●the●future,●thereby●creating●opportunities●to●pick●good●and●long●deals●with●better●margins●while●maintaining●adequate●liquidity●for●investors.●The●market●in●the●coming●months●is●expected●to●have●stable●demand●and●increased●inflow●of●funds.●The●Fund’s●management●is●well●positioned●to●achieve●attractive●gains●at●the●back●of●efficient●management●of●maturity●profiles●on●a●wider●base●of●counterparties,●in●Q4●2011.●The●Fund’s●management●aims●to●proactively●manage●the●credit,●duration●and●liquidity●risk,●through●prudent●credit●controls,●market●conditions●and●substantial●allocation●to●liquid●instruments.

FEATURES

Fund●Type● Open●Ended●Money●Market●FundFund●Domicile Saudi●ArabiaRisk●Level LowInception●Date Dec-90Inception●Price US●$●1000●Per●UnitFund●Currency US●DollarsBenchmark USD●LIBOR●3●Months●IndexSubscription●Fee NilManagement●Fee 16.00%●of●ProfitsPerformance●Fee NilMinimum●Subscription US●$●2,000Minimum●Additional●Subscription US●$●1,000Minimum●Redemption US●$●1,000Valuation●Frequency●&●Days● Daily●-●Saturday●to●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Prior●to●Valuation●DayAnnouncement●&●Payment●Day Following●the●Valuation●DayTrade●Execution T●+●2●(Third●Business●Day)

LATESTAWARDSANDRANKINGS(As At 31 Dec 2010)

● ● ●


Net●Asset●Value●Per●Unit US●$ 2024.7558 ●●●●●▲Change●(MoM) US●$ 2.3110 ●●+0.11%Total●Fund●Units● 47,318Total●Net●Assets● US●$ 95,806,971.79

PERFORMANCE(CHART)

80

100

120

140

2000 2003 2006 2009Fund Benchmark


24

2320

20

10 3

06-9 Months

1-3 Months

15-30 Days

3-6 Months

9-12 Months

2-7 Days

8-14 Days

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception

Maximum●Drawdown●(%) 0.00 0.00 0.00 0.00 0.00Standard●Deviation●(%) 0.03 0.15 0.39 0.36 0.45Downside●Risk●(SSD)●(%) 0.02 0.07 0.24 0.21 0.32MARKETSENSITIVITY(Annualized)

1Year

3Years

5Years

10Years

SinceInception


1Year

3Years

5Years

10Years

SinceInception


September●2011 12




ALRAJHIEUROCOMMODITYFUND

OBJECTIVEAchieve● steady● capital● growth● by● generating● reasonable● returns● and● provide● liquidity●thereon● through● direct/indirect● investment● in● Shariah● compliant● short-term● trading●instruments●denominated●in●Euros.

PERFORMANCE(TABLE)

TrackRecord 1Year

3Years

5Years

10Years

SinceInception


12 36 60 ●-●●● 107


2 13 13 ●-●●● 15



3Years

5Years

10Years

SinceInception

Fund 0.78 3.18 9.04 ●-●●● 16.74Benchmark 1.00 3.23 11.58 ●-●●● 21.98AnnualizedReturns(%p.a.)

1Year

3Years

5Years

10Years

SinceInception

Fund 0.78 1.05 1.75 ●-●●● 1.75Benchmark 1.00 1.07 2.22 ●-●●● 2.25

MANAGERCOMMENTARYThe● liquidity● in● the● interbank●market● further● increased● during● the●month● of● Sep● 2011●as●most●of● the●banks●had●surplus●cash,●with● the●surge● in●deposits.●The●deposits●were●far●in●excess●of●the●lending●and●investment●opportunities,●amid●increase●in●credit●to●the●private●sector.●The●Fund●posted●YTD●gain●of●0.76●%●(annualized)●for●the●month●of●Sep●2011,●despite●high●liquidity● in●the●market●and●less●appetite●for●EUR.●The●Fund’s●return●is●reflective●of●its●superior●performance●over●the●comparable●term●deposit●opportunities,●with●capital●preservation●and●daily●liquidity.●The●downward●trend●in●all●major●US●economic●indicators●in●Q2●resulted●in●sharp●rally●in●safe●heaven●Treasuries●and●a●major●sell-off●in●commodity●and●risky●assets.●The●credit●default●swaps●as●well●as●cash●spreads●tightened●during● the●month,● as● a● result● investors● took● the● opportunity● to● invest● in● fixed● income●by●deploying● the● surplus● cash.●The●Fund’s●management● is●well● positioned● to●achieve●attractive●gains●at●the●back●of●efficient●management●of●maturity●profiles●on●a●wider●base●of●counterparties,●in●Q4●2011.●The●Fund’s●management●aims●to●proactively●manage●the●credit,●duration●and●liquidity●risk,●through●prudent●credit●controls,●market●conditions●and●substantial●allocation●to●liquid●instruments.

FEATURES

Fund●Type● Open●Ended●Money●Market●FundFund●Domicile Saudi●ArabiaRisk●Level LowInception●Date Nov-02Inception●Price EUR●100●Per●UnitFund●Currency Euro●€Benchmark EURO●LIBOR●3●MonthsSubscription●Fee NilManagement●Fee 16.00%●of●ProfitsPerformance●Fee NilMinimum●Subscription EUR●2,000Minimum●Additional●Subscription EUR●1,000Minimum●Redemption EUR●1,000Valuation●Frequency●&●Days● Daily●-●Saturday●to●WednesdayCut-Off●Time●&●Day Before●5●PM●-●Prior●to●Valuation●DayAnnouncement●&●Payment●Day Following●the●Valuation●DayTrade●Execution● T●+●2●(Third●Business●Day)


Net●Asset●Value●Per●Unit Euro●€ 116.7366● ●●●●●▲Change●(MoM) Euro●€ 0.0579 ●●+0.05%Total●Fund●Units● 5,003Total●Net●Assets● Euro●€ 584,056.84

PERFORMANCE(CHART)

100

105

110

115

120

125

2002 2004 2006 2008 2010Fund Benchmark


94

62 -7 Days

8 -14 Days

STATISTICALANALYSIS


1Year

3Years

5Years

10Years

SinceInception

Excess●Returns●(%) -0.23 -0.02 -0.47 ●-●●● -0.50Alpha●(%) 0.66 0.20 -0.03 ●-●●● -0.32RISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Maximum●Drawdown●(%) 0.00 0.00 0.00 ●-●●● 0.00Standard●Deviation●(%) 0.03 0.23 0.31 ●-●●● 0.24Downside●Risk●(SSD)●(%) 0.02 0.12 0.22 ●-●●● 0.17MARKETSENSITIVITY(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Beta 0.07 0.78 0.67 ●-●●● 0.84REWARDTORISK(Annualized)

1Year

3Years

5Years

10Years

SinceInception

Sharpe●Ratio 23.11 4.19 2.72 ●-●●● 2.30Information●Ratio -3.75 -0.11 -2.25 ●-●●● -2.79Tracking●Error 0.00 0.00 0.00 ●-●●● 0.00

GLOSSARY



September●2011 13

NetAssetValuePerUnitNet●asset●value●or●NAV●is●the●current●market●value●of●a●fund’s●assets●or●holdings●less●the●fund’s●liabilities.●NAV●is●usually●expressed●as●a●per-unit●amount.

● ● ●●●●●●●Current●Market●Value●of●Fund’s●Assets●–●Fund’s●Liabilities● NAV●=●●●-----------------------------------------------------------------------------● ● ●●●●●●●●●●●●●●●●●Total●Number●of●Units●Outstanding

FundCurrencyFund●currency●is●the●currency●in●which●the●pricing●information●such●as●NAV,●Net●Assets●are●denominated.

BenchmarkBenchmark●is●a●reference●or●comparison●value●that●is●used●to●measure●the●success●of●an●investment.●The●benchmark●for●funds●is●usually●an●index,●a●combination●of●indices●or●an●interest●rate.●Benchmark●is●also●known●as●reference●index.

SubscriptionFeeSubscription●fee●is●a●one-time●fee●paid●upon●acquisition●of●fund●units.●It●is●usually●given●as●a●percentage.●Unless●otherwise●indicated●by●the●fund,●the●subscription●fee●is●based●on●the●net●investment●amount.

ManagementFeeManagement●fee●is●the●ratio●of●total●daily●charges●to●fund●assets●arising●from●the●business●activities●of●the●fund.●It●is●given●as●a●percentage●per●annum.

PerformanceFeePerformance●fee●is●the●amount●calculated●and●charged●to●fund●assets●if●a●performance-related●fee●is●agreed●upon●in●the●Prospectus●and●the●fund’s●performance●exceeds●that●of● the●benchmark●or●other●reference● interest●rate●(or●yield),● less●costs.● It● is●given●as●a●percentage●per●annum.●For●a●more●detailed●definition,●please●see●the●prospectus.

MinimumSubscriptionMinimum●subscription●is●the●smallest●value●or●amount●that●an●investor●can●purchase●while●investing●in●a●specific●fund.

MinimumAdditionalSubscriptionMinimum●additional●subscription●is●the●smallest●additional●value●or●amount●that●an●investor●can●purchase●while●investing●in●a●specific●fund.

MinimumRedemptionMinimum●redemption●is●the●smallest●value●or●amount●that●an●investor●can●redeem●while●selling●a●specific●fund.

NumberOfMonthsWithPositivePerformanceNumber●of●months●with●positive●performance●represents●the●number●of●months●in●which●a●fund●has●given●positive●return●as●for●a●specified●period.

NumberOfMonthsWithOutperformanceAgainstBenchmarkNumber●of●months●with●outperformance●against● benchmark● represents● the●number●of●months● in●which●a● fund●has●given●excess● returns●over● the●benchmark● for● a● specified●period.

Short-termReturnShort-term●return●is●the●return●of●a●fund●or●a●benchmark●over●a●period●not●exceeding●one●year.●It●is●usually●expressed●in●percentage.

CumulativeReturnsCumulative●return● is● the●aggregate●amount● that●an● investment●has●gained●or● lost●over●time.●It●is●usually●expressed●in●percentage.

● ●●●●●●●●●●●●(Current●NAV●per●unit●of●the●fund)●–●(Beginning●NAV●per●unit●of●the●fund●for●a●specified●period)●●●●●●Cumulative●Return●=●---------------------------------------------------------------------------------------------● ● ● (Beginning●NAV●per●unit●of●the●fund●for●a●specified●period)

CompoundedAnnualReturnsCompounded●annual● returns● represent● annualized●gain● of● an● investment● earned●over●the●specified●time●period●which●usually●more●than●one●year.●It●is●given●as●a●percentage●per●annum.

● ● ●●●●●●●●● ● ● ●●●●●●●●●●●●●●●●●●●●(1/Number●of●Specified●Years)

Compounded●Annual●Return●=●●●-----------------------------------------------------●●●●● ● -●1● ● (Beginning●NAV●per●unit●of●the●fund●for●a●specified●period)

ExcessReturnsExcess● returns● are● returns● of● the● fund● in● excess● of● the● benchmark● for● a● particular●period.● ● ● Excess●Return●=●RPi●-●RBi

(RPi●are●periodic●returns●of●the●fund●and●RBi●are●periodic●returns●for●the●benchmark●for●“ith“●period)

AlphaAlpha●is●a●measure●of●the●difference●between●the●risk-adjusted●return●on●an●investment●and● a● benchmark.● The● alpha● measures● the● part● of● the● performance● that● cannot● be●explained●by●market●movements●or●market●risk,●but●rather●is●derived●from●the●selection●of●securities●within● the●market.●Alpha● is●a●way●of●quantifying● the●active●contribution● to●performance●made● by● the● portfolio●manager.● It● is● also● a● good● yardstick● to● use● while●comparing●several●funds.● ●=●(Portfolio●Return●-●Risk●Free●Rate)●-●(Portfolio●Beta●X●(Benchmark●Return●-●Risk●Free●Rate))

MaximumDrawdownThe●maximum●drawdown● is● the● largest● percentage●drop● in● value● in● a● given●period●of●time.●It●measures●the●amount●the●fund●falls●from●its●highest●point●to●its●lowest●point●in●the●selected●timeframe.

StandardDeviationStandard●deviation●quantifies●how●much●a●series●of●numbers,●such●as●fund●returns,●varies●around●its●mean,●or●average.●It●is●a●measure●of●historical●volatility.●Standard●deviation●is●calculated●as●the●square●root●of●variance.●Standard●deviation●allows●a●fund’s●performance●swings●to●be●captured●into●a●single●number.

DownsideRisk(SSD)Downside●risk●is●an●estimation●of●a●security’s●potential●to●suffer●a●decline●in●price●if●the●market●conditions●turn●bad.

It●is●the●standard●deviation●of●the●fund●returns●for●the●months●where●returns●were●below●the●average●over●a●specified●period.

BetaBeta●is●a●measure●of●risk●which●indicates●the●sensitivity●of●an●investment●to●fluctuations●in● the●market,●as● represented●by● the● relevant●benchmark.●For●example,●a●beta●of●1.2●tells●us●that●the●value●of●an●investment●fund●can●be●expected●to●change●by●12%●if● the●market●is●forecast●to●move●by●10%.●The●relation●is●based●on●historical●data●and●is●only●an●approximation.●However,●the●closer●the●correlation●between●the●benchmark●and●the●investment●fund,●the●better●this●approximation.

●●●●●●●●●●●●●●●●●●●●Covariance●(Excess●returns●of●a●fund●over●risk●free●rate,●Excess●returns●of●the●corresponding●●

●●●●●●●●●●●●●●●benchmark●over●risk●free●rate)

● ●=●------------------------------------------------------------------------------------------------●●●●●●●●●●●●●●●●●●●Variance●(Excess●returns●of●the●fund●over●corresponding●benchmark)

SharpeRatioThe●Sharpe●ratio●expresses●how●much●higher●(or●lower)●a●return●an●investor●can●expect●compared● to● the● risk-free● rate●of● interest● (e.g.● interest● rates●on●savings●accounts)●per●unit● of● risk● (volatility).● The● risk-free● rate● of● interest● varies● from● currency● to● currency.●The●higher● the●Sharpe● ratio,● the●higher● the●yield● the● investor● receives● for● the● risk● the●investment● carries● (expressed● in●volatility).●The●Sharpe● ratio● can●be●used● to●compare●multiple●funds.

Excess●returns●of●a●fund●over●risk●free●rate

Sharpe●Ratio●=●●---------------------------------------------------------------------------Standard●deviation●of●fund●returns

InformationRatioThe●Information●ratio●measures●the●difference●between●the●annualized●average●return●of●the●fund●and●that●of●the●benchmark,●divided●by●the●Tracking●Error.●The●higher●this●value●is,●the●more●the●investor●pays●for●the●risk●in●the●fund.●The●information●ratio●is●often●used●to●gauge●the●skill●of●managers●of●mutual●funds

● ∑●(Periodic●Fund●Returns●–●Periodic●Benchmark●Returns)●

Information●Ratio●=●●●---------------------------------------------------------------------------------------● Standard●deviation●of●Excess●returns●of●a●fund●over●benchmark●returns

TrackingErrorTracking●error●is●a●measure●of●the●deviation●of●the●return●of●a●fund●compared●to●the●return●of●a●benchmark●over●a●fixed●period●of●time.●It●is●expressed●as●a●percentage.●The●more●passively●the●investment●fund●is●managed,●the●smaller●the●tracking●error.

Tracking●Error●=●Standard●deviation●of●Excess●returns●of●a●fund●over●benchmark●returns

α

β

[ [(Current●NAV●per●unit●of●the●fund)

0878$/ )81' ) $& 76 + ((7 6 · Al Rajhi India China Equity Fund 6 FUND OF FUNDS Al Rajhi Multi...

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Transcript of 0878$/ )81' ) $& 76 + ((7 6 · Al Rajhi India China Equity Fund 6 FUND OF FUNDS Al Rajhi Multi...