Samba China Opportunities Fund (Izdihar)

Transcription

1 Samba China Opportunities Fund (Izdihar) Terms and Conditions

2 : ùcéa : JÉg ájoƒ ùdg á«hô dg áµ ªŸG VÉjôdG :» ù«fôdg õcôÿg, QÉéàdG πé ùdg, Oƒ S ÉjQ ƒ«e 6^000 ÉŸG SCGQ ájoƒ S áªgé ùe ácô T á`«`dé`ª`dg É`Ñ`eÉ` S á`yƒ`ª` Samba Financial Group Saudi Joint Stock Company Capital 6,000 Million, Commercial Reg. No , Head Office: Riyadh P.O.Box 833, Riyadh Kingdom of Saudi Arabia Tel: Fax:

3 All references to a period of time herein are to the Gregorian calendar unless stated otherwise. 1- MANAGER (SAMBA FINANCIAL GROUP) Samba China Opportunities Fund (the Fund) is an open-ended, investment fund denominated in US Dollars and is managed by the Asset Management Division (the Manager) of Samba Financial Group (the Bank). The participant hereby requests and authorizes the Manager to manage and invest the Fund s assets primarily in stocks of companies based in China, or in companies that will benefit from economic development and growth in the People s Republic of China. The manager will have the option, but not the obligation to invest in China (A) shares. In addition, the product will invest in Greater China including Hong Kong. The Participant expressly authorizes Samba to transfer and assign (for the participant s account and risk), as Samba may deem appropriate, the duties and responsibilities of the Manager to one or more other entities engaged in investment management activities, whether located inside or outside the KSA; provided, however, that if the approval of the Saudi Arabian Monetary Agency (SAMA) and the Capital market Authority (CMA) or other competent authority is necessary, the Bank shall have obtained any such approval prior to the effective date of the transfer or assignment. In such event, the assignee or transferee entity shall become the Manager of the Fund. The Participant hereby authorizes the Manager to delegate, transfer or assign, as the Bank may deem appropriate, its power and authority to one or more financial institutions (for the Participants account and risk) to act in the capacity of Adviser, Sub-Manager, Custodian, Agent or Broker to the Fund selected by the Manager (including without limitation, a Connected Party), hereinafter referred to as a (Delegated Party) and to contract with such Delegated Party to provide, as the context requires, investment management services and/or safekeeping and custodian services of the Fund s assets either directly or through a third party. In connection with such delegation, the Participant understands that the Manager shall not disclose any information regarding the Participant to such Delegated Party or any third party unless such disclosure is required by any applicable law or regulation in any applicable jurisdiction or where any such Delegated Party deems it necessary in order to enable it to perform its duties. The Manager will provide the Fund with the services of qualified persons to perform supervisory, administrative and clerical functions for effective administration of the Fund, including maintenance of books and records, entering subscription and redemption orders of units, initiating money transfers, reconciliation of account information and balances, processing, investigating and responding to Participants inquiries and provision of statements. The Manager is hereby authorized to delegate any of the above functions to a third party. The Manager may, at its sole discretion to the extent permitted by law, borrow funds for use in connection with the Fund from the Bank or otherwise. Such borrowing shall be used for, inter alia, establishing the Fund and to meet temporary liquidity shortages. Loans for establishing the Fund 1

4 are to be repaid within 1 year of their borrowing date and loans for liquidity purposes are to be repaid within 30 days of their borrowing date. The Fund may also be incorporated by utilizing seed money provided by the Bank. To the extent permitted by law, such seed money shall be treated as a subscription by the Bank for units in the Fund and consequently, the provisions contained herein with regard to, inter alia, redemption shall also apply to such seed money. In any such case, any borrowing will be at the prevailing market rate having due regard to all other terms and conditions. The Manager is specifically authorized to hypothecate Fund assets for such borrowings provided it does not exceed 10% of the fund assets. If it is not covered after a week, it has to be reported to the regulators. 2- SEGREGATION AND CUSTODY OF FUND S ASSETS The Manager will maintain records and accounts with respect to the assets, liabilities and expenses pertaining to the Fund. Physical custody of the Fund s assets will be maintained at one or more custody departments at various locations of financial institutions selected by the Manager at its sole discretion (including without limitation a Connected Party) but at the risk and for the account of the Participant. Each Participant will own in respect of each individual Fund in which the Participant has invested, an undivided interest in the Fund s assets based on Net Asset Value (as hereinafter defined) of the Participant s units. The Manager is entitled (subject to applicable regulation) to exercise all rights attached to any shares held by the Fund including, but not limited to, voting rights and the rights to attend general meetings of the company (or other business entity) concerned. The redemption of the Participant s units and the discharge of any of the Fund s liabilities will be satisfied out of the assets of the Fund without any right of recourse whatsoever to the assets of the Bank or a Delegated Party. 3- THE FIDUCIARY NATURE OF INVESTMENT FUNDS The Participant fully understands the fiduciary nature of the Fund and that any decision taken by the Manager with respect to the assets held in the Fund from time to time under this Agreement will be for the Participant s account and risk. 4- INFORMATION IN PUBLIC DOMAIN All investment decisions taken by the Manager in relation to the Fund will be based solely on information that is available in the public domain. AUDITED FINANCIAL STATEMENTS In accordance with the rules of SAMA/CMA, the Manager will prepare audited financial statement 2

5 for the Fund as of the end of each Gregorian year and these will be available to all branches of Samba Financial Group. Such statements shall be mailed to Participants upon their written request. The Manager shall also prepare unaudited financial statements semi-annually and these will be available for mailing to Participants upon their request. 6- INVESTMENT POLICY AND OBJECTIVES The Fund s investment objective is to achieve long term capital growth through investment in an actively managed portfolio of Chinese securities, including primarily equities issued by companies based in the People s Republic of China (PRC), comprising Hong Kong SAR (Special Administrative Region). It is anticipated that the Fund will invest across the entire range of capitalizations (from small cap to large cap). The Fund has the option, but not the obligation, to invest in (A) shares of companies in the PRC. (A) Shares of companies in the PRC are shares denominated in Renminbi and issued by companies in the PRC and listed on PRC stock exchanges. The Fund may employ techniques and instruments relating to the securities in which it invests for hedging purposes. 7- INVESTMENT RISK An investor of the fund should be aware of the following risks: The Fund is subject to market fluctuations and consequently the price of such Fund s units may go down as well as up and a Participant may not receive upon redemption the amount that he has invested. The Participant also accepts that changes in rates of exchange between currencies may also result in the value of units increasing or decreasing, as the case may be. SAMBA mutual Funds Investments are not deposits or obligations nor are they guaranteed by SAMBA or any of its affiliates or subsidiaries. They are subject to investment risks. Investment in the Fund carries significant risk, and investment should be regarded as long term in nature and is only suitable for investors who understand the risks involved and who are able to withstand the loss of their invested capital. Investing in the Fund involves certain considerations in addition to the risks normally associated with making investments in securities. There can be no assurance that the Fund will achieve its investment objective. The value of shares in the Fund may go down as well as up and there can be no assurance that the Fund will achieve its investment objective. The value of shares in the Fund may go down as well as up and there can be no assurance that on a redemption, or otherwise, investors will receive the amount originally invested. Any data, records or notices delivered by SAMBA are not intended to provide the basis of any 3

6 advice or other evaluation and should not be considered as a recommendation that any recipient and/or investor hereof should invest or purchase units of the Fund. Samba is not providing any advice to any investor and/or recipient in relation to the Fund or the investment. In addition to the above factors, it should be noted that the Fund will be taking positions in companies established or operating in, and/or whose securities trade in, China. Investments are subject to foreign exchange controls and the effects governmental policy and lack of transparency and regulation in the markets concerned. Such markets often lack derivative instruments, thereby making hedging difficult or impossible and the liquidity and/or bid/offer spreads on such markets can affect the ability of the Sub-Fund to deal efficiently on such markets. In addition, the following should be noted: Political and Economic Instability The government of China exercises substantial influence over various aspects of the private sector and accordingly may impact both the general economic conditions within the country and specific private sector companies. Expropriations, exchange control, confiscation, taxation, nationalization and political, diplomatic, economic or social stability and high rates of inflation are factors which may adversely affect the Sub-Fund s performance. Greater bureaucratic difficulties relating to investment (and divestment) in China give rise to considerations not typically associated with investment in member countries of the Organization for Economic Co-- operation and Development ( OECD countries ). Illiquid and Volatile Markets The securities markets of China tend to be substantially smaller, less liquid and more volatile than the major securities markets of OECD countries which may impair the Sub-Fund s ability to acquire or dispose of assets at an advantageous price and time. Legal Factors The ability to obtain or enforce judgments in China may be restricted. Additionally, issuers are subject to accounting, auditing and financial standards and requirements, and regulatory requirements which may be significantly less stringent than those applicable to issuers from OECD countries. Consequently, there may be less publicly available information about issuers in China and such issuers may be subject to less developed governmental and/or regulatory supervision and reporting requirements than may be the case in many OECD countries. The legal system of the People s Republic of China ( PRC ) relating to commerce, business and companies and to the operation of stock exchanges and the custody, settlement and clearance of securities trades, has been developing quickly, but there remains a degree of legal uncertainty in the interpretation (and any enforcement) of many legal rights and obligations which could be relevant to the Sub-Fund and many of the arrangements relating to custody, settlement and clearance of securities trades are and remain untested. Limited Diversification The Fund s portfolio is likely to be concentrated in investments of Chinese companies, which 4

7 increases the risk of an investment in the Fund by increasing the relative impact which each portfolio investment will have on the overall performance of the Fund. 8- FUND PARTICIPATION Investors wishing to purchase the Fund units shall do so by completing and delivering to the Bank, the SAMBA Investment Fund Application Form with either (a) an authorization to debit an account with the Bank or (b) the necessary funds for their participation. Participation in the Fund will be through purchase of units based on forward prices, as hereinafter defined. The Manager reserves the right to refuse participation by persons in the Fund, if, inter alia, such participation will result in violation of regulations applicable to the Fund that may from time to time be imposed by regulatory authorities. Valuations for units of the Fund, basis of valuation, valid application and prices applicable to such application are set out in the Appendix hereto. A valid application will be one where the necessary cleared funds for the purchase of the Fund units are received by the Bank in Riyadh on or before the date specified with respect thereto in the Appendix hereto. If payment for units is made in a currency other than the denomination currency of the Fund, the payment currency will be converted to the denomination currency by the Manager at the Bank s exchange rate then in effect and the purchase will become effective upon realization of the funds in the denomination currency and based on the forward unit price (being applicable price on the Announcement Day, as hereinafter defined.) Participants will be provided through the mail with an advice detailing the subscription number, date, the invested amount, unit purchase price and number of units purchased and commission charges, if any. For Regular Investment Savings, refer to Article REDEMPTION Redemption requests must be made on the Bank s Redemption Application Form, or through SAMBA Phone for customers with Telephone Personal Identification Number (T-PIN) subject to such redemption amounts not exceeding certain limits as specified by the Bank from time to time. The Participant may only redeem units in the minimum amounts specified. Redemption in the Fund will only be permitted subject to the conditions set out in the Appendix hereto applicable to the Fund including those relating to receipt of Redemption Request applications and applicable redemption charges. If the total aggregate requests for redemption and/or switching on any valuation cycle exceeds 10% of the total number of Units outstanding on the previous valuation day, the Manager may, 5

8 at its discretion, defer any redemption and switching requests in whole or in part, so that the 10% level is not exceeded. Any redemption and switching requests so reduced will be effected in priority to subsequent redemption and switching requests received in respect of the next valuation cycle, subject always to the 10% limit. This limit will be used only in times when unusually heavy redemption and/or switching requests would create a liquidity constraint to the detriment of the remaining Unit holders. If any redemption would reduce a Participant s investment to less than the minimum initial participation amount specified for the Fund, the entire investment must be redeemed. The proceeds of all redemption will be paid in the denomination currency of the Fund by crediting the Participant s account with the Bank by draft or telex transfer in accordance with the Participant s instruction on the Redemption Application From or through SAMBA Phone. Bank charges will be deducted for drafts and telex transfers. For Regular Investment Savings, refer to Article SWITCHING BETWEEN SAMBA FUNDS Subject to Articles 9,11,12,13,14,15 & 19 the Participant may switch all or part of his investment into another Samba Fund (except from a redemption fee carrying fund into a non redemption fee carrying fund). Such switching request will be treated as a separate redemption from the first and a subscription into the second PROVIDED that the Bank may impose such restrictions as to, inter alia, frequency of switching, and / or imposing a switching fee as may be determined by the Manager, from time to time. As a result of any request for switching, if the Participant s investment in the Fund would fall below the minimum initial participation amount specified for such Fund, the Bank, in accordance with article 9, may treat such request as a request for switching the entire investment into the Samba Fund which the Participant has applied to switch to. If as a result of an application for switching the Participant s investment in the Fund is redeemed for investment in another Samba Fund and meanwhile or subsequent thereto the calculation and announcement of Net Asset Value of such Samba Fund is suspended (as stipulated in Article 14) then the net proceeds of such redemption will be held for and on account of the Participant and investment in the requested Samba Fund will be effective and will be based on forward pricing as at the earliest feasible Announcement Day of such Fund. The Bank shall not be liable for any claim or demands whatsoever for any opportunity loss or actual loss incurred by the Participant. 11- VALUATION The Fund s unit purchase price, redemption price or switching price will be the Net Asset Value per unit announced on the Announcement Day as specified in the Appendix hereto. If banks in Saudi Arabia are not open for business on any Announcement Day, then the Announcement Day will be the immediately following day on which banks in Saudi Arabia are open for business. Valuation for the Fund shall be on the Valuation Day specified in the Appendix hereto with respect to the Fund. 6

9 11- VALUATION The Fund s unit purchase price, redemption price or switching price will be the Net Asset Value per unit announced on the Announcement Day as specified in the Appendix hereto. If banks in Saudi Arabia are not open for business on any Announcement Day, then the Announcement Day will be the immediately following day on which banks in Saudi Arabia are open for business. Valuation for the Fund shall be on the Valuation Day specified in the Appendix hereto with respect to the Fund. 12- NET ASSET VALUE PER UNIT The Fund s Net Asset Value for the purpose of purchase, redemption or switching of units, shall be determined by the Manager by subtracting from the value of the total assets of the Fund the amount of the Fund s Liabilities including without limitation the fees specified in Clause 20. The unit price is determined by dividing such resulting figure by the total number of outstanding Fund units on the relevant Valuation Day. 13- DESCRIPTION OF UNITS The Manager may, at its absolute discretion but without prejudice to the other terms of this Agreement, issue an unlimited number of units in the Fund, all of a single class. Each unit represents a proportional interest in the Fund equal to each other unit. If the Fund is liquidated, units are entitled to share pro rata in the net assets of the Fund available for distribution to Participants. 14- TEMPORARY SUSPENSION OF NET ASSET VALUE CALCULATION AND ANNOUNCEMENT OF UNIT PRICES The Manager may suspend temporarily with SAMA/CMA s prior approval the calculation and announcement of the Net Asset Value, the issue, purchase, transfer and redemption of units of the Fund during: Any period when any of the financial markets on which any portion of the Fund s assets are from time to time invested in is closed other than for ordinary holidays, or during a period when dealing thereon are restricted or suspended. The existence of any state of affairs (including a default by a counterparty) the result of which makes disposal or valuations of the assets owned by the Fund impractical or impossible as, in either case, determined by the Manager at its sole discretion. Any breakdown in the means of communication normally employed in determining the prices or values of any of the investments or the current price of holdings on any financial markets. Any period when the Bank is closed during official holidays in Saudi Arabia. The decision of the Manager with respect to any of the above will be final and conclusive. 7

10 15- EFFECTIVE DATE OF INVESTMENT The investment by a Participant in the Fund will become effective on and will be based on forward pricing as at the earliest feasible Announcement Day. In case of payment by cheque, the investment will be valid only as from Announcement Day immediately following receipt of cleared Funds and provided that such cleared funds are received on or prior to the cut-off time specified in respect thereof in the Appendix hereto; if the Funds are not received on or prior to such time, the investment will be valid only from the succeeding Announcement Day. For Regular Investment Savings, refer to Article 26. As for participation into the Fund through switching, valid switching applications received on or before the cut-off time, will be processed as cleared funds, such participation will be processed subject to Articles 9,10,11,12,13,14 & DIVIDENDS AND DISTRIBUTIONS The Fund s net income will be reinvested in the Fund and not distributed as dividends on the units. Thus, the increased value of the Fund through reinvestment of income will increase the value and price of the units. Net income of the Fund will be determined in accordance with generally accepted financial and accounting principles. 17 (A)- PERIODIC STATEMENTS / NEWSLETTER Within three weeks after the end of each quarter, the Manager will send to each Participant a statement of the Participant s investment in the Fund. A newsletter summarizing the Fund s performance and advising the Net Asset Value of a Unit as of the last day of each calendar quarter will be sent to participants within six weeks after the end of each quarter. 17 (B)- MAILING ADDRESS All statements, advices and other written communications by SAMBA to the Participants in connection with the Investment shall be mailed to the Participants address as indicated in the Fund documentation or to such other address as shall have been furnished by the Participants to SAMBA in writing, making specific reference to their Investments in SAMBA Fund subscription. The Participants shall be responsible for providing SAMBA with a correct mailing address at all times and for advising SAMBA promptly of any change of address. In the event that Participants do not provide SAMBA with a correct mailing address or specifically advise SAMBA that Participants do not wish to receive any mailings, including statements and advices, with respect to their Investment in SAMBA Fund, then the Participants agree to indemnify and hold SAMBA harmless in respect of, and to waive, all of the Participants rights or claims against SAMBA arising directly or 8

11 indirectly from the non-provision of statements, advices or other information relating to the Investment, or because of such non-provision, the Participants inability to respond to or seek rectification of any errors or alleged errors in any such statements, advices, or other information. 18- CONFLICT OF INTEREST (A) The Participant understands and accepts that the Bank or the Manager or a Connected Party or a director, officer or employee of any such company may, from time to time: Have a position in, or underwrite any investment held, purchased or sold for or to the Fund provided that the same has been undertaken at fair market values. Purchase or sell such investments for its other customers. Have banking relationships with companies whose securities are held, purchased or sold for or to the Fund. Have a banking relationship whereby it lends money to the Fund as set out in Clause 1 above. (B) The Participant understands and accepts that the Bank or the Manager may, from time to time, deal in respect of the Fund with a Connected Party upon terms no less favorable to the Fund than as would be obtained from a non-affiliated counterpart. Officers of the Bank may be officers or directors of such companies. The Bank or the Manager may purchase, hold and sell for or to the Fund any securities, which have been: Issued by, held or acquired for the account of the Bank or any Connected Party. Issued by, purchased or sold to any one with whom the Bank or Connected Party has a banking or other relationship; and retain and keep any commission payable to any third party with respect to any accounts of the Fund. 19- TERMINATION OF THE FUND If, in the opinion of the Manager, the value of the Fund s assets under management is insufficient to justify continued operation of the Fund, or if, due to any change in law, regulation or other circumstances that the Manager may deem appropriate reason for terminating the Fund, the Manager may, upon giving notice to the Participants and after SAMA/CMA s approval, terminate the Fund. In such case, the Fund s assets will be liquidated, its liabilities discharged and the remaining proceeds of such liquidation distributed to the Participants within 30 days of such notice in the proportion which their units bear to the total units then ascertained by the Manager to be in issue. 20- COSTS AND CHARGES The participant hereby agrees to pay to the Manager, a management fee for the administration of the Fund which shall be applied from time to time. The management fee shall be payable in quarterly installments in arrears, calculated and accrued on the basis of the Fund s Net Asset Value after deduction of Liabilities during each quarter as determined on each Valuation Day during the relevant quarter. Further, the participant agrees to pay to the Manager all costs in relation to its 9

12 establishment (including any advertising expenses), organization and the operation of the Fund and the investment of its assets. Such costs shall include but without limitation, management fees, legal and audit expenses, advisory fees safe-keeping fees, custodianship fees and costs, brokerage costs, commissions, dealing costs and other transactional charges. Per annum, such costs should not exceed more than 2% of the Fund s net asset value. The Fund has redemption fee for redeeming subscribers for less than one year. This fee will be credited to the fund and not to the Bank. Details of these fees may be found in the Appendix. 21- POWER OF ATTORNEY The Participant hereby irrevocably appoints the Manager as its attorney-in-fact, with full power of delegation and substitution to execute and deliver any documents which may be deemed by the Manager or any Delegated Party to be necessary in order to acquire or sell any of the Fund s assets or to invest any of the Fund s cash or to transfer any of the Fund s assets into the name of a nominee of the Bank or any Delegated Party, or to exercise any of the powers or discretion given herein above to the Manager, or delegated by the Manager to any Delegated Party, or to perform any of the Manager s or any Delegated Party s obligations in respect of the Fund. Any document to be executed by this power may be executed by an officer of the Bank. The Participant hereby agrees that the Participant shall do and execute or procure to be done and executed all necessary acts, deeds, documents and other things within his power to give effect to this Agreement and in particular to this clause. 22- GOVERNING LAW All transactions in the Fund shall be subject to all applicable laws and regulations in force from time to time in the Kingdom of Saudi Arabia and shall be subject to the over-all supervision and control of SAMA/CMA. Any dispute hereunder shall be referred exclusively to SAMA/CMA. The Participant recognizes and accepts that the purchase and sale of assets, investment and property and other related activities outside the Kingdom of Saudi Arabia shall also be subject to all applicable laws and regulations in the respective jurisdictions where such transactions are executed or where such assets, investments or properties are located. 23- AMENDMENTS TO THE TERMS AND CONDITIONS The Manager may at any time and in his sole amend these Terms and Conditions, provided that it obtains the approval of SAMA and CMA for any such amendments which require such approval and provided further that it notifies the Participants by mail of the proposed change and furnishes them with a copy of the amended text. The amendments will become effective 30 days from the date of such notice. 24- THE PARTICIPANT The participant can be a natural person (one or more (e.g. joint)) or legal entity. In the event that 10

13 the Participant is two or more persons then unless indicated otherwise, any investment made in the Fund shall be considered the joint property of such persons and such person authorizes the Manager to act upon written instructions of all, both, or any one of such persons. In the event that the Participant is a legal entity then, prior to such a Participant being allowed to make investments in the Fund, such Participant shall furnish to the Manager a copy of such Participant s Commercial registration, Articles of Association, Partnership Agreement and, if appropriate, corporate resolutions all in a form satisfactory to the Manager. 25- SUCCESSION The terms hereof shall, if the Participant is an individual, be binding upon the heirs, executors, administrators, personal representatives, trustees and successors of the Participant and the Participant s Agreement to these Terms and Conditions, shall not be terminated automatically upon the death or disability of the Participant. In the event that the Participant is a legal entity, this Agreement shall not terminate automatically on the death, disability, insolvency or dissolution of any partner or shareholder therein. Notwithstanding the foregoing, however, the Manager shall be entitled, at its sole discretion, to suspend any dealings in connection herewith pending receipt by the Manager of a court order, power of attorney or other evidence satisfactory to itself of the authority of any heirs, executors, administrators, personal representatives, trustees or successors to permit such dealings. 26- REGULAR INVESTMENT SAVINGS The minimum monthly subscription for Regular Investment Savings shall be determined by the Bank in its sole discretion from time to time. The current minimum quarterly subscription is two thousand. If the total subscription after one year from the initial subscription date is less than four (4) times the minimum quarterly subscription amount as established by the Bank from time to time due to the failure of the Participant to fulfill the minimum quarterly subscription, the Manager may, at its discretion, remove the Participant from the program. The subscription amount may be deducted from the Participant s account with the Manager, as per the instructions specified by the Participant. If the Participant s balance is insufficient on the date of deduction and/or if it is not a business day, the Manager will deduct the amount the following business day. If the Participant s balance remains insufficient on the following business day, no deduction will be made for that particular month. No confirmation advice will be sent to the Participant upon quarterly deduction. However, the deducted amount will appear on the Participant s current account statement. If the Participant wishes to change the amount to be deducted, the Fund in which to be invested, or the date of deduction, the Manager will implement these changes as soon as possible. If the revised instructions were not received by the Manager on the date specified from time to time, the changes will be implemented the following quarter. Participants whose salary is received through the Manager but do not have an account therewith, the Manager will deduct the amount to be invested and credit the remaining balance to the Participant s account with a specified bank within the Kingdom, or issue a check for the remaining balance and mail it to the Participant. Please read the Appendix overleaf which specifies the features of Samba China Opportunities Fund. 11

14 Samba China Opportunities Fund specifications Base Currency Fund Objective Investment Policy & Asset Allocation Benchmark Minimum Initial Subscription Minimum additional Subscription & Redemption Price applicable for purchase/ redemption or switching of units Valuation Day Basis of Valuation Definition of Business Day When fund prices are announced (announcement day) When redeemed funds are paid to investors Management Fees Redemption Fees Unit price at inception Inception Day US Dollars The Fund's investment objective is to achieve long term capital growth through investment in an actively managed portfolio of Chinese securities, including primarily equities issued by companies based in the People's Republic of China (PRC), comprising Hong Kong SAR (Special Administrative Region). The fund invests primarily in stocks of companies based in China, or in companies that will benefit from economic development and growth in the People s Republic of China. The manager will have the option, but not the obligation to invest in China (A) shares. In addition, the product will invest in (Greater China) including Hong Kong but excluding Taiwan. MSCI China Index US$ 2,000 US$ 1,000 If valid application is received prior to 12 noon on Tuesday (cut-off time) every week, applicable price applicable at following announcement day will apply Wednesday preceding announcement day Closing prices of the relevant financial markets on a valuation day. If not business day, then immediately preceding day A day on which banks are open for business in Saudi Arabia, Luxembourg, London and New York Every Saturday 7 business days after announcement day 2.00% per annum 0.25% of the redemption amount will be charged to any investment redeemed prior to 180 days of investment US$ per unit June 1st