SNB Capital Al Razeen USD Liquidity Fund

The Fund:

• shall mainly invest in short term Money Market Instruments denominated in SAR and/or USD;

• may invest up to 20% of the Fund NAV in long-term investments such as sukuk, bonds and structured products (other than securitisation) denominated in SAR and/or USD; and

• may invest up to 10% of the Fund NAV in other CMA licensed public investment funds with similar objectives and risks

  The Fund’s strategy depends on the outlook of interest rates, which vary from time to time depending on the money market conditions. The Fund Manager shall study and analyse future interest rates through yield curve indicators, the impact of market predictions on the volatility of such rates as well as the daily monitoring and analysis of forecasts of the Fund’s daily liquidity needs. The Fund Manager shall rely on the rating of the international credit rating agencies such as Moody’s, Fitch and Standard & Poor’s as a general practice. Furthermore, the Fund:

• shall not invest in institutions or fixed income instruments that fall below the investment grade of Baa3 according to Moody’s rating and BBB- according to Fitch and Standard & Poor’s ratings; however

• may invest up to 20% in unrated institutions or fixed income instruments provided that the Fund Manager uses its internal evaluation criteria for risk assessment of financial institutions and fixed income instruments.

  The standards to be adopted by the Fund Manager for selecting investment funds are based on risks, liquidity, and yield of investments, as needed.

  The Fund’s investments shall not exceed 25% of its NAV in dealing with all third parties. The Fund Manager may invest the Fund’s assets in securities issued by the Fund Manager or any of its affiliates.