We are selling our position in Alawwal Bank after the share price appreciated significantly over the past few days on the back of the bank’s merger with the Saudi British Bank (SABB). Alawwal’s share price is up 52.9% since we initiated our position. Our decision to sell is based on the fact that Alawwal shareholders are due to receive SABB shares in exchange for their holding in Alawwal Bank, and it is our view that the shares of SABB do not look attractive at current levels.
The above raises our cash levels to a significantly high 43.9%, reflecting our cautious view over the short term.
As of today, the RDR MENA portfolio is up 8.3% year to date (YTD) and 24.4% since inception (the portfolio was incepted on the 1st of October 2016).