Aljazira Sukuk Fund

Aljazira Sukuk Fund is a Shariah-compliant open-ended public investment fund. It is managed by Aljazira Financial Markets Company, while Franklin Templeton Investments (ME) Limited serves as the Fund’s sub-manager. The Fund aims to achieve medium- and long-term returns for unitholders through a diversified portfolio of Sukuk, Sukuk funds, and private credit funds, in addition to cash and money market transactions, such as Murabaha transactions and money market funds that comply with Shariah standards. The Fund is classified as having a medium risk level.

The Fund invests at least 70% of its net assets in investment-grade Sukuk, rated BBB- or higher by Fitch or Standard & Poor’s, or Baa3 or higher by Moody’s. Within this allocation, at least 30% of the Fund’s net assets are allocated to Sukuk rated A or higher by Fitch and Standard & Poor’s, or A2 or higher by Moody’s.

For the purposes of these limits, cash, money market transactions, and money market funds are treated as having an AAA rating. The Fund may also invest up to 30% in domestic or international sovereign Sukuk below investment grade or unrated, including Sukuk issued by provinces and municipalities, and up to 15% in corporate Sukuk below investment grade or unrated.

The Fund may also invest up to 25% in Sukuk funds, provided that the Fund’s ownership does not exceed 20% of the net assets of any investee fund, and up to 10% in private credit funds, which are treated as unrated investments. It may also hold securities linked to Sukuk, such as shares and warrants arising from them, up to 5%, and cash and money market transactions up to 30%. This allocation may be increased to 50% if the Fund Manager determines that economic, political, or regulatory conditions may negatively affect the Fund’s assets, or when suitable Sukuk are not available, or when the Fund receives significant subscriptions.

The Fund’s benchmark is the Dow Jones Sukuk Total Return Index. The index measures price changes and cash distributions of Sukuk denominated in US Dollars and compliant with Shariah standards, and is used as a reference for comparing the Fund’s performance.

Subscription and redemption requests are accepted from Sunday to Thursday, excluding official holidays in the Kingdom, and the deadline for receiving requests is 12:30 PM on the business day preceding the dealing day. The value of redeemed units is paid no later than the end of business on the fourth business day following the valuation point at which the redemption price was determined.