Aljazira USD Murabaha Fund

Aljazira USD Murabaha Fund is a Shariah-compliant open-ended public investment fund managed and operated by Aljazira Capital (Aljazira Financial Markets Company). The Fund aims to achieve a return that exceeds its benchmark while maintaining a low level of risk, in addition to providing investors with liquidity within a short period. The Fund uses the US Dollar as its base currency.

The Fund invests in short-term, low-risk financial instruments, including Murabaha and variable-profit Murabaha contracts, Ijara, short-term securities, trade finance contracts, and low-risk treasury products that comply with Shariah standards, in addition to other investments or funds with a risk level similar to that of the Fund. It may also invest in low-risk, short-term money market funds, Sukuk, and Sukuk funds.

The allocation to Murabaha and variable-profit Murabaha contracts, Ijara, short-term securities, trade finance contracts, investments or funds with a similar risk level, and low-risk treasury products ranges between 75% and 100% of the Fund’s assets. Cash and investments with a remaining maturity of no more than 7 days must represent at least 10% of the Fund’s assets.

The weighted average maturity may not exceed 180 calendar days. The Fund invests in assets denominated in US Dollars or currencies directly pegged to it, in the financial markets of the Kingdom of Saudi Arabia, GCC member states, and OECD member countries.

Investments in Sukuk and Sukuk funds may reach up to 25% of the Fund’s net asset value, provided that the Sukuk are rated BBB- or higher. Investment in any single Sukuk may not exceed 10% of net asset value, which may be raised to 20% for Sukuk issued by the Government of the Kingdom of Saudi Arabia, the governments of OECD member countries, and GCC member states.

The Fund’s investments with a single entity or different entities belonging to the same group may not exceed 25% of the Fund’s net asset value, including money market transactions, securities, and bank deposits.

The Fund does not invest in derivatives, including Futures and Options contracts.

The Fund Manager charges a management fee of 15% of the Fund’s realized returns, calculated daily and paid quarterly, capped at 0.75% per annum of the Fund’s net asset value, and may reduce this fee in whole or in part. There are no subscription, redemption, or custody fees. The Fund Manager bears all other expenses related to operating the Fund, including the fees of the external auditor, the Fund Board, the Shariah Committee, the Capital Market Authority, and Tadawul.

The Fund’s benchmark is USD Term SOFR 1 Month, a benchmark interest rate for US Dollar-denominated derivatives and loans and an alternative reference rate to US Dollar LIBOR. The Fund’s performance is measured by comparing its return with this rate.

Subscription and redemption requests are accepted from Sunday to Thursday, excluding official holidays in the Kingdom, and the deadline for receiving requests is 12:00 noon on the business day preceding the dealing day. The value of redeemed units is paid no later than the end of business on the third business day following the valuation point at which the redemption price was determined.