SAB Invest US Dollar Murabaha Fund

SAB Invest US Dollar Murabaha Fund enables investors to manage their liquidity in US dollars within a framework that complies with Shariah standards and guidelines. It is an open-ended public investment fund in the money market funds category, classified as low risk, and aims to grow and preserve invested capital.

SAB Invest manages and operates the Fund through its Fund Management Team, and its investments are subject to the Shariah standards approved by the Fund’s Shariah Committee. The Fund’s strategy primarily relies on Murabaha transactions, which must account for at least 70% of its assets. These transactions are conducted with local, regional, and international financial institutions with strong financial positions. The Fund may also invest up to 30% of its net assets in Sukuk, with a focus on Sukuk issued in the Kingdom of Saudi Arabia, while also allowing investments in Sukuk issued outside the Kingdom. It may also invest up to 10% in Murabaha funds and fixed-income funds licensed by the Capital Market Authority and compliant with Shariah standards.

Under exceptional circumstances, the Fund Manager may increase the allocation to cash and money market instruments and funds to 100% of the Fund’s assets.

To manage credit risk, the Fund requires counterparties with which it directly conducts Murabaha transactions to hold an investment-grade credit rating, with a minimum of BBB- from S&P or Fitch, or Baa3 from Moody’s. Investments in a single counterparty may not exceed 50% of the Fund’s net assets, while investments in Sukuk issued by a single issuer may not exceed 15%. The Fund does not invest in financial derivatives. It may obtain Shariah-compliant financing to cover redemption requests, provided that the financing does not exceed 10% of its net assets and does not extend beyond one year.

The Fund’s performance is measured against the average Secured Overnight Financing Rate (SOFR) for a one-day period, which is the Fund’s approved benchmark. The Fund does not charge subscription or redemption fees, and there are no performance fees. The management fee is capped at 0.65% annually of net asset value, in accordance with the terms and conditions.

Subscription and redemption requests are accepted on business days from Sunday to Thursday. The minimum initial subscription, additional subscription, redemption, and remaining balance is USD 10 for each. Unit prices are announced on business days, and redemption proceeds are paid before the end of the second business day following the approved valuation day.