SNB Capital Al Sunbullah SAR

SNB Capital Al Sunbullah SAR Fund is a Shariah-compliant, open-ended public debt instruments fund managed by SNB Capital. The Fund aims to achieve capital growth and competitive returns while preserving capital to the extent possible, through investment in money market instruments, fixed-income instruments, investment funds, and securities that comply with Shariah standards. The Fund is classified as medium risk.

The Fund invests in short-, medium-, and long-term financial instruments that comply with Shariah standards, including money market transactions such as Murabaha, Wakala, Mudarabah, and Musharakah, fixed-income instruments, Shariah-compliant alternatives to swap agreements, repurchase agreements and reverse repurchase agreements, in addition to structured products, securities backed by or linked to assets or Sukuk, Ijara and financing certificates and contracts, index-linked certificates, and any other instruments approved by the Shariah Committee. These investments are entered into with counterparties regulated by the Saudi Central Bank, the Capital Market Authority, or a similar regulatory authority outside the Kingdom. The Fund may invest in money market and fixed-income instruments denominated in currencies other than the Fund’s currency, while using foreign exchange transactions, currency or interest rate swaps, financial derivatives, and options for the purpose of hedging currency risk.

The Fund’s investments in fixed-income instruments range between 20% and 80% of net asset value, while investments in cash and money market instruments may reach 80%, and investments in units of investment funds similar to the Fund’s investments or strategies may reach 70%. Fixed-income instruments rated below investment grade or unrated may not exceed 50% of the Fund’s total investments in fixed-income instruments. The Fund Manager is required to maintain at least 10% of net assets in cash or investments with a remaining maturity of no more than seven days. The Fund Manager may allocate most of the Fund’s assets to cash and money market instruments during economic crises or liquidity shortages, when suitable debt instruments are not available in terms of return or credit quality, or when the risks of changes in interest rates increase.

The Fund uses a composite benchmark consisting of 60% of the 30-day rolling average of the 1-month SAIBID and 40% of the 30-day rolling average of the 5-year SAR SWAP rate. This benchmark is used as a reference for comparing the Fund’s performance.

Subscription and redemption requests are accepted on every business day, and the deadline for submitting requests is 12:00 noon. Requests submitted after this deadline are processed on the following dealing day. The unit price is announced on the day following the dealing day, and redemption proceeds are paid within five business days after the dealing day on which the redemption was made.