As a two-year closed-ended capital protection fund linked to the performance of Saudi stocks, the Albilad Saudi Equity Performance Linked Capital Protection Fund IPO began on the 3rd February 2025 for 30 business days.
Fund manager Albilad Investment aims to raise SAR188 million (US$50.13 million) during the offering period. If subscriptions to this low-risk fund fail to surpass the minimum SAR50 million (US$13.33 million) target, the IPO can be extended for another 30 business days.
The minimum subscription is SAR25,000 (US$6,667), where each unit’s par value is SAR10 (US$2.67). There is no preset for subsequent subscriptions – which can be conducted via the Albilad Group’s channels of Albilad Bank, Capital or Investments branches or websites.
All funds raised during the IPO may be invested either in short-term deposits (of less than three months) with local banks or in Saudi riyal-denominated, low-risk money market funds until the fund begins operating – at a date to be announced – or refunded if the minimum target is not met.
Once operations start, the fund aims to provide 100% protection for investors’ capital through Murabahah deposits. It will seek to achieve additional returns by investing in alternative contracts and financial options.
Fund performance is tracked using a composite benchmark comprising 80% of the six-month SAIBOR (Saudi Arabian Interbank Offered Rate) and 20% Saudi Islamic Stock Index calculated by IdealRatings.
The fund will not invest directly in the Saudi market – it will invest in money market transactions concluded with an entity regulated by the Saudi Central Bank.
These investments will comprise short- and medium-term money market instruments (70-100%), alternative Shariah compliant contracts and financial options (up to 30%) and public money market funds, including those operated by the fund manager (capped at 25%).
Units cannot be redeemed until the fund’s termination date. Any profit distribution is entirely at the discretion of the fund manager within the fund’s two-year span. Upon the fund’s expiry, Albilad Investment is entitled to a performance bonus of 20% of the total returns achieved on capital.
*Disclaimer: The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.
| Albilad Saudi Equity Performance Linked Capital Protection Fund | |
| Fund manager | Albilad Investment |
| Launch date | 3rd February 2025 |
| Asset class | Money market instruments |
| Base currency | SAR |
| Unit price | SAR10 (US$2.67) |
| Initial investment | SAR25,000 (US6,667), subsequent multiples of any amount |
| Investment objective | To provide 100% protection for investors’ capital through Murabahah deposits |
| Benchmark | Composite of: 80% six-month SAIBO; and 20% Saudi Islamic Stock Index calculated by IdealRatings |
| Risk profile | Low risk |
| Distribution | Upon termination of two-year close-ended fund, any additional profit distribution at fund manager’s discretion |
Source: Albilad Investment
