Riyad SAR Liquidity Fund

It only took a day for the Shariah compliant Riyad SAR Liquidity Fund to surpass its SAR100 million (US$26.6 million) minimum subscription target at the 27^th October 2024 launch, garnering SAR323.69 million (US$86.09 million).

Starting operations immediately, the low-risk open-ended fund operated by Riyad Capital continues to accept subscriptions from qualified retail to institutional investors with the SAR100 (US$26.60) entry point also applicable for subsequent top-ups.

Benchmarked against the one-month Saudi Riyal Interbank Offered Rate (SAIBID), the fund aims to preserve invested capital and mitigate risks associated with expected interest rates decline and fluctuations in the future influenced by the US Federal Reserve.

This fund’s portfolio of Shariah compliant short-term investments includes:

• Money market transactions that include Murabahah, short-term trade finance contracts, agency, Mudarabah and Musharakah agreements, repurchase and reverse repurchase agreements – of between 60% and 100% of net asset value (NAV),
• Money market instruments and debt instruments issued by counterparties within Saudi Arabia and licensed by the Saudi Central Bank or with global counterparties licensed by similar regulatory bodies – up to 40% of NAV,
• Units of public money market funds with similar strategies and public debt instruments funds with a compatible fixed income – capped at 25% of NAV, and
• Unrated money market instruments and debt instruments – maximum 10% of NAV.

Derivatives contracts are barred by this fund’s investment mandate and financing may be obtained up to 15% of NAV for liquidity requirements to meet redemption requests – as profits are automatically reinvested.

*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.