SNB Capital Waqf Investment Fund

Launched on the 1^st August 2024, the SNB Capital Waqf Investment Fund is pitched to residents in Saudi Arabia – but its operator has the mandate to seek returns from a plethora of Shariah compliant choices around the world.

This open-ended fund is officially named in Arabic as the AlAhli Investment Endowment Fund within the Kingdom, after its manager AlAhli Capital (also known as SNB Capital).

During the 60 working days initial offer period ending on the 23^rd October 2024, the entry point is SAR100 (US$26.63) with subsequent multiples of SAR100. Once subscriptions reach SAR10 million (US$2.66 million), the fund manager can end the initial offer and operate the fund.

While aiming to provide a sustainable financial future for charitable causes, SNB Capital must refund all subscription amounts in full, without any deduction, if this minimum SAR10 million Waqf fund target is not achieved.

Once operational, the endowment fund is allowed to seek both within Saudi Arabia and around the global any Shariah compliant long- and short-term investment assets amidst efforts focusing as much as possible on protecting its assets. These include:

• Money market instruments,
• Sukuk, both sovereign and private,
• Local and foreign equities,
• Real estate investment trust funds,
• Any indirect investment that leads to capital growth and/or income-generating investments like:
  • Trade financing deals,
  • Murabahah operations,
  • Private equity, and
  • Commodities.

The fund can invest up to 20% of its net asset value (NAV) in securities or counterparties without an investment grade rating and may use securities derivatives approved by the Shariah committee for currency hedging, provided this does not exceed more than 15% of the NAV.

Performance of this fund is not linked to any index. However, the fund manager will use an indicative composite benchmark of (5% 1M SAIBID) + (25% Dow Jones Sukuk Index TR) + (50% MSCI ACWI Islamic Composite M Series NTR USD) + (10% IdealRatings Global REITs) + (10% (3M term SOFR rate + 300bps)).

All fund proceeds are donated to the Council of NGOs, which operates under the purview of the Saudi Arabian General Authority for Awkaf with registration No. 1/203520 from the Ministry of Human Resources and Social Development. On an annual basis, at least 50% of the fund’s net distributable profits or endowment yields will be donated.

The fund does not accept any redemption requests from investors due to its endowment nature – which also binds fund manager SNB Capital from transactions that may cause any conflict of interest.

*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.