Saudi Arabia-based Yaqeen Opportunistic Fund uses absolute discretion as part of its investment strategy to achieve Shariah compliant capital gains and growth over the medium- to long-term.
The Islamic open-ended public equity fund, launched on the 1st December 2024, primarily focuses on Saudi Arabian and other GCC stocks.
Nominally benchmarked against the S&P Saudi Shariah Index, the fund adopts a high-risk strategy providing manager Yaqeen Capital with full discretion over investment decisions. All profits will be automatically reinvested to maximize compounded returns.
“Yaqeen Opportunistic Fund will not rely on index weights in implementing the investment strategy or concentration and will act according to what the fund manager deems appropriate,” Yaqeen Capital said. “The fund manager will adopt a flexible investment policy that allows for the possibility of concentrating investments in various categories of securities, focusing geographically and primarily on local investments and then on Gulf investments.”
Net asset value (NAV) of the fund was SAR7.85 million (US$2.09 million) on the 25th March 2025. Based on its strategy, Yaqeen Capital can invest a minimum 50% of shares from IPOs in the Tadawul and Nomu markets, as well as shares of companies listed on the Gulf stock markets. It also relied on exchange-traded funds, REITs, closed-end investment funds and money market instruments and funds.
At least half of the portfolio will be invested in public equities as well as ETFs, REITs and listed closed-ended funds – this could be raised to 100% of the fund’s assets.
It may invest up to 30% in money market instruments and funds, up to 25% in other public investment funds, up to 10% respectively in private equity and Sukuk/Sukuk funds. For money market and Sukuk instruments, the intent is to invest only in ‘BBB’-rated (according to S&P or its equivalent) offerings. Nonetheless, the fund manager has scope to invest up to 30% of the fund’s NAV in unrated Sukuk and money market instruments.
In exceptional circumstances, the fund manager may be compelled to increase cash liquidity up to 100% and may allocate all of the fund’s assets to cash or short-term Saudi Riyal money market instruments.
“The fund manager may use leverage as one of the primary investment strategies to maximize the fund’s returns, where it is entitled to obtain financing up to a maximum of 15% of the fund’s net asset value, in accordance with Shariah standards,” according to the fund’s prospectus. With SAR10 (US$2.66) per unit at par value, the fund’s units were offered during the IPO which ended on the 19th December 2024.
*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.
| Yaqeen Opportunistic Fund | |
| Fund manager | Yaqeen Capital |
| Launch date | 1st December 2024 |
| Asset class | Public equities, including IPOs in the Saudi Main Market, parallel Market and Gulf markets |
| Base currency | SAR |
| Initial investment | None |
| Unit price | SAR10 (US$2.66) unit par value |
| Investment objective | Capital gains and capital growth over the medium to long term |
| Benchmark | S&P Shariah Index (Price Return) for comparison purposes only |
| Risk profile | High |
| Distribution | None |
| Management fee | 1.75% of the fund’s net asset value (NAV) per annum |
| Subscription fee | 1% of the subscription amount |
| Custodian fee | Between 0.017% and 0.02%, depending on the market in which the fund invests. Transaction fees for the custodian will range between SAR56.25 (US$15) and SAR135 (US$36) per transaction, depending on the market in which the fund is traded, calculated at the end of the period and paid monthly. |
| Tax and Zakat advisor fee | Baker Tilly, SAR3,500 (US$933.33) one-time payment for fund registration borne by the fund, plus SAR8,000 (US$2,133.33) annually from the fund’s NAV. (Optional fee of SAR3,000 (US$800) borne by unit holders for a certified tax and Zakat certificate on their investments, authenticated by the auditor). |
| Transaction expenses | Brokerage fees, trading fees and other charges related to the purchase and sale of securities as prevailing in the market, paid to brokers, exchanges, regulatory bodies and custodians. |
| Audit fee | SAR40,000 (US$10,666.67) per annum |
| Shariah committee fee | Borne by the manager on behalf of the fund |
| Independent board members’ fee | Borne by the manager on behalf of the fund SAR3,000 (US$800) per meeting, up to a maximum of SAR5,000 (US$1,333.33) per month in cases where there is more than one meeting in a month. The maximum total annual compensation for independent members is SAR120,000 (US$32,000). |
| Capital Market Authority fee | SAR7,500 (US$2,000) annually |
| Publication fee | SAR5,000 (US$1,333.33) annually paid to the Saudi Exchange (Tawadul) |
