Al Rajhi Capital, one of the leading asset managers in the Kingdom of Saudi Arabia, has started the offering period for the Al Rajhi Sukuk Fund, a unique product investing in Global Sukuk and other shariah compliant instruments.

Al Rajhi Sukuk fund is an open ended fund designed to capture the opportunities available within the Shariah-compliant universe of sovereign, quasi-sovereign and corporate Sukuk, issued locally, regionally, as well as globally. The Fund will also invest in other income generating assets, within its mandate comprising of Commodity Murabaha Placements, Islamic Placements, Structured Islamic Products and Commodity Mudaraba Funds. The benchmark of the Fund is 3 month USD LIBOR + 75 bps.

Al Rajhi Sukuk Fund is targeted to be an attractive proposition for individual and institutional investors aiming for superior long term risk adjusted returns relative to the current money market rates.

Commenting on the Fund’s launch, Gaurav Shah, CEO of Al Rajhi Capital, said: “We are pleased to launch the Al Rajhi Sukuk Fund which will provide investors a managed platform to participate in the anticipated growth in Sukuk issuance within the Kingdom of Saudi Arabia, GCC and globally. In the midst of an extended low rate regime, investors are continuously seeking better risk adjusted returns which can be achieved through a portfolio of Sukuk and other income generating investments. Instruments such as Sukuk offer greater predictability of returns and are an essential component of any diversified asset allocation strategy”.

Al Rajhi Capital is offering a special incentive whereby the subscription fees are waived for all new subscriptions until September 11 2014.

Al Rajhi Capital manages approximately SAR 30 billion in money market, equity, multi asset class and real estate based assets. To subscribe to the new Al Rajhi Sukuk Fund, investors can visit one of Al Rajhi Capital’s Investment Centers across the Kingdom or call 800 124 5858.

Al Rajhi Capital Launches First Sukuk Fund

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