The Saaf Sukuk Fund acts as a lower volatility building block for multi-asset portfolios or as a diversifier from traditional non-Sharia compliant fixed income asset classes.
As a standalone fund, the Saaf Sukuk Fund is designed to provide income as well as total return.
The Fund seeks to achieve this objective by investing, with a total return bias, in a global portfolio of fixed and floating rate Sharia compliant securities (including non-investment grade securities), including Sukuk al-Ijara and Sukuk al-Wakala issued by government, government-related and corporate entities located in developed and developing countries. The Fund can also invest up to 50% of its net assets in short term and money market instruments.
The Investment Adviser has flexibility to use all available tools within the mandate to make positive returns with reference to Sukuk and cash benchmark returns and Sukuk benchmark volatility over a rolling 3-year period.
USD exposure will be 100% hedged, using Tahawwut contracts, into the respective unit currency for EUR and GBP units.