CMA approves offer of Alkhabeer Diversified Income Traded Fund on Tadawul

Saudi Arabia’s Capital Market Authority (CMA) approved Alkhabeer Capital Co.’s request to offer and register Alkhabeer Diversified Income Traded Fund’s units on the Saudi Stock Exchange (Tadawul) as a closed-ended traded fund.

The CMA said in a statement that the terms and conditions (T&Cs) of the fund can be obtained from the fund manager’s website and the CMA's website, which contain all relevant information that the investor needs to consider before making (or refraining from) an investment decision.

The statement added that an investment decision without reading the T&Cs carefully or fully reviewing its content may involve high risk. Therefore, investors should carefully read the T&Cs, which include detailed information on the fund’s strategy, objectives and risk factors.

The statement added that if the T&Cs prove difficult to understand, it is recommended to consult an authorized financial advisor.

The CMA stressed that its approval of Alkhabeer Diversified Income Traded Fund should not be considered as a recommendation to invest in it.

The CMA's approval of the fund merely means that the legal requirements as per the Capital Market Law and its implementing regulations have been met, the statement added.