SNB Capital launches SNB Capital GCC Financial Sector Fund

Logo of SNB Capital

SNB Capital launched SNB Capital GCC Financial Sector Fund as an open-ended equity fund.

The Capital Market Authority (CMA) approved, in December 2022, the application submitted by SNB Capital to float the units of SNB Capital GCC Financial Sector Fund in an initial public offering (IPO).

SNB Capital GCC Financial Sector Fund is an open-ended equity fund with no maturity date. The units offering started on Jan. 1 and will extend for 60 days through March 26.

The fund will start operations as of March 27. The fund manager reserves the right to start the fund before this day in case the minimum targeted amount of SAR 1 million to start operating the fund is raised.

The fund’s objectives are represented in long-term capital growth through investing in GCC financial sector companies with great potential for profit and cash flows.

The fund invests mainly in the shares of financial sector companies, listed in the GCC financial markets. Investments in the above securities include investing in shares of Nomu-listed companies, other investment funds, initial public offerings (IPOs), additional offerings, rights issues, in addition to cash and money market instruments

According to the terms and conditions, the fund’s investments include and are limited to the securities listed in the financial sector companies in the GCC markets. The fund manager has the right to retain any of the fund’s assets in cash or in short- or long-term Murabaha investments in case of unfavorable market conditions.