SEDCO Capital Multi Asset Traded Fund debuts on Tadawul today

Logo of SEDCO Capital Multi Asset Traded Fund

The units of SEDCO Capital Multi Asset Traded Fund began trading on the Saudi Exchange (Tadawul) today, July 24, under the symbol 4703 and ISIN Code SA162G529FL8.

SEDCO Capital Multi Asset Traded Fund is a closed-end, traded investment fund that is compatible with Shariah standards and controls and established in accordance with the provisions of the Investment Funds Regulations issued by the board of the Saudi Capital Market Authority (CMA).

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The fund aims to allow investors to invest in multiple asset classes through capital enhancement and long-term periodic income distribution by investing in a Shariah-compliant diversified investment portfolio offered through private placement or public offering, whether locally or internationally.

Subscription to units of SEDCO Capital Multi-Asset Traded Fund started on May 19 and continued for 15 days until June 6. It was then extended until June 27, according to data compiled by Argaam.

All subscribed units by institutions, totaling 4.71 million, or 15.69% of the total offering, were allocated. Additionally, 25.29 million units, representing 84.31% of the total offering, were allocated to individual subscribers.

The Capital Market Authority (CMA) approved in April the request received from SEDCO Capital, the fund manager, to offer and list units of SEDCO Capital Multi Asset Traded Fund in an initial public offering (IPO).

 Below is main information about the fund:

The fund focuses on investing in multiple asset classes, and there will be no restrictions on exposure to a particular sector or geographic region.

The fund said that the maximum investment limit in local and international private equity will not exceed more than 20% of the value of its assets.

The fund may invest in funds that invest in all asset classes mentioned in the above table, including those managed by the fund manager (or any of his affiliates), provided that they do not exceed 25% of the net asset value of the fund in accordance with the requirements of the Investment Funds Regulations.

The fund manager has the right to fully invest its assets in investment funds according to the investment percentage in each investment area as mentioned in the table above.

In normal circumstances, the fund manager will not hold cash and money market instruments/funds more than 50% of the fund’s net asset value. However, in the event that some assets are sold and until the cash is reinvested or at the beginning of the fund’s term until investment opportunities are identified to invest available cash, or in exceptional cases, including but not limited to the occurrence of economic crises, force majeure events, and others, the allocated percentage can be increased to up to 100% of the net asset value of the fund.

Meanwhile, in the event of an increase or decrease in the equity value of the investment assets, or in the event of financing maturity (if any), which may result in the fund exceeding the target/maximum investment limit in any of its assets, the fund manager evaluates the investment conditions and rebalances the portfolio on a monthly basis to ensure compliance with the investment ratios as specified in the table above.

The fund manager may have to maintain the investment level until the next portfolio rebalancing date or until the maturity date of the illiquid asset for the benefit of unit holders.