Alkhabeer Capital, an asset manager specializing in Shariah-compliant investments and financial services, has announced the listing of the units of its Alkhabeer Diversified Income Traded Fund on the main market of the Saudi stock exchange (Tadawul). Trading commenced on Jan. 19. The trading code for the fund’s units in the market is 4700, and its international code is SA1560529E57.
The listing of the fund’s units was celebrated at the Tadawul Media Center in Riyadh, in the presence of Mohamed Al-Rumaih, chief of markets at Tadawul, and Ahmed Saud Ghouth, CEO of Alkhabeer Capital, as well as other executives of the company. The event marked the listing of the first-ever fund in the region on Tadawul as a closed-ended (non-real estate) traded fund that provides investors with a diversified portfolio of income-generating assets, offering them the opportunity to achieve competitive periodic returns.
CEO Ghouth said: “We are pleased to bring to the market the first income fund in the region that is diversified across a multitude of assets as well as local, regional and global markets. With Alkhabeer Diversified Income Traded Fund, we are significantly enhancing income-generating opportunities for the investment community and supporting the growth in trading volume and activity on the Saudi market. This is another step forward in our mission to unlock new and promising investment opportunities for investors and expand avenues for growth for all our stakeholders.”
Alkhabeer Diversified Income Traded Fund, which is the first fund of its kind in the region, attracted more than 89,000 individual and institutional investors, with a net subscription value of SR472.8 million ($126 million). The coverage ratio exceeded the minimum fund’s size by 157 percent over the 15-day IPO period, which commenced on Dec. 6, 2020 and concluded on Dec. 24, 2020.
The fund aims to provide investors with a diversified portfolio of income-generating assets, giving them the opportunity to receive competitive periodic returns through investing in a multitude of assets, including sukuk, trade financing, leasing, income funds, and Murabaha transactions. The fund is geographically diversified across local, regional, and global markets, including Saudi Arabia, the UAE, the US and Europe. It intends to generate competitive annual returns exceeding 5 percent, distributed semi-annually to its shareholders.
