Alkhabeer Growth & Income gets CMA nod to update dividend policy

Logo of Alkhabeer Growth and Income Traded Fund

Alkhabeer Capital received approval from both unitholders and the Capital Market Authority (CMA) for a fundamental change to the Alkhabeer Growth and Income Traded Fund, specifically regarding an update to its dividend distribution policy.

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The company said in a statement to Tadawul that the fund manager aims to distribute dividends on a semi-annual basis.

This distribution will include 100% of the fund’s investment income and up to 50% of realized and unrealized net profits, subject to the board of directors’ approval.

Alkhabeer Capital may also issue additional distributions during the fiscal year, pending board approval. Decisions will consider asset values, unit price, market conditions, and the long-term growth of the fund’s assets.

Any applicable distributions will be announced within 10 business days of the fund’s quarterly report publication on the Tadawul website. Detailed disclosure of cash distributions will also be provided.

Entitlement to cash distributions will be granted to unitholders registered as of the record date, which will fall within 20 business days of the distribution announcement. Payments will be made within 30 business days of the fund’s quarterly report publication.

The fund manager may choose not to distribute dividends due to market conditions or other factors. In such cases, an announcement will be published on Alkhabeer Capital’s website clarifying the absence of a payout.

Alkhabeer Capital also reserves the right to appoint a market maker for the fund, the statement added.

According to data compiled by Argaam, the fund manager previously aimed to distribute 100% of its net investment income — limited to dividends from listed equities in the portfolio — twice a year. These distributions were made within 40 business days of the issuance of semi-annual and annual financial statements.

The fund manager was also entitled to distribute up to 50% of net realized and unrealized capital gains twice annually, based on its assessment. Any capital gains distributions were made within 40 business days of issuing the relevant financials and announced within 10 business days thereafter.

Terms and conditions Alkhabeer growth & Income traded fund