Al-Khair Capital, the manager of the Al-Khair Diversified Income Traded Fund, announced its decision to distribute cash dividends to the fund's unit holders for the second half of 2023, extending from July 1, 2023 to December 31, 2023. This announcement confirms the fund's strong financial performance and its commitment to achieving periodic returns for investors.
According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul), the total value of distributed profits amounts to SAR 7.56 million. These profits will be distributed across a total of 47.28 million outstanding units, meaning that each unit will receive SAR 0.16 in profits. This distribution represents 1.76% of the fund's net asset value as of December 31, 2023.
General context and historical background
Al-Khair Capital is a leading asset management and alternative investment company in Saudi Arabia, licensed by the Capital Market Authority. The Al-Khair Diversified Income ETF is a closed-end, publicly traded investment fund designed to provide investors with periodic income through a diversified portfolio of Sharia-compliant income-generating assets, such as Murabaha, Ijarah, Sukuk, and trade finance. The fund's semi-annual dividend distribution reflects its successful strategy of generating stable cash flows and reinforces its appeal as a reliable investment vehicle in the Saudi market.
The importance of the event and its expected impact
Domestically, this distribution reinforces investor confidence in the performance of Saudi exchange-traded funds (ETFs) and their ability to generate attractive returns. It also provides investors with additional liquidity, potentially encouraging reinvestment in the market and thus supporting the depth and liquidity of the Saudi Stock Exchange (Tadawul). Regionally, the success of such funds reflects the maturity of the Kingdom's asset management sector, making it a more attractive investment destination for investors from the Gulf and Middle East seeking Sharia-compliant investment opportunities that offer stable income. Internationally, this positive performance highlights the strength and resilience of the Saudi economy, aligning with the goals of Vision 2030, which aims to develop the financial sector and establish it as a global investment hub.
The company has set the date for entitlement to dividends for unit holders registered in the records of the Securities Depository Center at the end of the day on February 16, 2024. Cash distributions are scheduled to be paid to those entitled within 10 working days from the entitlement date, which confirms the efficiency of the fund's operational procedures and the speed with which investors' rights are met.
