The investment fund consists of a group of securities selected based on specific principles and criteria that achieve the fund’s investment objectives. Investment funds also provide the benefit of diversification for the investor, which leads to a reduction in the overall level of investment risk. Additionally, fund investments avoid the restrictions that usually apply to individual investments, allowing for greater diversification and lower costs in buying and selling shares. The profits of investment funds typically consist of capital gains—i.e., profits resulting from the improvement or change in the prices of the securities in which the fund invests—along with any dividend distributions, if available, from those securities. However, the fund may incur losses in the event of a decline in the value of the securities that make up its assets.
There are two types of investment funds:
Public Fund:
This is a fund established in the Kingdom, and its units may be offered by the fund manager to investors in the Kingdom in accordance with the provisions of Chapter Four of the Investment Funds Regulations, by any method other than private placement.
Private Fund:
This is an investment fund established in the Kingdom that is not a public fund. Its units may be offered to investors in the Kingdom in accordance with the provisions of Chapter Five of the Investment Funds Regulations.
Disclaimer
The following register shows information of Private investment funds which units have been offered as a private placement in accordance to the Investment Funds Regulations issued by the Capital Market Authority (CMA). The CMA's publication of this register shall not be considered as a verification of the feasibility of investment in these funds in any way, the CMA expressly disclaims any liability incurred or could be incurred from investing in these funds, or from using or relying on the information in the register.
The investment funds mentioned in this register are addressed to specific persons in accordance to the Investment Funds Regulations and are not for public offering, investing in such funds involves high risk, the potential unitholders who are willing to invest in them shall consult their
legal and financial advisors on the feasibility or appropriateness of investing in them and shall revise the relevant documents to be able to estimate feasibility and appropriateness of investment.
