Saudi CMA proposes tighter fund disclosures on payouts, assets and risks
- Saudi Arabia's Capital Market Authority (CMA) proposes stricter disclosure requirements for investment funds regarding payouts, holdings, and risks.
- Funds would need to clarify the sources of cash distributions, including income from investments and capital gains from asset sales.
- At the end of June, Saudi fund assets reached SR1 trillion ($265.7 billion), a 28.2% increase year-on-year, with a 29.6% rise in the number of funds to 2,249.
- Quarterly reports would highlight the top 10 investments per fund, detailing asset types and their shares of net assets.
- Real estate funds would disclose individual property revenues and compare them to net assets, including information on lease durations.
- Annual reports would require performance analysis against benchmarks, risk assessments, and conflict-of-interest disclosures for better transparency.
