Saudi Arabia’s Capital Market Authority has proposed fuller investment-fund disclosures, including the origin of cash distributions and the counterparties behind major holdings. Published on 18 October, the consultation also seeks to consolidate continuing disclosure requirements and establish the exchange website as the minimum publication channel.[1]
The draft would lower a specific transaction threshold for closed-ended investment traded funds. Managers would report purchases, sales, mortgages or leases of assets worth at least 5% of net asset value, compared with 10% currently. The calculation uses the latest reviewed interim or audited annual financial statements, whichever is later.[2]
Proposed additions to fund reports
| Disclosure | Current presentation | Proposed detail |
|---|---|---|
| Quarterly major holdings | Top-ten holdings graph | Asset type, counterparty and percentage of net asset valueSource 2 |
| Cash distributions | Distribution amounts and ratios | Sources and nature, including investment income and asset-sale gainsSource 2 |
For brokers and fund platforms, the changes would make it easier to compare a payout with the activity that financed it. A distribution funded by asset disposals has a different basis from recurring investment income, even where the cash amount paid to investors is identical.[2]
The CMA also proposes analysis of performance against benchmarks and clearer conflict disclosures. Comments close on 17 November. The published package is a consultation, with final requirements still to be decided after responses are considered.[1]
Sources & further reading
- Consultation on investment-fund disclosure amendments Capital Market Authority · 18 Oct 2026 · Accessed 21 Oct 2026
- Draft investment-fund disclosure amendments Capital Market Authority · 18 Oct 2026 · Accessed 21 Oct 2026