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Alkhabeer Growth Income Fund Gets Delisting Approval
Unit holders approved delisting of Alkhabeer Growth and Income Traded Fund on June 14. Investors face a redemption window at NAV with no set exit date yet.
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Unit holders of the Alkhabeer Growth and Income Traded Fund voted on June 14 to approve delisting the fund from the exchange, according to a fund statement. The vote clears the way for the fund to leave the public market, though a timetable for the process has not been disclosed.
Delisting removes the secondary trading venue for fund units. Investors who want to exit will no longer be able to sell through an exchange. Instead, they will need to rely on the fund's redemption mechanism or wait for the fund to liquidate holdings and distribute proceeds.
Closed-end funds like Alkhabeer Growth and Income often trade at a discount to net asset value. A delisting vote typically follows a period when the gap between market price and NAV persists. Removing exchange listing compresses the exit options and can push investors toward redemptions, which the fund manager must fund from its portfolio.
The fund's board of directors recommended the delisting earlier this year, citing administrative costs of maintaining the listing and low trading volumes. The approval from unit holders was the final procedural step.
For holders who did not vote or who voted against the delisting, the next decision point is the redemption price. Fund rules state that during a voluntary delisting, investors have the right to redeem at NAV within a specified period. The exact terms – including any fees or holding period – will be set by the board after the exchange confirms the delisting date.
Alkhabeer Capital, the fund manager, has closed several other funds in recent years as part of a strategy to consolidate its product lineup. The firm focuses on Shariah-compliant investments across real estate, private equity, and public markets. The growth and income fund held a portfolio of mostly Sukuk and dividend-paying stocks.
No date has been set for the last trading day. The fund will continue to trade until the exchange formally delists it, which typically takes several weeks after shareholder approval.