NCB Capital, Saudi Arabia’s leading wealth advisor and Kingdom’s largest asset manager, announced today at a press conference held in Riyadh the launch of a new long-term open-ended fund investing in GCC Shariah compliant companies that have shown an ability to provide stable dividend generation due to sound business models and strong profitability.
The new AlAhli GCC Growth and Income Fund is an innovative fund that seeks to provide capital growth in addition to Twice Yearly income distribution by investing in GCC exchange listed companies with strong dividend payout potential.
Announcing the launch, Tariq Linjawi, Head of Wealth Management at NCB Capital, said: “A company’s ability to pay a dividend is often a reflection of its financial strength, stability and quality. In addition, dividend-paying stocks are regaining their allure and providing a source of stability to investors in today’s turbulent markets.”
The outlook for regional equity markets is becoming increasingly optimistic in the wake of a fragile global economic recovery. The GCC’s economies have managed to generate positive growth, thanks in large part to oil prices remaining relatively elevated.
Dividend-paying stocks should appeal to investors who are seeking relative capital preservation and return consistency. These companies typically exhibit capital allocation discipline and a higher quality of earnings.
Mr. Linjawi concluded, “We continue to look for new and innovative solutions to preserve and grow our clients’ wealth. This new fund demonstrates our ongoing commitment to address investors demand for financial solutions that help them achieve their investment objectives.”
The fund managers will ensure strategic diversification of the holdings across countries, sectors and stocks in order to achieve a higher risk adjusted return than the benchmark over the long-term.
NCB Capital is a world leader in developing Islamic investment products and has a proven track record and awards in this area. In 2011, the bank won the Best Fund Manager Award by Euromoney, and Best Equity House in Saudi Arabia by EMEA Finance. In addition, the company’s AlAhli Saudi Trading Equity Fund won best fund over 5 years and 10 years awards at the Lipper International prestigious 2011 awards.