JEDDAH, 7 April 2006 — National Commercial Bank (NCB), recently confirmed as the Kingdom’s top performing fund manager, yesterday announced April 10 as the closing deadline for investing in its low-risk Saudi Secured Trading Equity Fund.
The fund has been structured to limit the downside for mutual fund investors with exposure to the Saudi stock market. This is in response to the trend of Saudi investors increasingly turning to “safer haven” funds as local and regional markets have become increasingly volatile.
“The attraction of Saudi Secure for investors is that it aims to caps losses at 10 per cent over the three-year life of the fund while continuing to allow 100 per cent participation in the stock market upside. It is win-win for investors,” NCB’s Portfolio Management Head Haitham Mubarak said.
“It would have been particularly welcome for those hard hit by the recent correction that erased 25 per of the value of their equity portfolios. Saudi Secured would have targeted capping the losses at 10 percent over the three-year life of the fund, a significant difference since for someone investing SR250,000 the amount would have been SR37,500 instead of SR62,500.”
