Tariq Linjawi, managing director wealth management of the NCB Capital, launched the new Al-Ahli GCC Growth and Income Fund at a press conference in Riyadh.
Linjawi described it 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.
Also present at the press briefing were Mohammed Al-Shammasi, head of Equities and Asset Management of NCB Capital and Osama F. Al-Owedi, vice president of Portfolio Manager Asset Management.
Linjawi, citing an economic expert, said Turkey and some countries in the GCC, are a conduit to the future economy of the world.
Initially, he said NCB Capital had identified some companies in countries such as Qatar, Dubai and Abu Dhabi in the UAE, Kuwait and some companies in Oman too.
"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, he said, adding that these companies typically exhibit capital allocation discipline and a higher quality of earnings.
"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," Linjawi said, adding that NCB Capital would help its clients identify the viable companies for their investments.
He said the minimum investment is fixed at SR5000.
"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," he added.
Al-Shammasi said 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.
