Fri, May 22, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

NCB Capital is first Saudi manager to launch Shariah-compliant UCITS funds platform

Monday, December 03, 2012

Jawdat Al Halabi
Opalesque Industry Update - NCB Capital, Saudi Arabias largest wealth manager, has become the first local institution to establish a non-Saudi registered range of funds under the Undertakings for Collective Investment in Transferable Securities (UCITS) platform registered in Ireland. The firm is also launching the first two funds on this new platform - the NCB Capital Saudi Arabian Equity Fund and the NCB Capital GCC Equity Fund.

The objective of the two funds is to generate long-term capital growth by investing in listed companies in the Saudi Arabian and Gulf Co-operation Council (GCC) markets, in line with Shariah guidelines. NCB Capital will use a mix of strategies covering mid-cap, blue chip, income-generating stocks and a diversified range of selected sectors with solid growth credentials. All strategies will be in line with the UCITS regulations.

These two Shariah-compliant funds will be marketed internationally in conjunction with Amundi, with a focus on institutional investors in Europe and Asia. The firm already manages the worlds largest Shariah compliant family of funds and the worlds largest Shariah compliant fund (US$3.93 billion).

Commenting on the launch of the new funds, Jawdat Al Halabi, CEO of NCB Capital, said, International investors are increasingly looking for new growth opportunities and nowhere are those better reflected than in the strong companies and sectors that we track in Saudi Arabia and across the Gulf region. With our local knowledge and significant presence we are a natural gateway for international access to a dynamic new market.

NCB Capital believes that these new funds will be particularly attractive to investors in Europe and Asia, who have a traditional preference for the regulated structures and strong risk framework that UCITS offers, added Mr. Al Halabi. Beyond that, Saudi Arabia and the GCC have compelling growth stories with the former enjoying real GDP expansion of 6.8% in 2011, making it a top 20 global economy. We believe that investors will consider these funds as helpful routes to portfolio diversification.

The Saudi Equity Market, with a market capitalisation of US$368 billion, has shown strong performance and is by far the largest in the region, accounting for 50% of the GCC equity market and 90% of its trading turnover. Overall, the GCCs combined market capitalization of US$736 billion itself is roughly equal to 20% of the so-called BRIC markets, a fact that is increasingly being recognised by international money managers.

Summing up, Mr Al Halabi said, We believe that the combination of strong and continuing equity and sector track records with good local and regional growth prospects will resonate with investors desire to diversify their portfolios outside of the usual emerging markets. These funds, and those that follow, are structured to meet this growing demand.

Press release

www.ncbc.com

Bg

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: SEC approves proposed changes to Form ADV, '40 Act - comment period to follow[more]

    Bailey McCann, Opalesque New York: Hedge funds and providers of liquid alternatives will want to pay close attention to proposed reforms approved by the SEC yesterday. The changes will require more frequent reporting, as well as a closer look into social media, liquid alternative strategies, and

  5. Opalesque Exclusive: Ovation Partners targets opportunities where few "natural lenders" participate[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Changes in financial regulations post-2008 (Dodd-Frank and Basel III) are forcing banks to significantly alter their core lending businesses. And as mid-sized

 

banner