Wed, Sep 2, 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. Cliff Asness attracts $360 million as liquid alternative funds hold up[more]

    From Bloomberg.com: As U.S. stocks suffered their worst month in more than three years in August, Clifford Asness’s managed futures fund was able to profit. Investors are taking notice. The $9.12 billion AQR Managed Futures Strategy Fund pulled in an estimated $360 million in net subscriptions last

  2. Performance - Einhorn and Loeb's hedge funds both decline 5% in August, Some target-date funds miss in the market turmoil[more]

    Einhorn and Loeb's hedge funds both decline 5% in August From Reuters.com: Hedge fund billionaires David Einhorn and Daniel Loeb saw their main funds lose roughly 5 percent in August during a dramatic market sell off, two people familiar with their returns said on Monday. Einhorn's

  3. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  4. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  5. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

 

banner