Tariq LinjawiNCB Capital, the region's leading wealth manager and Saudi Arabia's largest asset manager, has launched AlAhli Global Natural Resource Fund, aiming to enrich investment portfolios with the most in-demand natural resources on earth. AlAhli Global Natural Resource Fund is a Shariah-compliant fund denominated in US dollars with a minimum subscription amount of $2,000. The fund is managed by a dedicated team of investment professionals with solid experience in managing commodity equity portfolios in energy, precious metals, agriculture, water and renewable energy. The Fund's objective is for investors to achieve capital growth by investing primarily in the listed shares of international companies that are involved in the natural resource related sectors. “By investing in equities, the portfolio aims to capture the growth potential of the producers, offering greater exposure to price increases. In addition, by investing in production companies, investors are less subject to fluctuations in physical commodities over the short term. “Furthermore, to achieve balance, a flexible allocation enables the portfolio to fully benefit from economic cycles, defined as cyclical stocks such as mining, base metals, steel and agriculture which are favored during economic expansion periods, and defensive sectors such as energy, gold and water which are favored during periods of economic slowdown." “The global natural resources market is characterized by a structural increase in demand from emerging markets, such as China and India, as these countries have strong needs of resources for their urbanization projects, which involve food and housing, and industrialization that involves the construction of production facilities and all the ancillary requirements," said Tariq Linjawi, Head of Wealth Management at NCB Capital. “In addition, with increasing prosperity among the emerging markets, there is a surge in consumer needs for essentials such as food and every type of commodity. “All these sectors and industries rely on natural resources, many of which are not sustainable, and as supplies dwindle, the imbalance between demand and supply leads to an increase in prices over the long-term." — SG
