NCB Capital, the GCC's leading wealth manager and the Kingdom of Saudi Arabia's largest asset manager, has launched AlAhli Global Growth and Income Fund, a new Shariah-compliant open-ended equity fund investing in shares of companies around the world with a solid track record of dividend distribution. Denominated in US dollars, the fund helps investors to achieve long term financial goals by providing twice yearly income distribution and capital growth potential through investing in equities of dividend-paying companies listed in developed and emerging markets around the world. “At NCB Capital, we believe that dividend-paying stocks play an increasingly important role in an investment portfolio, as dividends can provide a significant percentage of total return over time” said Tariq Linjawi, Head of Wealth Management at NCB Capital. “Companies that pay regular dividends tend to enjoy solid streams of cash flow and are generally well-managed high quality firms. In today's global low interest environment, dividends tend to provide on the long-term 1) higher income than many fixed-income investments and 2) a growth rate that is potentially faster than the rate of inflation in many markets around the world,” he added. “In fact, dividend-paying stocks have shown to help buffer portfolio losses when equity prices decline and provide higher total returns in recovering markets. In the long term, dividend-paying stocks generally outperform the broader market during both bull and bear periods. This is why companies that pay dividends are a compelling option since they indicate to the market that their earnings are real and long term, giving investors a sense of comfort.” While no one can predict future returns with absolute certainty, investors in AlAhli Growth and Income Fund should expect their total return to consist of semi-annual dividends, capital appreciation and alpha performance. Also, the management style of the fund will be based on fundamental research as well as sector and country specific themes with a focus on long-term dividend yields. – SG
