At NCB Capital we believe that dividend-paying stocks play an increasingly important role in an investment portfolio, and dividend income can offer investors a source of stable returns. . Such companies have demonstrated time and again that they can withstand market fluctuations while consistently paying shareholders stable streams of income. Because of today’s uncertainty surrounding the global economy, dividend-paying stocks are playing an increasingly important and stabilizing role in professionally managed investment portfolios – making them a hedging tool during slower growth economic cycle or extended slowdown periods.
A Source of Stability
A company’s ability to pay a dividend is often a reflection of its financial strength, stability and quality. As a result of the turbulent market conditions and the environment of uncertainty characterizing the global economy, today, dividend paying stocks are regaining their allure and investors have a renewed interest in companies that have withstood the market fluctuations and have consistently paid shareholders stable streams of income. This income stability is especially critical during slower growth economic cycle or extended slowdowns.
The Fund’s Opportunities for Investors Seeking Consistency
- Market downturn offers investors the opportunity to take positions in stable, dividend-paying stocks at attractive prices and benefit from the subsequent higher dividend yields.
- GCC economic fundamentals remain strong in the midst of a weaker global market, bulwarked by higher oil prices.
- The Fund offers an entry opportunity as GCC dividend yields are on the higher side of the historical range.
Investment Objectives
The objective of the Fund is to achieve long term capital growth and income distribution by investing in Shariah compliant companies with sound dividend payout track record and listed on the stock exchanges of the countries in the GCC.
Investment Strategy
The AlAhli GCC Growth and Income Fund is an actively managed long only fund that will invest in the six GCC countries to achieve long term capital growth and income distribution. The Fund Manager will employ bottom-up stock selection approach with a thematic overlay. The Fund will rotate between countries, sectors and stocks in order to achieve higher risk adjusted return relative to its benchmark.