Alahli Saudi mid cap equity fund taps huge potential in thriving investment category.Alahli Saudi mid cap equity fund taps huge potential in thriving thrive intr.v. thrived or throve , thrived or thriv·en , thriv·ing, thrives 1. To make steady progress; prosper. 2. investment category Investors attracted by strong corporate results from Mid Cap companies which have great potential growth With the Kingdom's economy showing robust economic growth and companies returning rising corporate results, investors are looking at Saudi equities with renewed interest and, in particular, are directing their attention to Saudi mid cap companies as a category that has huge potential for long term growth. To tap into this segment of the Saudi investment market, NCB (Network Control Block) A packet structure used by the NetBIOS communications protocol. Capital, the investment arm of the National Commercial Bank, has launched the AlAhli Saudi Mid Cap Equity Fund. "The term mid cap defines those companies with a market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. between SAR (Segmentation And Reassembly) The protocol that converts data to cells for transmission over an ATM network. It is the lower part of the ATM Adaption Layer (AAL), which is responsible for the entire operation. See AAL. SAR - segmentation and reassembly 3 to 50 billion, compared to small cap companies with a capital below SAR 3 billion and large cap companies which are capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. above 50 billion," explained Hasan ALJabri, Head of Investment Banking at NCB Capital. "In our continuous search to look for more for our clients, we have identified those mid cap companies that have the potential to perform better than the broader market." "AlAhli Saudi Mid Cap Equity Fund offers investors the opportunity to benefit from the strong performance of mid caps," continued Hasan ALJabri. "In the Kingdom's thriving economic climate, medium size companies are expanding in size and delivering better than average profitability, making mid caps a highly attractive opportunity for investors to share in this time of increasing prosperity that we are now enjoying." Furthermore, "Confidence level in the local market is gaining momentum as investors regaining trust and are more eager to invest in local funds. This is particularly true among people who know and live the local market to a much bigger extent than they do with the global markets" commented ALJabri AlAhli Saudi Mid Cap Equity Fund is an open ended, Shariah compliant fund with a minimum subscription of SR 5,000. The fund provides investors with the opportunity to gain exposure to a wider range of Saudi equities. "The fund aims to maximise its returns by investing primarily in mid-cap companies and selectively in small cap companies with relatively higher growth potential compared to the broad market" said Ayman Bajsair, Head of Product Development at NCB Capital. The fund offers the benefits of long-term capital growth and risk-reduction through asset allocation Asset Allocation The process of dividing a portfolio among major asset categories such as bonds, stocks or cash. The purpose of asset allocation is to reduce risk by diversifying the portfolio. , sector diversification Sector diversification Constituting of a portfolio of stocks of companies in each major industry group. and stock selection. NCB Capital is benchmarking the AlAhli Saudi Mid Cap Equity Fund against Standard & Poor's Saudi Mid Cap Shariah Compliant Index (with Market cap 3-50 billion Riyals). By the end of 2007, there were more than 80 mid cap and small cap companies listed in the Saudi Market with total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. of SAR 440 Billion, which accounted for more than 70 percent of the total number of companies listed and about 40 percent of the total market capitalization for the overall Shariah compliant stock universe. The banking sector in particular has witnessed tremendous growth in recent years and banks which started as mid cap companies four years ago have grown into large cap companies. Similar success stories exist in other sectors such as industrials, Petrochemicals and telecom. "With a long list of IPO's coming up this year and beyond, the number of mid caps will increase significantly and it is worth noting that many of the IPO's during the past five years were mid cap companies that have outperformed the market since going public" Bajsair explains. Looking ahead, soaring soaring: see flight; glider. soaring or gliding Sport of flying a glider or sailplane. The craft is towed behind a powered airplane to an altitude of about 2,000 ft (600 m) and then released. oil prices, increased government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product. , improved regulation and ample liquidity growth are factors that are underpinning un·der·pin·ning n. 1. Material or masonry used to support a structure, such as a wall. 2. A support or foundation. Often used in the plural. 3. Informal The human legs. Often used in the plural. renewed confidence in the Saudi stock market, which closed 2007 showing a gain of 41 percent and has the potential to grow even more. In this environment, the AlAhli Saudi Mid Cap Equity Fund is a compelling proposition for investors who are seeking to benefit from the huge potential of the thriving mid cap investment category. [c] 2008 Al Bawaba (www.albawaba.com) |
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