SICO Capital, the Saudi-based subsidiary of regional asset manager SICO, has announced the launch of its SICO GCC Dividends Fund. This marks the firm’s third equity fund and the sixth for the wider SICO Group, deepening its investment offerings for clients across the GCC.
Quick Facts
- Fund Focus: High-yield, dividend-paying GCC equities.
- Fund Domicile: Kingdom of Saudi Arabia.
- Investor Tiers: Two classes with SAR 10,000 and SAR 10 million minimums.
A Dual Strategy for Regional Investors
The open-ended equity fund is designed to provide investors with quarterly income and long-term capital growth by targeting stable, dividend-paying companies across the Gulf.
Ali Marshad, SICO Group’s Deputy Chief Executive Officer for the buy-side, explained that the fund’s strategy serves a dual purpose for investors in Saudi Arabia.
“The strategy enhances yield through regular distributions from companies with stable returns, while reducing the relative impact of market fluctuations compared to high-growth strategies,” said Marshad. “This enables investors to add an investment category that complements fixed-income investments and builds more balanced portfolios.”
Inside the Investment Framework
The Saudi Riyal-denominated fund will employ an active management approach to identify promising opportunities.
Wissam Haddad, CEO of SICO Capital, stated that the team’s investment framework combines quantitative screening with in-depth fundamental analysis. This process aims to identify resilient regional companies with disciplined capital allocation and sustainable dividend track records.
The fund will offer subscriptions and redemptions twice a week, with Albilad Capital appointed as the independent custodian to ensure regulatory oversight.
Structuring Access for All Investors
To cater to a broad range of clients, the fund is structured into two distinct unit classes. Class A is tailored for institutional investors, requiring a minimum initial subscription of SAR 10 million. Class B is designed for general investors, with a more accessible minimum subscription of SAR 10,000.
This structure allows both large institutions and individual investors to gain exposure to income-oriented equity opportunities across regional markets.
About SICO Capital
SICO Capital is a full-service financial services firm licensed by the Capital Market Authority (CMA) in Saudi Arabia. As a wholly-owned subsidiary of Bahrain’s SICO BSC (c), it offers a comprehensive range of services and products to individual, institutional, and corporate clients, including asset management, arranging, advising, custody, and dealing. SICO Capital manages SAR 6.1 billion in assets under management as of March 31, 2024.
Source: Zawya
