“The alliance will create one of the largest and most diversified Shariah fund platforms in the world,” Jawdat Al-Halabi, chief executive of NCB Capital, said at a press conference in Riyadh.
“As the leading wealth management firm in the region, our clients expect us to provide them with the widest range of services,” he said.
The strategic alliance will substantially enhance the product offering and geographic reach by establishing an even broader platform, which will be a huge benefit to our clients, he added.
Al-Halabi said by aligning with TCW and Amundi, NCB Capital will enhance its strong brand and will have access to highly complementary skills and expertise.
“Our clients will gain from the proven international capabilities of our two partners.”
NCB Capital’s market position and the global reach of TCW and Amundi will together form a new global force in Shariah asset management,” he said.
NCB Capital’s award-winning asset management business is the market leader in Saudi Arabia with a strong range of funds, and a portfolio of SR44 billion ($11.7 billion) of assets under management (as at Dec. 31, 2011).
From this solid base, NCB Capital targets to grow its presence throughout the wider GCC region as well as providing an ever-larger range of international investment products for its clients. It has chosen the combined expertise of TCW and Amundi to address this objective.”
Al-Halabi said NCB Capital undertook a rigorous selection process with a number of the world’s leading asset managers, choosing TCW for its leadership in US markets and Amundi for its global reach, the combined platform providing access to award winning track records for its clients.
Founded in 1971 and based in Los Angeles, TCW develops and manages a broad range of US equity, US fixed income, alternative and international strategies and innovative investment products. The firm has approximately $124 billion in assets under management and has a long history of managing funds for institutional clients in the Middle East.
Stephen McDonald, president of the TCW Middle East Group, said his company combined the focus of a specialty asset manager, through its style-specific equity teams, with the proprietary fundamental research and cutting-edge trading capabilities of a large investment firm.
“The teams managing funds for NCB Capital have consistently generated strong results for their shareholders and we look forward to expanding our capabilities through our partnership with the leading asset manager in Saudi Arabia,” McDonald said.
Jean-Francois Pincon, head of international client development at Amundi, said: “We are proud to contribute to this partnership because it will represent a major force in Shariah compliant investment management. NCB Capital’s clients stand to benefit from the best disciplines that each of our three organizations has to offer. We see it as the perfect match. Our clients will be able to tap a deep reservoir of expertise in both Shariah and conventional formats, in various asset classes ranging from developed to emerging markets.”
Following Capital Market Authority approvals, TCW and Amundi have begun managing seven of NCB Capital’s AlAhli range of international mutual funds with a combined total of $550 million. TCW was assigned three funds: US, Small Cap and Healthcare equities, while Amundi now manage four funds: Global, Emerging Markets, Asia Pacific and European equities.
Initially, the combined platform will target Saudi investors and in due course its scope will be expanded to international clients.
With multiple projects in the pipeline, initially across equity and fixed income asset classes, NCB Capital will augment its range of Shariah-compliant investment products and will be able to call on the entire range of TCW and Amundi conventional strategies, to the benefit of investors throughout the Kingdom and internationally.