Complex Made Simple

Al Masah MENA Dividend Fund pays out 3rd consecutive cash dividend

Al Masah Capital continues to set new benchmarks in performance as it offers a third consecutive $2 dividend payout for all of its investors through its MENA Dividend Fund. Launched only 9 months ago, the fund is targeting a payout of 8% annual dividend in 4 quarterly payments. Based on current payouts of 6% in just 9 months, the target of 8% annual payout is very much complete. The Fund’s total performance so far is nearly 21% out which the 6% has been paid out.

“We are achieving our objectives of paying out quarterly dividends and after only 9 months of operation we are well ahead of our schedule,” said Shailesh Dash, CEO of Al Masah Capital.

MENA Dividend Fund is the only UCITS IV fund in the region. Al Masah Capital was one of the first regional investment companies to receive the UCITS IV license from the CSSF (Luxembourg’s monetary authority). The fund follows strict risk and compliance parameters that are based on international standards and has the distinction of being one of the first regional Funds to implement the UCITS regime on local markets.

According to Dash, “We believe a properly executed dividend strategy is very beneficial to regional investors. MENA markets enjoy one of the highest dividend yields in the world with an average of 4-5%. The AMCL Fund has already paid out 6% and with a total return of 21%, we have enough capacity to continue our quarterly dividend payouts for the foreseeable future.

“We are very pleased to make this third consecutive dividend announcement,” Dash added. “This is tangible evidence of our commitment to both investors and shareholders and belief in our own abilities to match investor expectations. By paying out a $6 dividend after only 9 months, we are offering commitment, reliability and trust, all of which form the basis of our credibility.”

Regional markets have started 2014 very strong and continued last year’s rally with UAE and Egypt markets leading the way. “Our portfolio, through the right combination of capital appreciation and dividend income, has exceeded our initial expectations,” says Akber Naqvi, Executive Director, Al Masah Capital, “and we remain highly confident in our ability to keep paying our investors consistent quarterly dividends. Our total gain of 21% in just 9 months gives us a strong foundation and enough firepower to sustain our success in varying market conditions.”

Al Masah Capital’s investment management team has over 15 years of global and regional portfolio and fund management experience, managing AUM’s in excess of $600million. By utilizing a unique combination of fundamental valuation and technical market trigger techniques, AMCL’s team manages Funds and Portfolios that have consistently outperformed the market and its peers. It recently closed and returned a portfolio that had a 2 year PWC audited performance of +18% compared to a market performance of +3%.

Fund Details:
Name: AMCL MENA Dividend Fund (UCITS IV SICAV)
Duration: Open ended with weekly liquidity
Minimum investment: Class A – USD 10,000; Class C – USD 500,000
Domiciled: Luxembourg
Target return: dividend payout of 6-8% + capital appreciation = total return expected approx 15%