Sico, a leading regional asset manager, broker and investment bank, has announced that its regional equity fund, the Khaleej Equity Fund (KEF), has distributed $3.78 million in dividends in 2026 to date.
The payouts represent an annualised dividend yield of 9.3%, one of the strongest income distributions in the Fund’s history, reflecting Sico’s investment management capabilities in delivering income and long-term value to investors across regional capital markets.
The Fund completed two separate dividend payments during 2026, executed in May and July. The 2026 yield significantly exceeds historical levels, highlighting the strength of the Fund’s distributable income and continuing its multi-year record of regular cash distributions to unit holders.
Exposure to equities
Established in March 2004, KEF provides investors with exposure to equities listed across the six GCC markets and other selected Middle Eastern markets. The Fund pursues long-term capital appreciation through a bottom-up, research-driven investment process focused on identifying fundamentally attractive companies trading below their intrinsic value, with an emphasis on balance sheet strength, sustainable cash generation and downside risk protection. Investments are held within a well-diversified portfolio.
Over its more than 20-year history, KEF has distributed a total of $12.0 million in dividends to investors. Since inception, the Fund has generated cumulative net returns of 602.1% and cumulative gross returns of 995.4%, reflecting sustained value creation for unit holders across market cycles. The Fund has delivered an annual average gross return of 13.4% over the past 20 years and 12.5% over the past 10 years, underscoring the consistency and resilience of its investment approach through varying market conditions.
Sustainable income
Ali Marshad, Deputy Group CEO – Buy Side, commented: “The latest dividend distribution highlights our continued commitment to delivering sustainable income to investors while maintaining a disciplined, long-term investment approach. Achieving a strong annualised dividend yield of 9.3% in 2026 reflects our confidence in the quality, resilience, and income-generating capabilities of the underlying portfolio, strengths that KEF has sustained for more than two decades and across a wide range of market conditions. By focusing on underlying balance sheet strength and balancing regular cash distributions with long-term capital appreciation, we have delivered consistent cash returns that directly reinforce Sico’s broader income-oriented product strategy, including the recently launched Sico GCC Dividends Fund. This track record has been made possible by the continued trust and support of our investors.”
Sico continues to expand its regional investment offering, with the group currently managing five equity funds spanning conventional and Shariah-compliant strategies, including funds accessible to retail investors.—TradeArabia News Service
