Bond achieves 'good' returns
Kuwait City, January 31, 2012
Gulf Investment Corporation (GIC), Gulf Bond Fund has continued its performance with a 5.43 percent return for 2011 despite global economic challenges and regional uncertainty, adding a solid seventh year to its track record.
Being the first fund dedicated to GCC bonds and sukuks, established in March 2005, and one of the largest in the region, with a market value exceeding $152 million, GIC Gulf Bond Fund managed to maintain its solid performance.
Talal Zaid Al-Tawari, head of GCC equities division, GIC, said: “The fund was able to beat benchmark and achieve positive performance for four consecutive quarters with a full year return of 5.43 percent, an annualised total return of 3.83 percent since inception, thanks to the high quality of its holdings where underlying bonds are rated A- and above along with a broad regional and sector diversification attracting the attention of many investors looking for consistently competitive performance in the GCC region.”
A period of historically high oil prices made GCC economies among the best global performers with impressive GDP growth numbers that are expected to continue in the next few years, he said.
Khalifa Al-Rashid, vice president – GCC bonds and fund manager, said: “The recent rating downgrade of US Treasury bonds, which are now only one notch better rated than some GCC countries, combined with a still generous spread have significantly increased international appetite for regional fixed income investments.”
“As global economy enters another year of uncertainty and risk aversion, GCC credits emerge as an ideal asset class that provides one of the best expected risk adjusted returns,” he said.
“Equipped with an industry expertise built up over the last 29 years and a unique Pan-GCC ownership structure in addition to one of the largest regional buy-side research teams, GIC is ideally positioned to take advantage of booming regional fixed income markets,” Al Rashid added.
GIC Gulf Bond Fund long track record in regional credit markets and its focus on both portfolio and risk management represents an excellent investment opportunity in a market still dominated by low yields and high price volatility.
Established in 1983, GIC is a regional financial institution owned entirely and equally by the six GCC states. It strives to provide a comprehensive range of financial services that support the development of private enterprise and economic growth in the Gulf region.
GIC also achieves a number of major projects throughout GCC countries all with diversified activities covering different sectors via, financial, petrochemical, steel, power, communications and others. – TradeArabia News Service
More Finance & Capital Market Stories
- United Arab signs $250m syndicated loan
- Standard Life sets up Asia advisory board
- UAE among 20 most attractive countries for M&A
- Gulf stocks surge as Fed tapering adds fuel to fire
- SABB launches graduates programme
- NBAD names key official for Hong Kong
- Commercial Bank of Dubai obtains $450m loan
- EFG Hermes names group co-chief
- Islamic bond issuance in GCC picking up
- Kuwait budget surplus likely to hit $42.4bn