Al Hilal equity fund nets 11.8pc returns
Abu Dhabi, June 2, 2013
Al Hilal Bank, an Islamic lender based in Abu Dhabi, said its GCC Equity Fund launched in April 2011, has returned 11.80 per cent since beginning of this year.
An open-ended fund, the Al Hilal GCC Equity Fund provides investors with long-term investment in a diversified portfolio of Shariah-compliant GCC equity securities.
Under normal market conditions the fund invests at least 75 per cent of assets in equity securities, it stated.
The Al Hilal GCC Equity Fund is one of two major funds currently being managed by the Abu Dhabi lender. The other Fund, Al Hilal Global Sukuk Fund, posted a 3.4 per cent since inception.
The Fund also distributed its first dividend for the first 9 months since inception of 4.36 per cent for 2012 bringing the total return since inception to over 7.76 per cent.
The fund has generated 17.64 per cent return for its stakeholders since inception, said a statement from the bank.
Al Hilal Bank expects the GCC equity markets to continue offering significant opportunities for investors given the economic resilience and long-term growth potential of the region.
“Our GCC Equity Fund was able to post a solid return of 11.80 per cent over the past 5 months, reflecting its sustained appeal as an investment vehicle. We have been able to exceed our customer expectations even amidst challenging market conditions,” remarked Lim Say Cheong, EVP – Investment Banking Group at Al Hilal Bank.
“With its strong focus on stock picking, the GCC Equity Fund is likely to maintain its good run in the coming months as its holdings benefit from the multiple investment themes and drivers across the region," said the official
"The recent rally was primarily driven by a justified reduction in equity risk premiums and we feel that the continuous improvement in earnings growth prospects of companies will provide the next major trigger for markets. Our diversified holdings across the GCC are well positioned to benefit from this," observed Say Cheong.
Al Hilal Bank is planning to launch yet another fund in 2013 to further solidify its position in the securities market, he added.-TradeArabia News Service