Bahrain Sico funds net solid returns
Manama, March 16, 2014
Regional investment bank Securities & Investment Company (Sico) said all its Bahrain Bourse-listed funds continued to perform robustly in contrast to peers and respective GCC benchmark indices.
The Bahrain-based bank's flagship Khaleej Equity Fund (KEF), which invests in GCC-listed equities, achieved a return of 28.4 per cent for last year, compared with an appreciation of 25 per cent of the S&P GCC Composite Index - outperforming its benchmark for the eighth consecutive year.
Since the fund's inception in March 2004, it has generated a return of 178.1 per cent compared to a 61.1 per cent return of the benchmark, reported the Gulf Daily News, our sister publication.
It is the only fund in the GCC to be awarded both a 'Gold' fund grading and a '5-year Long-term' grading by Standard & Poor's Capital IQ.
Sico's Gulf Equity Fund, which invests in GCC-listed equities apart from Saudi Arabia, delivered a return of 32.4 per cent for the year, versus 27.4 per cent of the S&P GCC ex Saudi Index.
The fund, which is graded 'Gold' by S&P Capital IQ, has produced a return of 43.3 per cent since its launch in February 2006, while its benchmark fell by 33.2 per cent during the period.
The Sico Kingdom Equity Fund, which invests primarily in Saudi-listed equities, delivered a return of 33.1 per cent last year, in comparison with 25.5 per cent for the Saudi Stock Exchange's Tadawul Index.
Graded 'Silver' by S&P Capital IQ, the fund has generated a return of 45.2 per cent since its launch in February 2011, compared with 34.2 per cent by its benchmark.
The Sico Selected Securities Fund - a balanced fund that invests principally in Bahrain-listed equity and debt securities, achieved a return of 16.2 per cent for the year, slightly below the return of the Bahrain Bourse. Since its inception in 1998, the fund has made a positive return of 133.2 per cent while its benchmark generated a negative 1.1 per cent return.
Sico's Money Market Fund, which invests in regional investment-grade money market instruments, recorded an annualised return of 1.16 per cent last year in contrast with the benchmark's 0.26 per cent.
Since its inception in May 2010, the fund has consistently outperformed its benchmark.
The bank launched in April last year, the Sico Fixed Income Fund - the first-of-its-kind to be managed by a Bahrain-based fund manager.
During its eight-month lifespan the fund has managed to generate an interesting return, with the fund actively investing in government and corporate fixed income, sukuk and money market instruments.
"Sico's pro-active and risk-measured investment style enabled us to deliver another strong performance for our clients," Securities & Investment Company's outgoing chief executive Tony Mallis said.
"Our asset allocation and stock picking skills, which focus on the long-term potential of underlying investments, rather than on short-term momentum-driven rallies, has served our clients well on the medium and longer term.
"The combination of our regional insight and quality of research is a key factor in allowing Sico to provide consistent and stable long-term returns."
Sico maintained its status as a leading institutionally-focused GCC public markets asset manager, with total assets under management (AUM) increasing by 39 per cent to a record BD317 million ($841 million).
These AUMs comprise Sico's own funds; funds sponsored by other institutions for which Sico acts as investment manager; and discretionary fixed income and equity portfolio accounts.-TradeArabia News Service