Bahrain-based Securities & Investment Company (Sico) said all its regional equity and money market funds continued to outperform their peers and respective benchmarks despite unprecedented volatility and global economic turbulence during the year.

Announcing the results of its funds, Sico said the Khaleej Equity Fund (KEF), which invests in equities listed on the six GCC stock markets, achieved a return of negative 5.9 per cent for the year against a negative 8.2 per cent for the S&P GCC Index.

The fund has achieved one of the best risk-adjusted returns among its peer group over the medium- to long-term, generating a 19.3 per cent return over the past five years compared to a negative 28.5 per cent return for the benchmark.

This has been achieved with a significantly lower volatility than the benchmark index. KEF was recognised as “Best GCC Equity Fund over 5 Years’ in the 2011 Lipper Fund Awards.

The fund’s ‘AA’ rating was re-affirmed by Standard & Poor’s (S&P) in December 2011, and was ranked ‘Second’ in the GCC Equity Fund category by Zawya Funds Monitor during their latest 2011 review, said a Sico statement.

Sico Gulf Equity Fund’s ‘AA’ rating was re-affirmed by S&P also in December 2011. The fund invests in GCC listed equities (excluding Saudi listed shares), and delivered a negative return of 8.2 per cent for the year compared with a negative 14 per cent for its benchmark, the S&P GCC Ex-Saudi Index.

The Sico Arab Financial Fund was upgraded from ‘A’ to ‘AA’ by S&P in December 2011. The fund, which invests primarily in the Mena region’s financial sector listed equities, achieved a return of negative 6 per cent in 2011 versus a negative 15.2 per cent for its benchmark, the S&P Pan-Arab Financial Index.

The Sico Selected Securities Fund, which invests principally in equity and debt securities listed on the Bahrain Bourse, delivered a return of negative 6.8 per cent compared with a negative 20.1 per cent return for its benchmark, the Bahrain All Share Index.

Over the past ten years, the fund has generated a return of 90.2 per cent compared to a 13.7 per cent return for the benchmark.

Launched in February 2011, the Sico Kingdom Equity Fund was assigned a maiden ‘A’ rating in December 2011 by S&P.

This new fund, which invests primarily in equity securities listed in the Kingdom of Saudi Arabia, delivered a return of 0.4 per cent for the 11-month period versus 0.9 per cent by its Tadawul benchmark.

The Sico Money Market Fund, which invests in regional investment-grade money market instruments such as GCC government bills and notes, corporate paper, and domestic banks’ term deposits, realised an annualised return of 1.7 per cent in 2011 against 0.28 per cent for its benchmark, USD 2-month LIBOR.

During 2011, Sico said the company maintained its status as Bahrain’s largest asset manager, with total assets under management increasing to $547 million.

Commenting on these results, CEO Anthony Mallis, said: "Sico’s prudent investment approach, characterised by superior stock picking and asset allocation, has enabled us to deliver excellent long-term returns."-TradeArabia News Service