Posted on » Thursday, May 09, 2013
From http://www.gulf-daily-news.com
MANAMA: Bahrain-based regional investment bank Securities and Investment Company (SICO) yesterday said that all five of its equity funds received the highest grading in the Middle East and North Africa (Mena) region from Standard & Poor's Capital IQ.
In its 12-month review covering the period to December 31, S&P Capital IQ graded three of SICO funds Gold, while two were graded Silver.
According to S&P Capital IQ, the underlying factors for SICO's fund grading included a strong and growing investment team with relatively modest staff turnover, the development of disciplined risk monitoring procedures compared with its peers and a consistent track record and continuing outperformance of funds relative to their benchmarks and peers.
Putting SICO's performance into context, of the 150 or so funds investing in the Mena region, only 18 achieved S&P Capital IQ gradings in 2012, with only three securing a Gold grading and fifteen achieving Silver status.
Of these funds, the only three that achieved a Gold grading are all managed by SICO.
The Khaleej Equity Fund, which invests in GCC listed equities, achieved a return of 5.9 per cent for the year, and has outperformed its benchmark for seven out of eight years since its March 2004 inception.
It is one of the few funds in the region to be awarded a Gold fund grading and a five-year long-term grading by Standard & Poor's Capital IQ.
The fund also received the Outstanding Fund Performance & Innovation award at the fourth annual MENA Fund Manager Performance Awards ceremony in January.
The SICO Gulf Equity Fund, which invests in GCC-listed equities, excluding Saudi Arabia, delivered a return of 6.1pc for the year.
The fund, which is graded Gold, has outperformed its benchmark in five of six full calendar years since its March 2006 launch.
The SICO Arab Financial Fund, which invests primarily in Mena financial sector equities, achieved a return of 2.9pc in 2012.
Graded Gold, the fund's relative returns have been consistently strong, outperforming the benchmark in each calendar since its inception in August 2007.
The SICO Selected Securities Fund, which invests principally in Bahrain-listed equity and debt securities, achieved a return of 1.2pc for the year.
Graded Silver the fund has one of the longest track records in its asset class, and has outperformed its benchmark in 11 out of 13 years since its May 1998 inception.
The SICO Kingdom Equity Fund, which invests primarily in Saudi-listed equities, delivered a return of 8.7pc for 2012.
The fund has been graded Silver and has posted an initial strong performance relative to its benchmark since its launch in February 2011.
In addition to these equity funds, the SICO Money Market Fund recorded an annualised return of 0.99pc in 2012.
Launched in May 2010, the fund invests in regional investment grade money market instruments such as GCC government bills and notes, corporate paper, and domestic banks' term deposits.
"SICO's prudent investment style has enabled us to deliver another strong performance for our clients in 2012, despite markets remaining volatile during the year," said SICO chief executive Anthony Mallis. "The combination of our regional insight and quality of research is a key factor in enabling SICO to provide consistent and stable long-term returns to our investors.
"Looking ahead, equities remain the preferred asset class as cash continues to provide a near zero return. GCC equities are forecast to generate moderate returns in the range of 10pc to 15pc in 2013, driven by an improvement in overall fundamentals, multiple re-rating and earnings growth. Regional markets are currently significantly undervalued, and we believe offer attractive opportunities to long-term investors."
During 2012, SICO maintained its status as Bahrain's largest GCC public markets asset manager, with total assets under management increasing by 10pc to BD226m. Assets under management comprise SICO's own funds, funds sponsored by other institutions for which SICO acts as the investment manager and discretionary portfolio managed accounts, by which SICO provides tailor-made investment solutions to fixed income and equity oriented institutional clients.
Posted on » Thursday, May 09, 2013
From http://www.gulf-daily-news.com
