MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Benchmarks
Use of hybrid benchmarks in some equity funds
In the UAE, a breakdown of locally sponsored fund assets by indices being tracked
reflects the choice of benchmarks by individual funds. In Saudi Arabia, S&P Saudi Arabia
Shariah Index and its variants are the top benchmarks for equity funds. S&P Saudi
Arabia Shariah index is the top benchmark for sharia compliant equity funds in the GCC,
but this is due to the large weight of Saudi Arabian fund industry.
Benchmarks Used by Equity Funds in the UAE and Saudi Arabia (by fund assets)
(June 2012)
UAE
Saudi Arabia
Other
51.5%
90%MSCI
Arabian +
10% LIBOR
11.0%
S&P Pan
Arab L/M
Cap
8.9%
NBAD S&P
UAE GCC
Combined
10.4%
MSCI UAE
9.2%
MSCI World
9.0%
Other
36.8%
FTSE
Europe
5.9%
MSCI
World
6.1%
S&P S.A.
Shariah
25.4%
S&P S.A.
6.6%
S&P
Shariah
10.4%
S&P S.A.
LargeCap
8.8%
Source: Lipper, a Thomson Reuters Company
In Kuwait, the Kuwait Stock Exchange index is the top benchmark for equity funds,
followed by Kuwait Investment Company index. In Qatar, the Qatar Stock Exchange
index is the top benchmark. In Oman, the Muscat Securities Market index is the top
benchmark. In Bahrain, the S&P GCC index is the top benchmark reflecting the fact that
most funds there had a broader target investment universe than just the listed
companies there.
163