MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Benchmarks
Performance Rankings
A number of different approaches were considered for this section including presentation
of just relative performance, using custom benchmarks, focusing on asset type,
geographic focus, and risk indicators. Ultimately, a straightforward approach was used.
The tables that follow are simple and essentially based on holdings 2 . The tables do not
take into account risk, leverage, or size. First, information on benchmarks tracked by
funds 3 was compiled. Benchmarks could not be identified for all funds in the dataset.
Benchmarks tracked by the most number of funds were selected. The funds were filtered
to ensure appropriate comparison based on specific classification on a number of
criteria. The remaining funds were then ranked on the basis of 2012 and cumulative
2009-2012 returns 4 . The disadvantage of this approach is that selection of funds on the
basis of a strict comparison of only those that follow particular benchmarks results in a
limited ranking dataset. This approach is relaxed in two tables which also present a list of
equity funds that track two commonly used benchmarks and their variants. The approach
is further relaxed in the last two tables which present the performance of various
bond/sukuk funds with regional exposure.
Selected Indices and Interbank Rates
Benchmark 2009 2010 2011 2012
Performance
2012 2009-12
Tadawul All Share Index (TASI) 6,122 6,621 6,418 6,801 5.98% 11.1%
S&P Saudi Arabia Shariah Index 809 883 868 936 7.82% 15.7%
S&P GCC Composite Index 59.8 68.6 65.4 69.9 6.91% 16.9%
S&P GCC Composite Shariah Index 676 754 698 736 5.41% 8.76%
S&P Pan Arab Composite Index 658 732 639 662 3.64% 0.71%
3M SAIBOR (%) 0.768 0.751 0.78 0.995 - -
3M US$ LIBOR (%) 0.251 0.303 0.581 0.306 - -
Source: Reuters
2
Comparison of funds benchmarking against the same index ensures like for like
comparison in terms of investment allocation for equity funds, but not necessarily for
money market funds. The latter’s performance is influenced by country specific effects.
3 Only the top performing class was included for funds with different share classes as
the tables were intended to be solely indicative. Bond/sukuk tables include different
share classes.
4
The three year rankings did not take into account the fact that some funds changed
benchmarks during the period.
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