MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Bahrain
as well as most of our peers. SICO’s fundamental based investment philosophy and
processes, coupled with the collective experience and the calibre of the investment
professionals in our asset management team has also enabled us to win investor
confidence. Recently, S&P commended our Gold graded funds as having clear and
disciplined investment processes.
Q/ What are the latest developments with regards to SICO’s asset management
business?
A/ We are in the process of increasing the range and scope of our product offering by
entering proactively into the fixed income space. Currently, the setting up of the SICO
Fixed Income Fund is at an advanced stage. The fund’s objective is to generate income
and seek capital appreciation by actively investing in a diversified pool of regional fixed
income instruments. The regional conventional and shariah compliant fixed income
market has been growing rapidly and SICO expects to capitalise on its future growth.
Q/ Do your funds have ratings from agencies such as S&P? If so, what impact has
it had on the growth of your business, if any?
A/ In 2009, SICO’s funds became among the first GCC funds to be rated by S&P.
During its annual review of 2012 - under its new ratings scheme - S&P assigned the
‘Gold Fund Grading’ to the Khaleej Equity Fund (KEF), SICO Gulf Equity Fund (SGEF)
and SICO Arab Financial Fund (SAFF). The Gold Fund Grading is presently the highest
rating given to a regional mutual fund. In addition, SICO Kingdom Equity Fund (SKEF)
obtained a Silver Fund Grading. The latest review is a reaffirmation of our sound and
consistent investment process and strong track record. Therefore, it has enabled us to
attract new investors.
Q/ Bahrain is one of the leading financial centres in the GCC region. Would you
provide a brief history of developments in the mutual fund regulatory framework in
Bahrain?
A/ Bahrain has one of the most advanced regulatory frameworks among regional
financial centres. In 1992, Central Bank of Bahrain’s (CBB) predecessor, Bahrain
Monetary Authority, issued the first set of rules related to Collective Investments
Undertakings (CIU) which facilitated the development of the mutual fund industry.
Subsequently, these rules were revamped in June 2007 when the CIU Module, within the
231