SEDCO Holding Annual Report 2012

Business Review 2012 / Direct InvestmentsSEDCO CapitalIn early 2010 SEDCO Capital waslaunched as a standalone investmentfirm. Since then it has leveraged theexperience gained from operating thebuy side of an active private familyoffice to offer tailored, asset-basedportfolios that satisfy client needs.The firm offers a comprehensive rangeof services – including asset allocationand management, advisory, arranging,underwriting, and custody – to clientssuch as high net worth individuals,family offices, and institutions whileadhering to Shariah principles.Key among SEDCO Capital’sachievements to date is the seamlessprogress from family-focused firm tofully-regulated active asset and wealthmanagement – building the technicalinfrastructure and processes essentialto attract external investors.The firm’s management team hasworked hard to put all necessarycomponents in place. It now has astrong operational base, the rightstructure, and top performers.The concept of partnership – distilledin the firm’s slogan ‘our interestsaligned’ – defines the essence ofSEDCO Capital and differentiates it fromthe mainstream. Having substantialinterests in all investment activitiesconducted by the firm provides theultimate sense of security for clients.SEDCO Capital’s strategy comprisesthree facets:• Adaptive Investment Approach– pursuing a more dynamic, flexibleand thematic approach, striving for abalance between shorter-term, dynamicinvestment decision-taking, as well aslonger-term investment opportunitiesthrough a combination of top-downand bottom-up selection decisions.• Diversification Approach – throughportfolio construction and manageddiversification across asset classes,geographies, risk factors, andinvestment themes.• Tactical Approach – based on investorand market sentiment by initiatingtactical trades when markets aremeasured to be either excessivelyoptimistic or pessimistic.The launch of SEDCO Capital GlobalFunds in Luxembourg in 2012 createdthe largest Shariah-compliant specialinvestment fund (SIF) platform inLuxembourg. It is also domiciled onshorein a major financial jurisdiction.The SEDCO Capital Global MarketSentiment Fund, also launched in 2012,is the first Shariah-compliant fundfollowing a rules-based asset allocationapproach to direct the balance betweenriskier assets (public equities) andsafer assets (Murabaha and Sukuk)in accordance with output froma proprietary allocation model.In 2012 the firm participated in the HopeFinancial Dignity Summit that discussed‘Free Enterprise, Capitalism, andEmerging Markets’, joining speakers thatincluded Ben Bernanke, the Chairmanof the US Federal Reserve, and sharinga panel with top industry experts.SEDCO Capital also participated inhigh-profile events around the worldsuch as:• S&P Leaders’ Forum 2012 ‘TowardsDeveloping Economies and SustainableInvestments’ in Abu Dhabi.• MIMF 2012 ‘The Emerging MarketsSummit’ in Doha, Qatar.• Hope Financial Dignity Summit 2012in Atlanta, USA.• Asia Finance Forum 2012, KualaLumpur, Malaysia.SEDCO Capital was named ‘Best FundManager’ at the 2012 Asian FinancialForum’s Global Islamic Finance Awards,while Sheikh Abdelelah Bin Mahfouz,the firm’s Chairman, was recognizedfor ‘Most Outstanding IndividualContribution to Islamic Finance’.SEDCO Capital has emerged as apowerful force in asset management.Today, it is one of only a few firmsglobally offering a full range ofsophisticated services in assetmanagement, real estate, privateequity, public equity, and commoditiesthat conform to Shariah.‘Best Fund Manager’ at the 2012Asian Financial Forum’s GlobalIslamic Finance Awards18 Annual Review 2012 19