SICO reports strong Fund performance for August

 Securities & Investment Company (SICO) today reported strong performance by its GCC equity funds during August as regional markets rebounded, ending a negative trend prevalent since March.

The Khaleej Equity Fund, which invests principally in equity securities listed on GCC stock markets, saw its Net Asset Value (NAV) increase by 5.6 per cent for August. The SICO Gulf Equity Fund, which excludes the Saudi Arabian stock market, registered an increase in NAV of 5.7 per cent. The SICO Selected Securities Fund, which invests principally in equity and debt securities listed, or expected to be listed, on the Bahrain Stock Exchange, reported an increase in NAV of 5.9 per cent.

Year to date numbers tell that despite the extended period of volatility and corrections experienced by the GCC markets during 2006, SICO’s Funds have been successful in preserving capital and limiting the losses of investors. The Company’s two regional equity funds have outperformed their relevant benchmarks by a significant margin since the beginning of the year.

The Khaleej Equity Fund is down 15 per cent for the year, compared to a drop of over 35 per cent in the MSCI GCC Index. The SICO Gulf Equity Fund, which was launched only six months ago – during a period of severe market corrections – is down 8.4 per cent compared to the drop of over 15 per cent in the MSCI Ex-Saudi GCC Index.

SICO attributes this strong performance to the Company’s conservative asset allocation and bottom-up driven stock picking strategy. Portfolio managers focus on identifying companies that are fundamentally strong, and that are trading at less than their fair values.

According to its latest monthly report, SICO’s research believes that the worst phase of corrections in GCC markets is over, and that most regional markets should remain generally buoyant. However, SICO points to the need for more selective stock picking if investors are to realise above average returns.

Given the continued buoyancy of regional markets and SICO’s stock picking expertise, the Company expects its Funds to perform well and generate stable returns for investors in the future.

SICO’s comprehensive range of regular Market Updates and Reviews, and Fund Reports, can be accessed via www.sico-bahrain.com.

Securities & Investment Company is a securities house offering a selective range of investment banking services, including asset management, brokerage, market-making and corporate finance, on a regional basis and with a particular emphasis on Bahrain. SICO was incorporated in Bahrain in 1995 and holds an investment-banking license from the Bahrain Monetary Agency.