MENA's leading funds maintain top ranks in Q1 2011: Zawya

Zawya, the leading online provider of business intelligence on the MENA region, announced today its new quarterly Funds Ranking results for Q12011. Zawya Funds Ranking is the first and only independent ranking system in the region, addressing the rising demand for accurate information, unbiased research and analysis, as well as increased transparency in the MENAfunds industry.

This quarter, 11 funds succeeded in maintaining their leading positions on top of the ranking, while the 10 other categories all have new funds in first place. The Q1 2011 ranking consists of 15 conventional and six Islamic categories, a total of 21, an increase from last quarter’s 19 categories. Two new categories have been added: Egypt Balanced Conventional and Egypt Equity Islamic.

Among the top-ranked funds in Q1 2011 conventional categories are: Al Mal UAE Equity Fund in the UAE Equity conventional category, Markaz Arabian Fund in the MENA Equity conventional category, Gulf Gate Fund in the GCC Equity conventional category, Al Arabi Saudi Equity Fund in the Saudi Arabia Equity conventionalcategory, NBK Qatar Equity Fund in the Qatar Equity conventionalcategory, and Arab African International Bank Investment Fund in the Egypt Equity conventional category.

Top-ranked funds in the Islamic categories include: Tharwa Islamic Fund in the Kuwait EquityIslamic category, Saudi Riyal Commodity Mudaraba Fund in the Saudi Arabia Trade Finance Islamic category, and Jadwa GCC Equity Fund in the GCC Equity Islamiccategory.

Josiane Assaad, Product Manager - Mutual Funds at Zawya, commented: “Zawya Funds Ranking is the only ranking of its kind in the region and has been a game-changer for the industry, where it benefitsboth fund managers and investment professionals. As the regional funds industry is now under more scrutiny, fund performance remains key but transparency is also a vital component.”

During Q1, 13 funds - eight conventional and five Islamic - were launched in MENA. Interestingly, all GCC-focused new funds were Islamic, highlighting both the sustained growth of Islamic finance and the region’s leadership and expertise in this sector. Equity funds have the largest share of new launches with four funds (twoconventional, two Islamic), followed by Balanced funds with three (all conventional).

The MENA funds industry registered USD64.5 billion in assets under management (AUM) at the end of Q1 2011 for funds domiciled in the region.  With a total of 243 domiciled funds, Saudi Arabia continues to lead the way with USD23.7 billion in AUM followed by Morocco with USD13.2 billion and Kuwait with USD8.9 billion.

Compared to the previous quarter, only two- countries posted net fundsinflow: Jordan (USD1.6 million) and Oman (USD1.3 million). All others showed net outflow. Of the 12 sampled asset types, five posted net inflow, while the rest showed net outflow. Fixed Income funds had the largest net inflow with USD139 million, while Trade Finance funds were the bigger losers with net outflow of USD1.52 billion.

Methodology

For Q1 2011 Zawya Funds Ranking methodology has been updated. The minimum fund size has been set at USD5 millionwiththree years of historical data and each category should contain a minimum of five funds. The ranking process is made up of four key components with different weights: returns (35%), volatility (15%), fees (15%) and compliance & consistency (35%).

To view the comprehensive list ofthe Q1 2011 Zawya Funds Ranking results, please go to the Zawya Funds Monitor at www.zawya.com/funds.