Kuwait Financial Centre S.A.K “Markaz” RESEARCH
GCC Equity Funds
Markets positive in 2010
4Q 2010
Markaz Research is available on Bloomberg Type “MRKZ” Thomson Financial Reuters Knowledge Zawya Investor Noozz
M.R. Raghu CFA, FRM Head of Research +965 2224 8280
[email protected]
GCC markets remained positive for most part of the year, showing significant recovery from the global financial crisis. S&P GCC Index saw two consecutive quarters of gains; 5% in 4Q10 and 10% in 3Q10, pushing the annual gain to 16%. The quarter‟s best performance was from MSCI Qatar which gained 13%, bringing full year gain to 26%, which was the second best performance in 2010 (MSCI Indices). The worst performer for 4Q10 was MSCI Bahrain, which lost 3% bringing the full year decline to 21%. AUM‟s ended the year at USD 12.5 bn, a 4% annual growth, with the addition of 8 funds, bringing total funds covered to 147. Saudi Arabia‟s AUMs were flat for the year and quarter while Kuwaiti funds saw an annual increase of 10% and a quarterly growth of 6%. Saudi fund asset weighted returns outperformed the S&P Saudi index with an annual gain of 14% versus 9% for the index while UAE funds lost 4% versus a loss of 3% in MSCI UAE. Figure 1: 2010 Returns (Asset Weighted v. Benchmarks)
Layla Jasem Al-Ammar Senior Analyst +965 2224 8000 ext. 1205
[email protected] Indumathi Hariharan Analyst
[email protected]
Kuwait Financial Centre “Markaz” P.O. Box 23444, Safat 13095, Kuwait Tel: +965 2224 8000 Fax: +965 2242 5828 markaz.com Table 1: Asset Management Industry - Equity Funds (Dec 10) AUM ($ Mn)
Manager Focus
Market Share
Riyad Capital
1429
Saudi Arabia
11.5%
HSBC Saudi Arabia
1160
Saudi Arabia
9.4%
Kuwait Financial Centre
930
Kuwait
7.5%
Samba Financial Group National Investments Company Source: Markaz Research
830
Saudi Arabia
6.7%
788
Kuwait
6.4%
Manager
RESEARCH March 2011
2010 Review GCC Equity Funds GCC markets finally took part in the global, postfinancial crisis recovery, with a mostly positive year
GCC markets finally took part in the global, post-financial crisis recovery, with a mostly positive year. For most markets, only the second quarter registered significant declines due to markets tumbling in May as the European sovereign debt crisis in Greece hit a peak causing wide-spread market panic. S&P GCC closed out the year with an annual gain of 16%, boosted by a 5% gain in 4Q. The worst performer for the second consecutive year was Bahrain, which sustained three quarters of losses to close out the year with a loss of 21%. The year‟s two best performers were Kuwait and Qatar. The latter closed out the year with a gain of 26% due to losing just 4% in the “red quarter” (Figure 2). High gains in the first and third quarters of 19% and 26%, respectively, pushed MSCI Kuwait to annual gain of 33%, the highest in the GCC. Figure 2: Performance of GCC Indices (2010 Quarterly)
Exposure to Qatar hit a 27month high, at 18% as of December 2010
Fund managers favored Saudi Arabia with an average 45% allocation, versus an average of 40% in 2009. Confidence in the various markets was quite stable throughout though the UAE saw a decline from 13% in June 2010 to 10% by the end of the year (Table 2). Exposure to Qatar hit a 27-month high, at 18% as of December 2010. Table 2: Geographical Allocation - Equity Funds Country Dec-09 44% Saudi Arabia 12% Kuwait UAE 10% 17% Qatar 5% Oman 2% Bahrain 10% Other Mena Source: Markaz Research
Mar-10 43% 13% 11% 16% 5% 1% 10%
Jun-10 45% 12% 13% 15% 4% 2% 8%
Sep-10 42% 14% 10% 17% 3% 1% 13%
Dec-10 46% 14% 10% 18% 4% 1% 7%
Exposure to equities was down to 89% in June 2010 versus 93% in March 2010 and ended the year at 94%. Equities averaged 92% allocation in 2010 versus 82% in 2009 while the remainder was dominated almost entirely by cash. Kuwait Financial Centre “Markaz”
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RESEARCH March 2011 Figure 3: Asset Allocation Trends – GCC Equity Funds Equities averaged 92% allocation in 2010 versus 82% in 2009
Fund Performance Among conventional GCC equity funds, the best performer was SICO Arab Financial Fund which gained 25% in 2010 (Table 3). At the end of 2010, the fund had its top holdings as Doha Bank (5.5%), Commercial Bank of Qatar (5%) and Masraf Al Rayan (5%). ING MENA Fund (ING Investment Management) was the only tracked GCC Conventional fund with a positive 3 year Sharpe Ratio, at 0.40.
Among conventional funds, the best performer was SICO Arab financial fund which gained 25% in 2010
Table 3: Conventional GCC Equity Funds - 2010
Fund Name 1
SICO Arab Financial Fund
2
Schroder Intl Selection Middle East Fund
3
Global GCC Large Cap Fund
4
ING MENA Fund
5
Arab Gateway Fund S&P GCC Index
Fund Manager Securities & Investment Company Schroder Investment Management Ltd Global Investment House ING Investment Management Shuaa Capital
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
2010
Alpha
Aug-07
10
25.20%
9.3%
(0.37)
1.80
Sep-07
321
25.10%
9.2%
(0.32)
2.49
Feb-05
136
23.00%
7.1%
(0.37)
0.30
Dec-08
92
20.46%
4.5%
0.59
4.25
Dec-99
52
19.40%
3.5%
(0.53)
(0.49)
15.95%
Note: Risk Free Rate ~ 0.589%, Information Ratio against S&P GCC Index (2 year), Sharpe Ratio over 3 yrs Source: Markaz Research
For Shariah compliant funds, Jadwa GCC Equity Fund and Jadwa Arab Markets Equity Fund (Jadwa Investments) took the top two spots with annual gains of 20% and 19%, respectively (Table 4). On the sector side, the Jadwa GCC equity fund was heavy in petrochemicals at the start of the year (28.56%) followed by Banks (14.2%), this was more or less maintained through the year. In Jan, the fund favored Saudi stocks; Sabic, Al Rajhi, Safco, Al Marai and Industries Kuwait Financial Centre “Markaz”
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RESEARCH March 2011 Qatar. At the end of the year the fund‟s top holdings were Sabic, Mobile Telecom, Al Rajhi, Al Marai and Industries Qatar. Table 4: Shariah Compliant GCC Equity Funds-2010
1 2
Fund Name Jadwa GCC Equity Fund Jadwa Arab Markets Equity Fund
3
Gulf Industrial Companies Fund
4
Al Yusr GCC Equity Fund
5
Fund Manager Jadwa Investment Jadwa Investment SAIB Asset Management Company Saudi Hollandi Capital Company CAAM Saudi Fransi
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
2010
Alpha
Jun-07
9
19.76%
3.2%
1.47
1.80
Jun-07
14
19.35%
2.8%
1.48
1.97
Apr-05
4
18.10%
1.6%
0.77
0.68
Aug-07
5
16.63%
0.1%
1.12
0.10
AlDana GCC Apr-06 8 16.38% -0.2% 1.10 Equity Fund S&P GCC Shariah 16.54% Index Note: Risk Free Rate ~ 0.589%, Information Ratio against S&P GCC Index (2 years), Sharpe Ratio (2 years) Source: Markaz Research
0.57
Saudi Arabian Funds The Saudi Tadawul experienced an annual gain of 8% led by strong gains in Petrochemical (21%), Energy & Utilities (19%), and Agriculture & Food sectors (12%). On an Asset Weighted basis, Saudi equity funds posted an annual return of 14%. Saudi fund managers remained heavy in equities throughout the year, with a 98% in March 2010 and a high of 99% at the end of the year.
The Saudi Tadawul saw an annual gain of 8% led by strong gains in Petrochemical, Energy & Utilities, and Agriculture & Food sectors
Among Conventional funds, the top performer was ANB Saudi Companies Fund (ANB Invest) gaining 18% for the year (Table 5). The fund had an allocation of approximately 99% to equities with a 27% exposure to Petrochemicals and 15% to Telecommunications at the end of Sept 2010. The fund also favored Sabic and Al Rajhi Bank with allocations of about 15% and 10% at the end of the Sept 2010 (Latest fact sheet). Table 5: Conventional Saudi Equity Funds-2010
1 2 3 4 5
Fund Name ANB Saudi Companies Fund Riyad Equity Fund 3 HSBC Saudi Equity Trading Fund ANB Saudi Equity Fund HSBC Saudi Equity Fund S&P Saudi Index
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
2010
Alpha
ANB Invest
May-93
146
17.72%
8.7%
(0.23)
0.25
Riyad Capital
Dec-00
82
16.87%
7.8%
(0.55)
(0.30)
HSBC Saudi Arabia
Nov-97
828
16.77%
7.7%
(0.35)
0.78
ANB Invest
Apr-92
63
14.74%
5.7%
(0.34)
(0.29)
HSBC Saudi Arabia
Dec-92
30
14.58%
5.6%
(0.42)
0.43
Fund Manager
9.02%
Note: Risk Free Rate ~ 0.589%, Information Ratio against S&P Saudi Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Kuwait Financial Centre “Markaz”
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RESEARCH March 2011 As for Shariah compliant funds, Amanah Saudi Industrial Fund (HSBC Saudi Arabia) was the top performer, gaining 18% for the year (Table 6). The fund has 57% exposure to Petrochemicals and 16% exposure to Agriculture & Food Industries at the end of Nov 2010. At the end Nov 2010 the fund‟s top holdings were Sabic (43.9%), Safco (8.3%), Al Marai Company (6.6%), SAVOLA Group (6.0%) and Saudi Ceramic Co (4.4%). Table 6: Shariah Compliant Saudi Equity Funds-2010
1 2 3 4 5
Fund Name Amanah Saudi Industrial Fund Jadwa Saudi Equity Fund AlAhli Saudi Trading Equity Fund Al-Saffa Saudi Equity Trading Bakheet Saudi Trading Equity Fund S&P Saudi Index
Fund Manager HSBC Saudi Arabia Jadwa Investment NCB Capital CAAM Saudi Fransi Bakheet Investment Group
Incepti on
AUM ($ Mn)
Apr-05
81
Jun-07
34
Jun-98
508
Jul-05 May-07
2010 18.28 % 17.70 %
Alpha
Long-term Returns Inform Sharpe ation ratio Ratio
9.3%
(0.31)
1.78
8.7%
(0.11)
1.32
16.57 %
7.5%
(0.31)
1.05
82
16.23 %
7.2%
(0.36)
0.99
13
15.59 %
6.6%
(0.27)
0.76
9.02%
Note: Risk Free Rate ~ 0.589%, Information Ratio against S&P Saudi Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Kuwait Funds Fund managers, on average, responded to market cues by increasing their exposure to equities
The Kuwait Index in 4Q10 with the exchange to a flat while Investment respectively.
gained 6.75% in 3Q10, however, the trend reversed market recording a loss of 0.4%. This brought the close with a loss of 1%. Banking sector gained 42.5% and Real Estate sectors lost 15.6% and 13.3%,
Fund managers, on average, responded to market cues by increasing their exposure to equities. Allocation to equities peaked at 90% at the end of December 2010 and was at a low of 82% at the end of June 2010. On an asset weighted basis, Kuwait Equity funds gained 16.7% for the year. The best performing Kuwait equity fund for the year was the NBK Kuwait Equity Fund (National Bank of Kuwait) with a gain of 42.6% for 2010 (Table 7). At the end Dec 2010, the fund‟s top holdings were National Bank of Kuwait (30%), Mobile Telecommunications (24%), Kuwait Finance House (12%), and Burgan Bank (5%).
Kuwait Financial Centre “Markaz”
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RESEARCH March 2011 Table 7: Conventional Kuwait Equity Funds-2010
1
Fund Name NBK Kuwait Equity Fund
2
Global 10 Large Cap Index Fund
3
Tharwa Investment Fund
4
Masaref Investment Fund
5
Al-Ma'moun Fund
Fund Manager National Bank of Kuwait Global Investment House Tharwa Investment Company Housing Finance Company Global Investment House
Long-term Returns Inform Sharpe ation ratio Ratio
Incep tion
AUM ($ Mn)
2010
Alpha
Jun-07
13
42.54%
9.2%
(0.47)
(2.19)
Nov00
303
42.10%
8.8%
(0.44)
0.22
May07
30
38.73%
5.4%
0.05
(1.22)
Feb-07
36
38.62%
5.3%
(0.51)
(1.36)
Apr-01
13
25.70%
-7.6%
(0.61)
(3.17)
MSCI Kuwait 33.35% Index Note: Risk Free Rate ~ 1.25%, Information Ratio against MSCI Kuwait Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
On the Shariah Compliant side, the Al Darij Investment Fund (National Investments Company) was the best performer (Table 8), with a gain of 16%. The Fund allocation comprised of 99% to equities and less than 1% to Property shares at the end of the year. Table 8: Shariah Compliant Kuwait Equity Funds-2010
1
Fund Name Al Darij Investment Fund
2
Tharwa Islamic Fund
3
Al Aman Islamic Fund
4
Al-Durra Islamic Fund
5
Al Seef Fund
Fund Manager National Investments Company Tharwa Investment Company Coast Investment and Development Company Global Investment House Al Bilad Investment Company
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
2010
Alpha
Jun-03
72
16.53%
-11.1%
(1.03)
(5.15)
Jun-07
13
10.98%
-16.7%
(0.71)
(4.01)
Jun-07
18
9.92%
-17.8%
(0.70)
(3.38)
May-04
162
9.70%
-18.0%
(0.85)
(3.28)
Jan-06
13
9.08%
-18.6%
(0.68)
(0.81)
MSCI Kuwait 27.68% Islamic Index Note: Risk Free Rate ~ 1.25%, Information Ratio against MSCI Kuwait Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
UAE Funds UAE markets posted mixed results; the DFM lost 9.6% while the ADX lost 0.9% for the year.
UAE markets posted mixed results; the DFM lost 9.6% while the ADX lost 0.9% for the year. Positive performance in the Banks & Financial Services in Abu Dhabi pushed market gains. The losses in Dubai were driven by Utilities and Investment & Financial Services sectors. The market sentiment improved towards the end of the year. The funds ended the year with about 87% in equities, 12% in cash and 1% in bonds. On a weighted average basis UAE Equity funds lost 3.7%. Kuwait Financial Centre “Markaz”
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RESEARCH March 2011 The best performing conventional fund was the TNI Dana Women Fund (The National Investor) which was up 6.9% for the year (Table 9). The Fund‟s top holding was ETF (33%) followed by Emaar Conv. (5.6%). Table 9: Conventional UAE Equity Funds-2010
1 2 3 4 5
Fund Name TNI Dana Women Fund Makaseb Emirates Opportunities Fund NBAD UAE Distribution Fund Al Mal UAE Equity Fund Daman Second Emirates Fund
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
2010
Alpha
Jul-05
4
6.91%
10.3%
(0.50)
(2.15)
Makaseb Funds Company
May-05
2
-0.07%
3.3%
(0.57)
(0.36)
National Bank of Abu Dhabi
Feb-06
57
-0.50%
2.9%
(1.20)
(3.88)
Al Mal Capital
Mar-06
21
-0.95%
2.4%
(0.62)
(1.03)
Daman Investments
Feb-07
55
-1.40%
2.0%
(1.30)
(2.50)
Fund Manager The National Investor
MSCI UAE Index
-3.38%
Note: Risk Free Rate ~ 2.58%, Information Ratio against MSCI UAE Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
On the Shariah Compliant side, NBAD UAE Islamic Fund (NBAD) was the best performer with an annual gain of 0.5% (Table 10). At the end of the year the fund‟s top holdings were Aramex, Dubai Islamic Bank, Emaar Properties, Etisalat and Industries Qatar (percentages not given). The fund had 29% exposure to Real Estates and 27% exposure to Telecom at the end of the year. Table 10: Shariah Compliant UAE Equity Funds-2010 Long-term Returns Inform Sharpe ation ratio Ratio
AUM ($ Mn)
Fund Incepti Fund Name Manager on 2010 Alpha NBAD UAE National Bank Jan-05 34 0.50% 17.1% (0.87) 1 Islamic Fund of Abu Dhabi Daman Islamic Daman May-07 55 -5.35% 11.3% (1.50) 2 Fund Investments MSCI UAE -16.65% Islamic Index Note: Risk Free Rate ~ 2.58%, Information Ratio against MSCI UAE Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Qatar The top Qatar fund was Qatar Gate Fund (N) (Shuaa Capital) which gained 37% in 2010
It was a good year for Qatar funds as the market saw impressive gains through the year. The top Qatar fund was Qatar Gate Fund (N) (Shuaa Capital) which gained 37% in 2010 (Table 11). At the end of the year the fund‟s top holdings were Qatar National Bank (24.7%), Industries Qatar (16.1%) and Qatar National Navigation (13.9%). The fund has 49% exposure to Banking and Finance sector.
Kuwait Financial Centre “Markaz”
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(1.72) (2.78)
RESEARCH March 2011 Table 11: Conventional Qatar Equity Funds-2010
1 2 3 4 5
Fund Name Qatar Gate Fund (N) Epicure Qatar Equity Fund NBK Qatar Equity Fund Al Watani Fund
Fund Manager Shuaa Capital Epicure Managers Qatar Limited Watani Investment Company QNB Banque Privee (Suisse) SA Makaseb Funds Company
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
2010
Alpha
Sep-05
12
37.11%
11.4%
(0.00)
4.93
Jul-07
219
33.38%
7.7%
0.02
2.43
May-06
26
32.67%
6.9%
(0.18)
(1.75)
Oct-05
25
27.67%
1.9%
(0.02)
0.65
Makaseb Qatar May-05 12 19.36% -6.4% (0.18) Equity Fund MSCI Qatar 25.72% Index Note: Risk Free Rate ~ 2.92%, Information Ratio against MSCI Qatar Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
0.04
Oman Funds The best performing Omani fund was Vision Emerging Oman Fund (Visions Investment Services Company) with a gain of 10% (Table 12). The fund had a bias to Banks and Services sector. By October (latest factsheet), The Fund‟s top sector holdings were Banks & Investment (50.8%), Services (29.7%) and Industry (19.5%). The Fund‟s top holdings in October were Bank Muscat (11.4%), Omantel (10.4%), National Bank of Oman (9.2%), Renaissance (7.0%) and Oman International Bank (6.2%).
The best performing Omani fund was Vision Emerging Oman Fund (Visions Investment Services Company) with a gain of 10%
Table 13: Oman Equity Funds-2010
Fund Name 1
Vision Emerging Oman Fund
2
Muscat Fund
3
Al Amal Fund JIA
4
Majan Capital Fund JIA
Fund Manager Vision Investment Services Company BankMuscat The Financial Corporation Company The Financial Corporation Company
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
2010
Alpha
Aug-07
24
10.12%
-3.54%
(0.25)
(0.18)
Dec-95
30
7.40%
-6.26%
(0.39)
(1.74)
Apr-05
16
6.85%
-6.81%
(0.23)
0.27
Nov-95
9
2.50%
-11.16%
(0.29)
(1.14)
MSCI Oman 13.66% Index Note: Risk Free Rate ~ 0.96%, Information Ratio against MSCI Oman Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Kuwait Financial Centre “Markaz”
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RESEARCH March 2011
GCC Equity Funds
GCC closes the year on a positive note Key Highlights
In 4Q10, the benchmark indices, S&P GCC Composite Sharia and S&P GCC Composite, gained 6.1% and 5.2%, respectively
S&P GCC Index saw two consecutive quarters of gains; 5% in 4Q10 and 10% in 3Q10, pushing the annual gain to 16%. The quarter‟s best performance was from MSCI Qatar which gained 13%, bringing full year gain to 26%. The worst performer for 4Q10 was MSCI Bahrain, which lost 3%, the only GCC index to show a quarterly decline. Total Value Traded in the GCC totaled USD 296 bn in 2010, a 42% annual decline and amounting to just 58% of the 2009 total. In December 2010, fund managers increased exposure to Saudi Arabia to 46% from 42% in September. Allocation to UAE and Other MENA regions declined to 10% and 7%, respectively, in December from 11% and 10%, respectively, in March 2010. In December, Fund managers decreased exposure to Cash to 6% and had 94% in equities. All Top Three Conventional & Islamic funds outperformed their benchmarks. Figure 4: Top Three Conventional Funds (4Q10) 9.4%
8.6%
8.2%
5.2%
S&P GCC Composite Index
ING MENA Fund
SICO Gulf Equity Fund
SGAM Oasis MENA Fund
Source: Zawya & Bloomberg Figure 5: Top Three Sharia-compliant Funds (4Q10) 11.4%
7.6%
7.3%
Al Yusr GCC Equity Fund
AlRajhi GCC Equity Fund
6.1%
S&P GCC Composite Sharia Index
Gulf Industrial Companies Fund
Source: Zawya & Bloomberg
Kuwait Financial Centre “Markaz”
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RESEARCH March 2011 Conventional GCC Funds ING MENA Fund (ING Investment Management) had the best 4Q10 performance, gaining 9.39% versus the S&P GCC Index gain of 5% (Table 14). The fund favored Saudi Arabia in December with a 28% allocation followed by UAE with 21%. The fund‟s top holdings were Saudi Arabian Amiantit Co., Omani Qatari Telecom (Nawras) and KGL Logistics (percentages not given). Table 14: Top Three Conventional Funds (4Q10)
Fund Name ING MENA Fund SICO Gulf Equity Fund
SABIC was the most preferred stock, with 16 Conventional funds holding positions in it.
SGAM Oasis MENA Fund
Fund Manager ING Investment Management Securities & Investment Company Societe Generale Asset Management
Long-term Returns Inform Sharpe ation ratio Ratio
Incep tion
AUM ($ Mn)
4Q10
2010
Qtr Alpha
Dec-08
92
9.39%
20.46%
4.2%
0.59
4.25
Mar-06
26
8.58%
11.60%
3.4%
(0.22)
(1.79)
Nov-07
19
8.18%
16.72%
3.0%
(0.38)
4.29
5.22%
15.95%
S&P GCC Index
Note: Risk Free Rate ~ 0.589%, Information Ratio against S&P GCC Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Among conventional funds, the preferred equity holdings were SABIC, Al Rajhi Bank, NBK, Industries Qatar, and Etihad Etisalat (Table – 15). SABIC was the most preferred stock, with 16 Conventional funds holding positions in it. Table 15: Top Five Holdings of Conventional Funds (Dec- 2010) SABIC ING MENA Fund SICO Gulf Equity Fund
Over a three-year horizon, ING MENA Fund and SICO Gulf Equity Fund had the highest annualized returns of 16.1% and -4.5% respectively.
Al Rajhi Bank
NBK
Industri es Qatar
Etihad Etisalat
X X
SGAM Oasis MENA Fund X # Fund doesn‟t have holdings in top five equities; * Top holdings not specified in fact sheet; N/A - Fact sheet Not Available Source: Markaz Research
Over a three-year horizon, ING MENA Fund and SICO Gulf Equity Fund had the highest annualized returns of 16.1% and -4.5% respectively. (Figure 6)
Kuwait Financial Centre “Markaz”
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RESEARCH March 2011 Figure 6: Risk Return Profile of Conventional Mutual Funds Conventional Funds Performance (Jan 2008 - Dec 2010) ING MENA Fund
15 11
% Return (Jan 2008 - Dec
7 3
SICO Gulf Equity Fund
-1
Global GCC Large Cap Fund
-5 Markaz Gulf Fund
-9
SGAM Oasis MENA Fund
Vision Emerging GCC Fund
-13 -17 -21 -25 -29 16
21
26
31
36
% Risk (Jan 2008 - Dec 2010)
Source: Markaz Research
Islamic GCC Funds
The top three Islamic funds outperformed the S&P GCC Composite Sharia Index, which gained 6.06% in 4Q10.
The top three Islamic funds outperformed the S&P GCC Composite Sharia Index, which gained 6% in 4Q10. Gulf Industrial companies Fund (SAIB Asset Management Company) topped the chart gaining 11.4% (Table 16). The Fund had a 66.7% allocation to Saudi Arabia in December 2010 followed by a 20.0% exposure to Qatar. Its top holdings were SABIC, Industries Qatar, SAFCO, Qatar National Cement and JOR Phosphate (percentages not given). Table 16: Top Three Islamic Funds (4Q10)
Fund Name Gulf Industrial Companies Fund Al Yusr GCC Equity Fund
Among Islamic funds, Gulf Industrial Companies Fund topped the charts with a quarterly gain of 11.4%
Fund Manager SAIB Asset Management Company Saudi Hollandi Capital Company
Long-term Returns Inform Sharpe ation ratio Ratio
Incep tion
AUM ($ Mn)
4Q10
2010
Qtr Alpha
Apr-05
4
11.40%
18.10%
5.3%
0.77
0.68
Aug07
5
7.60%
16.63%
1.5%
1.12
0.10
AlRajhi GCC Al Rajhi Bank Oct-05 125 7.25% 13.39% 1.2% 1.15 Equity Fund S&P GCC 6.06% 16.54% Sharia Index Note: Risk Free Rate ~ 0.589%, Information Ratio against S&P GCC Index (2 years), Sharpe Ratio (2 years). Source: Markaz Research
Among Islamic funds, the preferred holdings were SABIC, Al Rajhi Bank, Industries Qatar, Etihad Etisalat, and KFH. Al Rajhi GCC Equity Fund had exposure to four of the top five. Table 17: Top Five Holdings of Islamic Funds (Dec- 2010) Gulf Industrial Co Fund Al Yusr GCC Equity fund
SABIC X N/A
Al Rajhi Bank N/A
Industries Qatar X
Etihad Etisalat
N/A
N/A
KFH N/A
Al Rajhi GCC Equity Fund X X X X # Fund doesn‟t have holdings in top five equities; * Top holdings not specified in fact sheet; N/A - Fact sheet Not Available Source: Markaz Research
Kuwait Financial Centre “Markaz”
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(0.18)
RESEARCH March 2011 Jadwa Arab Markets Fund (Jadwa Investment) had the highest 2 year annualized return of 25.56% (Figure 7). Figure 7: Risk Return Profile of Islamic Mutual Funds Islamic Funds Performance (Jan 2008 - Dec 2010) 28
Jadwa Arab Markets Equity Fund
25
% Return (Jan 2008 - Dec
22
Al Yusr GCC Equity Fund
AlRajhi GCC Equity Fund
19 16
Gulf Industrial Companies Fund
Global GCC Islamic Fund
13 10 7 4 1 -2 -5 6
9
12
15
18
21
24
27
30
% Risk (Jan 2008 - Dec 2010)
Source: Markaz Research
Kuwait Financial Centre “Markaz”
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RESEARCH March 2011
Saudi Arabia Equity Funds
AUM flat in the final quarter
Key Highlights
Saudi Arabian funds AUM‟s were flat in the quarter
Saudi Arabia‟s Tadawul All-Share Index (TASI) gained 3.57% in 4Q10, bringing the full year gain to 8.15%. Petrochemicals and Insurance gained 15% and 4%, respectively while Real Estate lost 5.4%. Value Traded was up 28% in the fourth quarter, but shed 40% for the year, ending at USD 202 bn. In December, fund managers decreased allocation to cash to 1% (on an asset weighted basis) and held 99% of assets in equities. AUM‟s stagnated at USD 4.77 bn in 4Q10 after expanding 2% in 3Q10. The top three Conventional Funds and Islamic Funds managed to outperform the S&P Saudi Arabia (BMI Index) in the fourth quarter. Figure 8: Top Three Conventional Funds (4Q10) 5.39%
5.25%
5.21%
HSBC Saudi Equity Trading Fund
ANB Saudi Companies Fund
Al Fareed Fund
3.66%
S&P Saudi Arabia (BMI Index)
Source: Zawya, Bloomberg & MSCI
Figure 9: Top Three Islamic Funds (4Q10) The top three Conventional Funds underperformed the MSCI Saudi Arabia Dom Index while the top three Islamic Funds managed to outperform in the fourth quarter
6.94%
6.42%
6.28%
3.66%
S&P Saudi Arabia (BMI Index)
Amanah Saudi Al-Saffa Saudi Bakheet Saudi Indust rial Equit y Trading Trading Equit y Fund Fund
Source: Zawya, Bloomberg & MSCI
Kuwait Financial Centre “Markaz”
13
RESEARCH March 2011
The Tadawul index ended the year with 9% gain while AUM‟s stagnated
The Tadawul index ended the year with 9% gain, the index gained 11% in the first quarter, lost 10% in the second quarter and ended the year with the consecutive profit of 5% and 4% respectively in the third and fourth quarters of 2010. AUM‟s stagnated at USD 4.77 bn in 4Q10 after expanding 6.9% in 1Q10 and declining 8.3% in 2Q10. Figure 10: Saudi Equity Fund AUM’s and Tadawul Returns 6 5
30% 4.48
4.35
4.77
4.75
5.08
4.66
4.76
4.77
10%
3.93
4
20%
USD (Bn)
0%
3
-10%
2
-20%
1
-30%
0
-40% Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec08 09 09 09 09 10 10 10 10 Saudi Equity Fund AUM’s Tadawul Returns %
Source: Fund Factsheets, Saudi Arabia Stock Exchange (Tadawul), Markaz Research
Table 18: Top Five Fund Managers (in terms of AUM Dec - 2010) Fund Name Riyad Capital HSBC Saudi Arabia Samba Financial Group NCB Capital Bank Al Bilad Source: Markaz Research
The top three Saudi conventional equity funds all outperformed the S&P Saudi Arabia index that gained Conventional Saudi Funds 3.66% in 4Q10.
Top 5 Fund Managers 1,362 1,143 784 513 190
Market share 28.5% 23.9% 16.4% 10.7% 4.0%
The top three Saudi conventional equity funds all outperformed the S&P Saudi Arabia index that gained 3.66% in 4Q10. HSBC Saudi Equity Trading Fund (HSBC Saudi Arabia) was the best performing conventional fund for the quarter with a gain of 5.39% (Table - 19). The fund had a 41% exposure to the Petrochemical Industries followed by 14.64% to Banking & Financials. Top holdings were SABIC (16%), Al Rajhi Banking & Investment Corp. (14%) and Yanbu National Petrochemical Co. (7%).
Kuwait Financial Centre “Markaz”
14
RESEARCH March 2011 Table 19: Top Three Conventional Funds (4Q10)
Fund Name HSBC Saudi Equity Trading Fund ANB Saudi Companies Fund Al Fareed Fund
Long-term Returns Inform Sharpe ation ratio Ratio
Inception
AUM ($ Mn)
4Q10
2010
Qtr Alpha
Nov-97
828
5.39%
16.77%
1.7%
(0.35)
0.78
ANB Invest
May-93
146
5.25%
17.72%
1.6%
(0.23)
0.25
Samba Financial Group
Dec-03
562
5.21%
14.27%
1.5%
(0.48)
(0.06)
Fund Manager HSBC Saudi Arabia
S&P Saudi 3.66% 9.02% Index Note: Risk Free Rate ~ 0.589%, Information Ratio against S&P Saudi Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
ANB Saudi Companies Fund (ANB Invest) had registered the lowest annualized loss of 4.66% over a three-year horizon with a Sharpe ratio of -.020 (Figure - 11). Figure 11: Risk Return Profile of Conventional Mutual Funds Conventional Funds Performance (Jan 2008 - Dec 2010) 15 11 7
% Return (Jan 2008 - Dec
Amanah Saudi Industrial Fund had the best 4Q10 performance, gaining 6.9% versus the S&P Saudi Index gain of 3.66%
3 HSBC Saudi Equity Trading Fund
-1 ANB Saudi Companies Fund
-5 -9
Al Fareed Fund
-13 -17
Saudi gateway Fund
Riyad Equity Fund 3
-21 -25 -29 16
21 26 % Risk (Jan 2008 - Dec 2010)
31
36
Source: Markaz Research
Islamic Saudi Funds Amanah Saudi Industrial Fund had the best 4Q10 performance, gaining 6.9% versus the S&P Saudi Index gain of 3.66% (Table 20). The fund has 57% exposure to Petrochemicals and 16% exposure to Agriculture & Food Industries at the end of Nov 2010. At the end Nov 2010 the fund‟s top holdings were SABIC (43.9%), SAFCO (8.3%), Al Marai Company (6.6%), SAVOLA Group (6.0%) and Saudi Ceramic Co (4.4%).
Kuwait Financial Centre “Markaz”
15
RESEARCH March 2011 Table 20: Top Three Islamic Funds (4Q10) Long-term Returns Inform Sharpe ation ratio Ratio
AUM ($ Mn)
Fund Incep Qtr Fund Name Manager tion 4Q10 2010 Alpha Amanah Saudi Industrial HSBC Saudi 81 6.94% 18.28% 3.3% (0.31) Fund Arabia Apr-05 Al-Saffa Saudi Trading Equity CAAM 82 6.42% 16.23% 2.8% (0.36) Fund Saudi fransi Jul-05 Bakheet Saudi Bakheet Trading Equity Investment May13 6.28% 15.59% 2.6% (0.27) Fund Group 07 S&P Saudi 3.66% 9.02% Index Note: Risk Free Rate ~ 0.589%, Information Ratio against S&P Saudi Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Bakheet Saudi Trading Equity Fund (Bakheet Investment Group) had registered the lowest annualized loss of 6.88% over a three-year horizon with a Sharpe ratio of -0.25 (Figure – 12). Figure 12: Risk Return Profile of Islamic Mutual Funds Islamic Funds Performance (Jan 2008 - Dec 2010) 3 1
Fund managers increased their exposure to equities to 99% in December 2010
% Return (Jan 2008 - Dec
-1 -3
Bakheet Saudi Trading Equity Fund
-5 -7
Al Yusr Saudi Equity fund
-9
Amanah Saudi Industrial Fund
Al-Saffa Saudi Equity Trading
-11
Riyad Equity Fund 2
-13 -15 25
28 31 % Risk (Jan 2008 - Dec 2010)
34
37
Source: Markaz Research
Fund managers increased their exposure to equities to 99% in December 2010 versus 98% in June 2010, while allocation to Cash & Equivalents decreased to 1% from 2% in June 2010. Figure 13: Asset Allocation Trend - Saudi Arabia (Dec-10) 100%
Bonds
98% 96%
Cash
94% 92% 90%
Equities
88% 86% 84% 82% 80% Dec08
Mar09
Jun09
Sep09
Dec09
Mar10
Jun10
Sep10
Dec10
Source: Fund Factsheets
Kuwait Financial Centre “Markaz”
16
1.78 0.99 0.76
RESEARCH March 2011
Kuwait Equity Funds
AUM increased 6% in 4Q10
Key Highlights
The Kuwait Index ended the year flat
The Kuwait Index gained 6.75% in 3Q10, however, the trend reversed in 4Q10 with the market recording a loss of 0.4%. This brought the Exchange to a flat close with a loss of 1%. Banking and Real Estate sector gained 11% and 2.51% respectively while Industrial and Investment sectors lost 7.4% and 4.4%, respectively, in 4Q10. Value Traded on the KSE was up 12% in 4Q, however, on an annual basis, the same fell by 42% to USD 44 bn. AUM‟s increased 6% to USD 4.12 bn in the fourth quarter of the year. Only one conventional fund outperformed the MSCI Kuwait Index, which gained 5.4% during the quarter. The MSCI Kuwait Islamic Index outperformed the Top three Islamic funds by gaining 7.8% during the quarter.
Figure 14: Top Three Conventional Funds (4Q10) 5.6% 5.4%
5.3%
`
MSCI Kuwait Index
Global 10 Large Cap Index Fund
Masaref Invest ment Fund
4.7%
A l-Ma'moun Fund
Source: Zawya, Bloomberg & MSCI
Figure 15: Top Three Islamic Funds (4Q10) 7.8%
One Conventional Fund beat the benchmark in 4Q 4.6%
MSCI Kuwait Islamic Index
Al-Durra Islamic Fund
4.1%
Al Seef Fund
3.7%
IFA Islamic Fund
Source: Zawya, Bloomberg & MSCI
Kuwait Financial Centre “Markaz”
17
RESEARCH March 2011
5
30%
4.67
4.5
4.19 3.73 3.73
4
3.75
3.90
3.58
3.88
4.12
20% 10%
3.5
USD (Bn)
Kuwait Financial Centre “Markaz” had the highest market share in terms of AUM‟s in December with 21.5% share
The KSE Index ended flat in 2010, after losing 0.4% in 4Q10. Banking Sector gained 42.5% while Real Estate and Investment lost 16% and 13%, respectively, in 2010. AUM‟s increased 6% YoY to USD 4.12 bn in 4Q10. Figure 16: Kuwait Equity Fund AUM’s and KSE Returns
0%
3
2.5
-10%
2
-20%
1.5
-30%
1 0.5
-40%
0
-50% Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep- Dec08 09 09 09 09 10 10 10 10 Kuwait Equity Fund AUM’s KSE Returns %
Source: Fund Factsheets, Kuwait Stock Exchange, Markaz Research
Kuwait Financial Centre “Markaz” was the top equity fund manager with an AUM of USD 886 mn, representing a 21.5% market share. Table 21: Top Five Fund Managers (in terms of AUM in Dec- 2010) AUM ($ Mn)
Market Share
Kuwait Financial Centre
886
21.5%
National Investments Company
788
19.1%
Kuwait Investment Company
598
14.5%
Global Investment House
485
11.7%
Burgan Bank Source: Markaz Research
311
7.5%
Fund Manager
Conventional Kuwait Funds Global 10 Large Cap Index Fund (Global Investment House) had the best 4Q10 performance, gaining 5.62% versus the MSCI Kuwait Index gain of 5.4% (Table 22). The Fund‟s top holdings in December were Zain (30.2%), National Bank of Kuwait (23.7%), Kuwait Finance House (13.4%), Gulf bank of Kuwait (6.6%) and Commercial bank of Kuwait (5.3%).
Kuwait Financial Centre “Markaz”
18
RESEARCH March 2011 Table 22: Top Three Conventional Funds (4Q10)
Fund Name Global 10 Large Cap Index Fund Masaref Investment Fund Al-Ma'moun Fund
Incepti on
4Q10
2010
Nov-00
303
5.62%
42.10%
0.3%
(0.44)
0.22
Feb-07
36
5.32%
38.62%
0.0%
(0.51)
(1.36)
Apr-01
13
4.68%
25.70%
-0.7%
(0.61)
(3.17)
Qtr Alpha
MSCI Kuwait 5.36% 33.35% Index Note: Risk Free Rate ~ 1.25%, Information Ratio against MSCI Kuwait Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Among conventional funds (whose holdings were given), the top five preferred equities were National Bank of Kuwait (NBK), Zain, Kuwait Finance House (KFH), National Industries Group, and Boubyan Petrochemical (Table - 23). Global 10 Large Cap Index Fund had allocations to three of the top five holdings and and Al-Mamoun Fund had allocations to four of the top five holdings. Table 23: Top Five Holdings of Conventional Funds (Dec-2010)
Global 10 Large Cap Index Fund Masaref Investment Fund Al-Mamoun Fund Source: Markaz Research
NBK
ZAIN
KFH
X
X
X
X
National Industries Group
Boubyan Petroche mical
X
X
X
X
X
Al Ahli Kuwaiti Fund (Ahli Capital Investment Company) registered the lowest annualized loss of 7.39% over a three-year horizon with a Sharpe ratio of -0.79 (Figure - 17). Figure 17: Risk Return Profile of Conventional Mutual Funds Conventional Funds Performance (Jan 2008 - Dec 2010) 4 1 Al Ahli Kuwaiti Fund
-2
% Return (Jan 2008 - Dec 2010)
Among conventional funds the top preferred equity was National Bank of Kuwait
Fund Manager Global Investment House Housing Finance Company Global Investment House
Long-term Returns Inform Sharpe ation ratio Ratio
AUM ($ Mn)
Markaz Mumtaz Investment Fund
-5
Global 10 Large Cap Index Fund
-8 Masaref Investment FundMarkaz Investment and Development Fund
-11 -14
Al-Ma'moun Fund
-17 Global Local Fund
-20
Markaz Forsa Financial Fund
-23 -26 -29 16
21 26 % Risk (Jan 2008 - Dec 2010)
31
Source: Markaz Research
Kuwait Financial Centre “Markaz”
19
RESEARCH March 2011 Islamic Kuwait Funds
The top three Islamic funds for the quarter underperformed the MSCI Kuwait Domestic Islamic Index
The top three Islamic funds for the quarter underperformed the MSCI Kuwait Domestic Islamic Index, which gained 7.78%. The Al-Durra Islamic Fund (Global Investment House) was the top performer, with a gain of 4.62% for 4Q10. The Fund‟s top sector holdings were Banking (74.9%), Services (8.1%) and Investments (4.8%). The Fund‟s top holdings in December were Kuwait Finance House (46.9%), Boubyan Bank (16.6%), Ahli United Bank (6.9%), Alafco Aviation Lease & Finance Co (5.3%) and Kuwait International Bank (4.5%). Table 24: Top Three Islamic Funds (4Q10) Fund Name Al-Durra Islamic Fund Al Seef Fund IFA Islamic Fund
Fund Manager Global Investment House Al Bilad Investment Company International Financial Advisors
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
4Q10
May-04
162
4.62%
9.70%
-3.2%
(0.85)
(3.28)
Jan-06
13
4.12%
9.08%
-3.7%
(0.68)
(0.81)
Jun-06
4
3.69%
-1.82%
-4.1%
(1.08)
(3.26)
Qtr Alpha
2010
MSCI Kuwait Islamic 7.78% 27.68% Index Note: Risk Free Rate ~ 1.25%, Information Ratio against MSCI Kuwait Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
The most preferred equities among Islamic funds were Kuwait Finance House (KFH), Aviation lease and Finance, Boubyan Bank, Kuwait International Bank, and First Investment Co (Table –25). The top performing fund for the quarter had exposure to four of the top five. Table 25: Top Five Holdings of Islamic Funds (Dec-2010) KFH
The Al-Durra Islamic Fund was the top performer, with a gain of 4.62% for 4Q10.
Aviation lease and Finance
Al-Durra Islamic X Fund AL Seef Fund N/A IFA Islamic Fund X # Fund doesn‟t have holdings in top five N/A - Fact sheet Not Available Source: Markaz Research
Boubyan Bank
Kuwait International Bank
X
X
X
N/A
N/A
N/A
First Investme nt Co
N/A
X X equities; * Top holdings not specified fact sheet;
Al Seef Fund (Al Bilad Investment Company) registered best Sharpe ratio for the period at -0.84 followed by Tharwa Islamic Fund (Tharwa Investment Company) with -0.95 (Figure -18).
Kuwait Financial Centre “Markaz”
20
RESEARCH March 2011 Figure 18: Risk Return profile of Islamic Mutual Funds
Al Seef Fund registered best Sharpe ratio for the period at -0.84 followed by Al Aman Islamic Fund (Al Aman Investment Company) with -0.88
% Return (Jan 2008 - Dec 2010)
Islamic Funds Performance (Jan 2008 - Dec 2010) -8 Tharwa Islamic Fund Markaz Islamic Fund
-13 -18 -23
Al Safwa Investment Fund
-28
Al Seef Fund
Al-Durra Islamic Fund IFA Islamic Fund
-33 -38 -43 16
21
26 31 % Risk (Jan 2008 - Dec 2010)
36
Source: Markaz Research
Asset allocators increased their exposure to equities to 90% in December 2010 while allocation to cash decreased to 10% (Figure – 19). Figure 19: Asset Allocation – Kuwait Equity Funds (Dec-10)
Fund managers increased exposure to equities to 90% in December 2010
100%
Bond s
90%
Cash
80% 70% 60% Equiti
50% 40% 30% 20% Dec08
Mar09
Jun- Sep09 09
Dec09
Mar10
Jun- Sep10 10
Dec10
Source: Markaz Research
Kuwait Financial Centre “Markaz”
21
RESEARCH March 2011
UAE Equity Funds
Markets post mixed results as AUMs decline 6% Key Highlights MSCI UAE and MSCI UAE Islamic indices lost 0.5% and 9.5%, respectively, during 4Q10.
Dubai (DFM) underperformed the Abu Dhabi Exchange (ADX) for the quarter, losing 3.16% versus a gain of 1.75% for the ADX. Full year loss on the DFM was 10% versus 0.87% for the ADX. The DFM‟s loss was led by Utilities and Investments & Financials services sector which were down 16.7% and 12.03% in 4Q10. Abu Dhabi‟s quarterly gain was led by the Construction and Industrial sectors which were up 14.7% and 13.7%, respectively, in 4Q10. Liquidity in the UAE was up 29% in 4Q10 while full year value traded tumbled 58% to USD 28 bn. AUM‟s for UAE equity funds contracted 6% in 4Q10 to USD 510 mn. All Conventional funds outperformed the MSCI UAE Index, which lost 0.5% for the quarter. The Islamic funds outperformed the benchmark MSCI UAE Islamic, which lost 9.5% in 4Q10.
Figure 20: Top Three Conventional Funds (4Q10) 2.3%
1.1% 0.6%
-0.5% MSCI UAE Index
TNI Dana Women Fund
NBAD UAE Dist ribut ion Fund
NBAD UAE Trading Fund
Source: Zawya, Bloomberg & MSCI
The Top performing UAE funds all outperformed the benchmark indices
Figure 21: Top Islamic Funds (4Q10)
-0.9%
-9.5% MSCI UAE Islamic Index
NBAD UAE Islamic Fund
-1.5%
Daman Islamic Fund
Source: Zawya, Bloomberg & MSCI
Negative corporate and market news led AUM‟s to contract by 6% in 4Q10. Furthermore, on an asset weighted basis, UAE funds were flat in the fourth quarter. Kuwait Financial Centre “Markaz”
22
RESEARCH March 2011 Table 26: Top Five Fund Managers (in terms of AUM in Dec-10) Fund Manager
AUM ($ Mn)
Market Share
235 110 91 39 21
46.0% 21.6% 17.8% 7.6% 4.2%
National Bank of Abu Dhabi Daman Investments Abu Dhabi Commercial Bank The National Investor Al Mal Capital Source: Markaz Research
On an asset weighted basis, UAE funds were flat in 4Q10
Conventional UAE Funds TNI Dana Women Fund (The National Investor) was the best performing conventional fund for the quarter with a gain of 2.35% (Table – 27). The fund ended the year with about 20% in Cash, 47% in MENA Markets and 33% in global markets. The fund‟s top holdings were ETF (33.0%), Emaar Conv (5.6%), Mumtalakat bond (5.5%), Alba (4.9%) and Citadel Capital (4.7%). Table 27: Top Three Conventional Funds (4Q10)
Fund Name TNI Dana Women Fund
NBAD UAE Trading Fund
Incep tion Jul-05
4
2.35%
6.91%
2.8%
(0.50)
(2.15)
Feb-06
57
1.14%
-0.50%
1.6%
(1.20)
(3.88)
Jan-04
110
0.56%
-8.10%
1.0%
(0.99)
(3.52)
4Q10
2010
Qtr Alpha
MSCI UAE -0.47% -3.38% Index ONote: Risk Free Rate ~ 2.58%, Information Ratio against MSCI UAE Index (2 years), Sharpe n Ratio (3 years) Source: Markaz Research
a n Among conventional funds, TNI Dana Women Fund (The National Investor) registered the lowest annualized loss of 3.57% over a three-year horizon a with a Sharpe ratio of -0.7 (Figure - 22). s s e t
w e i g h t e d b a s i s , U A E
Figure 22: Risk Return Profile of Conventional Mutual Funds Conventional Funds Performance (Jan 2008 - Dec 2010)
0
TNI Dana Women Fund
-9
NBAD UAE Trading Fund
-18
% Return (Jan 2008 - Dec 2010)
TNI Dana Women Fund registered the lowest annualized loss of 3.57% over a three-year horizon
NBAD UAE Distribution Fund
Fund Manager The National Investor National Bank of Abu Dhabi National Bank of Abu Dhabi
Long-term Returns Inform Sharpe ation ratio Ratio
AUM ($ Mn)
Daman Second Emirates Fund NBAD UAE Distribution Fund
-27
-36
NBAD UAE Growth Fund
-45 10
15
20
25
30
35
% Risk (Jan 2008 - Dec 2010)
40
45
Source: Markaz Research
Kuwait Financial Centre “Markaz”
23
RESEARCH March 2011 Islamic UAE Funds The Islamic funds outperformed the benchmark index; the top performer was NBAD UAE Islamic Fund (National Bank of Abu Dhabi) with a loss of 0.85% for the quarter (Table 28). At the end of the year, the fund‟s top holdings were Aramex, Dubai Islamic Bank, Emaar Properties, Etisalat and Industries Qatar (percentages not given). The fund had 29% exposure to Real Estates and 27% exposure to Telecom at the end of the year. In 4Q10, NBAD UAE Islamic Fund was the top performer, with a loss of 0.9%.
Table 28: Top Islamic Funds (4Q10) Fund Name NBAD UAE Islamic Fund Daman Islamic Fund
Fund Manager National Bank of Abu Dhabi Daman Investme nts
Long-term Returns Inform Sharpe ation ratio Ratio
Incepti on
AUM ($ Mn)
Jan-05
34
-0.85%
0.50%
8.6%
(0.87)
(1.72)
May-07
55
-1.52%
-5.35%
8.0%
(1.50)
(2.78)
4Q10
2010
Qtr Alpha
MSCI UAE Islamic -9.49% -16.65% Index Note: Risk Free Rate ~ 2.58%, Information Ratio against MSCI UAE Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Kuwait Financial Centre “Markaz”
24
RESEARCH March 2011
Qatar Equity Funds
Market gains while AUM up 6% in 4Q10 Key Highlights The DSM gained 12.8% in 4Q10 pushing the annual gain to 24.7%.
Qatar‟s Doha Securities Market (DSM) saw two consecutive quarters of gains; 12.8% in 4Q10 and 11.5% in 3Q10, pushing the annual gain to 24.7%. Banking & Financials and Industrial sectors gained 14% and 22% respectively while Insurance sector lost 2.5% in 4Q10. Value traded doubled in 4Q while full year liquidity was down 28% to USD 19 bn in 2010. AUM‟s for Qatari equity funds were up 6% in 4Q10 to USD 388 mn. All three Conventional funds outperformed the MSCI Qatar Index, which gained 12.7% in 4Q10. The Al-Beit Al-Mali Shariah Fund underperformed the MSCI Qatar Islamic Index which was up 13.43% for the quarter.
Figure 23: Top Three Conventional Funds (4Q10)
Source: Zawya, Bloomberg & MSCI
Figure 24: Islamic Funds (4Q10) The benchmark indices, MSCI Qatar Index and MSCI Qatar Islamic Index, gained 12.7% and 13.4%, respectively, in 4Q10.
13.43%
5.03%
MSCI Qat ar Islamic Index
Al-Beit Al-Mali Shariah Fund
Source: Zawya, Bloomberg & MSCI
Kuwait Financial Centre “Markaz”
25
RESEARCH March 2011 Conventional Qatar Funds The top three Qatar conventional equity funds all outperformed the MSCI Qatar index that gained 12.74% in 4Q10. Qatar Gate Fund N (Shuaa Capital) was the best performing conventional fund for the quarter with a gain of 13.66% (Table 29). At the end of the year the fund‟s top holdings were Qatar National Bank (24.7%), Industries Qatar (16.1%) and Qatar National Navigation (13.9%). The fund has 49% exposure to Banking and Finance sector. Table 29: Top Three Conventional Funds (4Q10)
Fund Name Qatar Gate Fund (N) Epicure Qatar Equity Fund Al Watani Fund
Epicure Qatar Equity Fund registered the highest annualized return of 3.66% over a three-year horizon
Fund Manager Shuaa Capital Epicure Managers Qatar Limited QNB Banque Privee (Suisse) SA
Incep tion
AUM ($ Mn)
Sep-05
Qtr Alpha
Long-term Returns Inform Sharpe ation ratio Ratio
4Q10
2010
12
13.66%
37.11%
0.9%
(0.00)
4.93
Jul-07
219
12.92%
33.38%
0.2%
0.02
2.43
Oct-05
25
12.80%
27.67%
0.1%
(0.02)
0.65
MSCI Qatar 12.74% 25.72% Index Note: Risk Free Rate ~ 2.92%, Information Ratio against MSCI Qatar Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Epicure Qatar Equity Fund (Epicure Managers Qatar Ltd) registered the highest annualized return of 3.66% over a three-year horizon with a Sharpe ratio of -0.06 (Figure - 25). Figure 25: Risk Return Profile of Conventional Mutual Funds Conventional Funds Performance (Jan 2008 - Dec 2010) 4 Epicure Qat ar Equit y Fund
% Return (Jan 2008 - Dec 2010)
3 2
Qat ar Gat e Fund (N) Al Wat ani Fund
1 0 NBK Qat ar Equit y Fund
-1 -2
Makaseb Qat ar Equit y Fund
-3 -4 -5 23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
% Risk (Jan 2008 - Dec 2010) Source: Markaz Research
Islamic Qatar Funds Al-Beit Al-Mali Shariah Fund (Global Investment House) reported a gain of 5% in 4Q. In June 2010 (latest factsheet), the fund had exposure to Services (49%), Banks (27%), Industrials (16%) and Cash (8%).
Among Islamic funds, Al Sanabil Fund (Class B) was the best performer, registering a loss of 9.9% in September
Kuwait Financial Centre “Markaz”
26
RESEARCH March 2011 Table 30 : Top Islamic Funds (4Q10) AUM ($ Mn)
Long-term Returns Inform Sharpe ation ratio Ratio
Fund Incep Qtr Fund Name Manager tion 4Q10 2010 Alpha Al-Beit AlGlobal Mali Shariah Investment Sep-06 16 5.03% 19.51% -8.4% 0.02 Fund House MSCI Qatar 13.43% 15.20% Islamic Index Note: Risk Free Rate ~ 2.92%, Information Ratio against MSCI Qatar Index(2 years), Sharpe Ratio (3 years) Source: Markaz Research
Kuwait Financial Centre “Markaz”
27
(0.48)
RESEARCH March 2011
Oman Equity Funds
Market ends on a positive note
Figure 26: Oman Equity Funds (4Q10) 8.83%
MSCI Oman Index gained 8.8% in 4Q10.
5.01%
4.55% 3.34%
MSCI Oman Index
Vision Emerging Oman Fund
Muscat Fund Majan Capital Fund JIA
Source: Markaz Research
The Muscat Securities Market (MSM) saw two consecutive quarters of gains; 4.4% in 4Q10 and 6.9% in 3Q10, pushing the annual gain to 6.0%. AUM‟s for Omani equity funds were at 78 mn for 4Q10. The Omani funds underperformed in 4Q. The best performing fund was Vision Emerging Oman Fund (Vision Investment Services Co) which gained 5% in 4Q. By October (latest factsheet), top sector holdings were Banks & Investment (50.8%), Services (29.7%) and Industry (19.5%). Top holdings were Bank Muscat (11.4%), Omantel (10.4%), and National Bank of Oman (9.2%). Table 31: Omani Conventional Funds (4Q10)
The best performer was Vision Emerging Oman Fund (Vision Investment Services Company), gaining 5%.
Long-term Returns Informa tion Sharpe ratio Ratio
AUM ($ Mn)
Fund Incept Qtr Fund Name Manager ion 4Q10 2010 Alpha Vision Vision Emerging Investment Dec-95 30 5.01% 10.12% -3.8% Oman Fund Services Muscat Fund BankMuscat Aug-07 24 4.55% 7.40% -4.3% Majan Capital The Financial Apr-05 16 3.34% 2.50% -5.5% Fund JIA Corporation MSCI Oman 8.83% 13.66% Index Note: Risk Free Rate ~ 0.96%, Information Ratio against MSCI Oman Index (2 years), Sharpe Source: Markaz Research
(0.25)
(0.18)
(0.39)
(1.74)
(0.29)
(1.14)
Ratio (3 years)
Al Amal Fund (The Financial Corporation Company) registered the lowest annualized loss of 5.2% over 3-yrs with an annualized risk of 27.2%. Figure 27: Risk Return Profile of Omani Mutual Funds % Return (Jan 2008 - Dec 2010)
Conventional Funds Performance (Jan 2008 - Dec 2010) -5
Al Amal Fund JIA
Vision Emerging Oman Fund
-6
Majan Capital Fund JIA
-7 -8 -9
Muscat Fund
-10 25
26
27
28
Source: Markaz Research
Kuwait Financial Centre “Markaz”
28
RESEARCH March 2011
Bahrain Equity Funds
Still in the red
Figure 28: Bahrain Equity Funds (4Q10) 0.60%
-3.17% MSCI Bahrain Index
SICO Selected Securities Fund
Source: Markaz Research
The Bahrain Exchange showed another year of losses, closing out 2010 with a decline of 1.8%. In 4Q10 the index was down 0.8% led by losses in Services and Commercial banks sectors offset by gains in Hotel & Tourism sector. Bahrain AUM‟s were at USD 19.5 mn in 4Q10.
SICO Selected Securities Fund gained 0.60% in 4Q10
SICO Selected Securities Fund outperformed the benchmark, MSCI Bahrain index, which lost 3.17% in 4Q10. SICO Selected Securities Fund lost 0.60% for the quarter (Table - 32). The fund had 17% of its assets in Cash & Fixed Income. On a sector basis, the fund had a 49% exposure to Financials, 12% to Telecoms, 11% to Consumer discretionary, and 11% to Industrials. The Fund‟s top holdings were Batelco (12.4%), Ahli United Bank (10.8%) and BCFC (7.8%).
Delmon Fund continued to be Table 32: Bahrain Equity Funds (4Q10) the top performer, losing 6.0% during the month Fund Name SICO Selected Securities Fund
Fund Manager Securities & Investment Company
Incep tion May98
Long-term Returns
AUM ($ Mn)
4Q10
2010
Qtr Alpha
Sharpe ratio
Information Ratio
20
0.60%
4.80%
26.29%
(0.90)
1.90
MSCI Bahrain -3.17% -21.49% Index Note: Risk Free Rate ~ 1.5%, Information Ratio against MSCI Bahrain Index (2 years), Sharpe Ratio (3 years) Source: Markaz Research
Kuwait Financial Centre “Markaz”
29
RESEARCH March 2011 Appendix 1: GCC Equity Funds Statistics Sharia compliant Funds Asset Allocation
Fund Name 1 AlRajhi GCC Equity Fund 2 AlAhli GCC Trading Equity Fund
Country Focus GCC/MENA GCC/MENA
Fund Size (USD Inception Mn) Oct-05 125 Oct-05 111
Cash Equities Bonds 5% 95% 0% 5% 95% 0%
GCC/MENA GCC/MENA GCC/MENA GCC/MENA
Jan-06 Feb-06 Sep-07 Dec-05
70 67 27 27
0% 1% 16% 3%
100% 99% 84% 97%
Geographic Allocation
Performance %
Total 100% 100%
Saudi Arabia Kuwait UAE 67% 12% 2% NA NA NA
Other Qatar Oman Bahrain Mena 15% 4% 0% 0% NA NA NA NA
Total 100% NA
Informa Q4 Quarterly Sharpe tion 2010 2010 Alpha Ratio1 Ratio2 7.25% 13.39% 0.50% 1.15 (0.18) 1.84% 10.82% -0.77% 1.02 (0.72)
0% 0% 0% 0%
100% 100% 100% 100%
45% 0% 38% 53%
19% 22% 35% 6%
14% 27% 12% 15%
20% 38% 15% 18%
1% 9% 0% 3%
1% 4% 0% 5%
0% 0% 0% 0%
100% 100% 100% 100%
4.26% 7.00% 5.07% 4.40%
5.25% 11.64% 12.00% 8.50%
-1.70% -0.66% -1.51% -0.51%
0.19 0.70 0.21 0.81
(5.66) (1.76) (3.85) (2.85)
2.28% 0.56% 3.51% 7.18% 7.19% 4.81%
3.30% 4.05% 14.28% 19.35% 15.70% 8.77%
-2.62% -4.65% 0.68% -0.06% 0.47% -1.11%
0.64 (0.22) 0.95 1.48 0.90 0.94
(3.63) (3.97) (1.41) 1.97 (1.38) 0.80
-0.94% 1.94% -4.51% 6.98% 19.76% 0.15%
0.02 1.47
(4.46) 1.80
5.90% 3.89% 4.84% 7.60% 1.09% ####
3 4 5 6
AlBasha'er GCC Equity Fund Riyad Gulf Fund Noor GCC Islamic Fund DIB Al Islami Equity Fund
Fund Manager Al Rajhi Bank NCB Capital Kuwait Finance and Investment Company Riyad Capital Noor Investments Securities and Investment Company
7 8 9 10 11 12
Al Samaha Islamic Fund Manafae First Fund Amanah GCC Equity Fund Jadwa Arab Markets Equity Fund Global GCC Islamic Fund Gulf Islamic Equity Fund
Union National Bank Manafae Investment Company Saudi British Bank Jadwa Investment Global Investment House Gulf Investment Corporation
GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA
May-07 Jun-07 Apr-06 Jun-07 Jul-07 Jan-08
19 18 17 14 11 10
0% 0% 2% NA 3% 7%
100% 100% 98% NA 97% 93%
0% 0% 0% NA 0% 0%
100% 100% 100% NA 100% 100%
NA NA 60% 61% 48% 57%
NA NA 12% 13% 30% 20%
NA NA 6% 5% 5% 8%
NA NA 14% 9% 17% 15%
NA NA 5% 0% 0% 0%
NA NA 2% 2% 0% 0%
NA NA 0% 10% 0% 0%
NA NA 100% 100% 100% 100%
13 Al-Themar Fund 14 Jadwa GCC Equity Fund
Bayan Investment Company Jadwa Investment
GCC/MENA GCC/MENA
Sep-07 Jun-07
9 9
19% NA
81% NA
0% NA
100% NA
NA 68%
NA 15%
NA 7%
NA 8%
NA 3%
NA 0%
NA 0%
NA NA
15 16 17 18 19 20
SAIB BNP Paribas Asset Management CAAM Saudi Fransi Securities & Investment Company Saudi Hollandi Capital Company First Investment Company SAIB Asset Management Al Tawfeek Company for Company Investment
GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA
Apr-05 Apr-06 Sep-05 Aug-07 Jul-07 Apr-05
8 8 7 5 5 4
6% NA 3% 0% 0% 4%
94% NA 97% 100% 100% 96%
0% NA 0% 0% 0% 0%
100% NA 100% 100% 100% 100%
67% 53% 46% NA NA 70%
14% 16% 5% NA NA 3%
4% 10% 5% NA NA 2%
9% 12% 18% NA NA 21%
1% 4% 3% NA NA 1%
1% 0% 4% NA NA 0%
3% 5% 19% NA NA 4%
100% 100% 100% NA NA 100%
14.38% 16.38% 11.00% 16.63% -2.99% 18.10%
-0.35% -1.65% -1.21% -0.09% -4.72% 0.30%
1.00 (1.02) 1.10 0.57 1.11 (1.60) 1.12 0.10 (0.23) (6.24) 0.77 0.68
Funds Al Bilad Investment Company
GCC/MENA GCC/MENA
Aug-05 Oct-07 Total
2 23% 2 26% 575 6%
77% 74% 94%
0% 0% 0%
100% 100% 100%
0% NA 49%
24% 28% 22% NA NA NA 16% 10% 17%
7% NA 3%
0% NA 1%
18% NA 4%
100% 1.20% 4.03% NA 2.11% 4.85% 100%
-4.02% -0.27%
0.19 0.01
SAIB Gulf Companies Fund AlDana GCC Equity Fund Al Aseel Islamic Equity Fund Al Yusr GCC Equity Fund First Arabian Equity 2000 Fund Gulf Industrial Companies Fund
21 Al-Tawfeek Gulf Equity Fund 22 Amwal Fund
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb, Stock Exchange websites
Kuwait Financial Centre “Markaz”
30
(4.94) (2.03)
RESEARCH March 2011 Appendix 1: GCC Equity Funds Statistics Conventional Funds Asset Allocation
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Fund Name Fund Manager Schroder Middle East Fund (Class A - Schroder Investment Management USD Acc) Limited EFG-Hermes MEDA Fund EFG-Hermes Holding Ocean Fund Equities MENA Opportunities (Class A) Societe Generale Asset Management Global GCC Large Cap Fund Global Investment House Gulf Premier Fund Gulf Investment Corporation ING MENA Fund ING Investment Management SICO Khaleej Equity Fund Securities & Investment Company NBK Gulf Equity Fund National Bank of Kuwait AlAhli Gulf Fund AlAhli Bank of Kuwait SIB GCC Equity Fund SAIB Asset Management Company Alpha Mena Fund Algebra Capital Arab Gateway Fund Shuaa Capital Arabian Opportunities Fund Audi Saudi Arabia Al Musahem GCC Fund Samba Financial Group Al-Atheer Fund Kuwait Investment Company Markaz Gulf Fund Kuwait Financial Centre Arab Bank Mena Fund Al Arabi Investment Group Makaseb arab Tigers Fund Makaseb Funds Vision Emerging GCC Fund Vision Investment Services Co NBAD GCC Opportunities Fund National Bank of Abu Dhabi SICO Gulf Equity Fund Securities & Investment Company
Fund Size (USD Mn)
Country Focus
Inception
GCC/MENA GCC/MENA
Sep-07 Jul-99
321 268
4% 8%
97% 92%
0% 0%
GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA
Jun-07 Feb-05 Apr-03 Dec-08 Mar-04 Jun-05 Nov-03 Jul-04 Oct-07 Dec-99 Sep-07 Oct-06 Jun-03 Jan-06 Sep-05 Nov-05 May-05 Feb-08 Mar-06
219 136 107 92 91 81 69 65 58 52 47 46 44 44 38 33 31 28 26
6% 5% 4% 4% 3% 4% 17% 4% 4% 5% 0% NA 0% 12% 42% 11% 0% 0% 2%
94% 95% 96% 96% 97% 96% 83% 96% 96% 95% 100% NA 100% 88% 56% 89% 100% 100% 98%
Cash
Equities
Geographic Allocation
Saudi Arabia Kuwait
UAE
Qatar
100% 100%
12% 38%
14% 5%
10% 14%
11% 12%
2% 3%
0% 0%
0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% NA 0% 0% 2% 0% 0% 0% 0%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% NA 100% 100% 100% 100% 100% 100% 100%
27% 51% 62% 28% 51% 61% 22% 56% 41% 49% 55% 77% NA 49% 47% 52% 49% 44% 0%
15% 22% 16% 11% 7% 21% 33% 17% 15% 12% 0% 0% NA 24% 0% 0% 3% 10% 23%
4% 7% 6% 21% 7% 5% 13% 7% 6% 9% 8% 12% NA 6% 15% 6% 10% 17% 15%
9% 17% 13% 10% 27% 13% 21% 14% 17% 10% 22% 10% NA 11% 23% 30% 29% 19% 43%
3% 3% 3% 5% 6% 0% 1% 2% 3% 3% 0% 1% NA 3% 0% 12% 1% 1% 15%
Bonds
Total
Performance %
Other Oman Bahrain Mena
Informa Quarterly Sharpe tion Alpha Ratio1 Ratio2
Total
Q4 2010
51% 27%
100% 100%
3.46% 25.10% 3.62% 11.70%
-1.01% -2.21%
(0.32) (0.46)
2.49 (1.46)
0% 0% 1% 2% 2% 0% 11% 1% 2% 0% 0% 0% NA 0% 0% 0% 5% 0% 3%
43% 0% 0% 22% 0% 0% 0% 2% 15% 17% 15% 0% NA 7% 14% 0% 3% 10% 0%
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% NA 100% 100% 100% 100% 100% 100%
6.08% 7.53% 6.42% 9.39% 7.46% 6.91% 3.68% 6.30% 5.29% 7.38% 3.92% 3.46% 1.18% 6.19% 2.99% 0.05% 7.82% 5.35% 8.58%
14.62% 23.00% 19.27% 20.46% 14.10% 15.56% 11.74% 18.25% 19.39% 19.40% 12.20% 14.37% 9.53% 14.94% 5.77% 8.26% 15.81% 11.60% 11.60%
-0.21% 0.49% -0.16% 0.88% 1.99% 0.74% -0.70% 0.08% -1.48% -0.28% -0.76% -0.67% -2.90% 0.01% -2.49% -3.13% 1.02% -0.91% 0.79%
(0.43) (0.37) (0.52) 0.59 (0.21) (0.60) (0.37) (0.56) (0.67) (0.53) (0.39) (0.50) (0.40) (0.37) (0.64) (0.66) (0.38) (0.79) (0.22)
3.10 0.30 1.25 4.25 (1.04) (3.44) (1.36) 0.31 (0.42) (0.49) (1.36) 0.91 (2.18) (1.17) (1.75) (1.08) (1.09) 0.67 (1.79)
2010
22 Oryx Fund 23 SGAM Oasis MENA Fund
BankMuscat Societe Generale Asset Management
GCC/MENA GCC/MENA
Jul-94 Nov-07
25 19
0% 0%
100% 99%
0% 1%
100% 100%
50% 42%
12% 6%
12% 11%
21% 29%
5% 0%
0% 0%
0% 12%
100% 100%
5.64% 16.60% 8.18% 16.72%
0.09% -0.22%
(0.56) (0.38)
(2.51) 4.29
24 Noor Local & GCC Equity Fund
Noor KuwaitInvestments and Middle East Financial Investment Co. Commercial Bank of Kuwait Meridio AG Gulf Baader Capital Markets Securities & Investment Company TAIB Securities Beltone Asset Management
GCC/MENA
May-07
18
13%
87%
0%
100%
26%
52%
9%
13%
0%
0%
0%
100%
3.81% 10.00%
-1.51%
(0.90)
(3.97)
GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA
Aug-06 Jan-06 Mar-07 Jun-97 Aug-07 Jun-03 Oct-07
18 18 12 12 10 4 NA
11% 5% 0% 9% 7% 3% 4%
89% 95% 100% 91% 93% 98% 96%
0% 0% 0% 0% 0% 0% 0%
100% 100% 100% 100% 100% 100% 100%
48% 31% 10% 34% 25% NA NA
39% 36% 22% 13% 10% NA NA
4% 0% 16% 5% 10% NA NA
8% 32% 23% 15% 32% NA NA
0% 0% 9% 33% 9% NA NA
0% 0% 4% 0% 6% NA NA
0% 0% 16% 0% 9% NA NA
100% 100% 100% 100% 100% NA NA
2.98% 6.01% 3.04% 6.61% 4.95% 5.97% 6.47%
-1.11% -0.11% -1.40% -0.74% -1.01% -0.51% -0.64%
(0.30) (0.50) (0.49) (0.18) (0.37) (0.64) (0.51)
(3.89) 0.23 1.40 0.27 1.80 (0.14) (0.74)
Total
2,032
25 26 27 28 29 30 31
Gulf Gate Fund CBK Tijari GCC Equity Fund Meridio Arab World Fund The First Mazoon Fund SICO Arab Financial Fund TAIB GCC Bluechip Fund Beltone MENA Equity Fund
6.2% 93.7%
6.80% 12.80% 11.79% 13.62% 25.20% 12.70% 16.82%
0.1% 100.0% 40.5% 15.7% 9.5% 19.1% 4.4% 1.4% 9.3% 100.0%
1 Sharpe Ratio ~ 3 years 2 Information Ratio 2 years * Fund size is not available
Source: Markaz Analysis, Zawya, Lipperweb, Stock Exchange websites
Kuwait Financial Centre “Markaz”
31
RESEARCH March 2011 Appendix 2: Saudi Equity Funds Statistics Sharia compliant Funds
Asset Allocation
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Fund Name Amanah Saudi Equity Fund SAMBA Saudi Equity Fund (Al Raed Fund) Riyad Equity Fund 2 AlAhli Saudi Trading Equity Fund Asayel Fund Al Rajhi Local Shares Fund Al-Saffa Saudi Equity Trading Amanah Saudi Industrial Fund Al Yusr Saudi Equity Fund Al Mubarak Pure Saudi Equity Fund Falcom Saudi Equity Fund Al Taiyebat Saudi Equity Fund Jadwa Saudi Equity Fund Amanah Growth Portfolio SAIB Saudi Companies Fund Bakheet Saudi Trading Equity Fund AlAhli Saudi Dynamic Trading Equity Fund KSB Saudi Equity Fund
Fund Manager HSBC Saudi Arabia Samba Financial Group Riyad Capital NCB Capital Al Bilad Investment Company Al Rajhi Bank CAAM Saudi Fransi HSBC Saudi Arabia Saudi Holandi Capital Company ANB Invest FALCOM Financial Services Aljazira Capital Jadwa Investment HSBC Saudi Arabia SAIB Asset Management Company Bakheet Investment Group NCB Capital KSB Capital Group
Inception May-04 Dec-02 Nov-96 Jun-98 Jan-06 Jul-92 Jul-05 Apr-05 Jul-95 Nov-05 Apr-07 Dec-99 Jun-07 Dec-04 Apr-05 May-07 Apr-05 Apr-08 Total
Performance %
Fund Size (USD Mn) 828 577 562 508 178 146 82 81 68 63 49 45 34 30 15 13 5 NA
Cash 0% NA 0% 0% 10% 2% 0% 0% 1% 0% 0% NA 0% 0% 1% NA 2% 0%
Equities 100% NA 100% 100% 90% 98% 100% 100% 99% 100% 100% NA 100% 100% 99% NA 0% 100%
Bonds 0% NA 0% 0% 0% 0% 0% 0% 0% 0% 0% NA 0% 0% 0% NA 98% 0%
Total 100% NA 100% 100% 100% 100% 100% 100% 100% NA 100% NA 100% 100% 100% NA 100% 100%
3,283
1%
92%
7%
100%
Q4 2010 3.77% 4.16% 5.84% 3.38% 3.23% 5.15% 6.42% 6.94% 5.58% 2.28% 4.32% 4.98% 5.26% 3.71% 4.11% 6.28% 0.09% 5.35%
2010 13.31% 11.47% 15.37% 16.57% 8.13% 13.92% 16.23% 18.28% 13.34% 9.16% 13.66% 11.03% 17.70% 8.88% 13.14% 15.59% -0.81% 8.62%
Quarterly Alpha 5.5% 4.2% 4.1% 5.0% 4.6% 4.5% 5.1% 5.0% 5.3% 5.0% 3.1% 5.2% 4.9% 3.5% 4.0% 5.7% 0.0% 5.9%
Sharpe Information Ratio1 Ratio2 (0.39) 0.56 (0.54) (0.62) (0.50) 0.12 (0.31) 1.05 (0.51) (1.08) (0.46) (0.26) (0.36) 0.99 (0.31) 1.78 (0.35) 1.55 (0.55) (1.17) (0.10) 0.65 (0.68) (1.60) (0.11) 1.32 (0.35) 0.13 (0.49) 0.02 (0.27) 0.76 (1.15) (6.38) (0.19) 0.14
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb, Stock exchange website
Kuwait Financial Centre “Markaz”
32
RESEARCH March 2011 Appendix 2: Saudi Equity Funds Statistics Conventional Funds
Asset Allocation
1 2 3 4 5 6 7 8 10 9 11 12 13 14
Fund Name Riyad Equity Fund 3 Al Musahem Fund Riyad Equity Fund 1 HSBC Saudi Equity Fund HSBC Saudi Equity Trading Fund Saudi Istithmar Fund ANB Saudi Companies Fund ANB Saudi Equity Fund Financial Institutions Fund SHB Saudi Companies Equity Fund SAIB Saudi Equity Fund Bakheet IPO Fund Al Fareed Fund Saudi Gateway Fund
Fund Manager Riyad Capital Samba Financial Group Riyad Capital HSBC Saudi Arabia HSBC Saudi Arabia CAAM Saudi Fransi ANB Invest ANB Invest HSBC Saudi Arabia Saudi Holandi Capital Company SAIB Asset Management Company Bakheet Investment Group Samba Financial Group SHUAA Capital
Inception Dec-00 May-92 Dec-92 Dec-92 Nov-97 Apr-93 May-93 Apr-92 Aug-04 Nov-05 Jul-04 Mar-08 Dec-03 Jul-07 Total
Fund Size (USD Mn) 700 184 100 89 84 68 66 61 31 29 23 23 22 8 1,488
Cash 0% NA 0% 1% 1% 0% 1% 2% 0% NA 1% 10% NA 7% 2%
Equities 100% NA 100% 100% 99% 100% 99% 98% 100% NA 99% 90% NA 93% 98%
Bonds 0% NA 0% 0% 0% 0% 0% 0% 0% NA 0% 0% NA 0% 0%
Performance %
Total 100% NA 100% 100% 100% 100% 100% 100% 100% NA 100% 100% NA 100% 100%
Q4 2010 4.44% 3.46% 3.86% 1.79% 5.39% 3.63% 5.25% 4.17% -1.87% 1.93% 2.63% -0.11% 5.21% 4.82%
2010 16.87% 14.37% 14.31% 14.58% 16.77% 13.81% 17.72% 14.74% 8.36% 8.14% 12.49% 3.81% 14.27% 10.77%
Quarterly Alpha 4.0% 3.8% 4.4% 4.6% 5.6% 4.6% 5.1% 5.1% 3.7% 3.6% 4.2% 6.0% 3.9% 4.4%
Sharpe Information Ratio1 Ratio2 (0.55) (0.30) (0.54) (0.68) (0.53) (0.29) (0.42) 0.43 (0.35) 0.78 (0.42) 0.70 (0.23) 0.25 (0.34) (0.29) (0.57) (0.54) (0.35) 0.95 (0.50) (0.58) (0.35) (0.73) (0.48) (0.06) (0.49) (0.11)
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb, Stock exchange website
Kuwait Financial Centre “Markaz”
33
RESEARCH March 2011 Appendix 3: Kuwait Equity Funds Statistics Sharia compliant Funds
Asset Allocation
1 2 3 4 5 6 7 8 9 11 10 13 12
Fund Name Al-Durra Islamic Fund Al Safwa Investment Fund Markaz Islamic Fund Al Darij Investment Fund Al-Safat Local Shares Equity Fund Al Aman Islamic Fund Al Seef Fund Tharwa Islamic Fund Tijari Islamic Fund Al Huda Islamic Fund Al Dar Securities Fund Al Wasm Fund Al Nokhba Fund
14 IFA Islamic Fund
Fund Size Fund Manager Inception (USD Mn) Global Investment House May-04 162 National Investments Company May-02 155 Kuwait Financial Centre Oct-03 84 National Investments Company Jun-03 72 Al Safat Investment Company Oct-07 28 Al Aman Investment Company Jun-07 18 Al Bilad Investment Company Jan-06 13 Tharwa Investment Company Jun-07 13 Al Tijari Investment Company Jul-06 11 Gulfinvest International Jun-02 7 Al Dar Asset Management Oct-04 7 Kuwait Finance and Investment CompanyJun-05 7 Al Dar Asset Management Oct-07 7
Cash 8% 0% 17% 0% 0% 17% NA 7% 1% NA 14% 23% 23%
Equities 92% 100% 83% 100% 100% 83% NA 93% 99% NA 86% 77% 77%
Bonds 0% 0% 0% 0% 0% 0% NA 0% 0% NA 0% 0% 0%
Total 100% 100% 100% 100% 100% 100% NA 100% 100% NA 100% 100% 100%
International Financial Advisors K.S.C.C Jun-06
4
0%
0%
0%
0%
588
9%
82%
0%
92%
Total
Q4 2010 2010 4.62% 9.70% 3.62% 1.81% -4.47% 8.60% 3.22% 16.53% -4.91% -8.89% 1.65% 9.92% 4.12% 9.08% 3.62% 10.98% 1.51% 6.22% 2.18% 7.75% -6.50% -4.69% 0.79% -23.80% -2.26% 0.03% 3.69%
-1.82%
Performance % Quarterly Sharpe Information Alpha Ratio1 Ratio2 -6.29% (0.85) (3.28) -2.46% (1.05) (4.91) -10.69% (0.84) (3.12) -1.84% (1.03) (5.15) -7.65% (0.99) (3.98) -5.67% (0.70) (3.38) -8.02% (0.68) (0.81) -3.65% (0.71) (4.01) -5.25% (0.84) (4.51) -5.11% (1.15) (4.37) -13.76% (1.27) (4.02) -3.32% (1.12) (5.96) -7.43% (1.26) (4.74) -5.83%
(1.08)
(3.26)
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb
Kuwait Financial Centre “Markaz”
34
RESEARCH March 2011 Appendix 3: Kuwait Equity Funds Statistics Conventional Funds Asset Allocation Fund Name 1 Al-Raed Fund 2 Al Wataniya Investment Fund Markaz Investment and 3 Development Fund 4 Burgan Equity Fund 5 Global 10 Large Cap Index Fund 6 Markaz Mumtaz Investment Fund 7 8 9 10
Coast Investment Fund Tijari Investment Fund Al Ahli Kuwaiti Fund Markaz Forsa Financial Fund
11 12 13 14 15 17 16 19 20
Al Rou'yah Fund KAMCO Investment Fund Al-Shorooq Investment Fund Masaref Investment Fund Tharwa Investment Fund NBK Kuwait Equity Fund Al-Ma'moun Fund IFA Investment Fund Global Local Fund
Fund Manager Kuwait Investment Company National Investments Company Kuwait Financial Centre Burgan Bank Global Investment House Kuwait Financial Centre Coast Investment and Development Company Al Tijari Investment Company Ahli Capital Investment Company Kuwait Financial Centre Kuwait and Middle East Financial Investment Company Kipco Asset Management Company Gulfinvest International Housing Finance Company Tharwa Investment Company National Bank of Kuwait Global Investment House International Financial Advisors K.S.C.C Global Investment House
Fund Size Inception (USD Mn) Oct-01 598 Jul-01 561
Cash NA 0%
Equities NA 100%
Bonds NA 0%
Total NA 100%
Q4 2010 1.96% 0.05%
Performance % Quarterly Sharpe Information 2010 Alpha Ratio1 Ratio2 14.87% -3.80% (0.79) (1.88) 13.33% -2.73% (0.86) (4.14)
Jul-01 Dec-01 Nov-00 Dec-99
383 311 303 262
23% 0% 1% 16%
77% 100% 100% 84%
0% 0% 0% 0%
100% 100% 100% 100%
0.60% -0.26% 5.62% 1.09%
20.50% 13.42% 42.10% 22.80%
-2.69% -3.50% -0.29% -1.79%
(0.65) (0.51) (0.44) (0.37)
(1.92) (1.10) 0.22 (0.56)
Mar-02 May-02 Feb-03 Jun-04
197 183 158 156
16% 12% 41% 12%
84% 88% 59% 88%
0% 0% 0% 0%
100% 100% 100% 100%
3.71% -2.17% 4.61% -0.31%
24.10% 9.92% 13.55% 15.50%
-2.16% -4.03% -1.76% -2.69%
(0.63) (0.66) (0.50) (0.69)
(1.81) (2.73) (1.38) (3.39)
Jun-02 Apr-04 Jul-01 Feb-07 May-07 Jun-07 Apr-01 Dec-04 Jan-03
150 106 62 36 30 13 13 10 7
21% 7% NA NA 0% 7% 9% NA 7%
79% 88% NA NA 100% 93% 91% NA 93%
0% 5% NA NA 0% 0% 0% NA 0%
100% 100% NA NA 100% 100% 100% NA 100%
2.35% 1.06% -4.77% 5.32% 2.18% 3.92% 4.68% 2.98% 4.57%
14.50% 11.32% -0.79% 38.62% 38.73% 42.54% 25.70% -5.73% 24.40%
-2.09% -2.55% -8.95% -2.50% -2.23% 0.35% -0.69% -0.72% -1.59%
(0.62) (0.88) (1.20) (0.51) 0.05 (0.47) (0.61) (0.78) (0.69)
(1.89) (3.50) (4.52) (1.36) (1.22) (2.19) (3.17) (3.14) (2.83)
Total
3,538
12%
87%
0%
100%
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb
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RESEARCH March 2011 Appendix 4: Qatar Equity Funds Statistics
Shariah Compliant Funds Asset Allocation
Fund Name 1 Al-Beit Al-Mali Shariah Fund
Fund Manager Global Investment House
Country Focus Qatar
Fund Size Inception (USD Mn) Cash Sep-06 16 8% Total 16 8%
Equities 92% 92%
Bonds 0% 0%
Performance%
Total 100% 100%
Q4 2010 2010 5.03% 19.51%
Quarterly Alpha -6.97%
Sharpe Information Ratio1 Ratio2 0.02 (0.48)
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available
Conventional Funds Asset Allocation
1 2 3 4 5 6 7 8 9
Fund Name Epicure Qatar Equity Fund Al Waseela Fund Q NBK Qatar Equity Fund Al Watani Fund Al Watani Fund 2 Al Waseela Fund F Qatar Gate Fund (N) Makaseb Qatar Equity Fund Qatar Gate Fund (Q)
Country Fund Manager Focus Epicure Managers Qatar Limited EFG- Hermes Qatar Watani Investment Company Qatar QNB Banque Privee (Suisse) SA Qatar QNB Banque Privee (Suisse) SA Qatar EFG- Hermes Qatar Shuaa Capital Qatar Makaseb Funds Company Qatar Shuaa Capital Qatar
Fund Size Inception (USD Mn) Jul-07 219 Apr-07 40 May-06 26 Oct-05 25 Oct-05 18 Apr-07 13 Sep-05 12 May-05 12 Sep-05 6 Total 372
Cash 2% 5% 3% 2% 0% 3% 0% -2% 0% 1%
Equities 98% 95% 97% 98% 100% 97% 100% 84% 100% 97%
Bonds 0% 0% 0% 0% 0% 0% 0% 18% 0% 2%
Performance%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Q4 2010 12.92% 10.92% 12.77% 12.80% 12.79% 11.05% 13.66% 3.00% 13.17%
2010 33.38% 17.62% 32.67% 27.67% 27.13% 17.47% 37.11% 19.36% 34.45%
Quarterly Alpha -0.19% -2.74% 0.36% 1.39% 1.29% -2.57% -1.37% -4.20% -1.36%
Sharpe Information Ratio1 Ratio2 0.02 2.43 (0.21) (0.72) (0.18) (1.75) (0.02) 0.65 (0.04) 1.35 (0.14) (0.65) (0.00) 4.93 (0.18) 0.04 (0.02) 4.14
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb
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RESEARCH March 2011 Appendix 5: UAE Equity Funds Statistics Shariah Compliant Funds Fund Name 1 Daman Islamic Fund 2 NBAD UAE Islamic Fund
Fund Manager Daman Investments National Bank of Abu Dhabi
Fund Size Inception (USD Mn) May-07 55 Jan-05 34 Total 89
Asset Allocation Cash 60% 3% 32%
Equities 40% 97% 69%
Bonds 0% 0% 0%
Total 100% 100% 100%
Q4 2010 -1.52% -0.85%
Performance (%) Quarterly Sharpe Information 2010 Alpha Ratio1 Ratio2 -5.35% -0.36% (1.50) (2.78) 0.50% -0.57% (0.87) (1.72)
Q4 2010 0.56% -1.52% 1.14% 0.04% -0.61% 0.16% -2.99% -0.21% 2.35% -2.59% -2.33%
Performance (%) Quarterly Sharpe Information Alpha Ratio1 Ratio2 1.23% (0.99) (3.52) 0.10% (0.91) (2.47) 0.23% (1.20) (3.88) -0.75% (1.30) (2.50) -1.27% (0.83) (2.79) -1.27% (1.14) (4.69) -1.26% (0.62) (1.03) -0.67% (0.75) (2.18) 2.89% (0.50) (2.15) -0.76% (0.95) (2.94) -0.82% (0.57) (0.36)
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available
Conventional Funds Asset Allocation
1 2 3 4 5 6 7 8 9 10 11
Fund Name NBAD UAE Trading Fund Al Nokhitha Fund NBAD UAE Distribution Fund Daman Second Emirates Fund TNI UAE Blue Chip Fund NBAD UAE Growth Fund Al Mal UAE Equity Fund Emirates Gateway Fund TNI Dana Women Fund Makaseb Emirates Equity Fund Makaseb Emirates Opportunities Fund
Fund Manager National Bank of Abu Dhabi Abu Dhabi Commercial Bank National Bank of Abu Dhabi Daman Investments The National Investor National Bank of Abu Dhabi Al Mal Capital SHUAA Capital The National Investor Makaseb Funds Company Makaseb Funds Company
Fund Size Inception (USD Mn) Jan-04 110 Mar-05 91 Feb-06 57 Feb-07 55 Apr-05 35 Oct-00 34 Mar-06 21 Mar-02 9 Jul-05 4 Feb-05 4 May-05 2 Total
421
Cash 0% -11% 0% 60% 2% 0% 5% 1% 18% 16% -2%
Equities 100% 111% 92% 40% 98% 100% 95% 99% 82% 84% 84%
Bonds 0% 0% 9% 0% 0% 0% 0% 0% 0% 0% 18%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
8%
89%
2%
100%
2010 -8.10% -2.48% -0.50% -1.40% -5.10% -5.30% -0.95% -2.33% 6.91% -3.80% -0.07%
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb
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RESEARCH March 2011 Appendix 6: Oman Equity Funds Statistics Conventional Funds Asset Allocation
1 2 3 4
Fund Name Muscat Fund Vision Emerging Oman Fund Al Amal Fund JIA Majan Capital Fund JIA
Fund Manager BankMuscat Vision Investment Services Company The Financial Corporation Company The Financial Corporation Company
Inception Dec-95 Aug-07 Apr-05 Nov-95 Total
Fund Size (USD Mn) 30 24 16 9 78
Cash 0% 0% 0% NA 0%
Equities 100% 100% 100% NA 100%
Bonds 0% 0% 0% NA 0%
Performance (%)
Total 100% 100% 100% NA 100%
Q4 2010 4.55% 5.01% 3.24% 3.34%
2010 7.40% 10.12% 6.85% 2.50%
Quarterly Alpha -1.2% -1.6% -2.1% -1.1%
Sharpe Informatio Ratio1 n Ratio2 (0.39) (1.74) (0.25) (0.18) (0.23) 0.27 (0.29) (1.14)
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb
Appendix 7: Bahrain Equity Funds Statistics Conventional Funds Asset Allocation Fund Name 1 SICO Selected Securities Fund
Fund Manager Securities & Investment Company
Fund Size Inception (USD Mn) May-98 20 Total 20
Cash 4% 4%
Equities 83% 83%
Bonds 13% 13%
Total 100% 100%
Q4 2010 0.60%
Performance % Quarterly Sharpe 2010 Alpha Ratio1 -0.90 4.80% 1.47%
Information Ratio2 1.90
1 Sharpe Ratio 3 years, 2 - Information Ratio 2 years * Fund size is not available Source: Markaz Analysis, Zawya, Lipperweb
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RESEARCH March 2011 Appendix 8: GCC Asset Management Industry – Equity Funds (Dec-10) September 2010 Country
Conventional Funds
No. of Funds Saudi Arabia 14 Kuwait 20 UAE 11 Qatar 9 Bahrain 1 Oman 4 GCC/MENA 35 Total 94 Source: Markaz Research
Islamic Funds
Dec 2010 Total
Conventional Funds Islamic Funds
AUM No. AUM No. AUM No. ($Bn) of Funds ($Bn) of Funds ($Bn) of Funds 1.51 18 3.26 32 4.76 14 3.32 13 0.55 33 3.88 20 0.45 2 0.09 13 0.54 11 0.35 1 0.02 10 0.37 9 0.02 0 NA 1 0.02 1 0.07 0 NA 4 0.07 4 1.87 19 0.53 54 2.40 35 7.6 53 4.4 147 12.0 94
AUM ($Bn) 1.49 3.54 0.42 0.37 0.02 0.08 2.03 7.9
No. AUM of Funds ($Bn) 18 3.28 13 0.59 2 0.09 1 0.02 0 0.00 0 0.00 19 0.58 53 4.6
Total No. of AUM Funds ($Bn) 32 4.77 33 4.12 13 0.51 10 0.39 1 0.02 4 0.08 54 2.60 147 12.5
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RESEARCH March 2011 Appendix 9: Fund Rankings
1 2 3 4 5 6 7 8 9 10
Fund Jadwa Arab Markets Equity Fund Jadwa GCC Equity Fund AlDana GCC Equity Fund AlRajhi GCC Equity Fund Al Yusr GCC Equity Fund Al Aseel Islamic Equity Fund AlAhli GCC Trading Equity Fund Gulf Islamic Equity Fund SAIB Gulf Companies Fund Amanah GCC Equity Fund
1 2 3 4
Fund Qatar Gate Fund (N) SGAM Oasis MENA Fund ING MENA Fund Qatar Gate Fund (Q)
Fund Rankings (by Quarterly Alpha) Fund Manager Bakheet Investment Group KSB Capital Group Bakheet Investment Group HSBC Saudi Arabia HSBC Saudi Arabia Saudi Holandi Capital Company Aljazira Capital ANB Invest ANB Invest CAAM Saudi Fransi Fund Rankings (by Sharpe Ratio) Fund Manager Jadwa Investment Jadwa Investment CAAM Saudi Fransi Al Rajhi Bank Saudi Hollandi Capital Company Securities & Investment Company NCB Capital Gulf Investment Corporation SAIB BNP Paribas Asset Management Saudi British Bank Fund Rankings (by Information Ratio) Fund Manager Shuaa Capital Societe Generale Asset Management ING Investment Management Shuaa Capital
5 6 7 8 9 10
Ocean Fund Equities MENA Opportunities Schroder Middle East Fund (Class A - USD Acc) Epicure Qatar Equity Fund Jadwa Arab Markets Equity Fund SICO Selected Securities Fund Jadwa GCC Equity Fund
Societe Generale Asset Management Schroder Investment Management Limited Epicure Managers Qatar Limited Jadwa Investment Securities & Investment Company Jadwa Investment
Fund 1 Bakheet IPO Fund 2 KSB Saudi Equity Fund 3 Bakheet Saudi Trading Equity Fund 4 HSBC Saudi Equity Trading Fund 5 Amanah Saudi Equity Fund 6 Al Yusr Saudi Equity Fund 7 Al Taiyebat Saudi Equity Fund 8 ANB Saudi Companies Fund 9 ANB Saudi Equity Fund 10 Al-Saffa Saudi Equity Trading
Country Focus Saudi Saudi Saudi Saudi Saudi Saudi Saudi Saudi Saudi Saudi
Quarterly Alpha 6.00% 5.94% 5.73% 5.65% 5.47% 5.27% 5.17% 5.10% 5.07% 5.06%
Country Focus GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA GCC/MENA
Sharpe Ratio 1.18 1.17 0.84 0.84 0.83 0.75 0.73 0.73 0.71 0.64
Country Focus Qatar GCC/MENA GCC/MENA Qatar
Information Ratio 4.93 4.29 4.25 4.14
GCC/MENA GCC/MENA Qatar GCC/MENA Bahrain GCC/MENA
3.10 2.49 2.43 1.97 1.90 1.80
Note: Quarterly Alpha against MSCI Index ex. Saudi and GCC which are S&P Indices; Source: Zawya, Markaz Research
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RESEARCH March 2011 Appendix 10: GCC Asset Managers – Consolidated
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RESEARCH March 2011 Disclaimer
This report has been prepared and issued by Kuwait Financial Centre S.A.K (Markaz), which is regulated by the Central Bank of Kuwait. The report is owned by Markaz and is privileged and proprietary and is subject to copyrights. Sale of any copies of this report is strictly prohibited. This report cannot be quoted without the prior written consent of Markaz. Any user after obtaining Markaz permission to use this report must clearly mention the source as “Markaz “.This Report is intended to be circulated for general information only and should not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy in any jurisdiction. The information and statistical data herein have been obtained from sources we believe to be reliable but in no way are warranted by us as to its accuracy or completeness. Markaz has no obligation to update, modify or amend this report. This report does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. Investors are urged to seek financial advice regarding the appropriateness of investing in any securities or investment strategies discussed or recommended in this report and to understand that statements regarding future prospects may not be realized. Investors should note that income from such securities, if any, may fluctuate and that each security‟s price or value may rise or fall. Investors should be able and willing to accept a total or partial loss of their investment. Accordingly, investors may receive back less than originally invested. Past performance is historical and is not necessarily indicative of future performance. Kuwait Financial Centre S.A.K (Markaz) does and seeks to do business, including investment banking deals, with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. For further information, please contact „Markaz‟ at P.O. Box 23444, Safat 13095, Kuwait. Tel: 00965 1804800 Fax: 00965 22450647. Email:
[email protected]
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RESEARCH March 2010
Markaz Research Offerings Strategic Research What to expect in 2011 (Jan-11) Kuwait Investment Sector (Sept-10) The Golden Portfolio (Sept-10) The New Regulations on Kuwait Investment Sector (Jun-10) Persistence in Performance (Jun-10) Kuwait Capital Market Law (Mar-10) What to expect in 2010 (Jan-10)
GCC Banks - Done with Provisions? (Jan-10)
What is left for 2009? (Sept-09) Missing The Rally (Jun-09) Shelter in a Storm (Mar-09) Diworsification: The GCC Oil Stranglehold (Jan-09) This Too Shall Pass ( Jan-09) Fishing in Troubled Waters(Dec-08) Down and Out: Saudi Stock Outlook (Oct-08) Mr. GCC Market-Manic Depressive (Sept-08) Global Investment Themes (June-08) To Yield or Not To Yield (May-08) Banking Sweet spots (Apr-08) The “Vicious Square” Monetary Policy options for Kuwait (Feb-08) China and India: Too Much Too Fast (Oct-07) A Potential USD 140b Industry: Review of Asset Management Industry in Kuwait (Sep-07) A Gulf Emerging Portfolio: And Why Not? (Jun-07) To Leap or To Lag: Choices before GCC Regulators (Apr-07) Derivatives Market in GCC (Mar-07) Managing GCC Volatility (Feb-07) GCC for Fundamentalists (Dec-06) GCC Leverage Risk (Nov-06)
Periodic Research
Sector Research Infrastructure
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GCC GCC GCC GCC GCC GCC
Power Ports Water Airports Roads & Railways ICT
Real Estate – Market Outlook
Qatar Residential – An Update (Aug-10) Dubai Real Estate - Trends and Outlook(Apr-10) Egypt Real Estate - Trends and Outlook(Feb-10) Kuwait Real Estate Outlook(Dec-09) Abu Dhabi Residential (Nov-09) Office Investment in KSA (Jul-09) Saudi Arabia – Residential Real Estate Outlook (Jun-09) Saudi Arabia (Sep-08) Abu Dhabi (July-08) Algeria (Mar-08) Jordan (Mar-08) Kuwait (Feb-08) Lebanon (Dec-07) Qatar (Sep-07) Saudi Arabia (Jul-07) U.S.A. (May-07) Syria (Apr-07)
Real Estate Strategic Research
GCC Distressed Real Estate Opportunities (Sep-09) GCC Real Estate Financing (Sept-09) Real Estate Earnings -2009 (May-09) Supply Adjustments Are we done? (Apr-09) Dubai Real Estate Meltdown (Feb-09)
RESEARCH March 2011