Global Arab Network | Kuwait-based investment funds show positive performance in first half of 2010

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Kuwait-based investment funds show positive performance in first half of 2010

Global Arab Network - - George Haddad

Sunday, 18 July 2010 20:26

Kuwait-based Investment funds show positive performance in first half of 2010

KUWAIT - Gulf Investment Corporation (GIC) investment funds specialized in Gulf bonds and equities revealed a positive performance in the first half of 2010.

Returns of the GIC's Bond Fund in Kuwaiti dinar and Gulf Bond Fund in US dollar reached approximately 8.20 percent and 6.79 percent respectively.

Malek Issa Al-Ajeel, Head of Business Development at GIC said the total asset value of the managed funds in US dollar and Kuwaiti dinar is approximately USD 235 million, thus placing the GIC ahead of all specialized institutions in managing investment products in the bond sector.

Concerning GIC Bond Fund in Kuwaiti dinar, he said the Assets Under Management (AUM) for this fund reached around USD 115 million as of the first half of 2010. The returns were 8.2 percent for the same period compared to around 3.22 percent achieved during the first half of the previous year.

The fund's achieved positive returns become clearer once compared to the interest rate percentage on mid term deposits in Kuwaiti Dinars estimated at approximately 1.25 percent, he said.

Concerning Gulf Bond Fund in US dollar, Al-Ajeel pointed out that this fund maintained good performance during the first half of 2010 achieving returns of 6.79 percent compared to approximately 2.96 percent of the same period in the previous year, whereas the interest rate on short term deposits in US dollar stood at 0.50 percent.

Returns since inception of the fund aggregated to 17.9 percent and its AUM rose to USD 120 million during the first half of 2010 compared to about USD 76 million in the first half of 2009, recording a growth of approximately 58 percent, he remarked.

As for Gulf Premier Fund in US dollar, he said the fund generated returns of 3.14 percent in the first half of 2010, in comparison with 1.25 percent on the MSCI GCC Index, indicating outperformance of 1.89 percent. Returns since inception of the fund aggregated to 84.92 percent, with the annual returns since inception estimated at 8.5 percent, Al-Ajeel added.

In relation to the Gulf Islamic Fund, he said the fund outperformed the MSCI GCC index by approximately 1 percent during the first half of 2010, and distributed cash dividends of 5 percent in 2009, despite the financial crunch witnessed by the global markets. (KUNA)

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