Gulf Investment Corporation (GIC), Gulf Bond Fund outperformed its own benchmark and similar rated financial products with a 5.83% net return for the first 9 months of 2012, surpassing the whole of 2011 net return, despite global economic instability.
With a market value exceeding $ 166 million and being the first and largest GCC bonds and Sukuk Fund, GIC Gulf Bond Fund managed to maintain its solid and consistent performance for the 8th year in a row.
The fund was able to achieve positive performance for the past 3 consecutive quarters with a net return of 5.83% and an annualized net return of 4.21% since inception in March 2005. Acting Head of Sales, Products and Marketing Division, Talal Zaid Al-Tawari ties this performance to the high quality of the Gulf Bond Fund holdings. He Said”: “the underlying bonds are rated A- and above along with a broad regional and sector diversification. This attracts the attention of many investors looking for consistently competitive performance in the GCC region.”
Vice President- GCC Bonds and Fund Manager, Khalifa AL-Rashid said: “the High GDP growth combined with relatively low debt ratios places the region in a very competitive position amid a global economy overshadowed by European Union debt crisis and growth concerns in US, and China.” He also added that: “in a world of negative real interest rates in almost every developed economy along with relatively tight spreads in most of Emerging Markets, regional paper remain among the most attractive investment propositions from a risk/return perspective.”
Equipped with an industry expertise built up over the last 29 years and a unique Pan-GCC ownership structure in addition to having one of the largest regional buy-side research teams, GIC is ideally positioned to take advantage of booming regional fixed income markets.
GIC Gulf Bond Fund long track record in regional credit markets and its focus on both portfolio and risk management represents an excellent investment opportunity in a market still dominated by low yields and high price volatility.
Established in 1983, GIC is a regional financial institution owned entirely and equally by the six GCC states. GIC strives to provide a comprehensive range of financial services that support the development of private enterprise and economic growth in the Gulf region. GIC managed to achieve a number of major projects throughout GCC Countries all with diversified activities covering different sectors via, financial, petrochemical, steel, power, communications and others. GIC successfully maintained its distinguished presence as a financially powerful establishment with rewarding returns and enhanced capital base.