SICO Announces the Conclusion of the Sale and Transfer Agreement of Novotel Al Dana Resort to Gulf Hotels Group in Bahrain

SICO completes its advisory to Al Jazeera Tourism Company (AJTC) on their sale of 100% of Novotel Al Dana Resort in Bahrain to Gulf Hotels Group. Following the initial announcement in February, the parties have now successfully completed the required conditions and executed the property transfer agreement. The operational transfer of the property to Gulf Hotels Group will go into effect on June 8th, 2023.

Beyon Money Launches Flexi Savings in Partnership with SICO

SICO and Beyon Money, part of the Beyon Group, partnered to launch Flexi Savings, a flexible Investment Product for Beyon Money customers, the first of its kind in Bahrain and MENA region. Flexi Savings, which is available for both Beyon Money Classic and Platinum Card holders, enables customers to grow their earnings on a daily basis. Customers can seamlessly place their cash in a high yield product with Beyon Money, starting from as low as BD20, with no upwards limit. Along with the unparalleled earnings, there are no time commitments and customers have full freedom of withdrawal at any time. Earnings are credited daily and paid at the end of each month.

SICO’s Equity Funds Performance

SICO’s flagship Khaleej Equity Fund recorded gross returns of 9.0% year-to-date (June 2023), maintaining its place as one of the best performing GCC-focused funds. The Khaleej Equity Fund had yielded a five-year annualized gross return of 14.9%, outperforming the benchmark by 6.8%. Meanwhile, SICO’s Kingdom Equity Fund, which invests in Saudi-listed equities, generated a return of 14.7% year-to-date (June 2023), outperforming the wider market. The Kingdom Equity fund has achieved a five-year annualized gross return of 16.0%, significantly exceeding the annualized benchmark return of 9.2% for the period. SICO’s Gulf Equity Fund, which invests in all GCC equity markets excluding Saudi Arabia, achieved gross returns of 0.7% year-to-date, and three-year annualized returns of 15.0%.

SICO Partners with Wafra International Investment Company to Launch Elzaad Sukuk Fund

SICO launched Elzaad Sukuk Fund in partnership with Wafra International Investment Company, an investment firm backed by Kuwait’s Public Institution For Social Security. SICO will act as the fund manager while Wafra will participate as a seed investor in addition to its role as a Fund Advisor. The fund is regulated by the Central Bank of Bahrain and is registered in Kuwait and Saudi Arabia.

Elzaad Sukuk Fund will invest in a diverse portfolio of Sukuk and other Sharia-compliant fixed income instruments issued by sovereign, quasi sovereign, and corporate issuers globally with a focus on the MENA region, offering clients the opportunity to penetrate global markets. The fund offers monthly liquidity and accepts investments at a minimum of USD 1 million for class A shares class, and USD 100,000 for class B shares. The fund provides investors with an expected rate of return in the range of 5.5% to 7.5%.

BLFC Appoints SICO as an Advisor for the Potential M&A Deal

Bahrain Family Leisure Company B.S.C (BFLC) and DGC Hospitality & Partners, the food and beverage investment arm of Dividend Gate Capital (DGC) have signed an MOU in October 2022 for a potential M&A transaction between the two companies. SICO BSC has been appointed as advisor to BFLC on the M&A deal. Grant Thornton has been appointed as the advisor to DGC Hospitality. The two leading players in Bahrain’s food & beverage (F&B) and hospitality sector have signed an MOU to explore the possibility of a potential consolidation between the companies, which would result in a powerful market player with improved efficiencies and an increased market share.

SICO’s Top-20 Portfolio Outperformance

SICO’s Top-20 portfolio has continued its outperformance in 2023, with the fund returning 20.1% in the first half of 2023 (30 June 2023), which implies an outperformance of 14.8%. Given the volatility in the markets in general, this outperformance is particularly impressive as it was achieved with minimal churn. The portfolio’s strategy is backed by solid fundamental research on each company included in the list and, at the same time, addressing the need to reasonably diversify the stock ideas across sectors and countries within the GCC.

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SICO Research Launches New App

SICO’s Research team recently launched its new user-friendly research mobile application, an easy-to-use app providing timely insights and easy access to all research products, investment ideas, and their top stock picks within the GCC. Several research products, including the SICO Research portal, were also enhanced.