SICO Funds Services (SFS)

Overview

SICO Funds Services (SFS) is a leading regional fund service provider licensed by the Central Bank of Bahrain, established in 2004 as a wholly owned subsidiary of SICO. SFS provides a fully integrated support service for investment funds, portfolios, sukuk, and various structured financial instruments. With a proven track record spanning nearly two decades, SFS has been supporting its expanding client base with high-quality solutions for administration, custody and registrar services, including settlement of securities transactions, safekeeping of custody assets, corporate actions, valuations, reporting, paying agent and corporate services, among others.

As one of the GCC’s most successful and highly regarded fund service providers, the company anchors its success in its client-centric approach and utilization of technology tools, processes, and delivery platforms. This winning formula enables SFS to offer clients innovative, flexible, and seamless service offerings. While SFS is backed by SICO’s long-standing brand equity in the region, it operates independently with its own executive management and Board of Directors, and functions on a strictly arm’s-length basis with SICO’s Brokerage and Asset Management businesses.

2020 Operational Review

Despite the challenges posed by the COVID-19 pandemic, SFS achieved net profit of BD 372,000 (USD 987,000) in 2020. Total custody, administration and registrar fees recorded BD 708,000 (USD 1.9 million). Assets under custody stood at BD 3 billion (USD 7.9 billion). Income generating assets under custody grew by 33% and non-income generating assets under custody grew by 1%, while assets under administration dropped by 8%.

Performance for the year was impacted by the COVID pandemic leaving growth plans on hold until the market recovers. An important operational achievement for the year however has been the overhaul of SFS’ IT system, a move that will streamline post-trade operations, allowing the company to meet its growth objectives and enhance overall services.

SFS has contracted Intellect’s Capital Sigma, an asset servicing solution suite, as part of its ongoing efforts to digitize and bolster SFS’ custody and fund administration services. The integrated technology platform will be crucial in handling multiple asset classes and meeting evolving market needs.

SFS continued to build its pipeline of clients. Despite challenging market conditions, the company managed to sign two new mandates, including an appointment as the fund administrator for the only listed REIT on the Bahrain Bourse. The company also created new business lines, adding non-regulatory corporate services to its offering.

2021 Outlook

SFS’s implementation of the new CORE business system is already underway, with plans to go live during 2021. The system will serve to enhance custody, administration, and registrar services through composite reporting and analytical tools. In addition, SFS will seek to enhance its service offering in the coming year, offering a number of new service lines including acting as an operator for PIUs as well as a range of corporate services, including a dedicated registered office address service.