Asset Management
SICO’s Asset Management division maintained strong growth momentum across its equity and fixed income operations, capturing the upside of the market recovery in 2021
SICO’s Asset Management is a regional flagship boutique asset manager with a strong focus on GCC and MENA mandates and capital markets. Supported by a team of renowned, highly experienced industry experts with over 50+ years of combined GCC/MENA market knowledge, the division consistently works toward enriching its investment strategies with innovation and diversity, as well as a vision to expand on its regional and international footprint. The majority of SICO’s key investment professionals have worked together for more than a decade, and most analysts have been covering their respective sectors for more than five years.
2021 Asset Management Highlights
- AUM increased significantly in FY2021 following the strong pickup in GCC markets, closing the year with a two-fold increase Y-o-Y
- Flagship equities fund achieved 5-year gross annualized returns of 18.5%
- Flagship fixed income fund achieved 5-year gross annualized returns of 4.41%
- Significant progress was made in the establishment of first standalone middle office, aimed at serving the division’s equity and fixed income functions
- SICO Capital exits Al Qasr Real Estate Fund with an average annual return of 11%
USD/BN
4.10
Total Net AUM
USD/BN
2.03
Equity Net AUM
USD/BN
1.35
Fixed Income Net AUM
USD/BN
0.24
Real Estate Net AUM
USD/BN
0.48
Other Net AUM
USD/BN
4.51
Total Gross AUM
USD/BN
2.03
Equity Gross AUM
USD/BN
1.67
Fixed Income Gross AUM
USD/BN
0.33
Real Estate Gross AUM
USD/BN
0.48
Other Gross AUM
SICO’s Asset Management mutual funds and discretionary portfolios cater for a unique investor base comprised of large institutions, including pension funds, sovereign wealth funds, endowments, family offices, and private banks. By offering customized, value-added services that vary according to different risk profiles and investment objectives, SICO has consistently grown its AUM over the course of a successful track record of more than 20 years, the longest consistent track record in the GCC market.
The Asset Management division’s investment methodology prioritizes healthy, risk-adjusted returns, targeting assets with robust fundamental profiles, significant safety margins, and minimal downside risk. The team’s exemplary performance over the years is a reflection of their long-term investment approach. As fundamental investors, the team ensures that they have a good grasp of the underlying fundamentals of both the businesses and the industries that they invest in, placing greater emphasis on downside risk than upside gains.
This has helped SICO preserve capital in times of market weakness, which has, in turn, reflected on long-term outperformance compared to peers.
SICO Asset Management’s mandates cover conventional and Sharia-compliant equities, fixed and money market securities, as well as real estate investment trusts (REITs) and private real estate funds. Various external funds are also managed on behalf of leading regional financial institutions. SICO’s mutual funds and discretionary portfolios consistently outperform their respective benchmarks, maintaining the highest ranking across a variety of league tables.