Al Hilal Bank has announced that its Al Hilal GCC Equity Fund, an open-ended fund launched in April 2011, has returned 11.80 per cent since beginning of this year. The Fund has generated 17.64 per cent return for its stakeholders since inception.

The Al Hilal GCC Equity Fund provides investors with long-term investment in a diversified portfolio of Shariah-compliant GCC equity securities. Under normal market conditions the fund invests at least 75 per cent of assets in equity securities.

Al Hilal Bank expects the GCC equity markets to continue offering significant opportunities for investors given the economic resilience and long-term growth potential of the region.

“Our GCC Equity Fund was able to post a solid return of 11.80 per cent over the past 5 months, reflecting its sustained appeal as an investment vehicle. We have been able to exceed our customer expectations even amidst challenging market conditions,” said Lim Say Cheong, EVP – Investment Banking Group at Al Hilal Bank.

“With its strong focus on stock picking, the GCC Equity Fund is likely to maintain its good run in the coming months as its holdings benefit from the multiple investment themes and drivers across the region. The recent rally was primarily driven by a justified reduction in equity risk premiums and we feel that the continuous improvement in earnings growth prospects of companies will provide the next major trigger for markets. Our diversified holdings across the GCC are well positioned to benefit from this, said Lim”.

The Al Hilal GCC Equity Fund is one of two major funds currently being managed by Al Hilal Bank. The other Fund, Al Hilal Global Sukuk Fund, posted a 3.40 per cent since inception. The Fund also distributed its first dividend for the first 9 months since inception of 4.36% for 2012 bringing the total return since inception to over 7.76%.

Al Hilal Bank is planning to launch yet another fund in 2013 to further solidify its position in the securities market.