Arab Bank signs agreement with Allianz Global Investors to develop investment funds

Following the signing ceremony, Arab Bank Chairman/CEO Abdel Hamid Shoman said the partnership with Allianz Global Investors is prone to optimize benefits and diversify options for investors and opportunities Arab Bank makes available for its customers, in a way that spares them risks amidst changing circumstances in regional and international markets.

Shoman added that expanding and diversifying investments in international financial markets have become vital elements in efforts to maximize returns, including the move towards special investment funds that try to achieve sound performance and the adoption of best practices in asset management with the aim of increasing their profitability.

He stressed that Arab Bank, which pursues an ambitious strategy in this regard, seeks to boost profits, achieve the set growth target in the medium and long run and generate sustainable income from investment portfolios, applying the best asset management at the lowest volatility levels.

Arab Bank and Arab Bank Group, he added, are constantly developing products and offering investment packages through diversified funds oriented towards developing resources and increasing their returns.

He stressed that the bank's overall strategy in regional and international markets seeks to empower Arab Bank to compete strongly in the world's financial markets in general and the Middle East and North Africa (MENA) region in particular.

The chairman stressed that Arab Bank's top management attaches so much importance to the risk management aspect in investment. He noted that Arab Bank profile funds are the first in the world to consist of all seven investable asset classes.

They include AB Defensive Fund, a defensive vehicle, AB Conservative Fund, AB Balanced Fund, AB Growth Fund with allocations weighted towards equity and commodities funds and AB Dynamic Fund, which invests a large proportion of its assets in global equity funds.

The five funds have the ability to invest in all seven major asset classes.

Shoman added that Arab Bank, which was established in 1930, has contributed to the development the Arab Banking industry, offering world-level banking services and products. The bank, he said, has penetrated international markets with quality income-generating services that conserve assets and develop them in line with a well-calculated risk management policy that has resulted in the past decades in increasing return on investment, avoiding the repercussions of fluctuations in exchange and stock markets, overcoming crises and achieving constant growth in assets and profits from investments.

Arab Bank Group offers retail and corporate financial services and serves government agencies and international financial institutions. It also provides investment banking, private banking and wealth management.

The group recorded a historic achievement in 2007, with profits hitting the $1bn mark, shareholders equity rising to $6.9bn and a total balance amounting to $54.8bn.

Allianz Global Investors AG (AllianzGI), a subsidiary of Allianz SE, is a management holding company for a network of investment specialists in the most important institutional and retail markets around the world.

Through PIMCO, RCM, Oppenheimer Capital, NFJ, Nicholas-Applegate and several other specialist firms AllianzGI offers its clients a broad variety of investment competencies, covering all equity and fixed income investment styles as well as balanced products and alternative investments.

With $1428bn assets under management (2007), AllianzGI ranks amongst the top investment management companies worldwide. Through its network of more than 4300 employees around the globe, including more than 900 investment professionals, AllianzGI is able to leverage local expertise and market knowledge to its clients all over the world.