Al-Aali: Delmon Fund realizes 50 per cent returns since inception

The fund has shown strong returns since its inception in October 2004, with returns reaching 50.64% since inception up to April 30, 2005.

The Bahrain All Shares Index has realized 24.54% gains from Jan. to end of April 2005, while the Delmon Fund beat the index by 22.97% this year.

Global has foreseen this rapid growth in the Bahraini equity market to become one of the leading emerging stock markets in the region. Starting with 29 listed companies back in 1989, this figure grew to 46 in 2004 and included Sudan Telecommunications Co. (Sudatel), the first non-GCC company to list in the region.

In addition, "the International Monetary Fund (IMF) represented an upbeat view of the Bahraini economy praising the overall performance of the country. The IMF described the economy as prudent, as it had resulted in consistently high GDP growth, low inflation and a manageable debt situation, which the IMF had reported in June 2004," states Ms. Najah Al-Aali, General Manager of Global in Bahrain.

"The Kingdom's GDP has experienced growth of 6%, from 2003-2004. This economic growth has been due in part to many factors which have positively influenced the Kingdom's economy" Al-Aali continues, "For instance, in an effort to reinforce the privatization process in Bahrain, the government recently approved the establishment of the Kingdom's first private electricity station."

Additionally, during the past year, Bahrain has granted a number of licenses to various international banks to operate in the country. With the increase in banking activities, assets of the banks showed robust growth. The Kingdom has also signed a free trade agreement (FTA) with the US in September 2004 for the purpose of achieving extensive liberalization across a wide spectrum of trade issues, both in terms of goods and services.

Also, in April 2004, the BMA granted permission for the establishment of a credit reference bureau, which will serve as a database of information related to loans.

Al-Aali continues, "Through our Delmon Fund, Global aims to capitalize on the private sector's prospective growth opportunities, which have been steadfast over the past few years, especially with the support of the Kingdom's regulatory bodies in opening up the Bahraini market."

The fund aims to appreciate its assets by investing in selected listed companies on the Bahrain Stock Exchange, benefiting from the opportunities that present themselves in the market. Additionally, the Delmon Fund seeks above average returns by focusing on companies that enjoy high dividend yields, and above average growth rates.

Al-Aali concluded, "In addition to the focus on equities listed on the BSE, the Delmon Fund is also investing in corporate bonds, Murabaha, Treasury Bills, and CDs in order to minimize risk through diversifying the fund's assets."

Global's assets under management have surpassed the USD 4 billion mark as of the end of March 2005, in which the majority of the assets are invested in the GCC markets.