SICO BSC (c), a leading regional asset manager, broker, market maker and investment bank (licensed as a wholesale bank by the CBB), has announced today the launch of Elzaad Sukuk Fund in partnership with Wafra International Investment Company, the wealth management provider . SICO will act as the fund manager and Wafra as the investment advisor, with the Central Bank of Bahrain as the regulator.

Elzaad Sukuk Fund is a moderate risk fund that will invest in a diverse portfolio of Sukuk and other Sharia-compliant fixed income instruments issued by sovereign, quasi sovereign, and corporate issuers globally. The Fund will focus on the MENA region, offering clients the opportunity to penetrate global markets. Securing monthly liquidity for investors, the Fund begins investments at a minimum of USD 100,000, with an expected rate of return ranging from 5.5% to 7.5%.

The Fund’s primary objective is to maximize total return over the medium to long-term, including profit income and capital appreciation. It is largely based on a conservative investment approach, featuring low volatility and steady income, with access to the best performing Sukuks globally. To ensure the prudent governance of the Fund, Shari’ah Review Bureau W.L.L. will be acting as the Shariah advisor, HSBC Bank Middle East as the custodian, and Trowers & Hamlins as the international legal advisor.

“The launch of Elzaad Sukuk Fund reflects SICO's commitment to diversifying investment opportunities for clients, leveraging our asset managers' expertise for stable returns and moderate risk, and expanding our offerings of Shariah-compliant investments. We are confident that this Fund will meet the needs of investors in ever-changing markets, generating long-term value and broadening clients’ portfolios across geographies and asset classes,” commented Najla Al-Shirawi, CEO of SICO.

Investor demand for sharia-compliant investments has been flourishing, with the Bloomberg Sukuk index rising 3.63% in the last five years. Sukuks have a track record of outperformance in rising interest rates environment and volatile environments compared to bonds, due to their stability and low correlation with other asset classes.

SICO’s Sovereign & Quasi Sovereign Fixed Income Strategy has been named the Best MENA Fixed Income Fund Strategy by the Bonds, Loans & Sukuk Middle East Awards 2023. SICO was also recently named Best Sukuk Manager and Best Asset Manager in Bahrain by the Global Investor Group MENA Awards 2022. SICO's GIPs Compliant Sukuk Composite ranked in the top quartile versus peers on a one-year, three-year, and five-year basis. SICO adheres to the highest industry investment standards through the adoption of its Asset Management Code of Conduct.

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About SICO

SICO is a leading regional asset manager, broker, market maker and investment bank, with USD 5  bn in assets under management (AUM). Today SICO operates under a wholesale banking licence from the Central Bank of Bahrain and oversees three wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Financial Brokerage, a specialised regional custody house, SICO Fund Services Company (SFS), and SICO Capital, a Saudi-based investment banking company. Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region’s major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank’s continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 100 exceptional employees.

Media Contact:
Ms. Nadeen Oweis
Head of Corporate Communications, SICO
Email: noweis@sicobank.com