Despite substantial volatility during the year Bahrain-based Securities and Investment Company (Sico) funds continued performing strongly.

The high ratings AA and A assigned to the Sico's funds by Standard & Poor's, were re-affirmed by the leading international rating agency.

Sico's flagship, the Khaleej Equity Fund - rated AA - by which it invests in equities listed on the six GCC stock markets achieved a return of 14.1 per cent for the year, against a 12.8 per cent appreciation in its benchmark, the S&P GCC Composite Index.

The fund achieved one of the best risk-adjusted returns among its peer group over the medium-to-long term.

Since the fund's inception in March 2004, its annualised return is 12.2 per cent against a 4.6 per cent return for the benchmark.

This has been achieved despite having a significantly lower volatility than that of the S&P GCC Composite Index.

The Khaleej Equity Fund was also ranked first in the GCC Equity Fund category by Zawya Funds Ranking during their latest quarterly review.

The Sico Gulf Equity Fund - also rated AA - invests in GCC-listed equities although it excludes Saudi Arabia - delivered a return of 11.6 per cent for 2010.

The fund has one of the best risk-adjusted returns since its inception in March 2006, with an annualised return of 2.2 per cent against a negative 10 per cent return for its benchmark, the S&P GCC ex-Saudi Index.

Sico Gulf Equity Fund ranked second in the GCC Equity Fund category by Zawya Funds Ranking.

The Sico Arab Financial Fund, rated A which invests primarily in Mena region financial sector equities, appreciated by 25.2 per cent in 2010 compared to 9.6 per cent increase in its benchmark, S&P GCC Financial Sector Index.

Since its inception in August 2007, the fund's annualised return is 5.9 per cent against a minus 10.2 per cent benchmark return. At the Mena Fund Managers Awards 2010, the fund was rated the best Mena Equity Fund of the year and was also recognised as the Best Specialist Fund of the Year.

The Sico Selected Securities Fund, also rated A which invests principally in Bahrain bourse-listed equities, delivered a return of 4.8 per cent compared to a minus 1.8 per cent return for its benchmark, BSE All Share Index.

The fund's annualised return since inception in May 1998 is 6.2 per cent versus 1 per cent for the benchmark.

'Sico's prudent investment approach, characterised by superior stock picking and asset allocation, has enabled the firm to deliver another strong performance for our clients in 2010, despite significant market volatility,' said Sico chief executive officer Anthony Mallis.

'We believe the recent declines in the GCC and Mena markets offer a good entry point for long-term investors. The regional markets currently are significantly undervalued and offer attractive returns to long term investors, as we forecast in our recent GCC Market Overview research report.

'The combination of our regional insight and the quality of our research are key factors in enabling Sico to provide consistent and stable long term returns to our investors.'-TradeArabia News Service