Gulf International Bank (UK) Limited, a subsidiary of Gulf International Bank (GIB), announced that its Enhanced Liquidity Management Fund has been assigned an “AAAf” fund credit quality rating and “S1+” fund volatility rating by Standard & Poor’s Rating Service (S&P).
The assigned “AAAf” rating signifies the extremely strong protection that the fund’s portfolio holdings provide against losses form credit defaults, and it is the highest possible credit rating assigned by S&P. The “S1+” volatility rating recognises that the fund demonstrates extremely low sensitivity to changing market conditions, and it is the lowest possible volatility rating S&P can assign.
Mr. Mohab Mufti, GIB’s Managing Director-Financial Markets & Asset Management, said “the Enhanced Liquidity Management Fund was launched in August 2001 and has successfully generated consistent additional returns in excess of one-month US dollar LIBOR rates. It has proved to be an attractive alternative to bank deposits by virtue of its high level of liquidity, strong credit rating and enhanced returns". Annualised since inception the Fund has returned 2.48 per cent, compared to LIBOR of 1.89 per cent (figures to 31st August 2005).
He added that “the fund invests in a diversified portfolio of high quality, short-term government and corporate debt securities including fixed and floating rate bonds, commercial paper, asset backed securities and index-linked treasury bonds. The management style is conservative, with a high degree of diversification maintained at all times, assuring the average credit quality of the fund is at a high level at all times.”
Gulf International Bank (UK) Limited has allocated considerable resources to the management of short maturity client assets and has a long history in the management of enhanced cash management portfolios. Total client assets under management as at 31st August 2005 exceeded USD 16 billion.
Gulf International Bank (UK) Limited is a wholly owned subsidiary of Gulf International Bank BSC. GUBUK is based in London and is regulated by the Financial Services Authority. It manages capital in the financial markets through its portfolio and fund management activities, providing a range of financial products and services to financial institutions in the Middle East and Europe.
