GIB is an active participant in international financial markets and caters to a pan-European client base. It has developed an understanding of its clients’ investment objectives. Investment solutions are predominantly tailored and segregated mandates, but they also include investment and total return funds.
GIB’s asset management business is run by its wholly owned London-based subsidiary, Gulf International Bank (UK) Limited (GIBUK), which is regulated by the Financial Control Authority (FCA). It provides clients with the benefit of the UK’s regulatory environment and a range of sophisticated investment banking and portfolio management skills.
GIB is the Middle East’s largest commercial manager of client assets. Key clients are semi-governmental institutions from the region. Other investors include European financial institutions that predominantly invest in structured vehicles managed by GIBUK. London-based investment professionals manage clients’ assets through four major product lines:
Equity Indexed Portfolios
Utilizing an enhanced indexed style, GIBUK managers aim to produce “index plus” returns with low tracking errors of well below 100 basis points, using techniques that are more quantitative in nature than stock-specific discretionary management.
Fixed Income Portfolios
Assets are managed either relative to a global government bond index or as an absolute high-income relative to LIBOR. Mandates include those for emerging markets countries.
These products include collateralized debt obligations of asset-backed securities, for which GIB acts as the asset manager. GIB currently manages approximately US$ 1.3 billion of asset backed securities through CDOs. These are currently composed of five CDOs funded primarily by European institutional investors.
GIB manages open-ended funds including a high-income fund (high yield corporate debt and emerging markets) and a long-short, total return, multi-strategy fund.
ASSET MANAGEMENT AT GIB CAPITAL
To build upon GIBUK’s credentials, GIB Capital has set up an asset management arm to offer a range of funds covering various sectors that suit different risk-return appetite of clients.
Given the high housing requirements in the Kingdom of Saudi Arabia, GIB Capital is taking the lead initiative to establish a housing developers fund. The key objectives of the fund will be to finance the development of the low-to-medium income housing sector. The fund will be run on a commercial basis with adequate due diligence on the developers and the developments. The fund aims to establish guidelines and standards for the qualification of developers and projects that the fund would invest in, and will facilitate the development of a standardized mortgage program.