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Dubai: Assets under management by Bahrain's mutual funds industry surged by nearly 73 per cent to over $15 billion during 2007, Central Bank of Bahrain (CBB) said in a statement.
The number of funds registered with the CBB rose to 2,483 at the end of December 2007. The net asset value (NAV) of the registered funds totalled $15.6 billion.
In comparison, the number of registered funds at 2006-end was 2,199, with assets under management totalling $9 billion.
"The growth during 2007 was across the board, in funds investing in the region, overseas and in Islamic products," Mohammad Ayman Al Tajer, Director, Financial Institutions Supervision, at the CBB, said in a statement.
Foreign funds
Of the total assets of the fund industry, assets of foreign funds registered in Bahrain for sale rose 75 per cent to $11.1 billion in 2007, compared with $6.3 billion in 2006. The number of such funds totalled 2,360 in 2007, compared with 2,102 the previous year.
The Islamic fund industry grew by 78.5 per cent to $1.3 billion, invested through 87 funds, compared with $750 million and 80 funds in 2006. The investible assets of Bahrain-domiciled funds rose 66 per cent to $4.5 billion in 2007, up from $2.7 billion in 2006. The number of such funds surged by 28 per cent to 124 in 2007, from 97 the previous year.
"The growth in funds domiciled in Bahrain, in particular, coincides with unprecedented volatility in international financial markets," said Al Tajer.
In contrast, the GCC region is enjoying unprecedented levels of economic growth. The vast majority of funds domiciled in Bahrain are invested in the region, he noted.
"The region is attracting both Arab and international investors looking for portfolio diversification and fund managers have been quick to recognise the regional investment opportunities," said Al Tajer.
In 2007, the CBB introduced a new, updated regulatory framework for the fund industry, which includes Bahrain's first-ever rules allowing collective investment undertakings (CIUs) targeting professional investors. The rules provide for the registration of 'Exempt' CIU, which allows hedge funds and other higher risk alternative investment vehicles to be legally domiciled and/or sold in Bahrain.
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