1. COVER STORYTAKING STOCK
grasping good opportunities on the fixed-
income market. According to Rizk, the fund
does not sit on liquidity, but immediately
invests cash in fixed-income securities.
…OR BLC?
For long-term returns, the top of the pile
is BLC Bank’s Income Fund I, scoring 5.36
percent in average annualized returns
since inception. “We have achieved a steady
growththroughaconservativeandproactive
investment approach,” said Mazen Nasser,
Asset Management Officer for Treasury
and Financial Markets at BLC Bank. BLOM
Cedars Balanced Fund, which is managed
by Blominvest Bank, came a close second
at 5.27 percent. The fund’s structure
includes 75 percent of its value in bonds
and 25 percent in equities. “It has achieved
above performance in domestic interest
rates, despite the fact that local equities
are undervalued,” said Michel Chikhani,
Head of Asset Management at Blominvest.
IS IT BOB…
Most domestic funds that invest locally
target fixed-income securities, such as
Government bonds, securities issued by the
Central Bank, and preferred shares of local
banks. Some of these funds invest in money
market securities and time deposit accounts.
Investment in local equities is limited. BOB
LBP Growth Fund Class A, which is managed
byBankofBeirutInvest,achievedareturnof
8.61 percent in 2015, topping the list for this
benchmark.Thefundhasaccumulationunits
(shares), which mean that it does not pay
out dividends and therefore the profits are
reinvested in the fund. This allows the fund
to generate higher returns. FNB’s National
Fixed Income Fund, which also invests on
the local market, came second and reported
a return of 8.34 percent. Ronald Rizk, Head
of FNB’s Asset Management Department
attributed the fund’s good performance to
its dynamic close monitoring of changes
in interest rates and for being proactive in
Chikhani also said that he expects the fund
to generate returns of six to seven percent in
the coming two years. “Even higher returns
could be achieved if the political situation
improves and equity prices go up.”
KING OF ABROAD
Funds that invest abroad focus on both
equities and fixed-income instruments. FFA
International Growth Equity Fund achieved
the highest return in 2015 (2.34 percent).
The fund adopts a growth strategy and
invests in businesses with potential for high
earnings. With most of its investments in
the US, it targets manufacturing, consumer
goods, and the healthcare sectors. FFA
International Bond Fund topped the list
in terms of average annual returns since
inception with a 7.38 percent return. Its
conservative and diversified portfolio
consists of intermediate-term, investment
grade government and corporate bonds. It
targets the United Kingdom, China, France,
and the United States.
Reported by Shikrallah Nakhoul
Which fund tops all?
A number of banks have been active in
mutual investment funds. Some of these
funds are invested domestically. Others
invest in foreign markets
48 LEBANON OPPORTUNITIES, MAY 2016
www.opportunities.com.lb
ON OUR WEBSITE
More information is available by typing the numbers
below into the Reference Finder on our home page
L0516-84 FFA Funds factsheets
L0516-85 BoB Funds factsheets
L0516-86 BLOM Funds factsheets
L0516-87 Contact information

2. Links:Click this article’s entry in‘Table of Contents’ on our website
LEBANON OPPORTUNITIES, MAY 2016 49
2015 RANKING OF FUNDS INVESTED ABROAD
Fund manager Name Market Investment strategy Issue
date
Curreny Return
in 2015
1 FFA Private Bank FFA International Growth Equity Fund Global Equity 2011 USD 2.34%
2 Blominvest Bank BLOM PETRA Balanced Fund Class A 75% in Jordan
25% in MENA
Equities (max. 70%)
Fixed income (min. 30%)
2008 JOD 0.67%
3 Blominvest Bank BLOM PETRA Balanced Fund Class B 2008 USD 0.60%
4 FFA Private Bank FFA International Bond Fund Global Fixed income 2009 USD 0.16%
5 FFA Private Bank FFA Global Opportunity Investment Fund Global Fixed income and equities 2009 USD -0.60%
6 FFA Private Bank FFA Fixed Income MENA Fund MENA Fixed income 2009 USD -0.93%
7 FFA Private Bank FFA Equity Discovery Fund Global Equity of mainly SMEs 2013 USD -8.52%
8 FFA Private Bank FFA MENA Equity Fund MENA Equity 2012 USD -13.03%
9 Blominvest Bank BLOM PYRAMIDS Balanced Fund Egypt Equities (max. 50%)
Fixed income and cash (min. 50%)
2010 USD -16.41%
10 LIBANK LIBANK Global Balanced Fund Global Money Market, Fixed Income, Equities 2015 USD New fund
2015 RANKING OF FUNDS INVESTED LOCALLY
Fund manager Name Investment Strategy Issue
date
Maturity Curreny Size $
million
Return
in 2015
1 Bank of Beirut Invest (1)
BOB LBP Growth Fund Class A Fixed income 2015 Open-ended LL 54 8.61%
2 First National Bank (FNB) National Fixed Income Fund Fixed income 2015 Open-ended LL 66 8.34%
3 Bank of Beirut Invest (2)
BOB LBP Growth Fund Class B Fixed income 2015 Open-ended LL 7.98%
4 Bank of Beirut Invest Optimal Investment Fund Fixed income 2010 Open-ended LL 448 7.88%
5 Bank of Beirut Invest Beirut Preferred Fund II Fixed income 2013 Open-ended USD 216 5.71%
6 BLC Bank Income Fund I Fixed income 2013 2019 USD Undisclosed 5.4%
7 Blominvest Bank BLOM LIRA Money Market Fund Money market securities 2013 Open-ended LL 20 5.39%
8 Blominvest Bank BLOM Money Market Fund Money market securities 2010 Open-ended USD 198 3.23%
9 Blominvest Bank (3)
BLOM Money Market Fund Money market securities 2010 Open-ended EUR _ 3.04%
10 Blominvest Bank BLOM Bond Fund Fixed income 2009 Open-ended USD 344 2.06%
11 Blominvest Bank BLOM CEDARS Balanced Fund Fixed income 75%
Equity 25%
2008 Open-ended USD 27 1.24%
12 First National Bank (FNB) (4)
First National Dollar Fund Fixed income 2015 Open-ended USD 37 New fund
13 Med Management Limited (5)
Med Income Fund I Fixed income 2016 Open-ended USD 52 New fund
(1)
No dividend payment. (2)
The combined size of BOB LBP Growth Fund Class A and Class B is $54 million. (3)
The combined size of BLOM Money Market Fund USD and
EUR is $198 million. (4)
The fund was launched in October 2015. (5)
The fund can invest up to 30% in non-Lebanese fixed-income securities
LIFETIME RETURNS OF
FUNDS INVESTED ABROAD
Fund manager Name Avg. return
1 FFA Private Bank FFA International Bond Fund 7.38%
2 FFA Private Bank FFA Fixed Income MENA Fund 5.69%
3 FFA Private Bank FFA Global Opportunity Investment Fund 5.06%
4 FFA Private Bank FFA MENA Equity Fund 4.13%
5 FFA Private Bank FFA International Growth Equity Fund 3.44%
6 Blominvest Bank BLOM PYRAMIDS Balanced Fund 2.23%
7 FFA Private Bank FFA Equity Discovery Fund 1.36%
8 Blominvest Bank BLOM PETRA Balanced Fund Class A -5.02%
9 Blominvest Bank BLOM PETRA Balanced Fund Class B -5.22%
10 LIBANK LIBANK Global Balanced Fund New fund
LIFETIME RETURNS OF
LOCALLY INVESTED FUNDS
Fund manager Name Avg. return
1 BLC Bank Income Fund I 5.36%
2 Blominvest Bank BLOM CEDARS Balanced Fund 5.27%
3 Blominvest Bank BLOM LIRA Money Market Fund 5.24%
4 Blominvest Bank BLOM Bond Fund 4.34%
5 Blominvest Bank BLOM Money Market Fund
(USD)
3.10%
6 Blominvest Bank BLOM Money Market Fund
(EUR)
3.09%
Average annualized return since inception
Source: InfoPro Research
Funds