Bahrain Liquidity Fund
The Bahrain Liquidity Fund was launched and co-seeded by SICO in June 2016 with the aim of enhancing and deepening the kingdom’s stock market. SICO initiated the development and launch of the BHD 41 million Fund along with key Bahrain financial institutions, the Central Bank of Bahrain and the Bahrain Bourse.
Since its launch, the Fund has made a sizable impact on daily traded value and turnover on the Bahrain Bourse. The Fund has the scale to make a significant impression on market liquidity, improve valuations, and gradually increase the free float for stocks traded on the bourse. The Fund more than quadrupled the bourse’s average daily traded value in three years to BHD 1.121 million from BHD 260,000 per day in 2019. Since its launch, the Fund’s total contribution to the bourse’s turnover has been 32%.
The Fund has also generated positive returns in the last two years (6.67% and 8.19%) in addition to acting as a market maker, providing two-way quotes on most listed securities, with a reasonable spread to allow investors to actively trade their stocks. The Fund’s seed investors comprise Osool Asset Management, BBK, Mumtalakat Holding Company and NBB, together with SICO as the Fund Manager.