New ranking system to assess funds

Business information portal Zawya said yesterday it has launched a new ranking methodology to assess the performance of Middle East funds that not only takes into consideration fund returns and volatility, but also the level of transparency and disclosure among its peers.

"The regional funds industry got hammered due to the financial crisis. Some funds had tremendous losses and redemptions, and had to be closed," Pamela Chikhani, Zawya Vice-President of Funds Investment, said in a statement yesterday.

"With investors hit harder, they may have lost their trust in fund managers, and have become a lot more demanding. To attract back investors and rebuild their confidence, transparency is their paramount objective. On the other hand, central banks across the region are closely monitoring the situation, and will no longer allow ambiguous funds to exist in the market place," said Chikhani.

Zawya's ranking system will benefit both investment professionals and fund managers, she said.END