Investment Funds & Managed Portfolios :
 

Red Zone
Yellow Zone
Blue Zone

Arab National Bank presents Arab Investor, your access to a World of investment opportunities. Arab Investor offers you a variety of Investment Funds & Managed Portfolios, which aim to help you meet your future financial goals.

Arab National Bank utilizes both its investment expertise as well as joining forces with some of the most experienced international investment managers, including Goldman Sachs, to ensure that your investments will be managed with the highest degree of professionalism.

Successful investing critically depend on making the right choice among various Investment Funds with a mix of assets reflecting the prevailing economic and market conditions. Arab Investor Family of Investment Funds & Managed Portfolios provides investors with the opportunity to create and manage their own portfolio in light of prevailing economic and market conditions, with a mix of investment funds as well as a range of Managed Portfolios, each containing a calculated mix of investment, covering cash, bonds and equities. Both, Investment Funds & Managed Portfolios will reflect their level of risk and investment horizon to meet your requirements.

What are Managed Portfolios & Investment Funds?

Managed Portfolios invest in investment funds. Investment Funds offer investors the opportunity to pool their money for investment by professional managers in accordance with established policies and objectives. The investor may choose from a range of funds including money market, trade, bond or equity funds to meet his/her future financial objectives, whilst taking only the desired level of risk. Investment Funds have, historically, provided investors with superior returns than most individuals would have been able to achieve on their own. Investment Funds have made it easier for people to begin investing and to build an investment portfolio, services, which were previously only enjoyed by high-net-worth investors.

What are the Benefits of Investing?

Expertise: investment managers with expert knowledge of various financial markets will manage your investments. Each investment manager is supported by a specialized team and has access to information from a number of global sources and will monitor your investment around the clock. Performance is regularly checked against the benchmark of the Investment Funds & Managed Portfolios.

Liquidity: Investment Funds are normally valued on a weekly or more frequent basis, which enables access to your investment should your circumstances change.

Economy of scale: Due to the large size of a Managed Portfolio or an Investment Fund and their transaction volume, the investment manager is able to take advantage of favorable transaction and administration charges with the expenses being spread equally among all investors, which significantly reduces the normal costs associated with the purchase and sale securities.

Range of Exposure: Managed Portfolios & Investment Funds are able to invest in a wide range of securities, which are spread between different sectors, industries and geographical boundaries. Such exposure would be difficult and very costly for an individual investor to attain.

What to consider?

Diversification: Simply means investing your money across several different investment and asset classes. This helps reduce your investment risk, because while the values of some of your investments may go down, others may go up. Arab Investor offers you a simple and cost effective way to diversify your investments. For example, while a US equity fund will be widely spread among stocks of different sectors and/or industries, it is still limited to one asset-class (i.e., stocks), as well as being geographically limited to one region (i.e., USA). This may deprive your investment from opportunities for growth elsewhere in the world. A diversified portfolio would take advantage of the variances that exist between the different asset classes for benefit of the investor. As an investor in a Managed Portfolio, we will allocate investments globally on your behalf in order to maximize your wealth through exposure to different asset classes with the appropriate degree of risk. These actively Managed Portfolios will accommodate developments in global markets and adjust the asset allocation to adopt to changing financial market conditions, insuring investors a proper risk and return profile and a high level of diversification.

Time: Is the period you have established to reach your financial goals. When assessing different investment options, keep in mind your time horizon. For example, a long-term time horizon allows you to consider more aggressive (and potentially more rewarding) strategies as you will be more immune from short term market fluctuations. If you are likely to need to access your money in the short term, it is more appropriate to select a lower risk investment.
In order to help you associate your investment options with the time frame you have established to achieve your financial goals, we have assigned each Arab Investor Managed Portfolio and Investment Fund a unique zone as follows: The Blue Zone which is appropriate for investors looking for short term investments of two years or less. The Yellow Zone is more suitable for investors with intermediate time horizon ranging from two to five years. Finally, the Red Zone may be appropriate for investors with a longer-term time horizon of five years or longer.

Risk: In investing, one of the most fundamental concepts is that of risk. The level of risk you should take with your investments should be considered in light of your financial goals and time horizon. Investors buying into high-risk investments except to be compensated for the additional risk they are taking. However, they should be aware that especially in the short term such investments are likely to be subject to greater fluctuations in value. Investors, who do not wish to take high risks with their investments, must be prepared to accept lower but more steady returns. Similarly as with Time (above), the Zones also help you associate your investment options with the risks involved: First, the Blue Zone carries the lowest amount of risk and is typically for short term investments. While, the Yellow Zone is a medium risk zone and is typically suitable for intermediate term investments. Finally, Red Zone carries the highest degree of risk and is suitable for long-term investments.