For Immediate Release				December 28, 2002

TAIB BANK TO LAUNCH TAIB GCC BLUE CHIP FUND

Bahrain-based TAIB Bank E.C. is launching the GCC Blue Chip Fund, a fund that will invest primarily in the growing, and progressively accessible, equity markets in the GCC countries. Local GCC investors are increasingly drawn to the favorable risk-reward characteristics of GCC stocks, so that more local money is increasingly getting invested in GCC stocks rather than elsewhere. The fund would also offer foreign investors an opportunity to invest in this region once the geo-political situation stabilizes. Privatization/ share flotations by fundamentally strong GCC companies is another opportunity for the fund.

"The launch of this Fund follows years of successful management of client portfolios in the GCC equity markets. The fund’s strategy is based on stock-selection and timing of investments into stocks from within a universe of fundamentally strong GCC stocks. The fund manager will adopt a focused approach to stock selection since we believe that real earnings and cash flow provide a strong cushion to valuations. The fund will be actively managed, and will follow a disciplined and systematic process in taking investment/disinvestment decisions," said Mr. Iqbal G. Mamdani, Vice Chairman and Chief Executive Officer, TAIB Bank E.C., Bahrain. 

"This will be an open-ended fund with entry and exit at NAV. We expect to grow the fund size to around $ 50 million over the medium term as there is a good demand for a fund that invests across GCC markets. Investors can enter the Fund on a fortnightly basis, and exits are possible at every month-end" continued Mr Mamdani.

The TAIB GCC Blue Chip Fund is the latest addition to the 10 existing funds in TAIB’s family of funds, which are diversified geographically as well as across multiple sectors. In particular it includes two funds that are specific to their respective emerging markets - the Everest Fund that invests in Indian equities and the Golden Horn Fund that is focused on the Turkish markets. The Everest Fund was launched in May 1996 and has out-performed the relevant dollar-based index by 70% till November 2002, while the Golden Horn Fund has notched a 22% out-performance relative to the dollar index in the 5 years since its inception in July 1997.

"The key to success in managing emerging market equities is research at the local level. TAIB has access to substantial research capabilities, characterized by company visits, analyst meets and regular contact with company officials. Our in-house team of equity analysts is complemented by our association with research providers in other GCC states." concluded Mr Mamdani.

 
TAIB Bank E.C. an international Investment Bank based in Bahrain and listed on the Bahrain Stock Exchange, conducts its activities in the United States of America, the United Kingdom and in the regional markets of the Gulf, the Indian Sub- continent, Turkey and Central Asia.


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For more information, please contact Durra Salman at:
Tel: +973-533334
Fax:+973-533589
E-mail: durra@taib.com