SICO's Employee Saving Scheme delivers up to 12.6% annualized returns

Zawya

17-06-2025

SICO BSC (c), a leading regional asset manager, broker, market maker, and investment bank with physical presence in Bahrain, Saudi Arabia, and the UAE, marked today the second year since the initiation of its Employee Saving Scheme (ESS), which launched in June 2023. Since its launch, the scheme has delivered consistently strong returns across all risk profiles, validating SICO's disciplined investment strategy and global diversification approach.
As of May 28, 2025, the four ESS portfolios (Cash, Conservative, Moderate, and Growth) have each delivered solid cumulative and annualized returns while maintaining low volatility. The Cash portfolio has returned 10.72% since inception, yielding an annual return of 5.29%. The Conservative portfolio followed with a cumulative return of 13.52% or 6.62% annualized. The Moderate portfolio achieved a 20.06% cumulative return, or 9.68% annualized, while the Growth portfolio led with a cumulative return of 26.53%, equivalent to an impressive 12.63% annualized.
Despite a volatile market environment, all portfolios maintained a standard deviation below 1%, underscoring the effectiveness of SICO's risk-managed asset allocation and the benefits of international diversification.
Najla Al-Shirawi, Group CEO of SICO, said, 'This initative has enabled SICO's employees to save more effectively and achieve stable returns in the long term, reflecting our commitment to enhancing income sustainability for our employees. By combining strategic asset allocation with global exposure and careful risk management, the ESS has delivered impressive, stable results. We're proud of what we've achieved and excited to scale this solution through a dedicated fund for external investors in the first quarter of 2026.'
The upcoming fund will be structured as a Bahrain-domiciled protected cell company. Each portfolio—Cash, Conservative, Moderate, and Growth—will operate as a separate, ring-fenced investment cell within the fund, ensuring clear asset segregation and investor protection while maintaining the same successful strategy used in the ESS.
SICO's ESS allows staff to contribute a portion of their monthly base salary, with the firm matching the contribution up to a capped amount, subject to a vesting period. Participants select from four portfolios aligned with their risk appetite. In line with global best practices, the portfolios are primarily invested in low-cost, liquid, USD-denominated, tax-efficient passive index funds, ensuring broad diversification, cost efficiency, and consistent global market exposure.
The scheme is managed by SICO's Global Markets team and was developed in collaboration with Aon, a global leader in retirement and benefits consulting.
With a proven track record of performance and stability, SICO's ESS stands out as a model for long-term saving and will soon be made available to a broader investor base.
About SICO
SICO is a leading regional asset manager, broker, and investment bank with USD 7.9 bn in assets under management (AUM). Today, SICO operates under a wholesale banking licence from the Central Bank of Bahrain and also oversees two wholly owned subsidiaries: an Abu Dhabi-based brokerage firm, SICO Invest, and a full-fledged capital markets services firm, SICO Capital, based in Saudi Arabia. Headquartered in the Kingdom of Bahrain with a growing regional and international presence, SICO has a well-established track record as a trusted regional bank offering a comprehensive suite of financial solutions, including asset management, brokerage, investment banking, and market making, backed by a robust and experienced research team that provides regional insight and analysis of more than 90 percent of the region's major equities. Since inception in 1995, SICO has consistently outperformed the market and developed a solid base of institutional clients. Going forward, the bank's continued growth will be guided by its commitments to strong corporate governance and developing trusting relationships with its clients. The bank will also continue to invest in its information technology capabilities and the human capital of its 150 exceptional employees.
Media Contact:
Ms. Nadeen Oweis
Head of Corporate Communications, SICO
Email: [e-mail]