The first quarter of 2009 returned +17.7 per cent year-to-date and the annualised performance is +92 per cent.

The fund manager says that to break the fund's high-water mark, reached a year ago, the fund price needs to rise another 16 per cent from today's levels.

It says the double-digit rise in March can best be attributed to some well-timed large bloc-trades bought at quite favourable prices.

Further, rising market prices for its existing positions added good value. The increases seen in
Investment Bank of Iraq's and Warka Bank's share prices - 22 per cent and 44 per cent respectively - stood out with the largest portfolio impacts.

It says outside Iraq its DNO holdings added nicely, as did the Iraqi USD 5.8 per cent 28 eurobond, while Iraqi-drilling Western Zagros fell back heavily after drilling for sand instead of oil.

The fund's aim is to provide long-term capital growth from an investment portfolio consisting of both Iraqi and Iraqi-dependant securities. It is an open-ended investment fund investing into large-cap Iraqi-dependant securities, mainly listed on the Iraqi stock exchange in Baghdad, but also in other countries.

The investment process is mainly top-down driven, with a mix of fundamental analysis and portfolio diversification characteristics.