AL- Sumait: Global Reopens the Increasable Guaranteed Fund to New Clients
Global Investment House "Global" announced today the reopening of its Increasable Guaranteed Fund to new clients until December 15, 2005 in addition to raising the protection guarantee percentage on the fund capital for current investors.
Mr. Bader Abdullah AL-Sumait, Executive Vice President at Global, said that the decision to reopen the fund is to allow new clients to benefit from the exceptional performance the fund has recorded and the invested capital guarantee feature it offers. Global intends to increase guarantee percentage on the fund capital for existing investors based on the year’s end performance with a minimum of 110%.
“The Increasable Guaranteed Fund is the first of its kind in the local market that combines hand picked investments in companies listed on the Kuwait Stock Exchange (KSE), and fixed income instruments,” he explained. This strategy has resulted in a 16.19% return since its inception in April 2004 till end of October 2005.
“The guarantee for the next period will be on the unit’s value as of 31st December 2005. The realized performance until end of December will be 100% guaranteed.” Mr. AL-Sumait added.
The idea behind this type of investment lies within the fund’s ability to offer investors high returns when the market index yields positive returns, and providing protection for capital gains and cash dividends in the event the index underperforms, Global EVP elaborated.
He followed by saying, “This investment mechanism adds to the attractiveness of the Global Increasable Guaranteed Fund with benefits of both conventional funds and hedge funds. This can be achieved through the fund’s investment strategy.
25% of the funds assets are invested in stocks of the 10 large cap companies listed on the KSE, with regards to market value, while the remaining 75% is invested in various fixed income instruments (bonds, treasury bills, certificates of deposits, Murabahas, money market funds, bond funds). At the end of each fiscal year, realized profits are retained and therefore the probability of guaranteeing the capital invested is increased.
Mr. AL-Sumait expected that the fund will outperform in the upcoming years since there is a chance for interests to increase which, in return will positively affect the fixed income instruments that the fund invests in. In addition, the interest increase will result in lowering the percentage invested in fixed income instruments and increasing the invested capital in stocks.
Mr. AL-Sumait affirmed that this unique investment opportunity offers a balanced mix of maintaining growth and safeguarding the invested capital.