National Bank of Kuwait (NBK) is announcing the launch of its first GCC fund- the NBK Gulf Equity Fund. This comes at a time when the GCC region is experiencing rapid rates of economic growth; driven mainly by sure-footed liberalization, deregulation and privatization trends. The new Fund will offer investors the opportunity to tap into those trends as they translate into earnings growth for listed companies in the region.
NBK’s general manager investment banking , asset management & treasury, George Nasra, stated that NBK, being the Investment Manager of the Fund, aims to optimize long-term returns by implementing a dynamic asset allocation strategy among GCC equity markets and other equity markets in the Middle East and North Africa (MENA) region. This is expected to reduce the downside risk of the Fund below that of GCC markets.
Nasra explained that the Fund is a long term open-ended investment vehicle designed to achieve capital appreciation by investing primarily in the equities of blue chip GCC and other Arab companies. Investments will be based on fundamental analyses of the long term prospects of listed equities in the region.
Mr. Omar Abdullah, Head of MENA Capital Markets at NBK stated that asset allocation among the various regional markets will be continuously reviewed according to the Investment Manager’s expectations and growth rates in the markets. The Fund’s allocation to each country will be managed by some of the GCC’s most experienced asset managers. This approach combines highly professional portfolio management skills with deep local knowledge of markets.
The Initial Offering Period starts from 8 May 2005 until 26 May 2005. The minimum investment in the Fund is US$100,000, with additional amounts in multiples of US$10,000.