Leading Kuwaiti Asset Management Institution "Markaz" launches fund to benefit from surging GCC equity markets

Markaz Gulf Fund is an open-ended, diversified fund comprising of 'blue chip' companies from diverse sectors that are listed on the GCC stock markets, offering an opportunity to investors seeking medium to long-term capital growth to invest in equity securities traded on stock markets in the GCC countries and IPO's.

Markaz Executive Vice President (Local & GCC Investments), Mr. Sami Al-Hasawi said

"The immediate outlook for GCC equities remains very positive on the back of strong corporate earnings, high levels of liquidity and healthy growth in Gross Domestic Product (GDP) underpinned by revenue generated from high oil prices".

"Markaz will actively manage Markaz Gulf Fund with the investment objective of outperforming the stock market benchmark index for each of the GCC markets," Mr. Al-Hasawi said.

"Markaz can point to a successful track record in asset management and its flagship investment funds have been outperforming market benchmarks and peers on a regular basis since their inception," he said.

Markaz's flagship funds including Mumtaz Fund, Midaf Fund (the largest fund in Kuwait), Markaz Islamic Fund, Forsa Fund (options) and Idikhar Savings Fund, are all performing strongly in 2005.

Mr. Al-Hasawi said "stocks for Markaz Gulf Fund will be handpicked by Markaz's investment managers with their thorough understanding of financial markets, direct access to qualitative research and strong relationships with market intermediaries, giving Markaz an edge over competitors. The GCC stock markets do not always move in tandem thus offering opportunities for Markaz Gulf Fund to benefit from portfolio diversification".

Mr. Al-Hasawi added that "the GCC stock market capitalization has crossed USD 1 trillion this year, but on the other hand the number of listed companies still remains limited for such a huge equity market, expecting more companies to seek stock market listings in the coming years, thus expanding the breadth of investment opportunities in GCC equities.

"Markaz Gulf Fund is designed to generate medium to long-term capital appreciation and is suitable for all investors, especially the ones having an investment strategy focusing on accumulation of value stocks" he said.

"Our primary target clients are large corporations, institutions, and high net worth individuals" he said.

"Markaz's approach to fund management involves proactively identifying investment opportunities and creating investment vehicles to take advantage of these opportunities while maintaining acceptable levels of risk," Mr. Sami Al-Hasawi said.

The minimum subscription in the Gulf Equity Fund is 1,000 units at US$ 3 per unit.