Markaz: "MIDAF" celebrates its 5th anniversary with outstanding performance

MIDAF was established in July 2001 with a capital of KD 62.340 million and with the objective of achieving gains through investing in shares of a selected group of companies listed on Kuwait Stock Exchange and belonging to different sectors of the market (except for the non-Kuwaiti companies sector).

With the diligent efforts of the fund management that constantly sought to achieve the highest rate of return on investment at minimal risk, MIDAF succeeded in posting outstanding returns that reached 307% since inception or 31.9% CAGR as of the end of June 2006, with a level of risk aligned with that of the index.

The very good results posted by the fund come from the huge size of the fund and to the diversity and distribution of its investments across all sectors at balanced ratios, which do not exceed 15% of its total assets in any single stock listed on the market. MIDAF is considered to be the largest local investment fund, with its size reaching over KD 192.0 mn as of the end of June 2006.

The largest segment of MIDAF's investments is well diversified with investments of 27% - 31% in the services sector, 14% - 26% in the banking sector, 15% - 18% in the industrial sector, and 20% - 24% in the investment sector. Subscription to the fund is open to Kuwaiti and non-Kuwaiti individuals as well as local and foreign companies and institutions. MIDAF has been able to attract large institutions from Kuwait and outside due to its size, as well as the strict investment guidelines and the performance of the fund.

"Since its inception, MIDAF consistently outperformed the local market indices. Even during the recent market correction, MIDAF maintained its investment in blue chip companies and managed to minimize the losses incurred by the correction," said Bader Al-Ghanim, Assistant Vice President - Local & GCC Investment.

Al-Ghanim, expressed his optimism on the future outlook of the Kuwaiti market. This is attributed to the fact that, unlike the regional stock markets which have experienced a sharp correction since the beginning of this year, the Kuwaiti market showed a relative coherence although the country experienced significant political changes.

Those events began with the death of H.H. Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, the Late Amir of The State of Kuwait, and then the ruling crisis that ensued, followed by the formation of the new government and finally by the dissolution of the National Assembly (Parliament).

To back-up his optimistic vision, Al-Ghanim relied on the continued rise of oil prices to new record levels, which would generate huge financial surpluses in the State's general budget, leading consequently to directing the government expenditure to infrastructure and development projects in the country. This will stimulate the economy, and will favorably reflect on the local private sector.

Al-Ghanim also expected the year 2007 to be the starting point for the execution of the long-waited privatization law, which is expected to produce favorable results, particularly in relation to the private sector's participations in different government sectors such as the oil sector.

Al-Ghanim has been with Kuwait Financial Centre since 2003 and has over 6 years of experience in managing equity investments. Upon graduation, Bader worked for Kuwait Investment Authority as a Financial Analyst. In 2000, he joined Kuwait & Middle East Financial Investment Company as an Investment Analyst and was later promoted to Assistant Manager in the Forward Trading Dept.

Bader currently manages client investments of USD 400 million and also manages the options desk at Local & GCC Investments Dept. He holds a Bachelor of Science in Electrical Engineering and Bachelor of Arts in Economics from Boston University.