Gulf Bank and Markaz announced today the launch of ‘Markaz Capital Preservation Portfolio’ in which Gulf Bank will act as a Marketing Agent through its Priority Banking network located in selected branches in the State of Kuwait.
This new portfolio service from Markaz has been specifically designed to preserve investors’ original, principal investments. The portfolio, which will be managed by Markaz, and marketed through Gulf Bank, is considered to be the first of its kind across Kuwait, that uses an asset allocation model to preserve the capital and invests in the ‘Markaz Mumtaz’ fund.
Aly Shalaby, Gulf Bank’s General Manager-Consumer Banking said: “The marketing of the ‘Capital Preservation Portfolio’ reflects Gulf Bank’s efforts to improve the investment environment for our clients. If a client’s main concern in investment is around limiting losses and preserving his/her initial investment, capital preservation may be the right program to provide him/her with peace of mind.”
Mr. Gopal Menon, Executive Vice President, International Investment and Investment Advisory Department in Markaz said: “I believe that Markaz is the pioneer of this capital preservation program in Kuwait using the CPPI strategy. This product presents a risk mitigating tool to our clients, by dynamically allocating assets between Mumtaz equity fund and cash based on our CPPI model, while preserving capital to the extent of 90% of the initial client investment. Given the uncertainty in the currency markets and other global macro developments, a high volatility condition is expected to continue in the money markets for a long term. I consider this product a right investment to all risk averse investors who want to participate in the Kuwaiti equity market.”
Mr. Gopal added “Also, It is another milestone for us to partner with Gulf Bank in launching this product. Gulf bank is very well-known for its wide network and quality of service in Kuwait and we are pleased to have them on board and hope to see a long and fruitful relationship with them.”
The program will invest in both Fixed Deposits and Mumtaz, with the objective of preserving 90% of the initial investment at all times. Weekly re-balancing between FD and Mumtaz will be model driven and will depend on market conditions, especially volatility. ‘Markaz Mumtaz’ fund, aims at achieving long term capital appreciation through investing in blue-chip companies that are listed on the Kuwait Stock Exchange. This multi-award winning fund, which has an excellent track record, aims to outperform other funds through superior stock selection rather than market timing, in which both growth and value stocks are considered. Today, Markaz is the leading fund manager in Kuwait in terms of market share. Its reputation has been re-inforced over the past few years with the launch of innovative products and an excellent track-record in all the asset classes.
Gulf Bank seeks to provide consistent and sound advice for its growing customer base, and delivers effective investment strategies that aim at hedging potential risk. The Bank remains recognized as a leading Kuwaiti Bank which is committed to offering its clients a wide range of investments products that suit their specific needs and build their wealth.Gulf Bank Priority Bankers are available on Priority floors at the following branches : Adan, Audailiya, Dahiyat Abdullah Al Salem, Fahaheel (Alghanim Electronics), Fahaheel (Nayef Al Dabbous Complex), Farwaniya, Jabriya, Mubarak Al Kabeer (Head Office), Nuzha, Salmiya (Co-op), Shaab, Sharq,
Al-Mansouriya, Surra, Shuwaikh Main and Shuwaikh Port. Customers can also call 1 805 805 to arrange for a personal visit by a Gulf Bank Personal Banker or log on to Gulf Bank’s bilingual website at www.e-gulfbank.com.
About Kuwait Financial Centre “Markaz”
Kuwait Financial Centre S.A.K. 'Markaz', with total assets under management of over KD1,03 billion (USD 3,64 billion) as of September 30, 2010, was established in 1974 has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region. Markaz was listed on the Kuwait Stock Exchange (KSE) in 1997.
About Gulf Bank
Gulf Bank was established in 1960 and has since progressed to becoming an industry-leading financial services provider complemented by a large network of 52 branches strategically positioned in key locations in Kuwait.