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Kuwait Financial Centre “Markaz”, one of the Middle East’s leading investment banking and asset management companies, announced the performance of Markaz Fixed Income Fund which had a positive return of 2.5% YTD, considering the current political unrest in the region.
Numbers and Facts on “Markaz Fixed Income Fund”
The Fund seeks steady returns with low risk investing in high grade and highly rated bonds and sukuk.
Total asset between 15 – 150 USD.
The composite rating of the fund is -A.
Average maturity period of 3 years to assure less exposure to fluctuations in interest rates.
2.48% YTD
USD 3,000 minimum subscription.
USD 10 par value per unit.
Available for subscription to investors of all nationalities.
Subscriptions are weekly and redemptions are monthly.
The term of the Fund is five years extendable by two similar periods.
“Markaz Fixed Income” Fund had been operational since January 2011 and managed to give stable returns from bonds and sukuk issued by GCC governments and highly rated corporations. The Fund offers investors with alternative low risk financial opportunities which exceed in returns current banks interest rates.
By end of first quarter 2011, the fund registered a loss of -0.15% effected by the region’s instability. However due to signs of stability in the region bonds and sukuk market reacted positively, the fund reflecting the market posted positive gains in Q2 achieving monthly returns of 1.37% in April, 1.08% in May and continued its positive run through June to post a YTD return of 2,48% as of 16th of June 2011.
Ms. Rasha Othman, Vice President - Corporate Finance said, “Capitalizing on the region’s positive outlook in medium and long run compared to other financial markets due to a raise in oil prices and other factors like population structures and ambitious development plans which seeks to offer economical prosperity in the region. Markaz Fixed Income Fund seeks to provide steady returns and reduced risks by investing in high grade bonds and sukuk with cyclical yields.”
Ms. Othman added “We have a robust investment process in place utilizing analysis and extensive due diligence of investment opportunities. We have a clear investment policy of insuring steady and selective returns. The fund invests primarily in bonds and sukuk issued or guaranteed by sovereigns, quasi-sovereign institutions and highly rated corporations in the Gulf Cooperation Council (GCC) countries. Our geographical investment allocation policy focuses mainly on the GCC Countries a maximum of 30% of the Fund’s assets will be allocated to seize high quality attractive opportunities in the MENA region. Not less than 80% of the Fund’s assets will be invested in securities with medium maturities not exceeding 5 years.”
Markaz Fixed Income Fund is available for subscription to investors of all nationalities with a minimum initial investment of USD 3,000 and Par Value per Unit of USD 10. Subscriptions are weekly and redemptions are monthly. The term of the Fund is five years extendable by two similar periods.
At this time the fund invests exclusively in the GCC, and an average maturity period of 3 years to assure less exposure to fluctuations in interest rates. The composite rating of the fund is -A.
“Markaz” has a track record in managing GCC bonds and sukuk portfolios. Markaz launched in Q1 2009 “Markaz Fixed Income Program" which seized the opportunity and invested in high grade GCC bonds and sukuk with high discounts and high returns compared to low risk rates. Markaz managed more than USD100 million in high investment grade GCC bonds and sukuk and achieved high returns exceeding an IRR of 12% p.a.
Markaz investment banking team also structured USD500 million of conventional bonds and sukuk on behalf of corporate clients and advised on restructuring of issues following the recent credit crunch.
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Photo Caption: Rasha Othman, Vice President - Corporate Finance-Markaz
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About Kuwait Financial Centre “Markaz”
Kuwait Financial Centre 'Markaz', with total assets under management of over KD1.03 billion as of December 31st, 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.