Diversified funds outperform market benchmarks, bring highest returns
• Mawarid Fund achieved a return of 34.82% outperforming local equities funds in Kuwait.
• Al-Wataniya Fund recorded a good performance with a return of 28.88% bringing the returns to 299.08% since inception
• Al-Darij Fund achieved a return of 22.50% by trading in selective Shariah-compliant shares
• Zajil Fund achieved a return of 18.83%
• NIC has an active strategic approach to achieve the highest returns in the long-term and reduce risks
• Following launching of the service, NIC is a market maker in the shares of Boursa Kuwait and Gulf Cable
• NIC was one of the first companies to obtain a Market Maker License in Boursa Kuwait
KUWAIT: The diversified investment funds managed by National Investments Company (NIC) successfully achieved record performance ratios in the first ten months of 2021 thanks to the pioneering efforts made by its professional team and successful hands-on experience. These results helped NIC maintain its position as one of the leading investment institutions in Kuwait and the region.
NIC, a leading investment company in Kuwait and the region in terms of performance and AUM, announced that the performance of its investment funds outperformed their benchmarks in 2021, despite the ongoing COVID-19 effects on the financial markets.
In a press release, NIC praised the outstanding performance of its investment funds which reflected the sound approach and the prudent management of a work team with extensive expertise and a proven track record of achievements in managing local and regional portfolios and investment funds.
EVP MENA Securities Sector at NIC, Hamad Al-Humaidi said that according to the monthly fund information published by Boursa Kuwait Co on its website, Mawarid Industrial and Petroleum Services Fund achieved strong performance and outstanding results, recording a return of 34.82 percent. Mawarid aims to provide capital appreciation and income to its shareholders by investing in Kuwaiti and Arab Shariah-compliant listed and unlisted equities in the industrial and petroleum service sectors.
He added that Mawarid fund, established in 2006, aims to provide maximum expected return on a risk-adjusted basis by investing in Shariah-compliant listed and unlisted equities in the industrial and petroleum services sectors and provide diversification among the industrial and petroleum services sector in Kuwait and GCC based on liquidity, capital appreciation and dividend yield.
Al-Humaidi said that Al-Wataniya Fund achieved a return of 28.88 percent as of end of October 2021, bringing the returns to 299.08 percent since inception. He added that Al-Wataniya maintained its good rank among the large-sized funds category of more than KD 50 million.
He explained that Al-Wataniya Fund established in 2001, is one of the top-performing local funds that invests in listed and unlisted equities on Boursa Kuwait. The Fund selects good-performing companies from different sectors with the aim of achieving good returns for subscribers. Al-Humaidi added that Al-Wataniya continues to seize the best investment opportunities and benefit from them.
He said that Al-Wataniya’s performance is excellent compared to the size of net assets of other funds. Al-Wataniya is one of the biggest investment funds in Kuwait with a net assets value of KD 160 million. The Fund also aims to invest in the blue-chip stocks with rewarding returns, solid management and a clear future vision, which greatly resulted in the stability of the level of its dividends and bonuses.
“Established in 2003, Al-Darij Fund achieved a return of 22.50 percent as of end of October 2021. The Fund aims to maximize the expected return by trading primarily in selective listed and unlisted Shariah-compliant equities in Kuwait and GCC markets,” Al-Humaidi added.
He said that Al-Draij fund aims to achieve the highest returns on a risk-adjusted basis by trading in listed and unlisted Shariah-compliant equities in Kuwait and the GCC and achieving returns for subscribers higher than those of traditional Islamic deposits.
Al-Humaidi said that Zajil Services & Telecommunications Fund achieved a good return of 18.83 percent in the first ten months of 2021. The fund established in 2004, aims to achieve maximum expected return to subscribers and to invest in listed and unlisted equities in the services and telecommunications sectors in Kuwait and the Arab region, which abide by Islamic Shariah.
He pointed out that the Fund seeks to achieve capital appreciation and maximum potential return on a risk-adjusted basis by trading equities in the services and telecommunications sectors which abide by Islamic Shariah. It also provides diversification among Kuwaiti and Arab equities in the service and telecommunications sectors based on liquidity, capital appreciation and dividend yield.
Managed by a specialized investment team with extensive experience, the Fund provides a single investment tool with the objective of achieving returns higher than those of traditional Islamic deposits, creating a liquid vehicle for investors wishing to benefit from the potential returns of an investment fund dedicated to Islamic guidelines.
Al-Humaidi expressed his happiness with the good performance of NIC funds achieved in the first ten months of 2021 compared to the same period last year. He pointed out that successful investment requires a number of factors and basic qualifications such as investment experience, professional management and comprehensive and diligent follow-up of all news and decisions that affect the financial markets.
He said that NIC has an active strategic approach to achieve best returns in the long-term by reducing the risks of stock markets and maximizing potential returns. This was evident in the performance of NIC funds during 2021.
On the other hand, Al-Humaidi said that NIC launched successfully the “Market Maker” in Boursa Kuwait starting August 2021. The Boursa Kuwait Co, share was selected to be the first practice of this service, with the Gulf Cable Co following suit. More companies are expected to be added in the near future.
He added that NIC was one of the first companies to obtain a Market Maker License in Boursa Kuwait, after passing the final tests of Boursa Kuwait Co following signing the activity practice agreement with Boursa Co. He added that the Market Maker system has become a cornerstone in the financial markets, contributing to diversifying investment options and addressing the defects that dominated the market when past individual trades were based on rumors and unjustified speculation. It also contributes to attracting more local and foreign institutional investments and restores the ability to quickly liquidate, which is one of the most important functions of financial markets.
Al-Humaidi stressed that NIC focuses on understanding the dynamic needs of clients with the objective of improving services and products and identifying appropriate new investment opportunities given the current market conditions. He added that NIC aims to maintain a research-based approach, anticipate trends, improve clients’ investment position and achieve their goals, ensure developing innovative products, expand its business reach, and achieve high-performance results in the coming years.