Kuwait Financial Centre Kpsc · KSE:MARKAZ
Kuwait Financial Centre Kpsc — Kuwait Financial Centre S.A.K. (Markaz) — Investor Presentation (November 2010)
16 slides from Kuwait Financial Centre Kpsc's investor presentation, November 2010
Slide 1: Markaz Capital Preservation Portfolio Service
Markaz Capital Preservation Portfolio Service November 2010 Asset Management | Investment Banking Centred around your success
Slide 2: Outline
Outline Kuwait Stock Market: The investment Setting Need for a Structure CPPI Mumtaz Test Results Term Sheet Risk Factors 2
Slide 3: Kuwait Stock Market: The investment setting
Kuwait Stock Market: The investment setting Source: Kuwait Stock Exchange Source: Thomson DataStream, Kuwait Stock Exchange (KSE) • The Kuwait market underperforms on the upside as compared to MSCI • The Kuwait market has seen its liquidity dry up in 2009 with a total value traded of just USD 31 bn
Slide 4: Kuwait Stock Market: The investment setting
Kuwait Stock Market: The investment setting Source: Shanghai SE A, India Sensex, Kuwait Stock Exchange, Markaz Research • Kuwait has an exceedingly low institutional investment ratio of just 4% in 2009 versus 18% and 15% in India and China, respectively. • Low institutional investing leads to height
Slide 5: Need for a Structure
Need for a Structure • In spite of attractive risk-adjusted performance and low volatility, decreased liquidity and low institutional participation leads to high speculation. • Though the market is open for foreign investment, the investment level is low since Kuwait is still not a part of MSCI Emer
Slide 6: CPPI
CPPI Constant Proportion Portfolio Insurance is an investment strategy that endeavors to preserve the portfolio from falling below a certain value (the ‘floor’) at the same time endeavoring to capture the potential gains of the equity market. Salient Features • The downside is defined in advance. •
Slide 7: Markaz Capital Preservation Portfolio
Markaz Capital Preservation Portfolio Parameter Factor Notes Underlying Benchmarks Equity Benchmark Markaz Fund for Excellent Yields The fund invests in Blue Chip ‘Mumtaz’ Equity Stocks listed on Kuwait stock exchange and was the best performing fund in Kuwait in 2009 Cash Fixed Deposits with local
Slide 8: Mumtaz: a Top Performer on the KSE
Mumtaz: a Top Performer on the KSE • First mutual fund established in Kuwait in 1999 • Standard & Poor’s A rating (Jan 2010) • Recipient of many awards: Lipper Reuters awards in 2007 & 2010 (for 3 years and 5 years performance) Lipper Reuters award in 2008 (for 5 years performance) MENA Fund Manager
Slide 9: Simulated Performance (January 2005 to September 2010)
Simulated Performance (January 2005 to September 2010) Returns (2005-2010) Participation Rate End of Period NAV Returns Number of Years Mumtaz MCPP Rate Mumtaz MCPP Rate 5 175 136 77% 8% 4% 45% 4 101 106 106% 0% 1% NM 3 112 107 95% 3% 2% 56% 2 78 103 132% -9% 1% NM 1 125 113 91% 14% 7% 54% • The tes
Slide 10: Simulated Return Profiles across various periods
Simulated Return Profiles across various periods Performance (January 2006 – Sept 2010) Mumtaz MCPP $100 101 106 CAGR 0% 1% Risk 23% 13% Sharpe Ratio (0.18) (0.22) Information Ratio 0.30 Tracking Error 3.87% Peak to Trough -54% -34% Performance (January 2007 – Sept 2010) Mumtaz MCPP $100 112 107 CAG
Slide 11: Simulated Return Profiles across various periods
Simulated Return Profiles across various periods Performance (January 2008 – Sept 2010) Mumtaz MCPP $100 78 103 CAGR -9% 1% Risk 24% 6% Sharpe Ratio (0.53) (0.49) Information Ratio 1.77 Tracking Error 5.44% Peak to Trough -54% -14% Performance (January 2009 – Sept 2010) Mumtaz MCPP $100 125 113 CAGR
Slide 12: Term Sheet
Term Sheet Portfolio Manager Kuwait Financial Centre, S.A.K. ‘Markaz’ Term of the Portfolio Open-ended Capital Preservation The Portfolio Manager will attempt to preserve 90% of the invested amount Contributions Quarterly, with 7 business days notice; Minimum contribution of KD 10,000. Entry Fee 2%
Slide 13: Risk Factors
Risk Factors • Prior to opening the Portfolio Account and participating in the Program, Prospective Investors should consider the risk factors outlined below pertaining to the Program. Whilst the Investment Manager has made every effort to disclose all possible risks involved in this Program, Prospe
Slide 14: Risk Factors
Risk Factors • Liquidity risk: Exposure to loss due to either change in market conditions or as a result of investments in illiquid markets that may result in an investment being liquidated at a price below its market value. Investments made in illiquid markets could result in the inability to liqui
Slide 15: Disclaimer
Disclaimer This document is prepared for general circulation and is circulated for general information only. This document is not an invitation to subscribe to units of any investment fund or portfolio therein. Subscriptions to units of any investment fund or investments in portfolios are based on t
Slide 16: Kuwait Financial Centre S.A.K. "Markaz"
Kuwait Financial Centre S.A.K. "Markaz" P.O. Box 23444, Safat 13095 State of Kuwait Tel: +965 2224 8000 Fax: +965 2241 4499 Email: [email protected] www.markaz.com Asset Management | Investment Banking Centred around your success
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