Markaz boosts investment product lineup
KUWAIT CITY: Kuwait Financial Centre "Markaz" on Saturday launched two different types of investment products in its highly successful Atlas family of products and services, both of which are designed to outperform the market and reduce investment risk. Markaz, Investment Manager, Barak Al Usaimi said "the products, Atlas ETFs and Atlas Fund of Hedge Funds launched Saturday reflect Markaz's strategy to achieve regional leadership in asset management by providing sophisticated and specialized investment solutions to address the needs of its investors". The Atlas Exchange Traded Fund (ETF) program seeks to achieve out-performance of broad market and sector indices by allocating its assets to various Exchange Traded Funds (ETFs) worldwide that closely track their respective market or sector indices. Markaz will adopt an active management style by employing tactical asset allocations as part of a strategy to outperform specific industry sectors and market indices.
He added that since ETFs are a cross between a stock and mutual fund -- like a stock it can be traded on a stock exchange, and like a mutual fund it behaves like a diversified portfolio; investors will benefit from the liquidity of stocks and from an investment fund that tracks their benchmarks. Atlas ETF program employs two principal investment strategies, index investing and sector investing. The program will hold ETFs comprising of equities in a variety of sectors and markets with the evident advantage of avoiding the risks involved in stock selection. Since the ETFs are passively managed funds and can be traded in the exchanges like stocks, they carry a very low expense ratio which makes the Atlas ETFs Program a much less expensive product compared with any other fund of funds. Al Usaimi said the program is designed to enable an investor to enter any working day of a month with a minimum investment of $150,000. Redemption is weekly -- every Friday of the week, notice to be given by Wednesday 12.00 noon. The benchmark of the program is MSCI World Index.
Atlas Fund of Hedge Funds
"The primary objective of Atlas hedge funds is to preserve capital by minimizing volatility. Stock markets have historically had much higher volatility than hedge funds," Al-Usaimi said. Atlas Fund of Hedge Funds offers clear benefits to investors, depending on their risk-return profile. Investment strategies such as managed futures, fixed income arbitrage and the short selling of bonds and equities are managed by international 'boutique' firms with specific skills and expertise that are required to operate within identified parameters.
"Misconceptions about hedge funds are often created by their complex nature and a lack of transparency," Al Usaimi said, "however Atlas Fund of Hedge Funds investors will be provided monthly reports containing all the information they require to make informed investment decisions. "We are confident that the new funds will achieve their investment objectives and reinforce Markaz's reputation as a leading fund and portfolio manager," he said. Atlas Fund of Hedge Funds will also adopt an active asset allocation approach by utilizing tactical asset allocation methodology whenever identified. Among the key facts of the Fund, subscription is monthly and the redemption is also monthly, with 45 days notice. Minimum investment is $500,000. Al Usaimi said "Markaz strength has always been in the asset allocation area with a proven track record in its management of portfolios and the programs undertaken for both its institutional and individual clients." Atlas Fund of Hedge Fund's performance is not linked to any benchmark or index and is therefore measured in absolute terms.
Markaz
The Kuwait Financial Centre (Markaz), established in 1974, is one of the leading investment banking institutions in Kuwait with around $3.5 billion of assets under management. Markaz offers quality asset management, investment advisory services, as well as state-of-the-art investment banking, covering Kuwait, the Gulf Cooperation Council region, Europe and the United States. Markaz is also active in managing real estate funds, both locally and internationally.
Achievements:
* Largest and best performing equity funds in Kuwait
* First options trading fund in the Middle East
* First and best performing Kuwaiti money market fund
* First tradable Islamic securities
Markaz invests its own capital alongside capital invested by clients, ensuring a mutual alignment of interest.
© Arab Times 2005
