Kuwait: Kuwait Financial Centre “Markaz” hosted an exclusive event for its esteemed clients and investors to showcase the performance, potential, and investment opportunities offered by the "GCC Momentum Fund." This special gathering follows the Fund’s prestigious recognition as the “Best Momentum Fund Innovation” by Global Finance during its inaugural year. The event underscores Markaz’s unwavering commitment to introducing distinctive investment vehicles tailored to meet the diverse needs of its clients. Held at the Four Seasons Hotel on 30 September 2024, the event featured a keynote address by the CEO of Markaz, a detailed presentation from the MENA Equities team, and an engaging panel discussion, moderated by a representative from the Wealth Management and Business Development team. The panel discussion delved into the Fund’s strategy, investment factors, long-term wealth-building opportunities, and ways to capitalize on emerging market trends, and answered questions by the attendees.

In his opening remarks, Mr. Ali H. Khalil, CEO of Markaz, said: “Innovation has been an intrinsic pillar of Markaz’s DNA since its inception. Over the past five decades, we have pioneered innovation in the financial services realm, both locally and regionally. This is exemplified by Markaz’s track record in crafting investment tools with unique attributes and opening new investment frontiers. Today, we proudly celebrate one of our most recent innovations, the ‘GCC Momentum Fund,’ which embodies our commitment to delivering the best-in-class investment opportunities and solutions that align with our clients’ aspirations, as their partner in wealth creation. We take great pride in marking this milestone as part of Markaz’s 50-year legacy, which has consistently prioritized the interests of our clients. This trust in our expertise inspires us to continuously innovate and evolve across all operational and strategic dimensions.”

During the presentation, Mr. Fahad S. Al Rushaid, Senior Vice President, MENA Equities at Markaz, elaborated on the core principles underpinning the momentum strategy, stating: “The GCC Momentum Fund is the first passive fund of its kind to invest in GCC markets through a momentum-based methodology. This strategy targets top-performing stocks in the GCC, while meticulously tracking components of the S&P GCC Momentum Composite Index. Since its inception in 2008, the S&P GCC Momentum Composite Index has on an average outperformed the S&P GCC Composite Index by an average of 4.5% annually. This trend is expected to continue, bolstered by the region's robust economic prospects, particularly the ambitious growth initiatives in Saudi Arabia, which accounts for over half of the GCC’s market capitalization. The Fund strategically selects stocks that collectively represent approximately 50% of the GCC market capitalization, thereby enhancing volatility management.”

In the subsequent panel discussion, Mr. Mohammed A. Al-Ghannam, Senior Vice President, MENA Equities at Markaz, added: “The momentum strategy has resonated strongly with our clients, and building on the unprecedented economic boom and expected growth in the non-oil economy, the Fund serves investors who seek to invest in GCC markets with a long-term, risk-adjusted approach. The Fund’s methodology allows investors to benefit from the compounding returns over time, while its focus on top-performing companies with solid fundamentals ensures optimized returns. This approach mitigates market volatility by distributing risks across various sectors. The success of this strategy has been evidenced in global markets, and its adoption in the GCC is a natural evolution. The development of the Fund’s mechanism is the result of two years of rigorous research and analysis by the MENA Equities team, optimizing the strategy’s efficacy in driving long-term returns.”

Mr. Mohammad AlSmaiee, Assistant Vice President, Wealth Management and Business Development at Markaz, added: “As trusted investment advisors, it is incumbent upon us to closely monitor market trends and seize optimal opportunities that align with our clients’ financial goals. This philosophy is what led to the creation of the ‘GCC Momentum Fund,’ a fund built upon a globally recognized and valued performance methodology. The ‘Best Momentum Fund Innovation’ award from Global Finance, granted within the Fund’s first year, stands as a testament to the strength of our strategy, guided by global benchmarks. We remain committed to developing further innovations that enhance market offerings and provide our clients with unparalleled growth opportunities.

Concluding the event, Markaz team engaged with interested attendees, addressing inquiries about the momentum strategy and providing detailed guidance on how to subscribe to the Fund and explore other portfolio services, either digitally or in person at Markaz’s headquarters. The GCC Momentum Fund is the latest in a series of innovative investment products launched by Markaz, underscoring its commitment to staying ahead of market developments locally, regionally, and globally.