NBK Qatar equity fund nets 32.6pc return
Kuwait, January 22, 2011
NBK Capital, a subsidiary of National Bank of Kuwait (NBK), said its Qatar equity fund has fetched a return of 32.67 per cent since the beginning of 2010 up to the end of last December.
This is in comparison to a 24.75 per cent increase by the Doha Securities Market index for the same period, said a NBK Capital statement.
NBK Qatar Equity Fund seeks to increase the value of capital over the long term by investing in the shares of the Qatar, the statement added.
The Qatar Equity Fund is one of three local and regional equity funds managed by NBK Capital, which include NBK Kuwait Equity Fund and the NBK Gulf Equity Fund, which achieved a return of 42.5 per cent and 15.56 per cent during 2010, respectively, it said.
The fund was established in 2006 as a result of an extensive study of regional markets and of NBK’s belief in the future of Qatar's economy which has seen remarkable growth in the past few years.
Qatar has the third largest natural gas reserves in the world and is the largest exporter of liquid natural gas. It recently announced a plan to launch 200 projects in different sectors in the first quarter and it is expected that this decision will reflect positively on corporate profits.
In addition, Qatar is expected to witness high growth rates as a result of the projected expenditure on infrastructure and related projects for the World Cup in 2022, where it is planning to spend nearly $ 100 billion over the next 12 years.
Nabil Maroof, managing director of Asset Management at NBK Capital, specified that the Fund’s strategy, which focuses on the detailed analysis of different equities and their expected returns in the long run, is the most important factor behind its success.
According to Maroof, the Qatari economy will continue to perform well because of the announced development plans and the projected expenditure, which will reflect positively on companies in all sectors of the market.
'In the foreseeable future, we believe we are in a good position to benefit from the profit opportunities that will come as a result of this expected expenditure,' he noted.
The subscription and redemption to NBK Qatar Equity Fund is on a weekly basis and the minimum investment is $100,000, said Maroof.-TradeArabia News Service