The goal is to generate high risk-adjusted returns utilizing a fundamentals driven strategy that is complemented with state-of-the-art quantitative modeling, risk analytics and macro overlays.
The fund portfolio has been structured to minimize the downside risks that are inherent in the emerging Asian economies.
The Gateway Fund is one of the few emerging Asia focused funds out of the Middle East and KCIC aims to raise USD250 to USD300 million over the next 1-2 years.
By becoming the first firm in the Middle East to implement the “Operational Alpha” platform offered by Bloomberg and Omnium, KCIC’s operational capabilities allow for real time portfolio monitoring and reporting. KCIC is also one of the few firms out of the Middle East that has a fully functional prime brokerage relationship with UBS and ability to trade hedge baskets with other marquee brokerage firms.
KCIC Principal for Investments, Dan Xystus said: “We have spent the last 3 years laying the foundation for this launch and are very excited about the prospects of this fund based on growing demand for Asia focused investment opportunities that are liquid and appropriately hedged against severe market downturns.”
Over the last ten years trade and investment between the Middle East and Asia quadrupled, reflecting strong investor interest in Asia and there is a great expectation that Asia’s growth story will not only continue but will in fact dominate the current century.
KCIC Managing Director Ahmad Al Hamad said:
“Emerging Asia will continue to lead emerging markets across the globe. We believe emerging Asia will soon play predominant role in global growth as the world moves from being a financially leveraged world to a demographically leveraged one.”
“We in the Middle East stand to benefit from this paradigm shift that analysts are dubbing ‘the new silk road’”.
Led by China and India, emerging Asia has shown tremendous growth possibilities in the last decades. China’s economy has grown fifteen-fold just over past three decades, at an average rate of 10% per year.
Over the last 20 years, India has grown at an average annual rate of 6.4%. In the last 5 years, China became the world’s 3rd largest economy, and India the 12th. By 2050, China’s economy expected the world’s largest, and India the 3rd.
Based in Kuwait, KCIC invests in domestic demand driven sectors in Asia, namely energy, real estate, infrastructure, and financial services.
KCIC was founded in 2005 with a capital of KD80m by an Emiree Decree with a mandate to develop investment opportunities in Asia towards building an Asia focused asset management company. The public company employs a team of Asian specialists and currently manages assets in excess of $450m.
Key shareholders include the Kuwait Investment Authority, the Sovereign Wealth Fund of Kuwait, National Investment Company, one of the leading investment banks in the Middle East, and Al Ghanim Industries, one of the largest conglomerates in the Middle East.
KCIC is in the final stages of being listed on the Kuwait Stock Exchange. Earlier this week, the company announced is earnings for the first nine months of the year registering KD12,061,995 in net profits and KD14,445,996 in revenues.
Wednesday, November 18- 2009 @ 14:33 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.