KUWAIT: KAMCO Investment Company, a leading investment company with one of the largest AUMs in the region and winner of the prestigious Kuwait Asset Manager of the Year Award 2015, announced its financial results for the nine-month period ended September 30, 2015.
The Company recorded a loss of KD 736 thousand with earnings-per-share (EPS) of -3.09 fils. However, despite the stressed economic environment, KAMCO’s fee income stood at KD 3.6 million (YTD nine months 2014 – KD 3.7 million).
Faisal Sarkhou, Chief Executive Officer of KAMCO said, “Operationally and despite the severe equity market fall impact on profitability, KAMCO continued to maintain its Assets under Management at KD 3.3 billion and to grow interest and subscriptions in its managed funds and recently launched products and services. In addition and despite the poor economic conditions, the investment banking team continued its efforts in undertaking key announced transactions in the market.”
Sarkhou added, “KAMCO’s management team believes that with oil prices flattening-out and major risks being priced-in, the future should be more promising. Positive indicators going forward include rising oil demand in the US and Europe, an extended quantitative easing program in EU and a stabilizing Chinese economy. In addition, we expect to see an increase in bonds and debt instrument issuances led by various government and financial institutions amid an expected rising interest rate environment. Once the sentiments turn positive, we expect additional flows to capital markets.”
Decline in performance
The losses in the third quarter are attributed primarily to the significant decline in local, regional and International equity markets on the back of stressed international and regional geo-political environment, the fall in oil prices and weak economic cues that emanated from China after the Yuan devaluation. Stock market sentiments remained extremely low as seen in the decline recorded by all of the regional indices taking cues from the decline in oil prices, particularly during the third quarter. The investors remained in the ‘wait and watch’ mode as seen from the decline in trading activity and reduced flow in capital markets. During the first nine months of the year, the KSE Weighted and KSE-15 indices fell almost by 12 percent, MSCI GCC Index fell by 10 percent whereas S&P 500 declined by almost 7 percent. Meanwhile, oil prices plunged during Q3-15 after showing some improvement during the 1H-15. OPEC oil declined by 26 percent during Q3-15 resulting in a YTD-15 decline of 16.2 percent.
KAMCO Investment Company is a premier investment company based in Kuwait and is regulated by the Capital Markets Authority with one of the largest private sector AUMs in the region.
Established in 1998 and listed on the Kuwait Stock Exchange (KSE) in 2003, KAMCO is a subsidiary of United Gulf Bank (UGB) and is the asset management and investment banking arm of Kuwait Projects Holding Company (KIPCO).