Strong Tailwinds Power KUW8 Following S&P Reclassification
- Recent activity in Kuwaiti equities is creating a trading
- Tailwinds remain strong with $2bn of passive inflows predicted in
September following S&P’s decision to upgrade Kuwait
- Kuwait’s economy benefiting from index reclassifications, economic
diversification programme & capital markets improvements
- World’s only pure-play Kuwait ETF, KUW8 rebalances with 2 new
London, 23 September, 2019 - HANetf, Europe’s first independent ‘white label’ UCITS ETF issuer expects
tailwinds to remain strong in Kuwait following Standard & Poor’s decision
to add Kuwait to its Global and Emerging Benchmark indices. This is expected to
generate an estimated $2 billion of passive inflows, helping to intensify
investor appetite in the Gulf country.
Additionally, the MSCI is likely to confirm Kuwait’s upgrade to
‘Emerging’ in December 2019, resulting in a further $10 billion of passive and
active flows expected in early 2020.
Strong economic fundamentals along with the change in
classification are reflecting improvements in the Kuwaiti capital market
infrastructure, operations and foreign investor accessibility, which have been
implemented by the Kuwaiti Stock Exchange and local regulators. The country is
currently in the middle of an extensive long-term economic diversification
programme – “Vision 2035”, designed to encourage foreign investment and reduce
dependency on oil revenues.
The KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) recently underwent
its quarterly rebalance, with Burgan Bank and Kuwait Investment Projects Co
added. Both securities passed the required liquidity screening to qualify for
inclusion into the index. There were zero deletions to the index.
Hector McNeil, Co-CEO at
HANetf, said: “Kuwait is truly a frontier market success story. Economic reform,
diversification of the economy and massive investment has seen strong
underlying fundamentals. The most recent upgrade by S&P will see further
inflows into the local market quickly followed by the expected MSCI
confirmation. Global investors have quickly adopted KUW8 as their preferred way
to access Kuwait equities and it has been the fastest growing ETF on the HANetf
platform year to date. Given KUW8 is the only such ETF in the World we expect
significant future growth.”
The KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) was launched on the
London Stock Exchange, Borsa Italiana and XETRA via the HANetf white-label
platform in April 2019, with Kuwait & Middle East Financial Investment
Company as sponsor.
Tracking the FTSE Kuwait All-Cap 15% Capped Index, the KMEFIC FTSE
Kuwait Equity UCITS ETF (KUW8) enables investors to gain exposure to large, mid
and small cap Kuwaiti equities, with high exposure to the capitalist elements
of Kuwait’s economy.
Find out more about the KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) here.
Read our whitepaper "Funds & Falcons: Opportunities in an Emerging Kuwait" here.