Last Rebalance Before Kuwait’s Inclusion in the MSCI Emerging Markets Index | $10 billion predicted to flow into Kuwait Equities | KUW8
- First Kuwait equity focused ETF globally
- Last re-balance before Kuwait’s inclusion in MSCI Emerging Markets Index which could see $10 billion USD flood into Kuwaiti equities [1]
- Mabanee added, Mezzan Holding Co deleted
- Launched in April 2019, KUW8 provides pure-play exposure to the largest and most liquid securities on the Kuwaiti stock market
- First UCITS ETF sponsored on HANetf white label platform by a Middle Eastern asset manager - KMEFIC
London, 26 March, 2020: The KMEFIC FTSE Kuwait Equity ETF (KUW8) underwent its quarterly re-balance on 19th March 2020, resulting in one addition and one deletion.
KMEFIC FTSE Kuwait Equity UCITS ETF was issued via the HANetf white-label ETF platform with KMEFIC (Kuwait & Middle East Financial Investment Company) as main sponsor and advisor. KMEFIC are a provider of asset management, brokerage and wealth management services headquartered in Kuwait.
Tracking the FTSE Kuwait All-Cap 15% Capped Index, the KMEFIC FTSE Kuwait Equity UCITS ETF enables investors to gain exposure to 17 Kuwaiti companies with a combined market capitalisation of ~$US28.1 Billion2. Rebalances occur quarterly at which constituents are capped at 15% to reduce concentration in larger-cap securities. Having 17 companies represented in the index makes it the most diversified Kuwaiti ETF available globally. The ETF has a TER of 80bps.
- Added: Mabenee (MABANEE KK) Sector: Real Estate. Mabanee was listed on the main market of the Kuwait Stock Exchange in 2009. It operates under five main business lines: real estate development, real estate project management, logistics, shopping mall construction and management and real estate investment portfolios. Mabanee enters the ETF with an initial weight of 4.25%.
- Deleted: Mezzan Holding Co (MEZZAN KK) – Sector: Food & Beverage - A manufacturer and distributor of food, beverages, pharmaceutical and FMCG.
Abdullah Al-Basairi, Co-creator of the KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8) said: “This marks the final rebalance leading up to the MSCI inclusion in May/June. Last year Goldman Sachs estimated that flows of USD $2.3 billion in passive flows and $8billion of active flows into Kuwait stocks. With March volatility leading to a price correction in the local Kuwaiti market, investors who missed the first window on gaining the post-announcement premiums in December2019 /January 2020 could have a second opportunity in March and April to build a position coming into the inclusion period in May.”
Ignatius Faissal, Director of Product Management at HANetf said: “The Kuwaiti economy continues to diversify away from its oil-rich roots as part of the Vision 2035 project. This is being reflected in the addition of real-estate management companies to an ETF that already includes Banks, financial services providers, telecoms and industrial goods.”
KUW8 Product Information:
EXCHANGE |
BB CODE |
RIC |
ISIN |
SEDOL |
CCY |
INCOME |
London Stock Exchange |
KUW8 |
KUW8.L |
IE00BGPBVS44 |
BGY9KV5 |
USD |
Acc |
London Stock Exchange |
KUWP |
KUWP.L |
IE00BGPBVS44 |
BGSXQZ9 |
GBP |
Acc |
Borsa Italiana |
KUW8 |
KUW8.MI |
IE00BGPBVS44 |
BGSGKH8 |
EUR |
Acc |
XETRA |
KUW8 |
KUW8.DE |
DE000A2PD3R9 |
BJ9ZLG1 |
EUR |
Acc |
For more information on the ETF, visit the KMEFIC FTSE Kuwait Equity ETF (KUW8) fund page.
For more information on the use of ETFs, read the article Why trade a Kuwait ETF over single stocks?
Read more about Kuwait’s inclusion on the MSCI Emerging Markets Index and what it means for investors.