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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.

 

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