Kuwait City, Apr 28: Kamco Invest, a regional non-banking financial powerhouse with one of the largest AUMs in the region, held its Annual General Meeting for the fiscal year ended 31 December 2023 where shareholders approved all agenda items.
Shareholders approved the Board of Director’s recommendation to distribute 5% cash dividends (5 Fils per share), amounting to KWD1.7mn.
The AGM was chaired by the Company’s Chairman, Sheikh Talal Ali Abdullah Al Jaber Al Sabah, who discussed the Board of Director’s report highlighting key milestones achieved during 2023.
Al-Sabah said that the year 2023 witnessed instability due to geopolitical events and economic challenges, particularly in the Middle East region. The ongoing conflict in Gaza since early October 2023 compounded these challenges, alongside high inflation, and elevated interest rates. These events also affected global crude oil and energy prices resulting in volatile financial markets in the region.
GCC markets ended 2023 with one of the smallest annual gains globally. The MSCI GCC index was up 3.7% after recording mixed performance at the country level. Dubai, Saudi, Bahrain, and Qatar recorded gains ranging from 21.7% to 0.4%. On the other hand, Kuwait was the second biggest decliner in the region with the Kuwait All Share index reporting a drop of 6.5%.
Al-Sabah said, “Despite these challenges, the Company managed to achieve total revenue amounting to KWD18.0mn while revenue from fees and commission stood at KWD14.7mn representing 81.6% of total revenues.”
He added, “The Company enjoys a strong financial position with KWD59.7mn in shareholders’ equity as of 31st December 2023. In its most recent review dated in May 2023, Capital Intelligence maintained its “BBB” long-term credit rating and “A3” short-term rating with a stable outlook.”
Faisal Mansour Sarkhou, Chief Executive Officer, provided a detailed explanation of the operational performance for the year, which witnessed numerous milestones and achievements across various fields. During 2023, wealth managers worked closely with various business sectors, leveraging their diversified in-house expertise to provide clients with customized solutions and advice. This resulted in attracting new clients, strengthening relationships with existing clients and raising funds for new and existing products.
Sarkhou said, “The year 2023 marked the 25th anniversary of Kamco Invest, a quarter of a century during which financial markets experienced significant shifts and challenges. The period was marked by several major events, including the dot-com bubble in the late 1990s, the attacks of September 11, 2001, and the global financial crisis in 2008. These events led to periods of market volatility, economic downturns, and regulatory changes. The rise of technology and the internet also transformed the financial landscape, leading to the emergence of new industries and investment opportunities. In recent years, markets have been impacted by geopolitical tensions, trade conflicts, and the COVID-19 pandemic, highlighting the ongoing uncertainty and complexity of the global economy.”
Sarkhou added, “Kamco Invest not only survived the period but also thrived, overcoming challenges, and leveraging changes to evolve its business model. This evolution propelled the company to become one of the largest asset managers in the Middle East with AUM of USD14.9bn as of 31 December 2023. Furthermore, Kamco Invest is one of the most active in the region, acted as investment banker to deals exceeding USD36.4bn from its inception till end of 2023 in equity capital markets, debt capital markets and mergers & acquisitions.”
During the year, the Company successfully raised over USD2.1bn for several products and transactions, and the assets under management grew by 7.8% to reach USD14.9bn as of 31st of December 2023. Kamco Invest’s equity funds and managed portfolios continued to outperform their peers and respective benchmarks. The equity funds managed by the Company continued to rank amongst the top performers. Kamco Investment Fund was ranked the second best performing conventional fund whereas, Kamco Islamic Fund was the best performing Islamic equity fund in Kuwait according to the funds’ performance information declared on the website of Boursa Kuwait.”
During the last quarter of 2023, the company successfully consolidated its extensive experience in real estate, private equity, and venture capital, bringing them together under the overarching umbrella of Alternative Investments. As of December 31, 2023, the total value of managed assets within this sector surpassed USD2.2bn. Throughout the year, the team distributed a substantial sum of USD73.9mn to its clients while actively evaluating fresh investment prospects. The Alternative Investments team broadened its real estate portfolio by incorporating private debt investments in real estate projects, making a significant foray into a new asset class. They disbursed USD47.0mn to real estate investors, resulting in an annualized cash yield of 7% on invested capital.
In the face of challenges within the regional capital markets and prevailing high interest rates, 2023 stands out as yet another successful year for our Investment Banking business, evident in our market share of completed transactions. During the year, the Investment Banking team successfully completed 9 transactions worth USD1.6bn. The transactions included two Mergers & Acquisitions transactions, four equity capital market transactions, and three debt capital market transactions.
The company’s brokerage arm, First Securities Brokerage Company, continued to expand its client base by leveraging its online trading platforms. It experienced growth in market share and contributed to Kamco Invest’s overall income.
On geographical expansion, Sarkhou emphasized that network expansion and business growth remain central to the Company’s strategy. In 2023, Kamco Invest bolstered its global presence by opening a new office in London. This office will initially focus on alternative investments, particularly in real estate. This addition to the Company’s network, which already includes subsidiaries in Saudi Arabia and the UAE (Dubai International Financial Center), underscores its commitment to expanding in key financial and business hubs. The expansion aims to provide enhanced value and comprehensive turnkey services to clients and investors, further strengthening the contribution to fee income.
To commemorate the 25th anniversary milestone, Sarkhou mentioned that Kamco Invest placed a significant emphasis this year on prioritizing its workforce and engaging with the community. Our strategic sustainability initiatives were aligned with celebrating our employees, cultivating emerging talent, empowering future leaders, and fostering sustainable practices within our community. We were determined to ensure that every member of our team, and by extension, our community, recognizes their integral value to the continued success and growth of the Company.
Our dedication to fostering inclusivity among all stakeholders was further exemplified by our recent partnership with the Kuwait Women’s Economic Empowerment Platform (KWEEP), a platform aimed at promoting diversity and empowerment within Kuwait’s private sector. This partnership remains in line with our commitment to SDG 5, as well as our adherence to the United Nations’ Women Empowerment Principles (WEPs).
Al-Sabah concluded by expressing his appreciation towards the regulatory bodies for their constructive cooperation and guidance. Additionally, he expressed his heartfelt gratitude to the Company’s valued clients and shareholders for their unwavering support and trust, which drives the Company to strive for even greater success in the future.