- Total assets under management exceeded KW one billion at the end of 2020, despite the global economic recession and the decline in investment values globally
- The Board of Directors approved 11% cash dividend of the capital, at 11 fils per share
- The Company has a solid financial position and cash abundance to face market fluctuations and capture investment opportunities
- Shareholders’ confidence is the main driver for the Company and the backbone of its giving and continuity in making more achievements under the exceptional circumstances experienced by all markets
- Multiple plans and clear perceptions ensure the Company’s stability and balance
- Notable achievements in the Company’s all sectors in 2020, which demonstrate the capabilities and skills of the Company’s team
- Maintaining the superior performance for most of investment funds in 2020
- Leading market performance and achieving gains despite unforeseen market conditions in 2020 by the Company’s all sectors
The General Assembly of National Investments Company held its meeting on Tuesday, 18/05/2021 at the Company’s headquarters at Al Khaleejia Building, with attendance rate of 72,817%. The General Assembly was held electronically due to the prevailing covid-19 conditions.
Mr. Hamad Al-Ameeri – Chairman of the Board of Directors chaired the General Assembly meeting where he presented the Board of Directors’ report for the year 2020, in which he outlined the 2020 financial statements of the Company.
Al-Ameeri started the meeting by welcoming all members of the Board of Directors, the Executive Management and the Shareholders of the Company who attended the meeting virtually, thanking them for their continuous support and valuable confidence, which is always the key driver for the Company and the backbone of its giving and continuity.
Al-Ameeri highlighted the key achievements of the Company in 2020, where he presented the Company’s annual report, the independent auditor’s report, the consolidated statement of income and the consolidated position for the fiscal year ended 31 December 2020.
The Company’s Board of Directors approved cash dividends distribution of 11% of the capital by 11 fils per share (after deducting treasury shares) for 2020, to the shareholders registered in the Company’s records in accordance with the applicable dates and rules of entitlement. The BoD elected a Board of Directors for the Company for the next three years for the new term (2021-2023).
Al-Ameeri said 2020 is an exceptional year not only for Kuwait, but for all countries of the world. It was a difficult year full of data and events that casted its shadow on the domestic, global and regional economics. Covid-19 repercussions faced by the world markets proved that strong entities are most resilient in facing crises. Accordingly, NIC has demonstrated that is able to face any crisis relying on its solid financial position.
Al-Ameeri added that NIC has maintained its stability and made every effort to preserve its achievements during repercussions of Covid-19 pandemic and its impact on the local and global economies during 2020. This reflects the success of the strategy adopted by the Board of Directors, and implemented by an experienced executive team.
Assets and Returns
Al-Ameeri revealed the Company’s financial results for the year ended 2020, where the Company made a loss of KD 2.658 million, or 3 fils per share in the fiscal year ended 31 December 2020, as the Company made profits through the statement of income amounted to KD 5.239 million in Q4 2020. Based on these results, the Board of Directors recommended to the General Assembly a cash dividend distribution of 11 fils per share, which is the highest in the past 10 years. This reflects the Company’s solid financial position and the cash abundance that the Company has always maintained in the face of market fluctuations and capturing investment opportunities.
Al-Ameeri also highlighted the total shareholders’ equity of the Parent Company, which amounted to KD 174.982 million, after distributing cash dividends to shareholders for the year 2019 of 9 fils, at a value approximating KD 7.2 million.
The total revenues reached KD 8.995 million, while the total expenses and precautionary provisions recorded KD 11.233 million.
Al-Ameeri praised the tireless efforts made by the Company’s team and its continued support for the “National Investments Company” journey, which helped to made the successes and achievements seen today during this hard time and under the pandemic repercussions that hit all sectors, stressing at the same time to move forward towards exerting further effort to preserve the Company’s gains, hoping to achieve more progress and excellence in the coming days.
Al-Ameeri said that the file of Boursa upgrade and accession to the MSCI Emerging Markets Index has also been affected by Covid-19 crisis where MSCI Company postponed the Boursa Kuwait listing date to November instead of May, due to the repercussions of the pandemic and its impact on the ability of global investors.
Al-Ameeri noted that the exceptional achievements recently made by the Boursa Kuwait call for highlighting first, the decision of “FTSE Russell” to upgrade the Boursa to its emerging markets index in the second half of 2017, then a second upgrade through Standard and Poor’s Dow Jones in December 2018, and last but not least the third upgrade in the “MSCI Index”, which took place on November 30, 2020, in which the Boursa attracted foreign inflows of about USD 2.9 billion.
Success of the Management
In a related context, Mr. Fahd Al-Mukhaizim, the Chief Executive Officer at NIC said that the achieved good results and financial stability experienced by NIC is the fruit of the efforts made by its skilled team, affirming that NIC always relies on developing multiple perceptions and plans, to remain fully prepared to deal with any changes that may occur in the region’s markets to ensure the stability and balance of the Company’s performance.
Al-Mukhaizim said that the excellent performance of the Company’s funds in 2020 reflects the success of the Executive Management in adopting effective and sustainable strategies able to apply rigorous and accurate business techniques and practices, capture investment opportunities with growth potential and achieve excellent financial returns, referring to their superior performance against other funds in the market. MENA Quoted Sector managed to maintain its leading position through its outstanding performance in 2020. Mawarid Industrial and Petroleum Services Fund which invests in Shari’ah compliant local and Arab equities achieved a return of 3.93%. Zajil Services and Telecommunications Fund which invests in Shari’ah compliant local and Arab equities also achieved a return of 10.10%. Al Mada Investment Fund which invests in Shari’ah compliant GCC equities achieved a return of 4.52%.
Al-Mukhaizim emphasized that the outstanding performance of the Company’s investment funds in 2020 reflects the success of the Executive Management in adopting effective and sustainable strategies able to apply rigorous and accurate business techniques and practices, capture investment opportunities with growth potential and achieve excellent financial returns, highlighting their outperformance to other funds in the market.
Regarding the Advisory Services Department at NIC, Al-Mukhaizim said that this Department possesses excellent know-how and experience in identifying the sources of major transactions, negotiating and implementing them in the local and regional markets.
Al-Mukhaizim pointed out the Advisory Team provided market-leading performance. The Department has successfully invested in three Venture Capital Funds (one regional and two international), a trust fund managed by Goldman Sachs & Company, and another fund that invests in infrastructure. The Department has also implemented Real Estate Investment Trusts (REITs) Program, which achieved a return of 42.3%. The portfolio consists of 7 US, 4 EU and 3 UK funds carefully selected from the original list of more than 350 REITs stocks. Despite the unforeseen market conditions in 2020, the Department managed to exit two legacy investments of the portfolio through swap transactions.
The Advisory Team also provided a market-leading performance. It acted as a sales advisor to the owners of a major food company with the aim of selling the company to another GCC leading food and beverage company. The Advisory Team also succeeded in listing the Boursa Kuwait Securities Company on the Boursa, making it one of the best listings in terms of performance in the past five years. It also acted as a buying advisory for the Boursa Kuwait, supporting its acquisition of a majority stake in Kuwait Clearing Company (KMC). It also acted as the acquisition manager of the mandatory acquisition proposal of Kuwait & Middle East Financial Investment Company (KMEFIC). Moreover, the Advisory Team provided advisory services on the evaluation and strategy for two leading technology companies. Nevertheless, the Advisory Team participated in the provision of pre-IPO consultancy to a family group, and completed the restructuring of a consumer services company.
Al-Mukhaizim added that NIC has been qualified as a Market Maker and aims to provide liquidity and to create high turnover rates, adding that in line with the Company’s decision to provide the Market Maker service at the Boursa Kuwait, the IT and E-Trading Sector in coordination with other sectors at the Company, has provided one of the best trading platforms for the Market Maker, and the project was successfully implemented and its suitability to work in the Company is ensured.
Al-Mukhaizim affirmed that the performance of the Real Estate Investment Sector was positive despite the economic crisis, pointing to the restructuring of the Real Estate Investment Sector to improve its performance in terms of strengthening the team with an elite of competencies working in the real estate sector. The Company has taken certain concrete measures to reduce expenses, and at the same time it granted discounts to support tenants in some buildings in order to back them during the economic crisis.
He pointed out the development of business procedures and intensification of marketing efforts for units. In the light of these efforts, the volume of the real estate portfolios managed for third parties increased by 24% and expenses decreased by 17%.
National Investments Company won 6 global awards in 2020 thanks to the fruitful efforts which contributed to its continuous achievements and success during 2020, including the “Best Investment Company Kuwait 2020”award from Global Business Outlook, “Best Gulf Investor Relations Company 2020”, the “Fastest Growing Investment Company Award” in Kuwait and “World’s 100 Best Classification Award For Real Estate Management” from Global Banking & Finance Awards, “Best Asset Manager Company” in Kuwait for the Year 2019 from MENA Fund Performance Awards 2020 and “Best CSR Initiatives Towards COVID-19 Award” from the Global Economics 2020
At the end of the meeting, the Chairman of National Investments Company, Mr. Hamad Al-Ameeri extended sincere thanks and appreciation to the members of the Board of Directors, the Executive Management and all staff of the Company for their continuous efforts to achieve this excellent performance and positive growth that is always in line with the Company’s strategic plan.
Al-Ameeri also expressed his wishes asking Allah almighty to safeguard Kuwait and its people from all evil and harm, and to raise this scourge from Kuwait and the whole world.