Global Investment House KSCC : Reports KWD2.8 million net Profit in First Half 2015

Global Investment House today announced its financial results for the first half ended 30 June 2015. During H1 2015 the Company recorded a net profit of KWD2.8 million (USD9.2 million) and fee revenues of KWD6.8 million (USD22.5 million) reflecting a 2.6% growth over the first half ended 30 June 2014.

During H1 2015, The Asset Management business remained resilient with KD1.2 billion (US$4 billion) of assets under management. Several funds managed by Global outperformed their respective indices and peers. Global GCC Islamic Fund achieved 8.6% compared with the index 3%, Global GCC Large Cap Fund Achieved 8.6% compared with the index 1.3%. In addition Global Saudi Equity Fund 15.2% compared with the index 9%, and Global Saudi Equity Fund (AlNoor Fund) Sharia Compliant achieved 16.3% compared with the index 8.6%.

Global Buyout Fund, one of the five private equity funds managed by Global's Alternatives Asset Management team has distributed USD15 million to its investors. This is the second distribution from the fund this year after distributing USD4 million at the beginning of 2015. With this distribution, the total amount distributed by the Global's Private Equity Funds exceeds USD473 million since inception.

Special Situations Asset Management offers tailored asset management solutions to clients seeking value enhancement and optimal realization of portfolios that are considered non-core and difficult to manage. It covers a spectrum of assets including listed and private equities, alternative investments, among others, across the MENA region.

Special Situations Asset Management team has signed a portfolio management agreement with one of the Kuwaiti client to manage its portfolio of special situation assets worth USD40mn.

The portfolio consists of diversified assets that are considered non-core to the client. Global's role is to manage these assets, enhance their value and ensure optimal realization proceeds.

Investment Banking team signed several mandates with Local and regional companies to provide them with financial advisory services and debt restructuring.

On the brokerage front Global made focused efforts to grow the institutional brokerage business leading to gains in Kuwait market share.

Global has a healthy capital structure, conservatively deployed primarily in liquid and operating assets with no external debt and a capital base of KWD86.7 million (USD286.7 million).

Maha Al-Ghunaim, Vice Chairman & Group CEO said, "We are currently operating in extremely uncertain, volatile and challenging times. Uncertainties stemming from slowing Chinese growth and sharp equity market downfall, Greek crisis and looming US interest rate hike have adversely impacted emerging market equities and currency. Closer to home low oil prices and geo-political uncertainties continue to keep regional equity markets in stress. We are pleased that despite these challenges we continue to retain our profitability momentum and growth in fee business".