View more on these topics

IFAs see long-term opportunities in the Gulf, says research

Investment intermediaries see long-term opportunities in the Gulf region according to new research from Lyxor Asset Management.

This trend emerges as Lyxor, Société Générale’s wholly-owned subsidiary, launches the first ETF to focus on the region in partnership with Kuwait-based Coast Investment & Development Company.

The IFA research of 100 investment intermediaries conducted by George Street Research reveals a positive long-term outlook towards the Gulf region and Kuwait and Dubai in particular.

Thirty six per cent of intermediaries believe that stock market returns in Kuwait will be excellent or good in the short-term. This rises to 39 per cent in the medium-term and 40 per cent in the long-term.

Over the next five years, 5 per cent of intermediaries interviewed expect stock market returns from the Gulf region to be poor and 45 per cent expect them to be good or excellent.

Kuwait and Dubai are seen as offering the most attractive investment opportunities of all the main countries in the Gulf region, excluding Saudi Arabia.

The new Lyxor ETF Kuwait launched today offers investors access to the Kuwait market through one single share traded on the London Stock Exchange.

Linked to the FTSE Coast Kuwait 40 Index with 32 per cent weighted on banking, 22 per cent on IT and telecoms and 17 per cent on investments, the index has returned 30.71 per cent since its inception in February 2007.
Lyxor ETF global head Daniel Draper says: “We are seeing a growing interest from our clients for investment opportunities in the Gulf region.”

Coast Corporate Finance and Investment Services Group vice president Sulaiman T. Al-Abduljader adds: “While performance has been strong, up 600 per cent since 2000, the fundamental and economic indicators reveal strong potential for growth in the near and medium time horizons for investors. Empirical analysis also shows the diversification benefits the Kuwaiti market provides to a global equity portfolio making the ETF an attractive proposition for international and local investors.

Recommended

Goodfellow to leave Skipton

Skipton Building Society chief executive John Goodfellow is to leave at the end of the year. Group corporate development director David Cutter will become chief executive.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com