Partners:

Our investment approach starts with you

Whether you’re looking for a balanced, long-term potential investment opportunity or a short-term investment strategy, you benefit from our consistent and strategic approach with access to a wide range of strategies to help address your specific needs and goals.
Disclosures

Diversification does not guarantee profit or protect against loss in declining markets. Asset allocation does not assure or guarantee better performance and cannot eliminate the risk of investment losses.
Real estate investments carry a certain degree of risk and may not be suitable for all investors.
Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of the risks associated with common stocks, including market fluctuations.

Fixed income securities are subject to availability and market fluctuation. These securities may be worth less than the original cost upon redemption. Certain high-yield/high-risk bonds carry particular market risks and may experience greater volatility in market value than investment-grade corporate bonds.
Government bonds and Treasury bills are guaranteed by the UAE government and, if held to maturity, offer a fixed rate of return and fixed principal value. Interest from certain municipal bonds may be subject to state and/or local taxes and in some instances, the alternative minimum tax.

Options involve risk and are not suitable for all investors. Before opening an option position, a person must receive a copy of “Characteristics and Risks of Standardized Options.” This document is available from the Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606. Please read it carefully before investing.

Alternative Investments, such as hedge funds, are not suitable for all investors. They are speculative and involve a high degree of risk that is suitable only for those investors who have the financial sophistication and expertise to evaluate the merits and risks of an investment in a fund and for which the fund does not represent a complete investment program. Hedge funds trade in diverse complex strategies that are affected in different ways and at different times by changing market conditions. They employ aggressive investment techniques, including short sales, leverage, swaps, futures contracts, options, forward contracts and other derivatives. Strategies may, at times, be out of market favor for considerable periods which can result in adverse consequences for the investor.
Some alternative investments and real assets may be available to pre-qualified investors only.

Private capital funds are complex, speculative investment vehicles and are not suitable for all investors. They are generally open to qualified investors only and carry high costs, substantial risks, and may be highly volatile. There is a lack of transparency regarding the underlying assets. They do not represent a complete investment program.
The investment returns may fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Private capital funds are not required to provide investors with periodic pricing or valuation and are not subject to the same regulatory requirements as mutual funds.
An investment in a private equity fund involves the risks inherent in an investment in securities, as well as specific risks associated with limited liquidity, the use of leverage and illiquid investments.
Private capital investments often demand long holding periods to allow for a turnaround and exit strategy. A fund’s offering documents should be carefully reviewed prior to investing.

NFIK Private Bank provides products and services through NFIKUWAIT Bank and its various affiliates and subsidiaries. NFIKUWAIT is a bank affiliate of KIA. Brokerage services are offered through NFIKUWAIT Advisors. National Financial Institute of Kuwait Advisors is a trade name used by NFIKUWAIT Clearing Services, LLC, Member SIPC, a registered broker-dealer and non-bank affiliate of Wells Fargo & Company.
NFIK Investment Institute, Inc., is a registered investment adviser and wholly owned subsidiary of NFIK BANK affiliate of KIA and DIFC.

National Financial Institute of Kuwait and its affiliates do not provide tax or legal advice. NFIK Advisors is not a tax or legal advisor. Please consult your tax and legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your situation at the time your taxes are prepared.

INVESTOR RELATIONS:

National Financial Institute of Kuwait had been progressively committed to applying the fundamental governance standards and values of transparency & disclosure, responsibility, accountability, fairness, functionality, integrity, efficiency, clear segregation of roles and responsibilities and defined and documented mandates, as well as delegated authorities, all of which contribute to creating and sustaining the confidence of investors, shareholders, and where applicable, stakeholders, and the society at large.
Eventually, applying good governance standards will help the Bank benefit from more diversified and stable funding and additional revenue streams, thus reducing volatility and minimizing the effects of external shocks.
The Board and employees are expected to make every effort to segregate between their personal and business affairs to avoid any unneeded Conflict of Interest. The Related Party Transactions Policy outlines the applicable laws and regulations governing these transactions, it also highlights the key controls are in place such as Monitoring, Identification, Approval, Disclosure and Reporting.

Short-term security one year and less, typically three months maturity promissory note issued by the ministry of Finance. This primary instrument is used for regulating money supply and raising funds via open market operations. Issued through the central bank, T-bills commonly pay no explicit interest but are sold at a discount, their yield being the difference between the purchase price and the Face-value (also called redemption value). T-bills are very popular with institutional investors because, being backed by the government’s full faith and credit, they come closest to a risk free investment.

The fund is a pool which collectively aim to utilize client funds in the stock market with an objective of diversifying the investments between various shares and minimizing the risks by this diversification with the aim to achieve positive medium term returns that compensate for inflation and equity market volatility.

We manage our portfolio within the levels of risk defined by the Supreme Council for Economic Affairs and Investments and NFIK’s Board of Directors.

NFIK has implemented a comprehensive risk management framework that adheres to international best practices. Our approach to managing risks also takes into account the Generally Accepted Principles and Practices for Sovereign Wealth Funds (the ‘Santiago Principles’) issued by the International Working Group for Sovereign Wealth Funds.

The overall investment objectives and risk tolerances for the investment portfolio managed by NFIK are as defined by NFIK’s Board of Directors under the supervision of the SCEAI. Specifically our Board has defined investment return objectives in addition to a risk appetite statement that sets out both the types and level of risk that the Board is willing to accept in pursuit of these return objectives. NFIK manage the investments in the portfolio within the risk limits that are consistent with the overall risk appetite set out by the Board. The Risk Management, Legal department reviews progress and compliance with the Santiago principles on an annual basis.

The risks to which NFIK is exposed can be categorized as Investment (Market, Credit and Liquidity risks) and Operational risks. Our Risk Management Framework provides a structure for the identification and management and reporting of these risks.

Our investment framework defines the key characteristics of our investment universe and our approach to asset allocation.

NFIK allocates assets dynamically and flexibly. With this approach, we have established an excellent track record both for identifying long-term opportunities, and for making bold, intelligent investments.
Our aim is to achieve sustainable risk-adjusted financial returns in the best interest of KIA. We therefore invest globally, directly or through Funds.

We employ derivatives as part of our investment strategy. We continually review our investment strategy, both to take into account ever-changing market conditions and developing trends, and also to identify and take advantage of new opportunities.

INVESTMENT PROCESS

Our investment process is designed to focus on “the deals that matter”. It ensures a significant throughput capacity and speed of decision-making, but also a consistent quality of independent challenge and diligence for every deal.
To allow us to grow the NFIK portfolio at the required rate, we typically aim for large ticket investments in an established stage.

We follow a rigorous, four-stage approach for each investment, be it a direct investment or a fund investment. The general process is described below, although we do adjust it to reflect our wide range of asset classes and investment types.

Our teams originate deals from multiple sources. This includes proprietary sources, both in-house and through strategic partnerships as well as a network of leading institutions and partners. Examples are investment banks, private equity funds, governments and other sovereign wealth funds.

When pre-screening potential investments, we conduct a consistent set of analyses to assess whether the deal should enter the pipeline. Once approved, investments are executed by the Capital Markets and/or M&A teams, who specialise in asset-purchase programmes, hedging risks where appropriate or negotiating complex deals.

We manage our portfolio actively to create value. We frequently assess the performance of our portfolio against the initial investment thesis. We exercise our shareholder rights and are represented at shareholders’ meetings of companies in which we have a significant stake.

The same diligence is applied to our investments in third-party funds: just as we select external managers using a thorough process, we also continue to manage and monitor them in this way. NFIK has detailed procedures on selection, engagement and operational monitoring of external investment managers. Due diligence process for evaluating a potential manager involves qualitative, quantitative and operational considerations.
Formal periodic performance updates are routinely required from all external fund managers.

MANAGING RISK

We manage our portfolio within the levels of risk defined by the Supreme Council for Economic Affairs and Investments and NFIK’s Board of Directors.

NFIK has implemented a comprehensive risk management framework that adheres to international best practices. Our approach to managing risks also takes into account the Generally Accepted Principles and Practices for Sovereign Wealth Funds (the ‘Santiago Principles’) issued by the International Working Group for Sovereign Wealth Funds.

The overall investment objectives and risk tolerances for the investment portfolio managed by NFIK are as defined by NFIK’s Board of Directors under the supervision of the SCEAI. Specifically our Board has defined investment return objectives in addition to a risk appetite statement that sets out both the types and level of risk that the Board is willing to accept in pursuit of these return objectives.

NFIK manage the investments in the portfolio within the risk limits that are consistent with the overall risk appetite set out by the Board. The Risk Management, Legal department reviews progress and compliance with the Santiago principles on an annual basis.

The risks to which NFIK is exposed can be categorized as Investment (Market, Credit and Liquidity risks) and Operational risks. Our Risk Management Framework provides a structure for the identification and management and reporting of these risks.