KUWAIT CITY, March 20: KIPCO Asset Management Company (KAMCO) has announced its financial results for the full year ending Dec 31, 2009 with Net Profit coming in at KD 6.1 million, representing a significant increase of 453 percent over the net profit of KD 1.11 million reported during FY 2008; Earning per share surged to 24.1 fils, up from 4.3 fils for FY-08.
Total shareholders’ equity dropped 6.1 percent during 2009 to reach KD 87.4 million as of December 2009. Core profitability ratios of the Company have improved significantly during the year; Return on Equity (ROE) improved from 1.3 percent for 2008 to 7 percent for FY-09, while Return on Assets (ROA) increased to 3.72 percent up from 0.62 percent over the same period.
Total assets witnessed a drop of 8.3 percent to reach KD 165.1 million as of Dec-09, down from KD 180.1 million reported at the end of December 2008. On the other hand, Assets under Management stood at KD 2,191,593,176 billion, reflecting a decrease of 16 percent from its level recorded at the end of 2008.
On this note, KAMCO’s Chairman Masaud M. Hayat expressed his delight at the announcement of the year’s positive financial results. “It pleases me to announce KAMCO’s financial strength which was supported by positive results throughout 2009. The results for the fourth quarter of 2009 highlight the popularity and success of our products and services in the market, as well as the trust our clients continue to place in us.
All throughout the previous year, our team of professionals has done their best to provide the best investment services to our clients. 
Vision
The high standards of our employees, compiled with a calculated vision, have allowed KAMCO to emerge as one of the few companies to have realized a profit all throughout the year. Moreover, our strong levels of liquidity helped alleviate the weight of debt on the company. In addition, our client base increased by 4 percent.”
Hayat further added, “The main drivers behind these results were the diversification of the sources of income, risk management, responding to our clients’ needs, and increasing the range of investment activities by providing a wide range of new products and services. What’s more, the performance of our funds has also played a big role in achieving such good results for 2009. In fact, our Bond and High Yield Fund was nominated by two prominent financial institutions as the best fixed income fund. Also, KAMCO was the only investment company from Kuwait to be nominated as the ‘Best Asset Management House’ by Banker Middle East in 2009.
The next phase shall be filled with challenges which shall encourage the investment sector in Kuwait to develop its investment products and services, especially in the turbulent times we live in. The strategy for 2010 will see KAMCO maintain its conservative strategy, which strikes a balance between risk and opportunity. 2010 will also be an exciting year for us with the launch of 5 new funds both locally and regionally. In addition, we will increase our  exposure to the GCC Equity markets which have started the recovery phase and are trading at attractive multiples, as well as focus more on the Capital Markets of India and China.”
Initiate
KAMCO has been able to initiate tangible and successful products in 2009. Among these is the maturity extension of 2 years of KD 20 million worth of bonds. Further to this, the company took advantage of credit facilities from local banks. In addition, the company managed to pay back a USD 25 million loan. Furthermore, in July, KAMCO was chosen as the sole acquisition advisor for KIPCO’s KD 100 million acquisition program which seeks to turn around Kuwaiti private sector companies. This will improve the levels of the company’s assets, which will come about with the recovery in the local, regional and international financial markets.
Established in 1998, KAMCO is a premier asset management, investment banking and financial services company based in Kuwait. A subsidiary of United Gulf Bank (UGB) - the investment banking subsidiary of Kuwait Projects (Holding) Company (KIPCO) - KAMCO was listed on the Kuwait Stock Exchange (KSE) in 2003.
KAMCO’s Asset Management Division specializes in customized portfolio management, forward trading, access to IPOs, and local and international fund management supported by its superlative Investment Advisory and Investment Research business verticals. The Company’s Financial Services Division offers a full range of advisory services on mergers and acquisitions (M&As), underwriting, private placements, debt issuance and restructuring, and private equity management.
In 2010, the Company will further aggressively build upon its core competencies to offer MENA-wide investment management consultancy and services, backed by its proven track-record in stringent risk mitigation, investment product innovation, and a cautious investment approach towards local, regional and international capital markets.