tag:blogger.com,1999:blog-5124857623766724513.post6540967003765121786..comments2024-01-13T08:27:40.266+00:00Comments on Suq Al Mal: Aayan Leasing and Investment - 1Q10 Loss of KD7.8 MillionAbu 'Arqalahttp://www.blogger.com/profile/01296250358695456059noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-5124857623766724513.post-3635806873653076542010-09-10T17:32:52.694+01:002010-09-10T17:32:52.694+01:00Joe
Sorry for the delay in responding. Had a tec...Joe<br /><br />Sorry for the delay in responding. Had a technical problem with email notices of comments, which I just "fixed" today and saw your comment.<br /><br />Your question really turns on legal issues.<br /><br />Those are most appropriately answered by legal counsel.<br /><br />The relevant legal questions are:<br /><br />(a) Where is the fund incorporated?<br /><br />(b) Where are the assets?<br /><br />(c) In whose name are the assets registered? The Fund's? Or ALI's?<br /><br />(d) If the Fund's, was the fund set up under a trust? Does the law of (a) and (b) establish and protect trust arrangements?<br /><br />(e) Has there been any pledge of fund assets to third parties? There was the case of a "major" some might even say a "global" investment firm in Kuwait which took a deposit from an IPO and placed it in its own name with a lender to it. When that prestigious firm got in trouble, the lender offset the deposit against the loan it had made the investment firm. The investors in the fund were left sucking wind, though I think the investment firm offloaded some duff assets on them in compensation. <br /><br />Sadly, one sometimes finds in Kuwait (as in other countries) that business ethics are lacking. It does pay to only deal with reputable parties. <br /><br />Is the prospectus for the fund published on the internet? Or if you have a soft copy, drop me an email using the contact form and we can arrange a way for you to send it to me.Abu 'Arqalahttps://www.blogger.com/profile/01296250358695456059noreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-73669051336191859402010-09-02T16:16:45.007+01:002010-09-02T16:16:45.007+01:00Abu 'Arqala,
I have invested back in 2008 wit...Abu 'Arqala,<br /><br />I have invested back in 2008 with their "Makaseb Real Estate Fund", since they have been extremely slow at refunding the fund's shareholders as I have only received about 25% of my requests for withdrawal.<br /><br />Would you think that there is a risk for the fund to be completely lost in case Aayan's situation gets worse?<br /><br />At one point, one of the Aayan guys told me that even if Aayan the company is bankrupt the fund would be independent; how true is that?<br /><br />Below are the NAV's<br /><br />Jun-08: 1.188<br />Sep-08: 1.179<br />Dec-08: 0.906<br />Mar-09: 0.892<br />Jun-09: 0.848<br />Sep-09: 0.840<br />Dec-09: 0.818<br />Mar-10: 0.818<br />Jun-10: Still to be publishedJoenoreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-63838230355748794182010-09-01T17:57:51.998+01:002010-09-01T17:57:51.998+01:00Joe
Theoretically yes.
Though if I'm not mis...Joe<br /><br />Theoretically yes.<br /><br />Though if I'm not mistaken (and sometimes I am), not a single listed company has entered bankruptcy in Kuwait in the past several years.<br />Many a zombie roams the trading floor of the KSE.<br /><br />Perhaps, more pertinent a question is whether it's a good idea to do business with them.<br /><br />A zombie might not die but its employees might (be sacked to cut costs). And it might take a devil of a time getting back funds one has entrusted to it (considering both the time to retrieve and the amount retrieved).Abu 'Arqalahttps://www.blogger.com/profile/01296250358695456059noreply@blogger.comtag:blogger.com,1999:blog-5124857623766724513.post-6932958362810213292010-09-01T12:35:48.353+01:002010-09-01T12:35:48.353+01:00Is Aayan under danger of bankruptcy?Is Aayan under danger of bankruptcy?Joenoreply@blogger.com