Capital Bank’s Investment Banking division was set up since the inception of Capital Bank in 1995, in line with the Bank’s mission to provide comprehensive banking services to its clients. The Investment Banking arm of Capital Bank, whose primary business activities include corporate finance, asset management, securities brokerage, and research, was spun off into Capital Investment & Brokerage/Jordan Ltd. Co. (“Capital Investments”, or the “Company”) in June 2006 – a wholly owned subsidiary of Capital Bank with a paid-up capital of JD 10 million (USD 14 million).
Through the Jordan Securities Commission (JSC), Capital Investments is a licensed broker on the Amman Stock Exchange (ASE), which is an affiliate member of the WFOE (World Federation of Exchanges). In addition, the ASE is an affiliate member of IOSCO (International Organization of Securities Commissions) and an affiliate member of the FEASE (Federation of European & Asian Stock Exchanges); both organizations seek to promote cooperation and coordination between different exchanges across borders.
The Securities Brokerage division of Capital Investments focuses on brokerage and custodial services for the Company’s corporate clients, high net-worth individuals and private clients. The local brokerage unit quickly became a leader in the Jordanian capital market, with the brokerage consistently maintaining one of the highest market shares. The international brokerage unit also provides clients with access to international stocks and options trading. Following the demand for investments in regional capital markets, Capital Investments set up a regional brokerage unit which has seen an increasing activity since the second half of 2004.
To complement Capital Investments’ Securities Brokerage, an Asset Management unit was set up to provide clients with tailor-made investment portfolios based on their individual needs and risk exposures. The Asset Management unit became fully operational during 2003.
The Company has deep-rooted ties with major players in the GCC area and is increasingly seeking business opportunities in the neighboring Arab countries, as the knowledge and expertise acquired in Jordan in the fields of trade and project finance, and investment banking services becomes much sought after in the years ahead in various countries of the region.
Capital Investments launched an open-ended fund registered in Jordan, Horizon Fund, on March 1, 2005. The Fund aims to achieve a long-term appreciation of its Net Assets Value (NAV) through maximizing the market value of its investments in various asset classes on a local, regional and global basis while minimizing investment risk through diversification. Horizon’s rate of return since inception through to December 31, 2007 stood at 30.47%% with a size of JD 4.45 million.
