NBK launches first Money Market Fund in local currency
The National Bank of Kuwait (NBK) recently launched its first mutual fund denominated in Kuwaiti Dinars. The facility is open-ended with the initial subscription period starting May 12 and ending May 30. During this period, the initial share price will be one Kuwaiti dinar.
The Fund is a low risk vehicle and is suitable for investors with a short-term investment horizon who are seeking to increase their interest earnings with minimal risk. The minimum investment amount is KD 25,000 with additional amounts in multiples of KD 1,000. Investors will be able to subscribe into or redeem from the fund on a weekly basis at the prevailing net asset value.
The objective of the facility is to generate returns in excess of fixed deposit rates in the local currency. By investing in the Fund, clients can benefit from investments in high-quality, interest bearing securities and have easy access to their money.
According to NBK General Manager of the Investment Banking Group, George Nasra, the Fund will generate its returns by investing in a diversified portfolio of high quality local government treasury bills and bonds, corporate bonds, fixed deposits, commercial paper, certificate of deposit (CD's) and repurchase agreements. The same team at NBK that manages the banks balance sheet will tightly control the risk profile of the Fund.
NBK is the largest and oldest indigenous bank in Kuwait and the Arabian Peninsula. Established in 1952 with a capital of one million Kuwaiti dinars ($3.2 million), NBK currently has a market capitalization of about five billion dollars. NBK also enjoys the highest financial strength rating among all Arab as well as emerging market banks from international rating agencies including Moody's, Standard & Poors and Fitch. — (menareport.com)
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