National Bank of Kuwait (NBK), the largest financial institution in Kuwait, has launched its first foreign currency fund, the Watani Foreign Currency Money Market Fund, that compliments its existing Fund in Kuwaiti Dinar.
This low-risk investment vehicle is designed to meet the needs of investors with a short-term investment horizon who are seeking to preserve their capital and earn interest at the same time, George Nasra, NBK’s general manager of Investment Banking, Asset Management and Treasury Group, said.
The fund is highly flexible and offers investors two Classes of Shares, in US Dollars and in Euros, and is open for subscription and redemption on a weekly basis, according to a bank press release.
Nasra added that the objective of the fund is to generate returns in excess of the fixed deposit rates paid on the respective currency. This is achieved through a carefully selected portfolio of high quality money market and debt instruments such as government treasury bills and bonds, corporate bonds and certificate of deposit.
The portfolio will be constructed to minimize interest rate and credit risk. The Watani Foreign Currency Money Market Fund has a weekly liquidity giving investors the flexibility to access their capital if required, he concluded.
The Fund is open during the initial subscription period, which starts from September 22 until October 10, 2002, and thereafter on a weekly basis. During this period, the initial share price will be one dollar for the US Dollar Class and one Euro for the Euro Class, after which investors can subscribe or redeem the Fund at current market value.
The minimum investment amount is $25,000 with additional amounts in multiples of $1,000 for the US Dollar Class and Euro 25,000 with additional amounts in multiples of Euro 1,000 for the Euro Class. — (menareport.com)
© 2002 Mena Report (www.menareport.com )