Fund Manager: First Investment Company (K.S.C.) closed
Distributed by: Burgan Bank (S.A.K.)
Custodian: Al-Shall Economic Consultants
Auditors: Ernst & Young
Supervisory Authority: Al Sarraf & Al Ruwayeh
Islamic Money Market Fund|
Unit Nominal Value:
Fund Start Date:
Net Asset Value:
Investment Manager Fee:
KWD 5 million to KWD 50 million, denominated into nominal units
April 03, 2001
10 years open ended, renewable subject to majority approval
Up to 0.5% on amounts equivalent to KD 100,000 or more which
are invested for less than 30 days and without prior notice of
the investment period.
Calculated on a weekly basis
Fund’s Manager, based on their discretion, may distribute some
of the profits after the end of financial year
1.00% of NAV per annum, payable monthly
0.5% of NAV per annum, payable monthly by the Manager
0.125% of NAV per annum, payable quarterly up to the first
KWD 10,000,000 of capital (see prospectus.)
The Fund aims to achieve returns competitive to conventional money market instruments of short and medium term available in the Kuwaiti market by investing in Shari' a compliant financial instruments.
The Fund’s assets will be invested in accordance with the terms and guidelines of this Prospectus, the Articles of Association and the Shari’s Supervisory Committee of the Fund, in all financial instruments including Shari’s compliant debt instruments (Sukook) issued or guaranteed by government institutions, banks, financial institutions and companies; bank deposit certificates and other types of cash instruments; through participation in private and public placements and other investment funds of similar objectives; which are available in the Kuwaiti and International markets, denominated in Kuwaiti Dinar or any other foreign currency and that the Fund Manager and the Investment Manager consider appropriate and fulfill the objectives of the Fund in terms of liquidity and suitable return to participants in the Fund.
Investments must comply with the Shari' a guidelines as set out by the Shari' a Supervisory Committee, and are subject to their review periodically.
Fund’s investments shall be denominated in Kuwaiti Dinar.
Weighted average maturity of the Fund’s assets shall not exceed one year. If it exceeds one year due to redemptions of units or any other reason, the Manager shall avoid any new investment whose maturity exceed three months until the remaining weighted average maturity of the Fund’s portfolio decreases to one year or less.
The remaining maturity of any of the Fund’s assets shall not exceed five years, and the total transactions with floating return shall not be less than fifty percent (50%) of the total transactions with remaining maturity exceeding one year.
The Fund shall take direct risks of government and semi-government institutions and public shareholding companies with sound financial worthiness based on the Manager’s evaluation, and the Fund is eligible to obtain guarantees from institutions with strong financial worthiness based on the Manager’s evaluation.
Fund diversify risks as follows:
Government and semi-government institutions in Kuwait shall have no maximum limit.
Any one bank licensed in Kuwait shall not exceed thirty percent (30%) of the net assets of the Fund.
All other institutions shall not exceed four million Dinar (KWD 4,000,000) or twenty percent (20%) of the Fund’s net assets.
The Fund is prohibited from performing direct financing to any party; engage in short selling; engage in providing personal financing to individuals or financing consumer loans; financing by means of margin or financing for purchase of shares; give or issue financial guarantees or any underwriting; or pledge the Fund’s assets against loans or borrow unless it is “Ghard Hassan” that shall not exceed ten percent (10%) of the Fund’s net assets and for maturities not
exceeding ten (10) working days.