1. What is the nature of NBK Kuwait Equity Fund?
The Fund will seek long-term capital appreciation by investing primarily in Kuwaiti domiciled, listed equities. From time-to-time, and not ordinarily exceeding 20% of the NAV of the Fund, the Investment Manager may choose to invest in non-Kuwaiti stocks that he deems to have significant exposure to the Kuwaiti economy. To help measure the success of the Fund, its performance will be measured against the MSCI Kuwait Index.
2. What is the minimum amount that can be invested in the Fund? Is there a maximum amount?
The minimum amount one can invest is KD1,000 with subsequent investments in multiples of KD1,000. The number of units held by any one subscriber shall not exceed 50% of the Fund's capital.
3. How does one invest in the Fund?
Any person, establishment, or company can invest by filling out and submitting a Subscription Form available at any NBK branch in Kuwait. Units may be subscribed on each Valuation Day, subject to the condition that the Distributor should have received the Subscription Form, on Monday prior to the relevant Valuation Day. The number of units owned by the investor is determined by dividing the total amount invested by the unit price the day the subscription is executed. The investor will also receive a share certificate that includes the amount invested, price per unit and total number of units owned.
4. How does one redeem units or take money out of this Fund?
First, the investor should look at this investment as a long-term investment (for 3 years or more) so that they can reap the benefit of appreciation in the unit price and realize a good return. However, it is possible for investors to redeem units totally or partially on a weekly basis by filling out and submitting a Redemption Form available at any NBK branch in Kuwait. Units may be redeemed on each Valuation Day, subject to the condition that the Distributor should have received the Redemption Form on Monday prior to the relevant Valuation Day. The amount shall be remitted to the customer usually after five business days following the Valuation Day. Partial redemption must ensure that at least KD1,000 remains in the Fund.
5. Will profits be distributed to the Fund’s investors at the end of each year?
After the issuance of semi-annual and annual financial statements, the Fund Manager shall, as deemed appropriate for the benefit of the Fund and its Unit holders, determine the profits to be distributed, as dividends, to the investment units. The distribution, date and value shall be announced in at least two Arabic local newspapers. The Fund Manager, at his sole discretion, may choose to pay partial or no dividends to the Unit holders and any profit/revenue from underlying securities will be reinvested on behalf of the Unit holders.
6. Since such an investment requires expertise and effective management, who is making the investment decisions?
Watani Investment Company K.S.C. (c) (NBK Capital) is the Investment Manager and will oversee the investments of the Fund. More specifically, NBK Capital is responsible for monitoring the portfolio structure and investment performance (both actual and relative to Benchmarks). It is also responsible for setting out, reviewing and, as necessary, amending the investment guidelines, in accordance with the Fund’s investment objective and strategy, as well as monitoring the regional economic and stock market environments and, in particular, the prospects for the Kuwait equity market.
7. Is it possible to invest on behalf of minors?
Yes.
8. Is NBK Kuwait Equity Fund available only to NBK customers, or open to all?
The Fund is open to all investors, Kuwaitis and residents, whether they are NBK customers or not. However an NBK account must be opened to settle fund transactions. One can obtain brochures and other informational materials from any NBK branch.
9. How can I obtain information on the Fund's performance?
Information regarding the Fund's performance and NAV's will be available on a monthly basis at NBK's website (www.nbk.com) under the Investment center. Quarterly performance reports will be sent to investors.
