1. What is the nature of NBK Qatar Equity Fund?
The Fund will seek long-term capital appreciation by investing primarily in Qatari-domiciled, listed equities. From time to time, and not ordinarily exceeding 20% of the NAV of the Fund, investment manager may choose to invest in non-Qatari stocks that he deems to have significant exposure to the Qatari economy. There will be no restrictions on sector exposure and/or weighting. The performance of the Fund will be measured against that of a recognizable Qatar Benchmark (MSCI Qatar index). The strategy of the Fund is to beat the benchmark.
2. What is the minimum amount that can be invested in the Fund? Is there a maximum amount?
The minimum amount one can invest in this Fund is US$ 100,000. However, the investor can increase the sum invested in increments of US$ 10,000 either immediately or over time. Designed with middle-income to Private Banking customers in mind, the Fund sets no maximum investment limit.
3. How does one invest in the Fund?
Any person, establishment, or company can invest by filling out and submitting the Subscription Form available at any NBK branch in Kuwait. Units can be subscribed on each Valuation Day, subject to the condition that the Distributor in the respective Unit holder’s country should have received the Subscription Form, at least 10 Business Days prior to the relevant Valuation Day. One can also call 1801801, or check on our website for the past month’s prices. The number of shares owned by the investor is determined by dividing the total amount invested by the share price on the day the subscription is executed. The investor will also receive a confirmation that includes the amount invested, price per share and total number of shares owned.
4. How does one redeem shares 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 may reap the benefits of appreciation in share prices and realize a good return. However, it is possible for investors to redeem shares totally or partially on a monthly basis. Partial redemptions can be made in terms of amount or number of shares of the total investment. Simply fill out and submit 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 in the respective country of the Unit holder should have received the Redemption Form, at least 10 Business Days prior to the relevant Valuation Day. The amount will be remitted to the customer usually within ten business days following the Valuation Day. Partial redemptions must ensure that at least US$ 100,000 remains in the fund.
5. Will profits be distributed to the Fund’s investors at the end of each year?
Profits earned by the fund as a result of selling equities and of interest and dividends earned shall be reinvested in the funds, which will allow for greater price appreciation through compounded growth of the investments. Thus, the investor will not receive annual distributions, but they can partially redeem shares in order to realize capital gains at any time.
6. Since such an investment requires expertise and effective management, who is making the investment decisions?
National Bank of Kuwait is the investment manager and will oversee the investments of the Fund. More specifically, The MENA Investment Committee, an authorized body within NBK, would be responsible for the structuring, monitoring and implementing the Investment Policy Statement (IPS) for the fund.
7. Is it possible to invest on behalf of minors?
Yes.
8. Is NBK Qatar Equity Fund available only to NBK customers, or open to all?
In as much as NBK is very much concerned about offering new products to its customers, we are always happy to see everybody making use of such products. Therefore, investment in this fund is open to all investors, Kuwaitis or residents, whether they are NBK customers or not. However, an NBK account must be opened to settle fund transactions.
