NBK launches the 1st Sharia-compliant (Islamic) Watani KD money market fund

The launch of the WMMF will eventually further NBK's pioneering position as a leading financial institution in Kuwait and the Middle East.

NBK's Group General Manager Consumer Banking, Adel Al Majed said that WMMF is another innovative product that NBK created to respond to market demand, adding that the new fund distinguishes itself from its competitors through a Shaia compliant screening and control across the entire spectrum of the investment process, which will be carried out by an independent advisory Sharia board comprised of renowned Islamic scholars.

Within the same context, Al Majed indicated that NBK is looking forward to obtaining the license for the establishment of a subsidiary company that caters Islamic banking products and services to NBK clients.

On his part, the renowned Islamic scholar, Sheikh Dr. Khalid Mathkor Al Mathkor, who will be on top of the Sharia tripartite board said that the unique WMMF is the first to involve a separate and independent Sharia board that will provide a holistic oversight over the fund's legal documents, structural and investment processes, adding that, similar to other NBK Islamic funds, WMMF will enjoy an independent financial credibility.

Joining Dr. Al Mathkor in the Sharia board are the Renowned Sheikh Dr. Essa Zaki Shakra, and Sheikh Dr. Abdul Aziz Khalifa Al-Qassar.

Sharing the details, NBK's General Manager of Investment Services and Treasury Group, Salah Al Fulaij explained that the fund aims to achieve competitive returns by investing in short and medium term money market instruments that are strictly in line with the guiding principles of Sharia such as the Murabaha transactions.

Al Fulaij added that WMMF may also invest in other funds that have similar investment objectives and are Shariah compliant. All instruments that the Fund invests in must comply with the Islamic Sharia as decided by the Fund 's Shariah board. WMMF will seek appreciation of its net asset value while achieving high levels of liquidity through investing in high quality instruments.

The WMMF's offering period started on January 31, 2007. It is an open- ended fund denominated in KD with weekly subscriptions and redemptions. The minimum subscription for WMMF is KD 25,000 with increments of KD 1,000.