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The Fund was launched in response to the increasing demand for NBK's Ijara funds which have been successful in achieving attractive returns to NBK's clients.
Nabil Maroof, NBK Capital's Managing Director of Asset Management, said:
"Investor demand for quality has driven the need for NBK's extensive expertise and conservative approach which emphasizes on attractive returns and capital preservation."
The 5 year closed ended Fund provides investors with the opportunity to enjoy steady monthly lease income on a Shariah compliant basis by purchasing equipment that will be leased out to high quality companies. The equipment portfolios of the Fund will have a diverse range of equipment types, including mid-size and mainframe computers and peripherals, storage equipment, software, copiers, automotive, point of sale, telecommunications, machine tools, testing equipment and others.
Islamic KD Ijara Fund II allows investors to reap the benefits of monthly income distributions at an annualized rate of 6.25% in Kuwaiti Dinars.
Maroof added:
'Ijara transactions have shown that they typically outperform during economic recessions as companies substantially decrease their capital expenditure, preferring to lease their mission critical equipment instead. Lessees also tend to retain equipment for longer periods, offsetting the increased credit losses that result from a typical recession.'
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Posted by Nadeen El Ajou
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