FAQs about NBK Gulf Equity Fund

1. Give a brief description of the nature of NBK Gulf Equity Fund?

The Fund seeks long-term capital appreciation by investing primarily in GCC equities. A distinguishing feature will be an active strategic approach by the Fund in allocating between the equity markets within the GCC and the MENA region. The Fund will aim to optimize longer term returns by reducing the downside risk below that of the GCC equity markets. A contribution to this objective will be achieved by diversifying among various MENA countries outside the GCC and, as considered prudent, cash resources based on the investment outlook and strategy decided by the Fund’s Investment Manager.

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 US$ 100,000 and the investor may increase the sum invested by increments of US$ 10,000 either immediately or over time. There is no maximum amount, thus this funds was designed with middle income to Private Banking customers in mind.

3.How does one invest in the Fund?

Any person, establishment, or company can invest. Simply fill out and submit a Subscription Form available at any NBK branch in Kuwait. Units may be redeemed on each Valuation Day, subject to the condition that the relevant Distributor in the respective Unitholder’s country should have received, at least 10 Business Days prior to the relevant Valuation Day. The prior month share prices will be published on Sunday in Al Qabas Newspaper. One can call 801801, or on our site for the past month’s prices. The number of shares owned by the investor is determined by dividing the total invested sum 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 he/she 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 relevant Distributor in the respective Unitholder’s country should have received, at least 10 Business Days prior to the relevant Valuation Day. The amount shall 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 at the end of each year to the investors of the fund?

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 he/she can partially redeem shares in order to realize capital gains at any time.

6. Such an investment requires expertise and effective management, thus who is making the investment decisions?

National Bank of Kuwait is the investment manager and will oversee the investments of the Fund. More specifically, it is responsible for monitoring the portfolio structure, investment performance (both actual and relative to benchmarks) and compliance with asset and country allocations.

7. Is it possible to invest on behalf of minors?

Yes.

8. Is NBK Gulf Equity Fund available to NBK customers only 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.
One can obtain brochures and other informational materials from any NBK branch.

For further details please contact your relationship officer, call 801801 24 hours a day.