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FAQ's about the Watani Foreign Currency Money Market Fund
1. What is a Money Market Fund?
Money Market Funds invest primarily in short and medium-term interest bearing securities. The investment instruments include government treasury bills and bonds, corporate bonds, commercial paper, fixed deposits and certificate of deposits (including repurchase agreements). Money Market Funds are generally low-risk, high-quality investments. 2. What is the Watani Foreign Currency Money Market Fund?
The Watani Foreign Currency Money Market Fund is an open-ended fund that offers clients two Classes of Shares, Class"1" Shares in US Dollar and Class'2' Shares in Euro, which aims to generate returns that are in excess of the Fixed Deposit rates paid on the respective currency. This will be achieved through investing in high-quality money market and debt instruments such as government treasury bills and bonds, corporate bonds, commercial paper, fixed deposits and certificate of deposit (including repurchase agreements) while maintaining minimal risk. 3. What are the advantages of investing in the Fund?
4. What is the minimum investment?
The minimum investment is US$ 25,000 for Class "1" Shares with additional investments in multiples of US$ 1,000 and Euro 25,000 for Class "2" Shares with additional investments in multiples of Euro 1,000. There is no maximum investment amount and no sales charge. 5. Who should invest in the Fund?
The Watani Foreign Currency Money Market Fund is suitable for investors who are seeking to generate returns higher than Fixed Deposit rates paid on the respective currency with minimal risk and who have a short-term investment horizon. 6. What kind of returns should investors expect?
The Fund will target returns in excess of the Fixed Deposit rates paid on the respective currency. 7. What are the risks involved with the Fund?
The Net Asset Value of the Fund could fluctuate due to changes in interest rates and changes in the rating of the issuer. NBK does not guarantee the Fund or the underlying borrowers. 8. Will there be any income distribution?
No, there will be no income distribution. Interest and dividends will be reinvested and reflected in the Net Asset Value of the Fund. 9. How does an investor make money through this Fund?
Profits are realized through the appreciation of the Net Asset Value. 10. How does one invest in the Fund?
Any individual*, company or establishment can invest in the Fund. Simply fill out and submit a subscription form available at any NBK branch in Kuwait. The Fund will be open for subscription during the initial offering period from September 22nd to October 10th, 2002 and thereafter the Fund is open for liquidity on a weekly basis. Subscription applications must be submitted by the latest on Monday 12 p.m. every week. 11. How can an investor get his or her money back?
The Fund provides weekly liquidity on which investors may choose to redeem their investments partially or fully. Redemption applications must be submitted by the latest on Monday at 12 p.m. Redemption proceeds are usually paid within 2 business days. 12. Is it possible to invest on behalf of minors?
Yes. 13. How can I obtain information on the Fund's performance?
Information regarding the Fund's performance and NAV's will be available on a weekly basis at NBK's web site under the Investment Center. Quarterly performance reports will be sent to investors. Additionally, investors can call 801801 or contact their Relationship Manager for further information. * Certain restrictions apply
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