FAQs about Watani Savings Plan

1. Can you tell me about the Watani Savings Plan?

The Watani Savings Plan is designed to allow customers to invest in one or more of the following five funds: Watani Global Equity Fund, Watani Global Bond Fund, Islamic Global Equity Fund, Islamic Healthcare Fund, and Watani US Equity Fund through monthly installments as low as US$ 100 per month according to a number of special terms and conditions, which increase the flexibility of the normal requirements controlling the minimum investments, subscriptions and redemptions, and sales charges.

2. What are the advantages of this Plan to young professional investors?

a. It allows the young investors to invest in one or more of three open-ended funds through monthly installments as low as US$ 100 per month.
b. Young professionals may sign-up for Al Mustaqbal Plan and receive discounts on fund sales charges.
c. Through this disciplined strategy, investors can buy more shares when prices are low and fewer shares when prices are high and thus navigate market volatility by accumulating more shares at a lower average cost (Dollar Cost Averaging).
d. Starting to save now can create wealth to realize your goals and dreams.

3. What is the minimum target amount and minimum monthly installment to invest in these funds? Is there a maximum amount?

The minimum Target Commitment Amount for total monthly subscriptions is US$ 10,000 and the minimum Monthly Subscription Amount is US$ 100 per fund plus the sales charge. There is no maximum amount. One can start his/her plan by a lump sum amount that will count toward his/her Target Commitment Amount. One can also pay additional lump sum amounts during the plan, but it will not count toward his/her Target Commitment Amount.

4. How does one join the Plan?

Any person can join the Plan "non-customers must open an NBK deposit account" by simply filling out and submitting a Subscription Form for the Watani Savings Plan available at any NBK branch in Kuwait. Subscriptions will be taken daily and invested the first business day of each calendar month. The prior week's share prices will be published on Sunday in Al Qabas Newspaper, one can call 801801, or go to http://www.nbk.com  for the latest prices.

5. How does one redeem shares or take money out of this Plan?

First, the investor should look to this investment as a long-term investment (3 years or more) so that he/she may reap the benefits of long-term appreciation in share prices and realize a good return. However, it is possible for investors to redeem shares totally or partially without penalty on a weekly basis when the value of his/her investment reaches US$ 10,000. Partial redemptions can be made in terms of a percentage, amount, or number of shares of the total investment.
Simply fill out and submit a Redemption Form for the Watani Savings Plan available at any NBK branch in Kuwait. Redemption Forms are accepted weekly. The amount shall be remitted to the customer usually within one week, but no later than fourteen business days following the Valuation Day.
Partial redemptions must ensure that at least US$ 10,000 remains in the fund and must be a minimum of US$ 1,000 per fund. A customer may redeem all of his/her investment in the Plan before they reach their Target Commitment Amount for a one-time fee of KD 25 and the customer will be withdrawn from participation in the Plan.

6. What are the discounts available to Al Mustaqbal customers on sales charges of these funds?

Al Mustaqbal customers receive discounts on the sales charge for each fund as follows:

7. Is the Watani Savings Plan only available to Al Mustaqbal customers?

Anyone can apply, but only Al Mustaqbal customers receive discounts on sales charges.

8. What happens if an investor misses a few monthly installments?

If the Savings Plan customer fails to make his/her monthly installment for three consecutive months, such customer will be charged a one-time fee of KD 25. In addition, if the market value of his/her investment is less than US$ 10,000, then the investment will be liquidated and the proceeds will be returned to his/her designated NBK deposit account and the customer will be withdrawn from the Savings Plan. If the market value of his/her investment is US$ 10,000 or greater, then the customer will be withdrawn from the Savings Plan and his/her investment will be maintained under the terms and conditions of a non-Savings Plan investment.

9. Is the Watani Savings Plan available to NBK customers only or open to all?

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. This plan is open to all investors, Kuwaitis or residents (with the exception of US citizens and UK residents), subject to non-NBK customers opening a deposit account with NBK to settle investment transactions. One can obtain brochures and other informational materials from any NBK branch.

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