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Financial markets

Warba Bank Launches Shariah-Compliant Money Market Fund

Strategic Insights

— 1 min read

Warba Bank has unveiled a novel financial product, the Warba Islamic KD Money Market Fund, in Kuwait. This fund, initiated on October 11, 2023, is designed to cater to investors seeking Shariah-compliant opportunities in cash instruments and high-quality Islamic sukuks. With an initial capital of approximately 49.80 million units and a net asset value of 53.64 million Kuwaiti Dinars, the fund aims to capitalize on opportunities within the money market fund units and deposits within Kuwait and the Gulf Cooperation Council countries. The fund's executive committee oversees its operations, and its investment strategy is supported by service providers including the Gulf Custody Company and Al Mashora & Al Rayah for Islamic Financial Consulting Company.

Key Takeaways:

  • The Warba Islamic KD Money Market Fund is a Shariah-compliant financial product designed to offer investors opportunities in cash instruments and Islamic sukuks.
  • The fund commenced operations on October 11, 2023, with an initial capital of approximately 49.80 million units and a net asset value of 53.64 million Kuwaiti Dinars.
  • The fund's portfolio is primarily composed of Wakalah investments from Kuwait International Bank and Warba Bank, with varying percentages of the fund's net asset value.
  • The fund's 15-year duration may be extended with approval from the Capital Markets Authority and consent from the majority of unit holders.
  • The fund's executive committee, comprising Thuwaini Khaled AlThuwaini, Sunil Kumar Singh, and Abdullah Khaled AlShaalan, oversees its operations.
  • The fund's service providers include the Gulf Custody Company as the custodian and record keeper, and Al Mashora & Al Rayah for Islamic Financial Consulting Company as external Shariah auditors.
  • The fund's monthly return was classified as a Minor move for the Boursa Kuwait, with a Moderate return for the last quarter and a Big move cumulative return since inception.

Statistics:

  • The fund's initial capital: approximately 49.80 million units
  • The fund's net asset value: 53.64 million Kuwaiti Dinars
  • The fund's monthly return: classified as a Minor move
  • The fund's last quarter return: Moderate move
  • The fund's year-to-date return: Moderate move
  • The fund's cumulative return since inception: Big move
  • The duration of the fund: 15 years, may be extended with approval and consent from unit holders.

Sources:

  • (Boursa Kuwait)

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