Kuwait Financial Centre launches Markaz Islamic Income Fund

Kuwait Financial Centre, S.A.K., one of the leading investment banking and asset management institutions in the Middle East, announced the launch of 'Markaz Islamic Income Fund', a Shari'ah compliant money market fund with a variable capital of KD5m to KD50m.

'The launch of Markaz Islamic Income Fund is a new initiative taken by Markaz to offer investors added value investment products and solutions to help them gain profits in such a competitive and volatile investment environment,' said Mr. Krishna I. Mohan - Head of Treasury at Markaz.

The fund was launched, after acquiring all the licences and approvals from the Central Bank of Kuwait and the Ministry of Commerce and Industry, with the objective of realizing current returns on the invested capital exceeding the returns generated from short and medium term traditional financial instruments.

To realize this objective, the Fund shall invest its money in all available financial and money market instruments within the State of Kuwait and abroad, in compliance with the provisions of the Islamic Shari'ah, in Kuwaiti Dinars and/or other major currencies actively traded in the financial markets. The Fund investments shall include Shari'ah Moudarabah Sukuk, Murabaha or Wakala, and other Shari'ah compliant Islamic instruments.

Mr. Mohan continued 'As the Fund Manager, Markaz shall follow a balanced investment strategy aiming at securing the highest earnings to the investors in a manner which does not contradict with the provisions of the Islamic Shari'ah.'

The subscription to the Fund shall be permitted for Kuwaiti citizens, Gulf Cooperation Council citizens, expatriates and non-expatriates of whatever nationalities, Kuwaiti, Gulf or foreign entities and other organizations. The minimum subscription and/or redemption is (100) units, with a nominal value of KD1 per unit upon the fund incorporation. Subscription and redemption shall be on weekly basis and based on the valuation price declared at that time.

The fund shall have a Shari'ah Board with binding resolutions which monitors the fund activities to ensure its compliance with the provisions of Islamic Shari'ah provided the board issues an annual report on the same to be published with closing balance sheet. The board consists of three members, namely:

·Prof. Abdul Aziz Khalifa Al-Qassar
·Dr. Essa Zaki Essa
·Mr. Mohamed Omar Jasser

Markaz has a very good track record in this field, as Markaz KD Money Market Fund - IDIKHAR, which is one of the best performers in the local market, continues to generate higher returns than the average 3-month KD fixed deposit since its inception in 1999.

Kuwait Financial Centre S.A.K. 'Markaz', with total assets under management of over KD1.3bn as of December 31, 2007, was established in 1974 has become one of the leading asset management and investment banking institutions in the Arabian Gulf Region. Markaz was listed on the Kuwait Stock Exchange (KSE) in 1997; and has been awarded a BBB+ corporate rating by Capital Intelligence Ltd.