Al Dawli KD Islamic Money Market Fund

Launched on the 2^nd February 2025, Al Dawli KD Islamic Money Market Fund marks KIB Invest’s first step into the local currency investment space, an extension of the Kuwaiti firm’s group-focused strategy, CEO Jamal Al-Barrak tells IFN Investor.  

The fund will invest in Shariah compliant monetary instruments, including investment-grade Sukuk, and in other money market funds that have the same investment objectives. It is prohibited from investing in other assets such as shares of listed and unlisted companies or real estate. 

“It provides a stable, yield-enhancing opportunity that aligns with investor preferences, each with differing risk-return profiles,” Jamal explains.  

Designed primarily for Kuwaiti dinar (KWD)-based investors to eliminate exchange rate risk in what is typically a cash-plus return strategy, KIB Invest can also accommodate non-KWD-based clients through currency conversion solutions and guidance. 

“Our aim is to remain flexible and accessible while maintaining the core stability of a KWD-focused strategy,” says Jamal, who also revealed that the company plans to complement this fund with strategies in other currencies, including US dollar and potentially euro, each offering differing risk-return profiles, to broaden its investment universe and offer investors diversification opportunities. 

Minimum entry for this fund is KWD1,000 (US$3,245) with subsequent subscriptions in multiples of KWD10 (US$32.45) for units with KWD1 (US$3.24) nominal value. The 90-day offer period can end earlier if total subscriptions exceed KWD2 million (US$6.49 million). 

The weighted average maturity (WAM) is calculated based on each investment’s proportion and maturity period. No single investment may exceed 397 days unless it can be liquidated within five business days. Additionally, the fund’s total WAM must not exceed 180 days, ensuring a balanced and liquid portfolio. 

This low-risk fund has a 10-year duration, which can be renewable for similar periods. While the geographic investment scope covers local, GCC and global markets, there is no preset benchmark to follow a specific field, sector or index. 

The fund does not have a dividend or income distribution policy, as all profit is reinvested to maximize compounding returns. “This approach enhances capital growth and ensures investors benefit from a stable, yield-generating structure without periodic payouts,” said Jamal. 

“While it is challenging to differentiate from other KWD money market funds, KIB Invest aims to stand out by charging the lowest management fee in the market. Although the total expense ratio may initially be higher due to the fund’s asset size, we have a clear strategy to scale up, which will help reduce costs over time.” 

*Disclaimer:  The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.