Ishraq Money Market Fund - NBK

Eshraq is the trade name of the National Bank of Kuwait – Egypt Egyptian Pound Liquidity Fund with Daily Accumulative Return. It is an open-ended money market fund designed to provide a low-risk savings and investment vehicle that offers a high level of liquidity by investing in money market instruments and short-term debt securities denominated in Egyptian pounds.

The investment policy of the Eshraq Fund is based on building a diversified portfolio of money market instruments and short-term fixed-income securities denominated in Egyptian pounds, with a focus on highly rated, liquid investment instruments while complying with the regulatory framework governing money market funds.

According to the Prospectus, the fund's assets may be allocated across current accounts, bank deposits, Treasury Bills, Treasury Bonds, bank savings certificates, repurchase agreements (Repos), and other investment instruments permitted under the Egyptian Capital Market Law and its Executive Regulations. The Prospectus also establishes investment limits designed to diversify the portfolio and reduce concentration risk. No more than 95% of the invested assets may be held in cash or bank deposits with banks regulated by the Central Bank of Egypt, while up to 100% of the fund's invested assets may be allocated to Egyptian Treasury Bills and Central Bank of Egypt bills. In addition, investments in Egyptian Treasury Bonds may not exceed 40% of the invested assets, while investments in bank savings certificates are capped at 10%. Furthermore, total investments with a single counterparty—excluding government entities, public sector companies, and public sector banks—may not exceed 40% of the invested assets.

The investment policy also permits investments in private corporate bonds of up to 20% of the invested assets, with a maximum exposure of 10% to any single issuance, provided that the instrument carries a minimum credit rating of BBB. In addition, the fund may invest up to 90% of its invested assets in repurchase agreements (Repos), providing flexibility in liquidity management while maintaining portfolio quality and ensuring that redemption requests can be met on time.