Tharwa Money Market Fund - Kuwait Finance House Bank

Tharwa Fund is an open-ended Sharia compliant money market fund with a daily cumulative return, launched by Kuwait Finance House (KFH Egypt). The fund aims to provide a low-risk savings and investment vehicle that offers investors daily liquidity while seeking to maximize returns through investments in money market instruments and other Sharia-compliant financial assets.

The fund’s prospectus sets a number of investment limits designed to balance return, liquidity, and risk management. Up to 100% of the fund’s assets may be invested in Egyptian Treasury bills or held in the form of cash, Islamic deposits, and Islamic current accounts whenever the investment manager believes this offers the most attractive return relative to prevailing market risks.

At the same time, the prospectus imposes specific limits on certain investment instruments to ensure diversification and reduce concentration risk. Investments in corporate sukuk may not exceed 20% of the fund’s total assets, and any instrument invested in must carry a minimum credit rating of BBB from a credit rating agency approved by the Financial Regulatory Authority (FRA).

In addition, investments in Islamic savings certificates may not exceed 60% of total assets, while investments in other Islamic money market funds are capped at 30%. Repurchase agreements (Repos) backed by government securities are limited to a maximum of 40% of the fund’s total assets.

With respect to maturity management, no individual investment within the portfolio may have a maturity exceeding thirteen months, while the weighted average maturity of the portfolio must not exceed 150 days in accordance with regulatory requirements.

Is Tharwa Money Market Fund suitable for emergency savings and liquidity management?

The fund can be a suitable option for investors seeking an alternative to traditional current or savings accounts, offering frequent access to their funds, high liquidity, and a relatively low level of risk.