Key Terms:

Investment Manager                  

Kuwait Financial Centre S.A.K. ‘Markaz’.

Target Return                            

IRR of 12.0% p.a.

The total return will be a combination of interest income, and capital gain from sale of investments or as issues mature.

Distribution                               

Semi-Annual Distribution will result from coupon/profit distribution and proceeds from maturing issues and/or selling of an investment.

Base Currency of Program           

US Dollar.

Term of the Program                  

One year; extendable by 3 one-year periods.

Types of Accounts                      

The Program is offering two types of portfolio accounts:

Discretionary Accounts: All investment decisions are at the discretion of the Investment Manager.

Non-Discretionary Accounts: All investment decisions are at the discretion/request of Investor.

Minimum Investment                 

For Discretionary Accounts:   USD 1,000,000.             

For Non-Discretionary Accounts:  USD 3,000,000. 

Redemptions                             

For Discretionary Accounts:

The Program has a lock-up period of one year during which no redemptions or withdrawals are allowed. After that, Disposal of investments is made at the sole discretion of the Investment Manager. Investments may be held to maturity or sold prior to maturity at the sole discretion of the Investment Manager.

For Non-Discretionary Accounts:

The Program has a lock-up period of one year during which no redemptions or withdrawals are allowed. After that, redemption will be at the discretion of the Investor and subject to market conditions.

Early Termination                       

At its discretion, the Investment Manager may choose to liquidate all investments and return the proceeds anytime after 6 months of the commencement of the Program. Such termination shall ordinarily be done in the event of extremely adverse market conditions.

Management Fee                       

0.50% p.a.

Brokerage Fee                           

0.50% p.a.

Performance Fee                       

20.0% of realized returns in excess of the hurdle rate of 12.0% p.a., after accounting for all expenses/fees (measured at the end of fiscal year).

Reporting Frequency                   

For Discretionary Accounts:

 Portfolio Position and Transactions Movements Reports shall be sent to clients on a Quarterly basis.

For Non-Discretionary Accounts:

Portfolio Position and Transactions Movements Reports shall be sent to clients on a Quarterly basis.

Transaction Advice per trade shall be sent on a daily basis.