Bondfunds are based on fixed interest securities. Money market funds invest capital in securities with extremely short terms and are seen as an alternative to fixed term deposits. Property funds Fundtype: Money market fund: Currency: Kuwaiti Dinar: Liquidity: Weekly: Capital: Variable (from KD 5 million to 1.5 billion) Minimum subscription: KD 1,000 with any additional amount thereafter: Subscription fees: None: Redemption fees: None: Management fees: Up to 1% of the Net Asset Value: Performance fees: None: Fund manager: Boubyan *Moody's defines Money Market Funds with an 'Aaa-mf' rating as having a very strong ability to meet the dual objectives of providing liquidity and preserving capital. S&P defines Money Market Funds that have an 'AAAm' rating as demonstrating extremely strong capacity to maintain principal stability and to limit exposure to credit risk. The goal of a money-market fund is to preserve principal while yielding a modest return. • Money-market mutual fund is akin to a highyield bank account but is not entirely risk free. When investing in a money-market fund, attention should be paid to the interest rate that is being offered. Money Market Vs. Capital Market 80 likes BoubyanKD Money Market Fund II: Boubyan Capital Investment Company: Cap Corp Local Fund: CapCorp Investment Company: Noor GCC Islamic Fund: Noor Financial Investment Company: Al-Huda Islamic Fund: Kuwait and Middle East Financial Investment Company: Coast Investment Fund: WataniUSD Money Market Fund is an open-ended money market fund incorporated in Kuwait, licensed and supervised by the Capital Market Authority of Kuwait. The primary aim of the fund is to enable investors to gain exposure to money market investments. The Fund seeks to generate returns above USD deposit rates. ASICO Money Market Fund 14.04.2022 14:50:16 Announcement from SICO Capital company Regarding the Availability of the Quarterly Statement of SICO Capital Money Market Fund for the Period Ended 31 March 2022. YWh3L. Investors with a focus on the preservation of capital often seek out fixed-income solutions such as government or low-risk municipal bonds, preferred stocks, traditional bank savings products, or money market mutual funds. Each of these investment vehicles provides a degree of safety from otherwise volatile securities markets in addition to a potential stream of fixed income. Although each strategy has its own merits and drawbacks, a money market fund is a popular choice among risk-averse investors. Read on to find out more about this kind of investment and how you can benefit from these putting your money into this product. Key Takeaways Money market funds invest in highly liquid securities like cash, cash equivalents, and high-rated debt-based funds offer investors liquidity because they're invested in securities with short-term maturities—usually 13 months or they only invest in highly rated securities, money market funds offer a high degree of market funds also offer investors higher yields than traditional savings accounts. What Is a Money Market Fund? A money market fund is a type of mutual fund. It invests in highly liquid vehicles such as cash, cash equivalents, and high-rated debt-based securities. These securities tend to have short-term maturities—usually less than 13 months. Many money market funds hold securities like commercial paper and Treasury bills. Investors purchase units or shares of a money market fund from a mutual fund company or through a broker. Just like other mutual funds, there may be a minimum initial investment amount required to take part in a money market fund. They also come with an expense ratio. This fee is calculated as a total percentage of the fund's asset which covers its administrative and operating expenses. Don't confuse money market funds with money market accounts MMAs. Although they may sound alike, they are different. A money market account is a savings account offered by traditional financial institutions, allowing the account holder to earn interest on the average balance. Because they are intended to act as a savings vehicle, MMAs allow investors limited withdrawals. These accounts are insured by the Federal Deposit Insurance Corporation FDIC, while money market funds are not. Types of Money Market Funds Money market funds are divided into different categories depending on their attributes including their maturities and the classes of securities. For instance, government money market funds invest the majority of their assets in cash and government securities. Treasury funds invest in Treasury bills, bonds, and notes. Another type of money market fund is the tax-exempt fund. These types of funds invest primarily in vehicles that are exempt from federal taxes such as municipal bonds. Benefits of Money Market Funds A money market fund provides investors with an array of benefits that you may not find with other investments. The most common are noted below. Liquidity Money market mutual funds provide investors with liquidity. That's because these funds are invested in securities that mature in short periods of time and can be liquidated for cash. Fund managers invest pooled investor dollars into money market securities including bank certificates of deposit CDs, federal agency notes, high-grade commercial paper, or government treasury issues such as T-bills. Safety Investors who want to park their money in a relatively safe investment may want to consider money market funds. The Securities and Exchange Commission SEC mandates that only securities with the highest credit ratings are available to purchase in money market funds, creating a degree of safety for investors not found in other fixed-income investments. This also helps set them apart from other investments such as stocks which are characterized by a higher degree of volatility. Higher Yields In addition to safety and liquidity, money market funds offer the potential for higher yields than conventional cash equivalents such as savings or money market accounts from a bank or credit union. The objective of a money market fund it to keep its net asset value NAV steadily at $1, resulting in no growth of principal. Despite this, money market funds provide investors slightly higher yields than conventional cash equivalents over time because fund managers can diversify the underlying investments. Although they're considered relatively safe investments, money market funds also come with inherent risks including inflation, credit, and interest rate risks. A Word on Risks Even though they're considered a primarily safe place to put your cash, money market funds do come with their own inherent risks—just like any other investment. A few things investors may want to consider are Inflation Risk This risk occurs when the cash flows from a money market fund drop because of inflation. In other words, inflation cuts down how the money market fund performs. Credit Risk Because they aren't insured by the FDIC like savings accounts and CDs, there's no guarantee that you won't lose your money. Interest Rate Risk This is the risk associated with fluctuating interest rates. Yields share an inverse relationship with interest rates, so when interest rates rise, yields drop and vice versa. What Is a Money Market Fund? A money market fund is a kind of mutual fund that invests in highly liquid, near-term instruments. These instruments include cash, cash equivalent securities, and high-credit-rating, debt-based securities with a short-term maturity such as Treasuries. Money market funds are intended to offer investors high liquidity with a very low level of risk. Money market funds are also called money market mutual funds. While they sound similar in name, a money market fund is not the same as a money market account MMA. A money market fund is an investment that is sponsored by an investment fund company. Therefore, it carries no guarantee of principal. A money market account is a type of interest-earning savings account. Money market accounts are offered by financial institutions. They are insured by the Federal Deposit Insurance Corporation FDIC, and they typically have limited transaction privileges. Key Takeaways A money market fund is a type of mutual fund that invests in high-quality, short-term debt instruments, cash, and cash not quite as safe as cash, money market funds are considered extremely low-risk on the investment spectrum. A money market fund generates income taxable or tax-free, depending on its portfolio, but little capital market funds should be used as a place to park money temporarily before investing elsewhere or making an anticipated cash outlay; they are not suitable as long-term investments. How a Money Market Fund Works Money market funds work like a typical mutual fund. They issue redeemable units or shares to investors, and they are mandated to follow the guidelines drafted by financial regulators for example, those set by the Securities and Exchange Commission. A money market fund may invest in the following types of debt-based financial instruments Bankers' Acceptances BA—short-term debt guaranteed by a commercial bank Certificates of deposit CDs—bank-issued savings certificate with short-term maturity Commercial paper—unsecured short-term corporate debt Repurchase agreements Repo—short-term government securities Treasuries—short-term government debt issues Returns from these instruments are dependent on the applicable market interest rates, and therefore, the overall returns from the money market funds are also dependent on interest rates. Types of Money Market Funds Money market funds are classified into various types depending upon the class of invested assets, the maturity period, and other attributes. Prime Money Fund A prime money fund invests in floating-rate debt and commercial paper of non-Treasury assets, like those issued by corporations, government agencies, and government-sponsored enterprises GSEs. Government Money Fund A government money fund invests at least of its total assets in cash, government securities, and repurchase agreements that are fully collateralized by cash or government securities. Treasury Fund A Treasury fund invests in standard Treasury-issued debt securities, such as Treasury bills, Treasury bonds, and Treasury notes. Tax-Exempt Money Fund A tax-exempt money fund offers earnings that are free from federal income tax. Depending on the exact securities it invests in, a tax-exempt money fund may also have an exemption from state income taxes. Municipal bonds and other debt securities primarily constitute such types of money market funds. Some money market funds are targeted to attract institutional money with a high minimum investment amount oftentimes $1 million. Still, other money market funds are retail money funds and are accessible to individual investors as a result of their small minimums. Special Considerations The Net Asset Value NAV Standard All the features of a standard mutual fund apply to a money market fund, with one key difference. A money market fund aims to maintain a net asset value NAV of $1 per share. Any excess earnings that get generated through interest on the portfolio holdings are distributed to the investors in the form of dividend payments. Investors can purchase or redeem shares of money market funds through investment fund companies, brokerage firms, and banks. One of the primary reasons for the popularity of money market funds is their maintenance of the $1 NAV. This requirement forces the fund managers to make regular payments to investors, providing a regular flow of income for them. It also allows easy calculations and tracking of the net gains the fund generates. Breaking the Buck Occasionally, a money market fund may fall below the $1 NAV. This creates a condition that is sometimes referred to with the colloquial term "breaking the buck." When this condition occurs, it may be attributed to temporary price fluctuations in the money markets. However, if it persists, the condition may trigger a moment when the investment income of the money market fund fails to exceed its operating expenses or investment losses. For example, if the fund used excess leverage in purchasing instruments—or overall interest rates dropped to very low levels nearing zero—and the fund broke the buck, then one of these scenarios could lead to a condition where the fund cannot meet redemption requests. If this happens, regulators may jump in and force the fund's liquidation. However, instances of breaking the buck are very rare. In 1994, the first instance of breaking the buck occurred. The Community Bankers Government Money Market Fund was liquidated at $ per share. This was the result of large losses that the fund incurred following a period of heavy investment in derivatives. In 2008, following the bankruptcy of Lehman Brothers, the venerable Reserve Primary Fund also broke the buck. The fund held millions of the Lehman Brothers debt obligations, and panicked redemptions by its investors caused its NAV to fall to $ per share. The pullout of money caused the Reserve Primary Fund to liquidate. This event triggered mayhem throughout the money markets. To prevent this from happening again, in 2010—in the aftermath of the 2008 financial crisis—the SEC issued new rules to better manage money market funds. These rules were intended to provide more stability and resilience by placing tighter restrictions on portfolio holdings and introducing provisions for imposing liquidity fees and suspending redemptions. Regulation of Money Market Funds In the money market funds are under the purview of the SEC. This regulatory body defines the necessary guidelines for the characteristics, maturity, and variety of allowable investments in a money market fund. Under the provisions, a money fund mainly invests in the top-rated debt instruments, and they should have a maturity period under 13 months. The money market fund portfolio is required to maintain a weighted average maturity WAM period of 60 days or less. This WAM requirement means that the average maturity period of all the invested instruments—taken in proportion to their weights in the fund portfolio—should not be more than 60 days. This maturity limitation is done to ensure that only highly liquid instruments qualify for investments, and the investor’s money is not locked into long-maturity instruments that can mar the liquidity. A money market fund is not allowed to invest more than 5% in any one issuer in order to avoid issuer-specific risk. However, government-issued securities and repurchase agreements provide an exception to this rule. Advantages and Disadvantages of Money Market Funds Money market funds compete against similar investment options, such as bank money market accounts, ultrashort bond funds, and enhanced cash funds. These investment options may invest in a wider variety of assets, as well as aim for higher returns. The primary purpose of a money market fund is to provide investors with a safe avenue for investing in secure and highly liquid, cash-equivalent, debt-based assets using smaller investment amounts. In the realm of mutual-fund-like investments, money market funds are characterized as low-risk, low-return investments. Many investors prefer to park substantial amounts of cash in such funds for the short term. However, money market funds are not suitable for long term investment goals, like retirement planning. This is because they don’t offer much capital appreciation. Money market funds appear attractive to investors as they come with no loads—no entry charges or exit charges. Many funds also provide investors with tax-advantaged gains by investing in municipal securities that are tax-exempt at the federal tax level and in some instances at the state level, too. Pros Very low-risk Highly liquid Better returns than bank accounts Cons Not FDIC-insured No capital appreciation Sensitive to interest rate fluctuations, monetary policy It's important to keep in mind that money market funds are not covered by the FDIC's federal deposit insurance, while money market deposit accounts, online savings accounts, and certificates of deposit, are covered by this type of insurance. Like other investment securities, money market funds are regulated under the Investment Company Act of 1940. An active investor who has time and knowledge to hunt around for the best possible short-term debt instruments—offering the best possible interest rates at their preferred levels of risk—may prefer investing on their own in the various available instruments. On the other hand, a less-savvy investor may prefer taking the money market fund route by delegating the money management task to the fund operators. Fund shareholders can typically withdraw their money at any time, but they may have a limit on the number of times they can withdraw within a certain period. History of Money Market Funds Money market funds were designed and launched during the early 1970s in the They gained rapid popularity because they were an easy way for investors to purchase a pool of securities that, in general, offered better returns than those available from a standard interest-bearing bank account. Commercial paper has become a common component of many money market funds. Previously, money market funds held only government bonds. However, this transition away from only government bonds resulted in higher yields. At the same time, it was this reliance on commercial paper that led to the Reserve Primary Fund crisis. In addition to the reforms that the SEC introduced in 2010, the SEC also implemented some fundamental structural changes to the way they regulate money market funds in 2016. These changes required prime institutional money market funds to float their NAV and no longer maintain a stable price. Retail and government money market funds were allowed to maintain the stable $1 per share policy. The regulations also provided non-government money market fund boards with new tools to address runs. Money Market Funds Today Today, money market funds have become one of the core pillars of the present-day capital markets. For investors, they offer a diversified, professionally-managed portfolio with high daily liquidity. Many investors use money market funds as a place to park their cash until they decide on other investments or for funding needs that may arise in the short-term. The interest rates that are available on the various instruments that constitute the portfolio of a money market fund are the key factors that determine the return from a given money market fund. Looking at historical data is enough to provide sufficient details on how money market returns have fared. During the decade spanning from 2000 to 2010, the monetary policies of the Federal Reserve Bank led to short-term interest rates—the rates banks pay to borrow money from one another—hovering around 0%. These near-zero rates meant money market fund investors saw returns that were significantly lower, compared to those in the prior decades. Further, with the tightening of regulations after the 2008 financial crisis, the number of investable securities grew smaller. Another economic policy in recent years that has had an adverse impact on money market funds is quantitative easing QE. QE is an unconventional monetary policy where a central bank purchases government securities or other securities from the market in order to lower interest rates and increase the money supply. As major economies across the globe—including the QE measures in the aftermath of the 2008 financial crisis, a good portion of the QE money made its way into money market mutual funds as a haven. This migration of funds led to interest rates remaining low for a long duration, and the diminishing of returns from money market funds. Are Money Market Funds Safe? Yes. For the most part, money market funds are among the safest of all investments, with a target value of $1 per share. Money market funds have only dipped below this value "broken the buck" on a small number of occasions associated with financial crises and have quickly bounced back, What Was the First Money Market Fund? The first money market mutual fund appeared in 1971 and was called "The Reserve Fund." Is a Money Market Account the Same as a Money Market Fund? No. A money market fund is a mutual fund investment that holds short-term treasuries and other money market instruments. A money market account is a bank product that credits depositors a rate of interest. FILE PHOTO Flags of participating countries are pictured ahead of the China-Arab summit in Riyadh, Saudi Arabia, December 7, 2022. REUTERS/Mohammed BenmansourReutersBy Julie Zhu and Aziz El YaakoubiHONG KONG/RIYADH Reuters - Chinese entrepreneurs and investors are flocking to Riyadh this week to attend a business conference, which will bring together business and government leaders aiming to explore expansion and fundraising opportunities, amid warming diplomatic Arabia will be hosting the 10th Arab-China Business Conference, the first such forum since Chinese President Xi Jinping's 'epoch-making' visit to the Gulf state, which Beijing described as the biggest diplomatic initiative in the Arab gathering on Sunday and Monday will take place two days after Secretary of State Antony Blinken visited Saudi Arabia as Washington works to mend frayed ties with its closest ally in the Middle cooperation between Riyadh and Beijing in security and sensitive high-tech has been a major business conference will draw about 2,000 attendees from Greater China, in what will be one of the region's biggest-yet business delegation to Saudi Arabia, according to one person with direct knowledge of the gathering between the world's second-largest economy and Gulf energy giants comes as economic slowdown and geopolitical tensions have made fundraising and expansion challenging for many Chinese funds and companies."From the perspective of both capital and new market, the Middle East, Saudi Arabia are really good new choices for Chinese companies and investors," said Henry Zhang, president of Hong Kong-based private equity firm Hermitage who will travel to Riyadh and attend the conference for the first time along with a number of portfolio companies, said he hopes the trip can help his investees explore the local market and help himself understand the real demands of Middle Eastern investors for Chinese funds."Since late last year, a large number of Chinese funds have rushed to the Middle East looking for new investors. In light of this, what we have to think about is what the potential investors want and how we can differentiate ourselves."The event also comes as Saudi Arabia, the world's top crude exporter and largest Arab economy, aims to cut oil dependence and modernise the country with new industries under its economic agenda - Vision 2030 while deepening ties with Beijing.'MORE COOPERATION'China is Saudi Arabia's top trading partner globally with bilateral trade worth $ billion in 2021. While economic ties remain anchored by energy interests, bilateral relations have expanded under the latter's infrastructure and technology Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington, said one key reason for Saudi-Chinese linkages strengthening is that the Arab country is looking for major growth areas via international partnerships."The calculation here is that there is much to gain from more cooperation with China," he said."Chinese technology firms have read the writing on the wall and see the Saudi Vision 2030 transformation agenda as an invitation for longer-term commercial engagement with Saudi customers."For the upcoming conference, Chinese entrepreneurs in attendance represent a range of industries - from renewable energy and artificial intelligence to biotech, finance and to Edison Gao, China-based group vice president of Saudi conglomerate Ajlan & Brothers, the attitude of Chinese enterprises towards expanding in the Gulf state has also undergone "tremendous changes"."I've never seen Chinese companies being so interested in and committed to the Saudi market," said Gao, who joined Ajlan in 2017 and has since been helping attract Chinese firms to expand locally."Previously, I had to actively pitch Chinese companies to consider Saudi Arabia as their destination of outbound investment and overseas expansion. But it's the other way around recently, I've received many business proposals from them."Reporting by Julie Zhu in Hong Kong, Aziz El Yaakoubi in Riyadh and Rachna Uppal in Dubai; Editing by Sumeet Chatterjee and Michael PerryCopyright 2023 Thomson Reuters. Money Market Vs. Capital Market An Overview The money market and the capital market are not single institutions but two broad components of the global financial system. The money market is the trade in short-term debt. It is a constant flow of cash between governments, corporations, banks, and financial institutions, borrowing and lending for a term as short as overnight and no longer than a capital market encompasses the trade in both stocks and bonds. These are long-term assets bought by financial institutions, professional brokers, and individual investors. Together, the money market and the capital market comprise a large portion of what is known as the financial market. Financial Markets Capital vs. Money Markets The Money Market The money market is a good place for individuals, banks, other companies, and governments to park cash for a short period of time, usually one year or less. It exists so that businesses and governments that need cash to operate can get it quickly at a reasonable cost, and so that businesses that have more cash than they need can put it to use. Key Takeaways The money market is a short-term lending system. Borrowers tap it for the cash they need to operate from day to day. Lenders use it to put spare cash to capital market is geared toward long-term investing. Companies issue stocks and bonds to raise money to grow their businesses. Investors buy them to share in that money market is less risky than the capital market while the capital market is potentially more rewarding. The returns are modest but the risks are low. The instruments used in the money markets include deposits, collateral loans, acceptances, and bills of exchange. Institutions operating in the money markets include the Federal Reserve, commercial banks, and acceptance houses. When a company or government issues short-term debt, it's usually to cover routine operating expenses or supply working capital, not for capital improvements or large-scale projects. About Liquidity The money market plays a key role in ensuring that banks, other companies, and governments maintain the appropriate level of liquidity on a daily basis, without falling short and needing a more expensive loan and without hoarding excess cash that isn't earning interest. Individual investors may use the money markets to invest their savings in a safe and accessible place. Many choices are available, including mutual funds that focus on state money market funds, municipal funds, and Treasury funds. Many of the government funds are tax-free. A money-market fund also can be opened at most banks. The Capital Market The capital market is where stocks and bonds are traded. Its movements from hour to hour are constantly monitored and analyzed for clues as to the health of the economy at large, the status of every industry in it, and the consensus for the short-term future. The overriding goal of the companies institutions that enter into the capital markets is to raise money for their long-term purposes, which usually come down to expanding their businesses and increasing their revenues. They do this by issuing stock shares and by selling corporate bonds. Primary and Secondary The capital market is roughly divided into a primary market and a secondary market. A company that issues a round of stock or a new bond places it in the primary market for sale directly to investors or institutions. If and when those buyers decide to sell their shares or bonds, they do so on the secondary market. The original issuer of those stocks or bonds does not immediately benefit from their resale, although companies certainly have an interest in the price of their stock shares rising over time. The capital market is by nature riskier than the money market and has greater potential gains and losses. What are four examples of money market instruments? Examples of money market instruments include certificates of deposit CDs, commercial paper, Treasury bills T-bills, and banker's acceptances. What are the types of capital markets? Capital markets can be broken down into primary and secondary markets. The primary market is where stocks and bonds are first issued to investors. The secondary market, on the other hand, is where securities that have already been issued are traded between investors. What are 3 types of capital market? Capital markets can include the stock market, the bond market, and the forex market. Each of these markets trade a different asset class. The Bottom Line The money market and capital market are often talked about. Together, they make up a large chunk of the global financial market. The money market is where short-term financial instruments with a holding period of a year or less are traded. It essentially works as a short-term lending and borrowing platform for its participants, with investors in this market either gaining access to funds or earning interest on them. The capital market is also a venue where people make money but has different characteristics. In this market, there are entities that issue shares, bonds, or other long-term securities to raise capital and grow their businesses, and those who invest in these instruments, hoping to turn a profit. The key distinguishing factors are time and rewards. Money markets are made up of short-term investments carrying less risk, whereas capital markets are more geared toward the longer term and offer greater potential gains and losses.

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