KWIN - The KraneShares Wahed Alternative Income Index. 'KraneShares' is in the name of the fund as they are the company who are implementing the strategy to generate 'Alternative Income'.
The goal of the fund is to generate steady money through the use of derivative contracts, namely options (i think, seems their document isnt too clear). Now as long as ive been aware, derivative contracts arent Halal for most but Wahed have their shariah compliancy certificate on it, so we are going to give them the benifit of the doubt. One key part of derivative contracts being haram is the excessive risk they bring, however the strategy that Wahed and KraneShares are impletmenting is a calculated low risk strategy through 'the combined sale of a call and a purchase of a put'. Rather confusingly they say to executate the strategy, the fund 'holds a long position and simultaneously executed a forward sale on the structure.' Are options being used? For now im not sure, but ill try and get some clarity on that going forward.
To avoid making this section a book, ill stop writing about this now, bar one more thing, the fund has no track record yet, has fees of 0.51% per year, isnt available in the UK yet, and the returns are subject to USD FX moves against other currencies (GBP if you are in the UK) so just like the majority of Sukuk funds, it doesnt really make sense to invest into unless you know what you're doing.
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