NBAD launches cautious income fund
Abu Dhabi , January 30, 2012
The National Bank of Abu Dhabi (NBAD) has announced the launch of a new mutual fund that offers investors attractive returns with low levels of risk.
The NBAD Cautious Income Fund is an open-ended, actively managed product with an expected yield target of 5 per cent based on current market conditions, said the bank in a statement.
Any income will be distributed semi annually. It is open to institutional and personal investors who can invest as low as $500 either through lump sum or regular savings plans, it added.
At a time when investors are cautious about riskier asset classes, this fund meets a vital and critical need in the market, said a senior official.
“The NBAD Cautious Income Fund is set to become our flagship fund. We have built a terrific fund management team as evidenced by the plethora of awards we have recently received," remarked Alan Durrant, the NBAD Group chief investment officer and GM of Asset Management Group.
The Fixed Income team delivered over 9 per cent returns for its unconstrained institutional clients in 2011, despite tough conditions in financial markets, the statement added.
The new fund invests in a range of bonds and money market instruments predominantly in the UAE and wider Mena region.
"Many investors today are faced with low returns on cash deposits, which with rising prices translates into a negative return on cash," said Mark Watts, the Head of Fixed Income at NBAD’s Asset Management Group.
"The NBAD Cautious Income Fund diversifies portfolios and is targeted for investors who want to enjoy higher income whilst retaining the flexibility to access their investment on a weekly basis," he added.
According to Watts, the governments and corporations across the GCC and the wider Mena region are investing heavily in expanding and improving infrastructure, which is mostly financed by bonds.
"As a result, this has created an unprecedented opportunity for investing in fixed income instruments that are based in the region. This is a great product for investors with a low tolerance for risk allowing them to capture higher returns without taking undue risk. Furthermore, it helps diversify any investment portfolio.”
The fund will be open for subscriptions for a limited time at the initial $5 per unit. The offer period closes on February 27. Thereafter the fund will be available at the weekly NAV price, subject to market movements, he added.-TradeArabia News Service
More Finance & Capital Market Stories
- NBK group CEO to step down
- SABB gets Fitch ratings boost
- Saudi SABB prices $400m sukuk issue
- Shuaa Capital gets Moody's ratings upgrade
- QInvest ‘advised on $3.5bn sukuk in 2013’
- Al Hilal Bank wins top Islamic finance award
- Barwa Bank wins top Islamic banking awards
- ‘BPO offers big benefits for Saudi economy’
- Emaar approves bonds-to-shares conversion
- Higher oil production to boost Mena growth