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NBAD new fund raises $46.2m

Abu Dhabi, March 10, 2012

The National Bank of Abu Dhabi (NBAD) said its new Cautious Income Fund has successfully raised Dh170 million ($46.2 million) in subscriptions last week at the initial launch price of $5.

The fund, managed by NBAD's Asset Management Group, is targeting a yield of 5 per cent per annum.

The new Cautious Income Fund will be invested into local and Mena region bonds targeted to give investors a good yield premium over cash, said a NBAD statement.  

The first NAV strike after the initial offer period has seen the unit price rise to $5.0147. The fund is available on a weekly basis for new subscribers who want to increase their income or diversify holdings.

“We are delighted at the interest shown in our product and also that the fund has risen at such an early stage,” remarked Mark Watts CFA, the head of Fixed Income, NBAD's Asset Management Group.

“The fund is ideal for investors who are seeking relative safety in a low risk product whilst still receiving a strong income flow. This is especially important today as interest rates are so low in the market giving investors problems,” he noted.

The fund will be available to institutional and personal investors weekly via any NBAD branch. The minimum investment size is $500. Lump sum or regular savings scheme are available, the bank in its statement

“Raising Dh170 million in subscriptions in an asset class which is new to many is a great achievement,” noted Alan Durrant, the group chief investment officer of NBAD and general manager of Asset Management Group.
 
“This is an open ended fund and will be taking new subscriptions every week. It is also available as a Smart Investment Plan product with a minimum of just $500 per month. So, clients can build their holdings over time," he added.-TradeArabia News Service




Tags: Asset Management | National Bank of Abu Dhabi | fund |

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