Emirates NBD Asset Management and BlackRock have launched two new income-focused funds, the FundStar Emirates CLO AA Fund and the Emirates Systematic Income and Growth Fund.
Building on the initial platform launched in 2025 to provide wealth clients with access to alternative investments, the partnership is now expanding its reach transitioning from private asset offerings originally reserved for professional clients to public fund structures accessible to a broader retail investor base across the region.
Over the past year, the collaboration has delivered strong performance and significant momentum, attracting $350 million in Assets Under Management (AUM).
Growing investor demand
The two new funds are structured to address growing investor demand for regular income, capital preservation and global portfolio diversification in a modern, dynamic market environment through professionally managed solutions supported by BlackRock’s global investment expertise.
The FundStar Emirates CLO AA Fund, sub-managed by BlackRock, offers floating-rate income by investing in a high-quality, investment-grade Collateralised Loan Obligation (CLO) portfolio consisting of senior secured corporate loans across the US and Europe. The fund targets an average portfolio credit rating of AA with zero sub-investment-grade exposure, daily liquidity and no leverage to artificially boost returns.
Dynamic alpha
The Emirates Systematic Income and Growth Fund follows a flexible, benchmark-unconstrained approach designed to generate dynamic alpha and high yield by allocating across globally diversified income-producing assets. BlackRock has been appointed as investment advisor, providing access to its systematic investment insights and vehicles, while Emirates NBD Asset Management remains responsible for ongoing portfolio management. The fund targets a 7% distribution net of fees, paid quarterly to investors.
Michail Samawi, Senior Executive Officer, Emirates NBD Asset Management, commented: "One year ago, we partnered with BlackRock to redefine how wealth investors in the Middle East access institutional-grade strategies. The success of this initiative in the first 12 months reflects the immense appetite in our region for sophisticated, yield-generating solutions. With the launch of these two new offerings, we are fulfilling our commitment to democratise premium global investments by delivering innovative wealth solutions that empower our clients to build resilient, income-generating portfolios aligned with their long-term financial goals.”
Keith Saldanha, Head of Wealth and Global Product Solutions for the Middle East & Africa at BlackRock, added: “One year into our partnership with Emirates NBD, we are proud of how quickly our collaboration has evolved and expanded. The launch of these two new funds is another important milestone, combining Emirates NBD’s local expertise and client reach with BlackRock’s global investment capabilities. We see significant opportunity for both CLO and systematic strategies within wealth portfolios, and we are excited to continue building innovative solutions together to give investors in the region access to an even broader range of investment opportunities.”—TradeArabia News Service
