NBAD’s investment funds emphasise on secure asset allocation
By Gergana Mineva
NBAD continues to demonstrate expertise in the local and GCC markets by delivering exceptional investment performance. The objective of it’s investment products is to grant investors a win/win situation by generating both semi-annual income and capital gains.
NBAD’s UAE based funds, the NBAD UAE Growth Fund (UGF), the UAE Trading Fund (UTF) and the UAE Islamic Fund (UIF) have all performed remarkably well – the UGF is up over 540% since its November 2000 inception and gained 96% in 2005; the UTF has increased over 307% since its inception in February 2004 including a 127% rise in 2005 and the UIF has achieved over a 101% return since its inception in January 2005.
During the first half of 2008 the UAE markets continued to make incremental progress trough. Smaller capitalization (smaller sized market value stocks) and lower quality (based on leverage and perceived need for capital) are dominating the reports.
Patience pay for those investors who can ignore the day-to-day hiccups and sneezes of the markets and pay attention to the longer term perspective as clearly, the outlook for the UAE and the region is quite sunny.
The NBD’s investment funds objectives are to invest in a portfolio of UAE and other GCC Equities, Fixed Income Securities and income producing Real Estate with the aim of achieving both capital growth and distribution of dividends.
The investment funds have quite similar structures:
NBAD UAE Growth Fund
Fund type: Open Ended
Currency: U.A.E. Dirhams
Inception Date: October 2000
Manager: Asset Management Group, NBAD
Custodian: National Bank of Abu Dhabi
Auditor: KPMG
Issue Price: AED 5.00*
Unit price adjusted historically to reflect the 2: 1 split on April 6th, 2006
Minimum Subscription: AED 10,000 & multiples of AED 1,000 thereafter
Management Fees: 2% p.a.
Performance Fee: 10% of increase subject only to a hurdle increase of 12% in the Fund’s NAV per year having being achieved.
Restrictions: None; open for foreign ownership
Investment objective
- To invest in a balanced portfolio, primarily in the UAE equity markets.
- May invest up to 30% in other GCC markets, and other related securities, including fixed income instruments and third party collective investment schemes with a view to achieving capital growth.
Top stocks and allocations
Emirates Tele. Corporation 13.8%
Aldar Properties 11.1%
Emaar Properties Company 8.8%
NBAD UAE Islamic Fund
Fund type: Open Ended
Currency: U.A.E. Dirhams
Inception Date: January 2005 *
Manager: Asset Management Group, NBAD
Custodian: National Bank of Abu Dhabi
Auditors: KPMG
Issue Price: AED 10.00
Minimum Subscription: AED 10,000 & multiples of AED 1,000 thereafter
Management Fees: 2% p.a.
Performance Fee: 10% of increase subject only to a hurdle increase of 8% in the Fund’s NAV per year having being achieved.
Restrictions: None; open for foreign ownership
Investment objective
- To invest in a balanced portfolio of equities based on Islamic Shariah principles, listed on the financial markets of Dubai, Abu Dhabi, or other Arab equity markets selected by the Manager, with a view to achieving capital growth.
- The Fund, while predominantly investing in the UAE will also invest in the equities listed on otherArab markets. However, will not concentrate its investment in any country other than the UAE and will follow the guidelines of Islamic Shariah Law.
- The Fund may also invest in third party collective investment schemes.
NBAD UAE Distribution Fund
Fund type: Open Ended
Currency: U.A.E. Dirhams
Inception Date: February 2006 *
Manager: Asset Management Group, NBAD
Custodian: National Bank of Abu Dhabi
Auditors: KPMG
Issue Price: AED 10.00
Minimum Subscription: AED 10,000 & multiples of AED 1,000 thereafter
Management Fees: 2% p.a.
Performance Fee: 10% of increase subject only to a hurdle increase of 10% in the Fund’s NAV per year having been achieved.
Restrictions: None; open for foreign ownership
Investment objective
- To invest in a portfolio of UAE equities, int’l fixed income securities, real estate, and real estate related investment instruments, whether listed or, where appropriate, purchased through the ‘over the counter’ arrangements and related securities, with a view to both achieving capital growth and distributing dividend income.
- May also invest up to 30% of its total assets in GCC equities, up to 30% in int’l Fixed Income securities, and up to 45% in real estate and real estate related investment instruments.
As inflation is a raising problem in UAE and the GCC markets as a whole, the NBAD’s funds with its heavy emphasis on tangible storehouses of value – real estate and telecoms, can continue to do well for its investors and take advantage of a serious problem with consumers’ loss of purchasing power.
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