- Boards of Jersey-based funds approve formal dividend payout for H1 2011
- Stellar performance on income fund suite
- Fixed income suite delivers significant capital growth
The formal dividends, which cover the trading period from 1st January 2011-30th June 2011, approved by the boards of the Jersey-based funds, are as follows:
- Emirates Mena Fixed Income Fund: 2.5% (annualized 5%)
- Emirates Mena High Income Fund: 2.5% (annualized 5%)
- Emirates Global Sukuk Fund: 2.25% (annualized 4.5%)
The funds, which cover Islamic and regional debt instruments, as well as a high yielding equity-based product, delivered annualised income distributions of 4.5%-5% in US Dollar terms for the first six months of the year. All three funds have performed strongly against peers over the period with the fixed income suite delivering significant capital growth as well.
The running yield of the three funds averaged 5.21%, 4.8% and 4.44% respectively over the period.
“Emirates NBD Asset Management’s services in the income space appeal to investors seeking attractive income and capital growth as part of a diversified portfolio, and includes funds focusing on regional equities, regional fixed income, regional real estate and global asset allocation,” said Jamal Bin Ghalaita, Group Deputy CEO, Emirates NBD. “The strong performance of our income range of funds is evidence of investor confidence both in the regional markets and in Emirates NBD’s Asset Management arm.”
Commenting on the distributions, Deon Vernooy, Head of Emirates NBD Asset Management, said: “We are aware that, with confidence and liquidity returning, the risk free rate in the region has fallen significantly. At the same time this coincides with investor appetite for income being at an all-time high. These funds provide a perfect vehicle for income-seeking investors in the conventional and Shari’a compliant space.”
Emirates NBD Asset Management manufactures its own conventional and Islamic products, offering exposure to regional as well as global markets. With 52 financial specialists from 14 different countries, it forms one of the largest asset management firms in the region.
Emirates Global Sukuk Fund
The Emirates Global Sukuk Fund is a US Dollar denominated, Sharia compliant open ended fund that will invest in a diversified portfolio of Sukuk issued by companies locally and globally. The primary investment objective of the Fund is to achieve high income as well as capital growth.
Emirates MENA Fixed Income Fund
The Emirates MENA Fixed Income Fund is a US Dollar denominated open ended fund, which aims to achieve a high level of income as well as capital growth, predominantly through a diversified portfolio of MENA debt securities of varying maturities along with cash and other ancillary instruments.
Emirates MENA High Income Fund
The Emirates MENA High Income Fund is an open ended fund which aims to provide a high level of income from a managed portfolio of MENA assets. The fund will primarily invest in equities, but also take exposure to other suitable asset classes such as fixed income instruments, deposits and ancillary assets. Income will be distributed on a semi-annual basis with a target rate of USD 3 month LIBOR plus 300-500bps.