Emirates NBD Asset Management fixed income funds perform strong



  • Emirates Islamic Money Market Fund ranks amongst top
  • 10 per cent of US Dollar Money Market funds globally
  • Sharia-compliant Emirates Global Sukuk Fund returned more than seven per cent; Emirates MENA Fixed Income Fund more than nine per cent
  • First anniversary of fixed income funds marked by robust performance and strong outlook

Emirates NBD Asset Management, the asset management arm of Emirates NBD, a leading bank in the region, announced today the one year anniversary returns of its three fixed income funds. The past year witnessed asset attraction as well as robust performance for one of the top 10 asset management firms in the region.

The suite of fixed income funds includes an Islamic money market fund that has taken advantage of the higher profit rates in the region and returned nearly three per cent in the past year. This ranks it among the top 10 per cent of US Dollar Money Market funds globally. In comparison, over the same three-month period, US LIBOR returned just 0.37 per cent*.

The two other bond products include the Sharia-compliant Emirates Global Sukuk Fund, which rose more than seven per cent in USD terms, and Emirates MENA Fixed Income Fund, with a focus on Middle Eastern government and company bonds, which returned more than nine per cent. These funds were aided by active management through recent market volatility, which protected the funds during downturns, and helped improve returns while dampening volatility.

Deon Vernooy, Senior Executive Officer at Emirates NBD Asset Management, said: “The first anniversary results of our fixed income funds is marked by excellent performance by our team. Our aim has always been to develop funds that exploit our skill set and offer a full suite of mutual funds for investors.”

The three funds were launched in March 2010, when the company expanded its fixed income suite by creating a standalone Islamic money market fund as well as a global Sukuk product. It also opened the Emirates MENA Fixed Income Fund, a conventional fixed income fund focused on the MENA credit markets.

“The fixed income vehicles have appealed to all types of investors due to their high rates of return and exceptionally low volatility,” said Usman Ali Ahmed, Senior Fixed Income Fund Manager, Emirates NBD Asset Management. “There continues to remain significant opportunities with these products, with the benefits of active management.”

Emirates NBD Asset Management’s services in the fixed income space appeal to investors seeking attractive income and capital growth as part of a diversified portfolio. The wider product suite includes funds focusing on regional equities, regional fixed income, regional real estate and global asset allocation. The company manufactures its own conventional and Islamic products, offering exposure to regional as well as global markets. With over 50 financial specialists from 14 different countries, they represent one of the largest asset management firms in the region.

“These public funds provide investors with a simple route into Emirates NBD Asset Management’s fixed income capabilities, providing access to different asset classes and investment strategies that generate current income,” concluded Vernooy.

All three Emirates NBD Asset Management funds have demonstrated strong returns across all time periods in the past year as illustrated below:

    Data* to 27/4/2011 3 Months 6 Months Year to date 1 Year
    Emirates Islamic Money Market Fund 0.57% 1.31% 0.79% 2.81%
    US 3 Month LIBOR 0.08% 0.16% 0.10% 0.37%
    Emirates MENA Fixed Income Fund ^ 1.89% 2.56% 3.84% 9.17%
    HSBC Middle East Investment Grade Index 1.11% 0.98% 2.40% 7.58%
    Emirates Global Sukuk Fund 2.27% 3.62% 3.34% 7.33%
    Barclays Global Aggregate Index 0.75% -0.97% 0.34% 2.83%

* Source: Emirates NBD AM; Bloomberg ^ Price as stated 26/4/2011

Objective of the funds:

Emirates Islamic Money Market Fund

The Emirates Islamic Money Market Fund is a Sharia compliant investment that aims to achieve a higher profit return than traditional Sharia compliant bank deposits of similar liquidity. The Fund will primarily invest in a diversified portfolio of Sharia compliant money market instruments including collectives investing in such instruments.

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.


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