Deon Vernooy, Senior Executive Officer at Emirates NBD Asset Management
Emirates NBD Asset Management, the asset management arm of Emirates NBD, a leading bank in the region, announced today that its Emirates Islamic Money Market Fund attracted more than US100 million from investors in the 18 months since the fund was launched.
The fund has achieved more than quadruple the amount in total returns than would have been achieved by an investor placing money in an overnight deposit during the same period.
Deon Vernooy, Senior Executive Officer at Emirates NBD Asset Management, said: “In a low interest rate environment, investors need to focus on earning the best profit rates from their liquid assets, and the Emirates Islamic Money Market fund is an ideal vehicle for investors seeking a cash allocation in their portfolio.
“The fund was launched based on a belief that conventional and Islamic investors want a liquid strategy that is daily-dealing and captures the higher profit rates offered by Islamic banks. The broad investor base and growing international distribution shows investors want their cash to be professionally managed,” he added.
The Emirates Islamic Money Market Fund is a Shari’a-compliant investment that aims to achieve a higher return than traditional Shari’a-compliant bank deposits of similar liquidity. The fund primarily invests in a diversified portfolio of Shari’a-compliant money market instruments.
“The fund’s success lies in a number of investment parameters that ensure suitability of return and liquidity,” continued Vernooy. “Insurance companies and Takaful operators have been one group of investors drawn to the funds liquid and simple strategy.”
The Emirates Islamic Money Market Fund is a leader in its peer group, ranking in the top percentile of the sector. It places deposits with approved Islamic banks to achieve a return greater than offered by dollar deposit rates. Every bank that is used in the portfolio passes a rigorous credit and counterparty risk assessment.
“Asset growth of the fund is a reflection of the interest shown by international and local investors to the higher profits that can be achieved from investing in Islamic bank deposits,” said Vernooy.
Emirates NBD Asset Management is one of the top 10 asset management firms in the region and 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 represents one of the largest asset management firms in the region.