Mark Watts, the Head of Fixed Income at NBAD’s Asset Management Group
The National Bank of Abu Dhabi’s (NBAD) Cautious Income Fund has made a semi-annual distribution of 2.21% of the Net Asset Value (NAV) of US$5.4925 NAV as at 28 March 2013. Accordingly, the Fund distributed to the investors US$0.12143 for each issued unit as of that date on the back of strong performance and robust asset growth.
The total dividend amount of around US%6 million covers the period from September 27th, 2012 to March 28th, 2013.
The Cautious Income Fund, launched to meet the market’s demand for low risk investment products, invests in MENA region fixed income instruments. In its first year, the Fund has enjoyed successful growth to become one of the largest of its kind in the UAE in terms of assets by reaching US$268.22 million (AED 985.17 million). The Fund’s performance since its inception on March 1st, 2012 has been strong with the return to March 28th, 2013 standing at 12.02%, an annualized return of 11.12%.
“The Cautious Income Fund has been a successful investment tool, satisfying investors’ demand for a low risk product,” said Mark Watts, the Head of Fixed Income at NBAD’s Asset Management Group. “The Fund allows investors access to our bond expertise that up until now was only available to corporate and institutional clients. Alongside its sister fund, the NBAD Sukuk Income Fund, which invests purely in Shari’a compliant investments, the Cautious Income Fund gives our clients full access to the regional bond market in a simple and attractive package with subscription on a weekly basis.”
Looking at the outlook for markets, Mr. Watts, who is the manager of the Cautious Income Fund, said: “We expect the fundamentals for the Fund to be positive over the coming 12 months. Liquidity globally will remain plentiful thanks to actions by the European and US central banks, in addition, elevated oil prices have provided a welcome boost to the GCC region and we expect local economies to continue to buck the global economic trend and provide solid returns for investors.”
The Cautious Income Fund’s yield is based on the Fund’s net asset value (NAV) on March 28th, 2013, which stood at US$5.4925. All investors as of that day are eligible to receive dividends. Investors, at the point of subscription, may opt to reinvest the dividend into the Fund instead of receiving a payout.
The NBAD Cautious Income Fund meets the need of investors who desire a low-risk product that would hedge against the uncertainty of equities market and real estate investment.
The NBAD Cautious Income Fund is open ended and actively managed under the NBAD Growth Fund range. It is open to institutional and personal investors at a minimum subscription amount of US$500.
The Fund invests in a range of bonds and money market instruments predominantly in the UAE and wider MENA region. NBAD's Asset Management Group, the Fund Manager, diversifies the Fund by paying close attention to risk minimization. The vehicles of investment include government and government-related entities as well as select corporations that fit the Fund’s profile.
NBAD's Asset Management Group (AMG) is one of the largest asset managers in the region with circa AED 6.15 billion under its management as of March 2013.