The National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE, has been named the Fixed Income Fund Manager of the Year by Global Investor magazine.
In naming NBAD’s Asset Management Group the winner, Global Investor said: “The National Bank of Abu Dhabi’s fixed income business may be young at just two years old but it has certainly risen to the challenge by winning this year’s Fixed Income Manager of the Year Award. The business has undergone a huge transformation since securing its first mandate in December 2010 to now breaking the US$400 million (AED1.470 billion) barrier in assets under management.”
NBAD launched this year two fixed income mutual funds: the Cautious Income Fund, and the Sukuk Income Fund. The Cautious Income Fund has now grown to over US150m (AED 550 million) since its launch.
The NBAD Cautious Income Fund is an open-ended, actively managed bond fund that targets attractive profit rates with semiannual distributions. It is open to private and institutional investors who can invest as low as USD 500 either through lump sum or regular savings plans through the NBAD Smart Investment Plan.
“Risk adjusted returns continue to strongly support the business with its flagship Portfolio benefiting from a Sharpe ratio of more than three since inception and annualized returns in double digits,” said the magazine.
The magazine also praised the Cautious Income Fund’s success in spite of global economic and political uncertainty.
“The success of the Cautious Income Fund is due to NBAD’s Asset Management Group utilising in-house research and analysis to take advantage of market opportunities,” said Mark Watts, the Head of Fixed Income at NBAD. “Debt instruments offer great opportunities because of the abundant liquidity in the region, significant investment in infrastructure development and improvement, and finally because bonds prices from the region are very cheap.”
Mr. Watts added: “In short there is still much to play for in MENA region bonds, and the NBAD is succeeding in capturing those opportunities.”
The Sukuk Income Fund has also achieved solid returns for investors and has grown to USD 13.6m since its recent launch.
NBAD’s Asset Management Group has won numerous awards for its innovative and well-managed products, including last year’s Best Asset Manager in the UAE, also from Global Investor. Most recently, the Group won the Best Asset Management House in Middle East for Islamic products at the International Takaful Awards and the UAE Asset Manager of the Year in MENA Fund Manager Performance Awards, presented by Mena Fund Manager magazine.