National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE, will distribute 2% dividend to NBAD UAE Distribution Fund – Mizaat (UDF) investors with the option to reinvest the dividend in lieu of a cash payout.
The distribution will equal 2% of the Fund’s net asset value (NAV) as of July 28, 2011. All those investors who successfully subscribe to the Fund on or prior to July 26, 2011 would be eligible for dividend distribution. UDF managers elected to offer investors the Dividend Reinvestment Option allowing investors the choice to convert their dividend to units in the Fund. Investors who choose to take advantage of the Dividend Reinvestment Option do not need to take any action, while investors who elect to receive cash dividends instead of units in the Fund must inform Fund managers by July 21, 2011.
“Our primary goal is to optimise benefits for our investors; we believe one way to do that is by giving them the choice to reinvest their dividend into the fund and increase their share in UDF,” said Saleem Khokhar, the Head of Equities at NBAD’s Asset Management Group. “A testament to the success of the UDF is that it is delivering dividend to investors while providing exposure to a blend of asset classes.”
UDF, created in 2006, is managed by NBAD’s Asset Management Group which aims to provide investors returns by investing in a blend of fixed income, real estate, and equities, with emphasis on dividend growth and stable recurring income streams. UDF managers seek returns over the medium-term via active management of asset classes, sector rotation, and stock picking. While the UDF managers primarily invest in the UAE markets, they also look for opportunities across the MENA region.
NBAD’s asset Management Group manages assets in excess of AED5 billion, making it one of the largest of its kind in the UAE.