NBAD Sukuk income fund delivers 5.83% dividend annualised

Press release
Published June 15th, 2014 - 08:07 GMT

The National Bank of Abu Dhabi’s NBAD Sukuk Income Fund will pay to its investors a semi-annual distribution equal to 2.87% of the net asset value (NAV) ofUS$5.2532, being the NAV as at May 29, 2014. Accordingly, each unit in the Fund will receive a dividend pay-out of US$0.1510.

The Fund earned interest equivalent to US$926,428.67 from29 November 2013 to 28 May 2014.

“We are very pleased to start the year with an outstanding result. The performance of the Sukuk Income Fund has been unique amongst the peer group with attractive level of income and total return achieved at a low level of volatility. In a market that has seen returns to investors shrink, we are particularly proud to be able to offer this level of income and total return,” said Mark Watts, the Managing Director & Chief Investment Officer of NBAD’s Asset Management Group.

Investors who have successfully subscribed into the fund by May 28, 2014 or prior are eligible to receive dividends. The dividend pay-out method is based on the pay-out preference each investor in the Fund selected at the time of subscription. Accordingly, dividend reinvestment is based on the unit NAV of May 28, 2014.Those investors who opt for pay-out in the form of cash are paid out within 12 business days from the Ex-Dividend Date. Pay-out that is not cashed out is re-invested on 5th June, 2014.

Anne Durand, Fixed Income Fund Manager at NBAD, commented: “Confirming our view, the market backdrop in 2014 has been benign for Sukuk investments. Globally, MENA stands out with its unique value proposition for its unrivalled credit quality coupled with abundant liquidity and the Fund proves to be the pioneer Shari’a-compliant investment vehicle combining attractive income with capital appreciation.”

The NBAD Sukuk Income Fund is an open-ended and actively managed product and distributes income semi-annually. The Fund’s structure and its investments are regularly reviewed by the well-known Shari’a scholar Sheikh NizamYacquobi of Bahrain to ensure continued adherence to Shari’a principles. It is open to institutional and individual investors who can invest as low as US$500 either through lump sum or regular investment plans.

The Fund is designed to capture the best opportunities available to investors by investing in a range of Sukuk and Islamic money market investments that are issued by the UAE Government; government-related entities, and selected corporates, mainly from the UAE and wider MENA region. The Fund, which is managed by NBAD's Asset Management Group, the region’s premier asset manager, aims to maximise income in a risk-controlled manner.

NBAD’s Asset Management Group named Asset Manager of the Year by the prestigious Global Investor/ISF at their Middle East Summit and Awards 2013. It has also been named the Best Asset Management House 2013 by the International Takaful Award, Best Exchange Traded Fund 2013 and Exchange Traded Fund of 2013 by MENA Fund Manager Performance Awards, and Best Sukuk Fund 2013by Islamic Business & Finance Award.

NBAD’s award-winning Asset Management Group controls assets in excess of AED 7.9 billion, making it one of the largest of its kind in the UAE.

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