The National Bank of Abu Dhabi (NBAD), the Number One Bank in the UAE, announced TODAY distribution of dividends for the first time to its NBAD UAE Distribution Fund – Mizaat (UDF) investors with the option to reinvest the dividend in lieu of a cash payout.
Accordingly, UDF Management would distribute dividend payout for the first half of 2010 of 2% of the Unit NAV as of July 1, 2010. UDF managers elected to offer investors the Dividend Reinvestment Option allowing investors the choice to convert their dividend to units in the Fund.
“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 Senior Fund Manager of UDF 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 over the medium term 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 do not overlook opportunities across the MENA region.
NBAD’s asset Management Group manages assets of about AED5.2 billion, making it one of the largest of its kind in the UAE. It introduced the region’s first Exchange Traded Fund (ETF), 1UAE Share, which began trading in the Abu Dhabi Securities Exchange (ADX) on March 25, 2010.
All UDF unit holders as of June 13, 2010 will receive dividends and the Dividend Reinvestment Option automatically will apply to all investors unless they opt out of it. Investors who elect to receive cash dividends instead of units in the Fund must inform Fund managers by June 24, 2010. Investors who choose to take advantage of the Dividend Reinvestment Option do not need to take any action.
Further information can be obtained either at www.nbad-amg.com or nbadudf@nbad.com
