JEDDAH, 15 September 2004 — Following an increase in demand for local investment funds with a truly regional perspective, National Bank of Dubai (NBD) yesterday launched the first of a series of regional funds under the umbrella of Aafaq (Horizons) Investment Funds.
Managed by a team of highly qualified professionals at the bank, the “Gulf Balanced Fund” is the first product of its kind which focuses on the best performers from the region’s bourses. The fund will be open to all nationalities, with some restrictions on US and UK nationals, regardless of whether they have residency in the UAE. While other banks do currently offer regional funds, these are traditionally centered on local markets.
“With the regional investment environment producing consistently high returns over the past few years, customer demand for a fund of this kind has risen sharply,” said R. Douglas Dowie, general manager, National Bank of Dubai. “The combined GDP of the Gulf countries in 2003 was in excess of $510 billion, putting the region ahead of countries such as Australia, Russia, Brazil and Switzerland. This figure has been growing at an average rate of over 11 percent since 1999 and illustrates how strong the investment environment is.”
NBD expects this growth to continue not only as a result of firm oil prices but also due to a number of other factors including demographics, economic reform, trade liberalization, privatization and the rapid developments of the regional financial markets. In addition, the region’s bourses are becoming more efficient and attracting more listed companies, providing investors with more liquidity and investment options.
The NBD Gulf Balanced Fund is open-ended and will invest primarily in a portfolio of equities and bonds issued by governments and corporations in the Gulf region. For investors with a global portfolio, this provides an opportunity for them to improve their risk/return profile by offering exposure to markets which tend to be uncorrelated to the major equity markets.
The fund is yet another step in NBD’s continued drive to offer the highest possible quality of innovative investment solutions to its clients, offering investors holding a portfolio of local equities the opportunity to diversify their exposure to other regional markets and fixed income instruments.
“Building on our existing commitment to excellence in client servicing, we have assembled a dedicated team of specialists to manage the fund,” added Dowie. “The team consists of experienced investment analysts and managers with extensive regional and international investment expertise. We believe the NBD Gulf Balanced Fund will provide an attractive, professionally managed investment vehicle.” The National Bank of Dubai adopts sound banking practices, offers efficient services while protecting the valuable traditions of the UAE.