ABU DHABI, 12 February 2007 — Abu Dhabi Commercial Bank (ADCB) yesterday announced the formal launch of its ADCB MSCI UAE Fund, the first index fund of its kind in the Middle East. Index funds, also known as passive funds or tracker funds, track the movement of market indices to deliver returns that closely match those indices.
“As the regional GCC equity and capital markets continue to grow, so too has the demand for more diverse and innovative solutions to meet the growing sophistication of investors.”
“With this in mind, Abu Dhabi Commercial Bank is leading the way on a wide range of funds initiatives in the UAE and the broader region,” Ahmed Barakat, head of wealth management products at ADCB, said.
“A particular success for the bank is its mutual funds range whose increased appeal can be attributed to easy access to any market. Today as individuals become more affluent, professionally-run products are central to preserving wealth and to growing it over time. Mutual funds offer that option while being cost effective, transparent, and regulated by renowned agencies,” Barakat said.
“This fund offers investors a unique, low cost, and liquid way to invest in the UAE equity markets,” said Mohammed Salih Al-Hashemi, fund manager, ADCB. “In essence, the objective of index funds is to closely track the index to which they are benchmarked while keeping costs to a minimum.”
