(MENAFN - Khaleej Times) The National Bank of Abu Dhabi, or NBAD, announced that from today its new mutual fund, the NBAD Cautious Income Fund, will accept subscriptions.
This new fund is a unique bond fund that offers investors attractive returns with low levels of risk.
At a time when investors are cautious about riskier asset classes, the launch of a fixed income fund meets a vital and critical need in the market.
The NBAD Cautious Income Fund is an open-ended, actively managed product with an expected yield target of five per cent based on current market conditions. Any income will be distributed semi annually. It is open to institutional and personal investors who can invest as low as 500 either through lump sum or regular savings plans.
The fixed income team at NBAD's Asset Management Group delivered over nine per cent returns for its unconstrained institutional clients in 2011, despite tough conditions in financial markets. NBAD achieved this high return by astutely investing in UAE and GCC bond markets, a selection based on internal research and investment process. The returns have been delivered in a very low risk fashion with portfolios displaying lower volatility than even three- to five-year US Treasurys. The new fund invests in a range of bonds and money market instruments predominantly in the UAE and wider Mena region.
NBAD's Asset Management Group, the fund manager, will diversify the fund by paying close attention to risk minimisation. It would include government and government-related entities as well as select corporations that fit the fund's profile.