NBAD Cautious Income Fund to Distribute Semi-annual Dividend of 1.97%

Abu Dhabi (October 7, 2012) – The National Bank of Abu Dhabi’s (NBAD) Cautious Income Fund will make a semi-annual distribution of 1.97% on the back of strong performance and robust asset growth.

The Dividend is earned from its inception on September 27, 2011 making an annualised yield of 3.44%.

The Cautious Income Fund, launched to meet market’s demand for low risk investment products, invests in fixed income instruments. In its first year, the Fund has enjoyed successful growth to become the largest of its kind in the UAE by reaching USD151 million (AED555 million). The Fund’s performance has been strong with the return to 4^th October 2012 standing at 6.45%, an annualised return of 11.46%.

“Just as we set out to do, the Cautious Income Fund has delivered strong, low risk returns to our clients since its inception,” said Mark Watts, Head of Fixed Income at NBAD’s Asset Management Group.  “The Cautious Income Fund allows investors access to our bond expertise that up until now was only available to corporate and institutional clients. Alongside its sister fund, the NBAD Sukuk Income Fund, which invests purely into Shari’a compliant investments, the Cautious Income Fund gives our clients full access to the regional bond market in a simple and attractive package with subscription on a weekly basis.”

Looking at the outlook for markets, Mr. Watts, who is the manager of the Cautious Income Fund, said: “We expect the fundamentals for the Fund to be positive over the coming 12 months. Liquidity globally will remain plentiful thanks to actions by the European and US Central Banks, in addition, elevated oil prices have provided a welcome boost to the GCC region and we expect local economies to continue to buck the global economic trend and provide solid returns for investors.”

The Cautious Income Fund’s yield is based on the Fund’s net Asset Value on September 27th, 2012, which stood at US$5.299. All investors as of that day are eligible to receive dividends.

Investors, at the point of subscription, may opt to reinvest the dividend into the Fund instead of receiving a payout.

The NBAD Cautious Income Fund meets the need of investors who desire a low-risk product that would hedge against the uncertainty of equities market and real estate investment

The NBAD Cautious Income Fund is open ended and actively managed under the NBAD Growth Fund range. It is open to institutional and personal investors who can invest at least USD500.

The 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, diversifies the Fund by paying close attention to risk minimisation. The vehicles of investment include government and government-related entities as well as select corporations that fit the Fund’s profile.

NBAD’s Asset Management Group (AMG) is one of largest asset managers in the region with AED4.1 billion under its management. 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.