ENBD funds unit has strong 2016

Emirates NBD Asset Management CEO eyes ‘fresh opportunities to deliver positive results’

Last year saw Emirates NBD Asset Management deliver another year of strong results across its suite of funds and mandates. Consistent performance and continuation of a strong track record saw the firm grow its Assets under Management (AuM) by 29 per cent from $2.99 billion (Dh10 billion) to $3.85 billion.

“In 2016 we maintained our track record for generating strong and consistent returns for clients. The success we enjoyed is particularly pleasing given the adverse market conditions experienced by the region, particularly as a result of low oil prices. Our extensive experience in emerging markets will be of importance as we seek fresh opportunities to deliver positive results in 2017,” Tariq Bin Hendi, CEO, Emirates NBD Asset Management, said in a statement.

The Emirates Mena Fixed Income Fund demonstrated a solid absolute, and one of the strongest relative performances among the product suite. The fund, which closed 2016 with an AuM of $149 million, generated a net return of 7.7 per cent for the year. It also outperformed its benchmark by a margin of 2.8 per cent. These results were achieved primarily by a combination of strong bond selection in the UAE and an underweight country allocation to Qatar. Additionally, the fund deployed short US Treasury positions, as a hedge against rising interest rates. The fund paid a semi-annual dividend of 2.5 per cent in December 2016, translating into a dividend of 5 per cent for the year.

The Emirates Emerging Market Corporate Bond Absolute Return Fund delivered one of the highest absolute returns in 2016, generating 14.5 per cent for the year. The peer-group average for the same period was only 12.4 per cent, meaning that EMCAR was ranked 1st of 275 funds in the Morningstar EM Corporate Bond Universe for 2016. The fund owns CDS positions in the Philippines, Indonesia, Brazil, South Africa and Hungary, as a hedge against wider credit spreads.