On Wednesday, the National Bank of Abu Dhabi (NBAD) announced that, subject to approval by Emirates Securities and Commodities, it would launch the NADB Cautious Income Fund, a bond fund that would combine returns with low levels of risk for wary investors.
With investors concerned about real estate and equities markets, said NADB, this new fixed income fund “meets a vital and critical need in the market.” Open-ended and actively managed under the NBAD Growth Fund range, the fund “is open to institutional and personal investors who can invest as low as AED 5,000.” NADB expects annual returns of 5%, based on current market conditions, and says that income will be distributed semiannually.
The fund manager is NBAD’s Asset Management Group. Diversification will be sought through close attention to minimizing risk, and investments will include government and government-related entities, along with select corporations that fit the profile of the fund. Investments are selected from a range of bonds and money market instruments, predominantly in the UAE and wider MENA region, according to the bank.