Emirates NBD Asset Management Announces Strong 2016 Performance

3 Min | 22 February 2017

2016 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% from $2.99 billion (USD) to $3.85 billion.

Assets under Management (AuM) grew by 29%
Fixed Income Fund up 7.7% at end of year
Emirates Emerging Market Corporate Bond Absolute Return Fund up 14.5% compared to peer-group average of 12.4%
Strong dividend payments by the income generating fund range

Dubai, United Arab Emirates; 22 February 2017: 2016 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% from $2.99 billion (USD) to $3.85 billion.

Tariq Bin Hendi, CEO, Emirates NBD Asset Management, commented:

“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.”

Emirates MENA Fixed Income Fund

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 $149m, generated a net return of 7.7% for the year. It also outperformed its benchmark by a margin of 2.8%*. 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% in December 2016, which translated into a total dividend of 5% for the year.

Emirates Emerging Markets Corporate Bond Absolute Return Fund (“EMCAR”)

The Emirates Emerging Market Corporate Bond Absolute Return Fund delivered one of the highest absolute returns in 2016, generating 14.5% for the year. The peer-group average for the same period was only 12.4%, 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. The main contributors to its performance were Brazil and Indonesia, which have become more attractive in light of lower yields in developed markets and stabilizing currencies. The fund paid a semi-annual dividend of 2.5% in December 2016 and a total dividend of 5% equivalent for the year.

Emirates MENA Top Companies Fund

Having benefited from successful stock selection in the UAE and Saudi Arabia, the Emirates MENA Top Companies Fund was up 6.5% for the year, 1.6% ahead of its benchmark. Despite concerns in Q3 about the Saudi economy, a successful Eurobond launch and payment of government arrears resulted in the Saudi equity market rallying almost 30% in the final quarter of the year. The portfolio manager was able to generate alpha during this upturn by active stock selection. The fund also ranked in the top quartile in the Morningstar Middle East & Africa annual ranking.

Emirates Real Estate Fund (“EREF”)

The Shari’a compliant Emirates Real Estate Fund’s portfolio of properties was valued at approximately US$314 million as at 30 September 2016. In 2016, EREF enjoyed strong occupancy growth across a number of its key assets and as at 1 January 2017, its residential and commercial property portfolios reached 95.5% and 78.6% occupancy respectively, with a blended occupancy rate of 86.8% across the Fund’s full portfolio. The fund paid a semi-annual dividend of 5.85% to income class shareholders in December 2016, equating to a dividend of 5.8% for the year.

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