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NBAD launches two open-ended mutual funds

ABU DHABI - The National Bank of Abu Dhabi (NBAD) yesterday simultaneously launched two open-ended funds-the India Equities Fund and Global Debt Securities Fund, which are expected to raise $30 million - $40 million each.

Both the Funds, which are open for subscriptions to the expatriate investors have been, structured as funds-of-funds utilising ‘best-in-class’ managers. The extremely low levels of participation will allow a wide range of clients, access to top quality fund managers, as minimum investment into the Indian Equities Fund is $5000 and for the Global Debt Securities Fund is $15000.

The India Equities Fund offers investors an opportunity to invest in the Indian stock markets, as the investor friendly political, economic and socio-demographic development in the country are expected to be the key drivers for growth in the years to come.

Khaled Al Qubaisi, the Head of Corporate Finance and Business Development at NBAD said: "There is significant investor interest in the Indian economy's long-term growth potential. With projected GDP growth rates of 6 per cent for the year, the launch of this NBAD fund comes at an opportune time coinciding with growing market momentum".

Uday Kotak, Founder of Kotak Mahindra Group who is the fund manager speaking on the occasion said that by 2032 India would be the largest economy and by 2020 the third largest on the humble assumption of six per cent GDP growth. He said that India would sustain as a destination for cost savings for corporates which would attract foreign investment.

The Fund strategy, he said would be entering into the market at right time and focusing on diversification rather than concentrating on some areas.

The Global Debt Securities Fund

The Fund targets investors seeking efficient allocation of capital to dedicated fixed income diversified across sectors and asset classes. A key objective of the fund is the generation of attractive risk-adjusted returns together with the insulation of risks associated with a rising interest rate environment.

The Fund is a globally diversified program investing across sub-sectors including US and European government and corporate bonds, asset-backed securities, high yield and emerging market debt.

Khaled Al Qubaisi further added: “In a rising interest rate environment, investors seek the shelter of a portfolio of debt issues with low interest rate risk. The Global Debt Securities Fund intends to achieve exactly that.”

The Head of NBAD’s Investment Bank Division, Richard J. AMos said that NBAD has been a pioneer in creating investment vehicles for its clients. “We’re really excited to be adding these two new funds to our range of Global Growth Funds as they allow us to offer our clients further diversity in investment styles and asset classes.”