Thursday 10 December 2009

Emirates NBD's arm closes fund

Emirates Investment Services (EIS), the asset management arm of Emirates NBD, yesterday announced the closure of Sukuk Fund and said it generated a total return of 15 per cent in seven months.

The closed-ended fund had an initial life of four years and began trading in March this year.

Given the lack of appropriate opportunities in the market going forward, the fund manager decided to crystallise the gains and return proceeds to the investors.

The last position in the fund was liquidated in November. The fund was launched at the peak of fears about the credit worthiness of regional debt issues and was one of the several innovative opportunities developed under the umbrella of Emirates NBD, the region's largest bank in terms of assets.

"The fund not only managed to time the bottom in terms of its inception but also sold at almost the peak, thereby generating optimal returns for the investors over this time period," said Deon Vernooy, Senior Executive Officer at EIS.

The proceeds from the fund liquidation have been returned to the investors with the option to reinvest in other EIS-managed funds. "We continue to believe there is a number of exciting opportunities for our clients and look forward to discussing these with them," said Vernooy.END

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