NBAD looks for an alternative to bonds | The National

NBAD looks for an alternative to bonds | The National:



"As the spectre of higher interest rates begins to worry fund managers, National Bank of Abu Dhabi has joined the ranks of asset managers looking for low-risk ways to generate fixed income from financial instruments other than bonds.



NBAD, the biggest UAE bank by market value, already offers its high net worth clients with at least US$10 million to spare discretionary trade finance portfolios, but is looking to start a trade finance fund this year, domiciled either in the Cayman Islands, Luxembourg or the UAE, said Mark Watts, the head of NBAD’s asset management group.



Late last year, the European Islamic Investment Bank (EIIB) and Dubai-based Rasmala together started a Sharia-compliant trade finance fund domiciled in the Cayman Islands that is targeting a 4 per cent rate of return. It is expecting that investors this year will pour $100m into the niche fund that offers an asset class that is otherwise difficult to tap."



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