News Column

NBAD sukuk fund to offer 5.8pc dividends

June 15, 2014

Abu Dhabi

The National Bank of Abu Dhabi'sNBAD Sukuk Income Fund will pay to its investors a semi-annual distribution equal to 2.87 per cent of the net asset value (NAV) of $5.2532, being the NAV as on May 29.

Accordingly, each unit in the fund will receive a dividend pay-out of $0.1510. The Fund earned interest equivalent to $926,428.67 from November 29 last year to May 28.

The NBAD Sukuk Income Fund is an open-ended and actively managed product and distributes income semi-annually.

Commenting on the performance, Mark Watts, the managing director & chief investment officer of NBAD's Asset Management Group, said: "We are very pleased to start the year with an outstanding result. The performance of the Sukuk Income Fund has been unique amongst the peer group with attractive level of income and total return achieved at a low level of volatility."

"In a market that has seen returns to investors shrink, we are particularly proud to be able to offer this level of income and total return," stated Watts.

Investors who have successfully subscribed into the fund by May 28, 2014 or prior are eligible to receive dividends. The dividend pay-out method is based on the pay-out preference each investor in the fund selected at the time of subscription.

Accordingly, the dividend reinvestment is based on the unit NAV of May 28, 2014.Those investors who opt for pay-out in the form of cash are paid out within 12 business days from the Ex-Dividend Date. Pay-out that is not cashed out is re-invested on  June 5, 2014, said the NBAD in its statement.

Anne Durand, the fixed income fund manager at NBAD, said: "Confirming our view, the market backdrop in 2014 has been benign for Sukuk investments."

"Globally, Mena stands out with its unique value proposition for its unrivalled credit quality coupled with abundant liquidity and the fund proves to be the pioneer Shari'a-compliant investment vehicle combining attractive income with capital appreciation," he added.-TradeArabia News Service


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Source: TradeArabia

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