NBAD Cautious Income Fund delivers 6.80 per cent dividend

Abu Dhabi: The National Bank of Abu Dhabi's (NBAD) Cautious Income Fund will pay its investors a semi-annual distribution equal to 3.34 per cent of the unit net asset value (NAV) of USD 5.3256, being the NAV as on September 26th, 2013. Accordingly, each unit in the Fund will receive a dividend pay-out of USD 0.1779. The total Fund income amount of about USD 7.98 million will be paid out in full and covers the period from March 28th 2013 to September 26th 2013. "We are pleased to announce yet another good income figure for the fund" said Mark Watts, General Manager, Head and CIO of NBAD's Asset Management Group. "In a world full of uncertainty, we are proud to have delivered positive total returns year-to-date and are still comfortably outperforming cash since inception." The Cautious Income Fund, launched to meet the market's demand for low risk investment products, invests in MENA region fixed income instruments. The Fund has enjoyed successful growth to become the largest of its kind in the UAE in terms of assets by reaching USD 239.4million (Dh 879.31million) as of September 26th 2013. The Fund's performance since its inception on March 1st, 2012 to date has been strong, with a return of 6.85 per cent (annualised). On the outlook for markets, Ali Soner Guney, Co-manager of the Cautious Income Fund, said, "Despite short term concerns about Fed tapering and issues surrounding Syria, the region remain in a strong economic position and we are very comfortable with the direction that the economies are going. We see 2014 as a year in which we deliver good income driven returns for investors." The Cautious Income Fund's yield is based on the Fund's net asset value on September 26th 2013. All investors as of that day are eligible to receive dividends. Investors, at the point of subscription, may opt to re-invest the dividend into the Fund instead of receiving a payout. The Fund invests in a range of bonds and money market instruments predominantly in the UAE and wider MENA region. NBAD's Asset Management Group, the Fund Manager, diversifies the Fund by paying close attention to risk minimisation. The vehicles of investment include government and government-related entities as well as select corporations that fit the Fund's profile. NBAD's Asset Management Group (AMG) is one of the largest asset managers in the region with Dh 7.39 billion under its management. – Emirates News Agency, WAM