Business | Banking
Emirates NBD launches Islamic property fund
Emirates NBD Group launched the Emirates Islamic Global Property Fund, an open-ended daily dealing investment fund, the bank announced yesterday.
- By Babu Das Augustine, Banking Editor
- Published: 00:44 April 4, 2008
Dubai: Emirates NBD Group launched the Emirates Islamic Global Property Fund, an open-ended daily dealing investment fund, the bank announced yesterday.
The new fund gives investors an opportunity to invest in Sharia-compliant property portfolios worldwide.
The fund, with a minimum subscription of $25,000 will available to investors in the UAE through the Emirates NBD network including the group's priority banking channels.
The fund is the seventh Sharia-compliant fund to be launched through Emirates Funds Limited and seeks to generate a high and rising income stream and capital growth through indirect investment in global properties and property related securities.
"Our commitment to building an exceptional fund range continues and we look forward to delivering exposure to a new asset class for all our clients. We have successfully managed the Emirates Fund range and believe this will be an appropriate addition to a number of clients' portfolios as investors in the Gulf region and beyond recognise the diversification benefits that, until now, had been restricted to a very few," said Jamal Bin Ghalaita, Head of Consumer Banking and Wealth Management at Emirates NBD.
The fund will be managed by Emirates Investment Services Ltd (EIS), the asset management arm of Emirates NBD group, licensed and regulated by the Dubai Financial Services Authority.
Great potential
EIS has partnered with New Star Asset Management to structure this product as the manager of the reference fund to which returns of the fund will initially be linked.
"The international property market is a market with great potential. We are delighted to be working with Emirates NBD Group and we look forward to continuing and strengthening this relationship," said Roger Dossett, Chief Executive of Property Fund Management at New Star.
The fund is expected to attract investors looking for income, liquidity and some long term capital growth with a risk exposure similar to that associated with property investments.
"The fund is believed to be a 'first' in terms of its offering daily liquidity and Sharia-compliant exposure to direct property assets, while focusing on European and Asian direct commercial property. It follows on the heels of the successful Emirates Real Estate Fund, the first Islamic fund run by EIS, which has delivered annualised returns of approximately 16 per cent since its launch in June 2005 with no losing months," said Deon Vernooy, EIS Senior Executive Officer.
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