Abu Dhabi: The National Bank of Abu Dhabi (NBAD) delivered 9.26 per cent returns for its fixed income unconstrained institutional clients in 2011, despite tough conditions in financial markets.
"NBAD achieved this high return by astutely investing in UAE and GCC bond markets, a selection based on internal research and investment process. The returns have been delivered in a very low risk fashion with portfolios displaying lower volatility than even 3 to 5 year US Treasuries," the bank said in a statement.
Commenting on the performance, Mark Watts, the Head of Fixed Income at NBAD's Asset Management Group told Gulf News by telephone: "We invested primarily in Mena [Middle East and North Africa] region bonds, issued mainly by the UAE and Qatar entities. We also invested in Bahrain, Kuwait and Saudi Arabia."
He added: "We used our macro-economic knowledge, which was supplemented by our internal research team who make over 100 visits to companies in this region, every year to understand their business model. Depending on their advice, we invest money according to the risk involved."
Watts said 2011 was an incredibly difficult year for financial markets and investors had to studiously monitor the market to stay ahead of the game.
"2011 opened with a positive tone but things soon changed with the onset of what commentators have dubbed ‘the Arab Spring.'
"During the summer, markets were further rocked by the US credit rating downgrade and the start of the debt problems in Europe, which remained a dominant theme throughout the rest of the year."
