35 per cent additional dividends in both the Emirates flagship fund portfolios

This brings the total cash and stock dividend payout in the last 12 months to 78.5% for the Markets Portfolio and 73.5% for the Balanced Portfolio. The Net Asset Values (NAVs) grew by 92% and 99% in the 'Markets' and 'Balanced' Portfolios respectively; during their financial year ended 31st March 2005.

The Emirates Family of Funds has an independent Advisory and Supervisory Board as well as independent auditors, Ernst & Young.

The Emirates Family of Funds independent Advisory Board comprises of Mr. Mirza Al Sayegh (Chairman), Mr. W. Bailey, Mr. F. Bardawil, Dr. P. Huygelen and Mr. M Pancholia. Emirates Financial Services PSC is the Sponsor and Investment Manager.

Emirates Funds LLC was established in 2001 and acts as the Administrator and Custodian for the Emirates Family of Funds; with an independent Legal Advisor.

These arrangements were approved by the UAE Central Bank; with a view to preserving best practices with regard to fiduciary investment portfolios being dealt at arms-length and in line with good corporate governance norms.

As the first and as yet the largest domestic mutual fund in the UAE, the Emirates Flagship Fund, established in 1997, focuses on the UAE and GCC stock markets. The 'Balanced' Portfolio also includes high yielding fixed income exposures; with a view to blending and diversifying the risk profile.

Mr. Suresh Kumar, Chief Executive Officer (CEO), Emirates Financial Services PSC (EFS) stated that there is strong corporate earnings momentum on the part of many of the listed companies in the UAE. This is driving the markets higher, aided by considerable leverage and liquidity. However, he cautioned that valuations are getting stretched and the markets are highly prone to periodical corrections.

Therefore, the Emirates Flagship Fund portfolios may not suit 'retail' investors or those that are looking for low risk opportunities or capital preservation. The Advisory Board concurred with this view, and authorized increasing the minimum subscription per application in the Balanced Portfolio to AED 100,000/-. The Markets Portfolio has a minimum subscription level of AED 500,000/- per application.

The dividend payment of 35% each on both the Portfolios will be made during the first week of May 2005, by way of additional units, that can be encashed; subject to one week's notice.