NBD launches the Aafaq NBD MENA Fund

The NBD MENA Fund is a Multi-Strategy Fund which will invest in a diversified portfolio of equities spread across the Middle East and North Africa (MENA) region. The Fund offers investors the ability to capitalise on the on-going strong growth and structural reforms in the region's economies and capital markets by providing access to a broad range of equity investment opportunities.

The Fund may invest up to 100% in MENA equities using three principal investment strategies intended to complement each other - a Growth Strategy, a Value Strategy and a Market-Oriented (Trading) Strategy. A unique feature of the fund will be the inclusion of Turkey as part of its investment universe thereby providing investors access to one of the world's fastest growing emerging market. The fund would be different from other funds in the region as investors will not be charged fees on cash assets.

"By maintaining a diversified exposure to multiple strategies, this Fund is expected to achieve consistent returns over a market cycle with effective volatility management," said Faranak Foroughi, Head of Private Banking, The Private Office, National Bank of Dubai.

Using the three principal investment strategies of Growth, Value and Market-Oriented (Trading), the fund manager will employ a top down approach to construct the Fund's portfolio. The stock selection will be based on a combination of proprietary and third-party research.

Under the growth strategy the fund managers will identify companies capable of achieving sustained growth that offer attractively valued stocks with positive momentum. The value strategy meanwhile aims to seek companies that are trading below their intrinsic value. These securities typically have low prices relative to earnings or book value, and often have a higher dividend yield.

Under the market-oriented (trading) strategy, the fund manager will seek to capitalize on short-term trading opportunities across the MENA region while reducing directional downward risk in underlying markets. This will be achieved through active management, sector and country rotation, stock picking and cost-efficient trading.

As part of the suite of products launched under the Aafaq investments umbrella, the National Bank of Dubai MENA fund offers investors the opportunity to invest in a product that is professionally managed, is diversified and capitalizes on equity investment opportunities spread across the region. The launch of the Aafaq NBD MENA Fund follows 12 months after the launch of the NBD Gulf Balanced Fund, which was the first Fund launched under the Aafaq Investment Funds Umbrella.

The NBD MENA Fund is open-ended with a minimal initial subscription of AED 100,000 and subsequent subscriptions of AED 50,000 each.