NBAD raises over AED 770 million for its UAE Distribution Fund (Mizat)

This is one of the most successful launches of a new fund in the UAE market and it reflects investors' confidence in the UAE stock markets and economy. The fund aims to capture medium to long-term capital appreciation in addition to distributing dividends semi annually by investing in UAE and GCC Equities, Fixed Income Securities and Real Estate.

"Strong oil revenues and healthy corporate profits coupled with high government spending and significant foreign investment in our markets are all the right ingredients to ensure strong performance" said Richard Amos, General Manager Investment Banking.

The UAE stock market at current levels is considered relatively inexpensive with an average PE ratio of less than 19. The Fund has collected subscriptions from all types of clients, and was launched with timing that anticipates recovery in the recent market correction.

NBAD's previous UAE based funds, the NBAD UAE Growth Fund (UGF), the NBAD UAE Trading Fund (UTF), and the NBAD Islamic Fund (Al Naeem) have performed exceptionally well - the UGF recorded 96% in 2005, 85% in 2004 and 513% since its inception in November 2000; the UTF recorded 127% in 2005, and 287% since inception in February 2004; whereas Al Naeem recorded 90% growth since its launch in January 2005.

"NBAD Funds' results have been driven by stock and sector allocation that is focused on companies portraying excellent growth prospects in markets buoyed by strong economic growth, local and foreign investor confidence, and a particular eye on trading opportunities," said Amos. He added that the funds are invested in a well-diversified portfolio of companies and sectors designed to reduce risk and boost returns.