The National Bank of Abu Dhabi (NBAD) has partnered with ICBC (Asia) Investment Management Company, the overseas investment management arm of the ICBC Group, to jointly facilitate the marketing of their respective investment capabilities through their distribution channels.

Under a MoU signed recently, the NBAD would facilitate the marketing and distribution of the Asian group's private equity and fixed income products in the UAE by introducing the funds to its distribution networks, while ICBC unit would introduce the Abu Dhabi lender’s cautious income fund and the dividend leader fund through its distribution channels.

“ICBC (Asia) Investment Management places high importance in our cooperation with NBAD given the fast growing trade and investment flow between the Gulf region and China," said its CEO Jack Chang.

"Our parent company ICBC Group is currently expanding its network in the Gulf region and we expect significant increases in capital flow between the two regions. The joint co-operation will allow our institutions to be at the forefront of a fast developing market," he added.  

Alan Durrant, the Group chief investment officer and GM of NBAD's Asset Management Group said this partnership allows the bank to expand the reach of its investment products, especially in Hong Kong which is the centre of Asian commerce and the international gateway to China.

“NBAD offers a range of innovative and distinguished investment vehicles and we would like to expand our channels of distribution, particularly in the growing markets of Asia," noted Durrant.
 
"In the past few years, investors have generally been cautious; still, investors’ trust in the market is gradually recovering. Given the diversity of investors’ appetite, we believe the Cautious Income Fund and Dividend Leader Fund, which offer attractive dividends with low level of risk, would be well positioned in Asia," he added.

NBAD Cautious Income Fund is an open-ended fund that invests in a range of bonds and money market instruments predominantly in the UAE and the wider GCC region. Launched in September 2011, the fund recently distributed semi-annual dividend of 1.97 per cent making an annualized yield of 3.44 per cent.

At present, NBAD plans to launch the Dividend Leader Fund which allows investors to participate in capital appreciation of blue chip Mena equities.-TradeArabia News Service