Emirates NBD Asset Management announces strong returns on global strategies following successful partnerships

23 November 2016
Emirates NBD Asset Management announces strong returns on global strategies following successful partnerships
  • Emirates Emerging Markets Equity Fund, sub-advised by Jupiter Asset Management, has outperformed the MSCI Emerging Markets Islamic Index by over 6%
  • Emerging markets strategies continue to perform well; new opportunities in Saudi Arabia and India identified
  • Strong fixed income performance supported by increased attractiveness of emerging market debt

Dubai, United Arab Emirates, 23rd November 2016: Emirates NBD Asset Management today celebrates three years of successful partnership with Jupiter Asset Management. The partnership sees Jupiter Asset Management managing four strategies, including the Emirates Emerging Market Equity Fund, which on a YTD basis has outperformed the MSCI Emerging Markets Islamic Index by over 6% (20.19% vs 14.12%). The partnership supports Emirates NBD Asset Management’s aim to develop a portfolio of global funds and a range of emerging market strategies.

Tariq Bin Hendi, CEO, Emirates NBD Asset Management, commented:

"We are delighted to have reached this landmark with Jupiter Asset Management and for the partnership to have been such a success, in terms of performance and the broadening of our emerging market strategies. After three years of partnership, there is plenty to look forward to as we assess the scope and range of further emerging market opportunities. Collaborating with leading international players such as Jupiter and UTI International is a crucial part of our growth strategy."

Emirates NBD Asset Management’s emerging market strategies include the Emirates Emerging Market Corporate Bond Absolute Return Fund. This fund has performed well, both on an absolute and relative basis, and has consistently been in the top quartile throughout 2016, standing at 16.27% YTD and with a current yield of 5.64%*. The fund’s performance has been supported by factors including accommodative monetary policies by major central banks and lower yields in developed markets, which have made emerging market debt more attractive.

Usman Ahmed, Managing Director, Investments, Emirates NBD Asset Management, said:

"There are a number of key opportunities in emerging markets. Growth is predicted to increase from 4% in 2015 to 4.7% in 2017.** Higher growth leads to higher equity market returns, while lower yields in most developed markets have meant that money has flown to emerging markets in the hunt for higher yields. Other positive signs for growth are loosening policy, low levels of developed market activity and a recent stabilisation in currencies. There is also strong productivity potential from young and aspirational demographics."

Kevin Scott, Head of EMEA, Jupiter Asset Management, added:

"Three years of collaboration with Emirates NDB Asset Management is something we’re thrilled to be celebrating and we look forward to many exciting years to come. We believe our focus on retaining the best investment talent, preserving our culture of investment freedom and individual accountability, together with an emphasis on stock specific analysis, puts us ahead of the curve and helps us in our aim of delivering outperformance to clients over the medium to long term. With a good history of collaboration with Emirates NDB Asset Management we are looking ahead to what can be achieved for our clients in the coming years."

Emirates NBD Asset Management recently announced a new partnership with UTI International, one of India’s largest money managers. The partnership’s first fund will be the Emirates Islamic India Equity Fund, which will be managed by UTI and offer exposure to Shari’a compliant Indian equities. India has many positive fundamentals and is expected to be among the world’s top five economies by 2020. Ongoing fiscal reforms, as well as infrastructure and skills development present attractive investment opportunities that underline the rationale for the partnership.

Praveen Jagwani, CEO, UTI International, commented:

"There are superb opportunities for investment in India, as it is benefitting from economic liberalisation supported by manufacturing growth, job creation and an improving business environment. We will combine Emirates NBD Asset Management’s unrivalled knowledge of Gulf investment appetites with our own experience as one of India’s oldest money managers to deliver attractive returns."

As part of a drive to unlock other emerging market opportunities, Emirates NBD Asset Management has identified Saudi Arabia as an important focus market, with its MENA Equities funds already providing exposure to the Kingdom. The case for further exposure in Saudi Arabia has grown in the light of oil price stabilisation and government efforts to diversify the economy following the announcement of Vision 2030 and the National Transformation Plan. The collective market capitalisation of the Kingdom’s publicly listed companies is comparable to some of the largest emerging economies, highlighting clear opportunities in equities.

Yong Wei Lee, Head of Equities, NDB Asset Management, explained:

"There is a lot of potential for foreign investment in Saudi Arabia, particularly since the launch of Vision 2030. This vision aims to rationalise subsidies while diversifying the economy and increasing foreign investment – a huge opportunity for Emirates NBD Asset Management and its partners. Saudi Arabia is one of a number of emerging market opportunities that we are positive about, especially in view of a potential inclusion in the MSCI Emerging Market Index."