The National Bank of Abu Dhabi’s NBAD MENA Income and Growth Fund has earned dividend income equivalent to AED 2,753,575.44 which equates to an annualized yield of 4.04% during the period from 7th August 2015 to 4th February, 2016.
Eligible investors who have successfully subscribed to the Fund by 4th February, 2016 are entitled for a semi-annual dividend distribution which equals to 2.00% of the net asset value (NAV) of the fund as at 4th February 2016. Accordingly, each unit in the Fund will receive a dividend pay-out of AED 0.062538.
The dividend payout will be based on the payout preference selected by the investor at the time of subscription. For those who selected the re-investment option, the dividends will be reinvested on 7th February, 2016 and for those who have selected the cash payout option, the proceeds will be credited into their NBAD bank account by the 22nd February, 2016.
“The global economic environment continues to be challenging with a knock-on impact on financial assets. In spite of such challenges, the fund is pleased to announce its semi-annual dividend distribution of 2%. The yield on the fund remains above 4%, backed by relatively stable earnings growth,” said Saleem Khokhar, Head of Fund Management & Equities at NBAD’s Global Asset Management.
“ We intend to increase our dividend yield on the fund going forward as the current valuation post share price correction and stable dividend guidance given by the company management makes the dividend yield attractive. The fund investment process aims to capture attractively priced companies that have the ability & willingness to increase their dividend overtime and also offering the potential for capital appreciation.”
NBAD’s Global Asset Management manages assets in excess of AED8.4 billion, making it one of the largest of its kind in the UAE.