First Listing Of A Mutual Fund On Dubai Financial Market

by Carla Johnson, Investors Offshore.com

22 August 2001

The Director General of the Dubai Financial Market (DFM), Mr Essa Kazim, has announced the first ever listing of a mutual fund on the DFM. Entitled the UAE Growth Fund (UGF), the fund is managed by the National Bank of Abu Dhabi (NBAD).

Mr Kazim commented: 'This provides investors with several investment options, enabling them to diversify their investments and construct a suitable personal portfolio which could provide them with a reasonable return, while controlling their investment risks, enabling them to grow their savings.'

In addition to shares and bonds, the NBAD fund is considered the third type of security to list on the DFM. It provides investors the opportunity to diversify their holdings in leading UAE companies, where the investor participating in the fund would benefit from the expertise of the fund management team, who would, using professional analysis, manage the fund's investments on a continuous basis.

The fund is an 'Open Ended Fund', DFM will issue notices on the fund's Net Asset Value and NBAD accepts and manages all subscription and redemption orders, as well as maintaining and managing the register of fund unit holders.

Mr Kazim welcomed the pioneer step taken by NBAD to list its fund on the DFM, and encouraged other public companies not listed in the UAE, as well as other mutual funds, to list in the UAE regulated market.

Recommended