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 percent (20.19 percent vs 14.12 percent). 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, said: “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 percent YTD and with a current yield of 5.64 percent.
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: “Growth is predicted to increase from 4 percent in 2015 to 4.7 percent 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 for higher yields.”
Other positive signs for growth are loosening policy, low levels of developed market activity and a recent stabilization in currencies. There is also strong productivity potential from young and aspirational demographics, he said.
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 Shariah-compliant Indian equities.
Praveen Jagwani, CEO, UTI International, said: “There are superb opportunities for investment in India, as it is benefiting from economic liberalization supported by manufacturing growth, job creation and an improving business environment.”
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.
Yong Wei Lee, head of equities, NDB Asset Management, stated: “There is a lot of potential for foreign investment in Saudi Arabia, particularly since the launch of Vision 2030. This vision aims to rationalize subsidies while diversifying the economy and increasing foreign investment – a huge opportunity for Emirates NBD Asset Management and its partners.”