Tuesday 24, October 2017 by Nabilah Annuar

Emirates NBD Asset Management’s flagship equities offering, reaches 10-year milestone

Outlook for the asset class and fund is bright, with Saudi Arabia’s likely inclusion in the FTSE Russell and MSCI emerging markets indices in the first half of 2018.

The flagship equities fund of Emirates NBD Asset Management, Emirates MENA Top Companies Fund, which has been rated as a four star fund by Morningstar, has reached its 10th anniversary.

The fund has outperformed its benchmark in each of the 10 years since inception, generating a total outperformance of over 43% since 2007. It also has consistently been ranked in the top quartile of performers in the Morningstar Africa and Middle East Peer Group for the past five years.

Demonstrating consistent strong performance against its benchmark, the S&P Pan Arab Index, while exhibiting remarkably low volatility compared to its peer group. The fund’s strong performance has placed it in the top quartile of its peers on a risk-adjusted basis.

Commenting on this, Salman Bajwa, Senior Executive Officer of Emirates NBD Asset Management, said, "Exciting changes lie ahead for the region in the next twelve to eighteen months. Catalysts like the strong IPO pipeline in the UAE and the likely inclusion of Saudi Arabia in the FTSE Russell and MSCI emerging markets indices in 2018, auger well for regional equity markets. Post any Saudi MSCI inclusion the GCC as a region could command a weighting of 4% - 5% in the index, equivalent in size to Mexico, Russia, Hong Kong and South Africa. Attention of foreign investors is likely to remain on the region with several high profile Saudi IPOs from the second half of 2018 onwards, and we are already in discussions with our clients to position them to take advantage of these potential opportunities."

 Yong Wei Lee, Head of MENA Equities at Emirates NBD Asset Management, added, "The underpinning of the Fund’s  stellar performance has been the consistent and disciplined approach to stock selection of our highly experienced portfolio management team.  Our team of analysts carry out in-depth analyses of company financials, followed up with qualitative field work by company and management visits, to arrive at their recommendations. The overlay of a robust risk management framework ensures we achieve healthy returns without taking excessive risks on our client portfolios."

Five years ending September 2017

Cumulative return

Annualized return

Annualized standard deviation

Sharpe Ratio

Emirates MENA Top Companies Fund P Share Class

40.56

7.05

14.48

0.47

Percentile 25

36.48

6.42

14.10

0.42

Percentile 50

29.82

5.36

14.69

0.35

Percentile 75

14.25

2.70

15.10

0.19