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Emirates NBD Asset Management establishes its first public fund in DIFC

Investors receive access to feeder funds and master funds domiciled in highly regulated jurisdictions

Emirates NBD Asset Management, the asset management division of Emirates NBD, has established its first public fund in Dubai International Financial Centre (DIFC) named FundStar (OEIC) PLC.

As an entity regulated by the Dubai Financial Services Authority (DFSA), Emirates NBD Asset Management has set up FundStar as an umbrella fund that will host a number of feeder funds and master funds across a broad range of asset classes and geographies, including equity and fixed income, as well as multi-asset strategies in both conventional and Shari’ah-compliant forms.

Being a licenced fund, FundStar shares will be promoted through a public offering to onshore retail investors in the UAE, in line with the existing Memorandum of Understanding between three different regulators, namely the Securities and Commodities Authority (SCA), the Financial Services Regulatory Authority (FSRA) and the DFSA. By investing in FundStar sub-funds, investors will have access to professionally managed portfolios across a wide range of asset classes and geographies. Also, the feeder sub-funds within FundStar will provide retail investors with the opportunity to access foreign funds domiciled in highly regulated jurisdictions with proven track records such as Luxembourg. Investors will benefit from low entry investment amounts of $1,000/$1,000, daily liquidity and income generation on a quarterly basis.

Michail Samawi, senior executive officer (SEO) at Emirates NBD Asset Management, commented: “As the UAE’s regulatory environment continues to evolve, Emirates NBD Asset Management is proud to create a Public Fund that complies with the current prevailing regulations, and strengthens the relationship with our customers by offering them access to professionally managed funds domiciled in renowned, highly regulated jurisdictions.”

He added: “FundStar adds to our portfolio of locally regulated solutions that support the investment goals of our retail investors. As one of the largest asset managers in the UAE, Emirates NBD Asset Management is using its expertise to provide innovative products, while supporting the growth of financial markets in the region.”

Tariq Chaudhary, Group Head of Wealth Management at Emirates NBD, commented on the launch: “The Launch of FundStar comes at a very critical juncture in the investment landscape of the UAE. We are delighted with the launch of an onshore eligible platform that provides locally regulated solutions to support the investment goals of a large number of our retail investors.”

Marwan Hadi, group head of retail banking and wealth management at Emirates NBD, said: “As a financial institution that leads the region in innovation and technology, we are proud to launch FundStar, a local platform that will utilise our regional and Shariah-compliant capabilities to offer best-in-class solutions to the regional investor while reflecting our commitment to supporting the growing needs of financial markets in the region.”

FundStar (OEIC) PLC allows investors to participate in conventional and Shari’ah-compliant forms, in regional and global fixed income portfolios and equities, as well as offers access to world-class asset managers through several risk-profiled, multi-asset funds.