Asset Allocation
Investment principles
National Bonds Corporation seeks an optimal balance between risk and targeted returns. National Bonds Corporation invests with a long-term vision, looking beyond market cycles and short-term volatility to focus on long term trends that will drive sustainable returns for the investment pool over the long term. Generating a stable stream of recurring returns is a key priority at National Bonds Corporation. National Bonds Corporation aims to provide ultimate flexibility for bondholders and investors through a wide range of investment offerings with different time horizons and liquidity needs. In addition, with its investment expertise, National Bonds Corporation has the ability to structure bespoke investment solutions tailored to investors’ requirements.
Governance, IPS and Investment Committee
Regulatory Compliance and Regulation: National Bonds Corporation investment decisions follow a rigid investment process governed by the highest standards of corporate governance with strict oversight by the regulatory authorities governing the Company and the investment pool.
The responsibilities of National Bonds Corporation Board, committees and departments are defined within clear governance and regulatory rules.
The Board delegates its authority with respect to investments to the Investment Committee that consists of four members, two of which being Board members, in addition to the Chief Executive Officer and one other independent member appointed by the Board.
In addition to internal organizational rules, the investment portfolio is audited and regulated by various external bodies including UAE’s ESCA, the Internal Audit Office of the Government of Dubai, and the Shari’a Supervisory Board. It is also audited by reputable External Auditors.
Shari’a Compliance: All the investment transactions and operational activities of the pool are regulated and reviewed by an independent and dedicated Shari’a Board chaired by leading Shari’a scholars in the region.
Cash and Liquidity Investments
This allocation of the investment pool’s assets ensures the effective management of liquidity to meet the various financial obligations and make the most of investment opportunities when available.
Fixed Income Investments
Depending on the existing business model, fixed income investments are considered a major part of the Mudarabah pool’s investment portfolio.
The Team’s active and dynamic approach to investments in fixed income markets helps decrease the overall portfolio risk while achieving promising and stable returns.
Public Equity Investments
National Bonds Corporation manages a highly diversified portfolio of equities which focus on quality, value and earnings growth potential.
Alternatives
The Investment Team attaches particular importance to exploring concepts beyond conventional asset classes, with a view to capture diversified, risk-adjusted returns.
