Emirates NBD Asset Management, a prominent player in the Middle East financial sector, has launched two new income-focused funds in collaboration with BlackRock, marking a significant milestone in their strategic partnership. As the region has shown a growing demand for innovative investment solutions, these funds aim to provide retail and wealth clients with more diversified options to enhance their portfolios.
New Investment Opportunities for a Broader Audience
The introduction of the FundStar Emirates CLO AA Fund and the Emirates Systematic Income and Growth Fund signifies the evolution of this collaboration, which initially launched in 2025 focusing on alternative investments for wealth clients. This transition from private asset offerings to publicly accessible fund structures broadens the investment horizon for retail investors across the Middle East, allowing them access to institutional-grade financial products. This shift is crucial as it caters to the increasing interest in sophisticated investment solutions among the region’s investors. In its first year, the partnership has already attracted an impressive USD 350 million in assets under management (AUM), showcasing the strong appetite for high-quality investment opportunities.
Understanding the Fund Structures
The FundStar Emirates CLO AA Fund is designed to provide floating-rate income through a carefully curated portfolio of senior secured corporate loans primarily in the US and Europe. By investing in investment-grade Collateralized Loan Obligations (CLO), this fund targets an average credit rating of AA while avoiding sub-investment grade assets, ensuring both stability and security. On the other hand, the Emirates Systematic Income and Growth Fund adopts a flexible investment strategy that is unconstrained by traditional benchmarks. It aims to generate dynamic alpha and high yield by diversifying across global income-generating assets. BlackRock’s extensive investment insights inform the fund’s strategy, while Emirates NBD Asset Management oversees ongoing portfolio management. Investors can expect a net distribution targeting 7%, paid quarterly, making this fund particularly attractive for those seeking regular income.
Expert Insights from Key Leaders
Michail Samawi, Senior Executive Officer at Emirates NBD Asset Management, emphasized the strategic importance of these new offerings. He noted how the partnership with BlackRock is redefining investment access for wealth clients in the Middle East. The successful launch of these funds underscores the substantial demand for yield-generating investment solutions in the region. Keith Saldanha, Head of Wealth and Global Product Solutions for Middle East & Africa at BlackRock, echoed this sentiment, acknowledging the rapid growth of their collaboration and the complementary strengths both firms bring to the table. This partnership continues to advance innovative strategies aimed at providing investors in the Middle East with a more extensive range of investment options.
A Commitment to the Future of Wealth Management
The launch of these new funds reinforces Emirates NBD Asset Management’s vision of leading the wealth management landscape in the region. By leveraging BlackRock’s proven expertise and Emirates NBD’s local market knowledge, investors can tailor their portfolios to meet both their income and long-term financial needs. As both funds are now accessible to Emirates NBD’s wealth and retail clients, investors have more flexibility in constructing resilient, income-generating portfolios, aligning them with their financial goals.
In summary, this partnership’s expansion and the introduction of these innovative funds signal a bright future for retail investing in the Middle East. By democratizing access to sophisticated investment strategies, both Emirates NBD and BlackRock are paving the way for a more accessible, dynamic investment landscape.