National Bonds Corporation PJSC’s has announced an annual profit rate of 3.78% on Mudraba fund for 2010 to be distributed for its bondholders
National Bonds Corporation PJSC, the investment company behind the first Sharia’a compliant saving scheme of its kind globally and the region’s biggest rewards program, announced today an annual profit rate of 3.78% on Mudraba fund for 2010 to be distributed for its bondholders, topping the market average of 0.46% on saving accounts and 2.40% on 12 months fixed deposit accounts. With this year results, the cumulative returns since inception reached 26.45%. The Profit Bonds for 2010 will be issued effective 1st January 2011.
In addition to the highly competitive return that beats any other offering in the market with the same low risk profile, National Bonds distributed over 200,000 prizes worth more than AED 51 million in 2010. Compared to 2009, the number of rewards from the Fund Manager’s (Mudareb’s) own funds increased by 49%. Thus Reinforcing National Bonds position as the richest reward scheme in the region.
A significant contribution to the company’s growth was the increase in the number of bondholders. Reaching 610,775 customers by the end of 2010, National Bonds surpassed a huge milestone and achieved an increase of 9% on the previous year – a direct translation of the company’s successful mission in changing behavior that encourages and rewards a healthier financial lifestyle based on regular and timely saving. In addition, 86% of bondholders now hold their money with National Bonds for more than a year, which is a substantial increase from 79% in 2009.
This positive growth was reflected across many different segments of the population, including women who increased by 11%, men up 12% and expats who grew 11%.
Another huge turnaround this year was in the level of institutional contribution to the scheme. The number of corporate customers increased by 23% as more and more companies invested with National Bonds. Companies have also started offering their employees value added services via the National Bonds Employee Saving Scheme. The initiative provides companies with the platform to empower their staff to take control of their finances by assisting them in taking the first step to prepare for their retirement.
The company has also been successful in executing its investment strategy which continues to generate healthy returns for bondholders. National Bonds’ investment unit applies a model of a highly-diversified balanced portfolio of low and low-to-medium risk Sharia’a compliant investments, as per the required liquidity associated with such a scheme, which has proved extremely efficient over the years.
During 2010, some other investments that contributed to the fund’s success included a corporate Sukuk investment portfolio that generated yields that exceeded all expectations. The Mudaraba fund also focused on higher weighted allocation towards liquid asset investments, a strategic move that allowed the portfolio to adapt to the extraordinary current market conditions.
It came as no surprise that National Bonds was awarded the much coveted accolade of Best Retail Product for 2010. Another successful year is ahead, as the leading savings scheme promises a lot of surprises during 2011 as it celebrates its 5th anniversary.
(C) National Bonds
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