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Emirates NBD and BlackRock Launch Two Funds at Partnership Anniversary

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Emirates NBD and BlackRock Launch Two Funds at Partnership Anniversary

The two new products are the FundStar Emirates CLO AA Fund, sub-managed by BlackRock, and the Emirates Systematic Income and Growth Fund, for which BlackRock serves as investment adviser while Emirates NBD Asset Management retains portfolio management responsibility. Both are now available to the bank’s retail and wealth clients across the region.

The CLO fund invests in a portfolio of senior secured corporate loans across the US and Europe, targeting an average credit rating of AA with no sub-investment-grade exposure. It offers daily liquidity and carries no leverage, positioning it as a relatively conservative floating-rate income vehicle. BlackRock’s CLO franchise spans more than 24 years and manages over $40 billion globally in the strategy, which lends the product credible institutional provenance.

The Systematic Income and Growth Fund takes a benchmark-unconstrained approach, allocating across globally diversified income-producing assets using BlackRock’s systematic investment models. It targets a net distribution rate of 7% per annum, paid quarterly. That headline yield will attract scrutiny from wealth advisers assessing whether the return compensates adequately for the underlying complexity and variability of a multi-asset systematic strategy.

Michail Samawi, senior executive officer at Emirates NBD Asset Management, described the launch as fulfilling a commitment to “democratise premium global investments” for Middle East wealth clients. Keith Saldanha, BlackRock’s head of wealth and global product solutions for the Middle East and Africa, said the partnership demonstrated “significant opportunity for both CLO and systematic strategies within wealth portfolios.”

The move from private-market-only structures aimed at professional clients to public funds accessible to retail investors is a material step.


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