MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Gulf Cooperation Council Region
Q/ What have been the main drivers of your choice for fund domicile? Have you
made any changes to the domicile of your funds?
A/ SAPL has established funds in Luxembourg, Cayman Islands and Mauritius that
enable us to access investment opportunities in the Gulf and India. The drivers to choose
these domiciles have been the following:
• Well known jurisdictions and regulators with strong perception in minds of
investors
• Ease of set up and reporting requirements
• Recognized access for specific investment opportunities
Q/ What are the fee trends for your funds/portfolios?
A/ Historically, management fees as well as performance fees are up to1.75% and
performance fees depending on the asset class. Debt funds’ management fees are
usually at the lower end of the range while equity funds are at the higher end and also
attract performance fees. We have witnessed a reduction in management fees over the
last three years predominantly in the fixed income space in order to deliver better yields
in a falling interest rate environment. As for equity funds, we see that performance fees
may be on their way out.
Q/ What have been trends in flows ?
A/ Fund inflows over 2011 and 2012 have been concentrated on fixed income and have
been flowing from across the GCC. The inflows into equities have been much lower in
comparison.
Q/ What factors were the drivers for the flows described above?
A/ Given the largely conservative investor appetite, volatile equity markets and global
macroeconomic and political uncertainties, SAPL focused on launching fixed income
funds to meet our clients’ requirements. The majority of the fixed income funds launched
were closed-products that generate returns by investing in a portfolio of fixed income
instruments held across the GCC, South East Asia and India.
Q/ Which firms (local / international) do you consider to be your main competitors
in the region?
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