Deon Vernooy has played a key role in setting up the asset management arm of Emirates NBD and is responsible for the manufacturing and management of the investment products on the platform of the asset management business.
Could you provide a brief journey of how you arrived where you are today?
In 2004 I was approached by Emirates Bank (which later became Emirates NBD) to set up an asset management capability for the bank. That business developed and moved in 2007 to the Dubai International Financial Center, as a separate investment management company.
What does your role involve?
I am the business manager of the company. That role involves a full spectrum of the day-to-day operational management of the business as well as an involvement in the longer-term strategic planning for the business.
What is your greatest achievement to date?
The asset management business started on a very small scale and has grown substantially over the years despite very challenging market conditions. Today, the business employs 50 people, manages 12 public mutual funds and has received numerous public awards.
One of the significant achievements at Emirates NBD Asset Management is the success of our Shariah compliant funds. There is considerable investor interest in Islamic investment vehicles in the MENA region and this has encouraged us to develop a variety of Shariah compliant funds specifically targeted at Muslim investors in the region. In fact, currently, half of all the funds managed by Emirates NBD Asset Management are Shariah compliant.
Which of your products/services deliver the best results?
Emirates NBD Asset Management (ENBD AM) manages a range of separate portfolios and 12 public mutual funds, in listed equity, fixed income and real estate, both regionally and globally, in both a conventional and Shariah compliant format. ENBD AM has developed a strong performance track record over time as evidenced by all the MENA focused funds, both equity and fixed income, which are outperforming their benchmarks in 2012.
What are the strengths of your business?
Emirates NBD AM is in a unique position, making it one of the strongest regional asset management companies in the region. It benefits from:
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Being an independent asset management company based in the DIFC, yet with the backing of its parent, one of the largest financial institutions in the region (Emirates NBD Group).
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Providing a full range of investment products, from in-house managed public funds to tailor-made discretionary solutions, offering exposure to the regional markets as well as global markets, covering all of the main asset classes, structured on either a Shariah compliant or conventional basis.
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Having 12 actively managed public funds, consistently giving stable returns to investors.
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Adopting a tried and tested, research-driven, bottom-up investment process focusing on company and economic fundamentals, coupled with a top-down overlay that blends value and growth, with greater emphasis on value.
What are the factors contributing to the success of your company?
Emirates NBD AM has built a credible reputation based on a very solid performance track record, due to a stable team and a sound investment process. Its position as an independent DIFC firm, regulated by the Dubai Financial Services Authority, yet being part of one of the largest banks in the region, further gives comfort to investors that their assets are being managed in accordance with international standards.
What are the obstacles faced in running your business today?
The investment management industry thrives where the savings and pension fund industry provides a regular flow of new money to the managers of investment products. In the MENA region, the regular savings and pension fund industry is substantially underdeveloped with the result that investment managers do not receive this support and therefore struggle to build scale.
Where do you see the Islamic finance industry in the next five years?
The industry will continue to grow and develop if providers continue to improve the quality of their products and services.
Name one thing you would like to see change in the world of Islamic finance.
It would greatly improve the efficiency of the industry if the Islamic rules for financial products could be standardized.