Lebanon Businessnews News

FNB’s first lira fund
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First National Bank (FNB) launched its first independent lira denominated investment fund, today, the ‘National Fixed Income Fund’.

The fund will be a combination of investment in any fixed income financial instruments and securities, including Treasury Bills, Certificate of Deposits (CDs) and other similar instruments and deposits issued by the Lebanese Republic, the Central Bank (BDL) and the top 12 banks.

“The launch of this product is expanding the platform of our services,” said Ronald Rizk, Head of Asset Management at FNB and Manager of the Fund. “The establishment and management of such funds are still very limited in the market. We rely on our expertise and knowhow from previous funds with other banks to provide clients with investment at lower risks and higher returns, especially in the light of the current low interest rates,” he said.

The minimum subscription to the open-ended fund is LL15 million with an investment return in the range of eight percent. The fund life is unlimited with weekly subscription redemption and a semi-annual dividend payment. The fund will be open to all except US investors.

“The purpose of this fund is to offer to low and middle-income depositors the opportunity to invest in products with higher returns and to diversify their portfolios,” said Rizk.

The fund was designed by Middle East Capital Group (MECG), the Group’s financial arm, which was fully acquired in 2008.

FNB is expected to launch a new US dollar denominated fund, soon. “We are in the final stages of building up this fund and getting the approval of the BDL,” said Rizk.

The size of this fund will range between $40 million to $50 million with a minimum subscription of $10,000. “It will invest in Eurobonds and CDs, while we are still studying if the dividend payment will be on a monthly or a yearly basis,” said Rizk.
Reported by Leila Rahbani
Date Posted: Feb 05, 2015
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