31/01/2011 00:00 AST
National Bonds Corporation PJSC, the investment company behind the first Shariaa compliant saving scheme of its kind globally and the regions biggest rewards program, announced today an annual profit rate of 3.78% on Mudaraba fund for 2010 to be distributed to its bondholders, topping the market average of 0.46% on saving accounts and 2.40% on 12 months fixed deposit accounts.
With this years 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 Dhs51m in 2010. Compared to 2009, the number of rewards from the Fund Managers (Mudarebs) own funds increased by 49%, thus Reinforcing National Bonds position as the richest reward scheme in the region.
Announcing the annual profit, Mr. Mohammed Qasim Al Ali, Chief Executive Officer of National Bonds Corporation PJSC, said, "While the market slowly recovered from the effects of the financial downturn in 2010, National Bonds surged ahead to achieve growth in its performance and once again provide one the of best returns in comparison to all other savings schemes in the UAE. The results are even more impressive if you take into account the fact that National Bonds applies a no fee policy to ensure that its bondholders capital grows favorably, especially the humble amounts, as they usually tend to be eaten away by extra fees, and this is for sure what we dont want for our bondholders."
A significant contribution to the companys 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 companys 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%.
Highlighting the schemes increased customer loyalty, repeat purchases rose to 77% compared to 63% in 2009. This equates to a 14% year-on-year increase and signifies a happy, satisfied, trusting and confident client base.
"We dont just strive to increase our client base, we aim to service them in the best way possible as their loyalty is what makes National Bonds the leading channel to save and invest," added Al Ali.
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.
For more on this
Click Here
AME Info
Please wait...
