12 May 2009
Mashreqbank has initiated process to liquidate the Bahrain-based Makaseb Funds Company 111, the bank officials confirmed to Emirates Business.
The officials said the financial crisis that has dampened the fund markets the world over has left it redundant the running of the third company in the series - MFC 111. "We do not have any funds under the fold of Makaseb 111 as Makaseb Funds Company 1 and 11 run all active funds," they explained.
In March 2005, Mashreqbank set up the new investment company with a view to establishing, managing and promoting mutual funds, called Makaseb Funds Company (MFC) BSC. This was incorporated in Bahrain as exempt stock company under the licence from Bahraini Monetary Agency (BMA) and approval from the UAE Central Bank.
Since the UAE didn't have a fully-established mutual fund regulations framework, Mashreqbank had opted to move to Bahrain.
While Mashreqbank was appointed as the investment manager of MFC, Gulf Investment Corporation (GIC) was made the custodian and administrator of the company. Moreover, the international accountancy firms Deloitte and Ernst & Young were appointed auditors and transfer agents respectively.
When the number of funds launched by MFC increased, Makaseb Funds Company 11 was established. "The latest in the series was Makaseb Funds Company 111, but no funds have so far been launched by MFC 111 and hence the closure of this unit will not affect the running of the MFC funds," said Mashreqbank officials.
Mashreqbank said it posted a four-per cent rise in first-quarter profit, but raised its provisions to help it weather the financial crisis.
Net income rose to Dh484 million from Dh465 million in the year-earlier period, the bank said in a statement.
Its loan loss reserves increased to Dh232 milliom in the quarter, bringing the total of provisions booked so far to Dh1.28 billion.
Meanwhile, investment income rose 18 per cent to Dh582 million while non-interest income, which includes fees, commissions and investments, rose 15 per cent to Dh645 million.
Mashreqbank has initiated process to liquidate the Bahrain-based Makaseb Funds Company 111, the bank officials confirmed to Emirates Business.
The officials said the financial crisis that has dampened the fund markets the world over has left it redundant the running of the third company in the series - MFC 111. "We do not have any funds under the fold of Makaseb 111 as Makaseb Funds Company 1 and 11 run all active funds," they explained.
In March 2005, Mashreqbank set up the new investment company with a view to establishing, managing and promoting mutual funds, called Makaseb Funds Company (MFC) BSC. This was incorporated in Bahrain as exempt stock company under the licence from Bahraini Monetary Agency (BMA) and approval from the UAE Central Bank.
Since the UAE didn't have a fully-established mutual fund regulations framework, Mashreqbank had opted to move to Bahrain.
While Mashreqbank was appointed as the investment manager of MFC, Gulf Investment Corporation (GIC) was made the custodian and administrator of the company. Moreover, the international accountancy firms Deloitte and Ernst & Young were appointed auditors and transfer agents respectively.
When the number of funds launched by MFC increased, Makaseb Funds Company 11 was established. "The latest in the series was Makaseb Funds Company 111, but no funds have so far been launched by MFC 111 and hence the closure of this unit will not affect the running of the MFC funds," said Mashreqbank officials.
Mashreqbank said it posted a four-per cent rise in first-quarter profit, but raised its provisions to help it weather the financial crisis.
Net income rose to Dh484 million from Dh465 million in the year-earlier period, the bank said in a statement.
Its loan loss reserves increased to Dh232 milliom in the quarter, bringing the total of provisions booked so far to Dh1.28 billion.
Meanwhile, investment income rose 18 per cent to Dh582 million while non-interest income, which includes fees, commissions and investments, rose 15 per cent to Dh645 million.
By CL Jose
© Emirates Business 24/7 2009
