Baring Asset Management plans to launch a MENA (Middle East and North Africa) fund later in the year, subject to regulatory approval.
The fund will be managed by Dr Ghadir Abu Leil-Cooper, head of the Emerging Europe, Middle East and Africa Equities team at Barings.
She will use an actively managed strategy on the fund with a bottom-up Growth at a Reasonable Price investment philosophy. The number of holdings is expected to be 40-60 and the fund will be benchmarked against the MSCI Arabian Markets ex Saudi Arabia index.
Dr Ghadir Abu Leil-Cooper comments: “The investment rationale for investing in the MENA region is a strong and sustainable one. In our view, economic growth rates are likely to increase by more than 5% a year for the next few years driven by high oil and gas prices, infrastructure spend and consumption. Furthermore, growth has a lower correlation with the rest of the world, and should continue to remain strong despite an expected US slow-down.
“With rich oil and gas resources the area has benefited significantly from the rise in global energy prices in recent years. This is set to continue as energy demand from China and other emerging economies is likely to persist, particularly as rapid economic development of the BRIC (Brazil, Russia, India, China) countries puts pressure on resources while supply remains tight.”
The Baring MENA fund will be an OEIC domiciled in Ireland. AMC will be 1.5% and there is a performance fee of 15%, calculated on outperformance of the benchmark. Minimum investment will be £5,000.IFAonline
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