Fidelity International has launched an Emerging Europe, Middle East and Africa fund.
Domiciled in Luxembourg, Fidelity says fund, run by Nick Price, will seek to profit from the impact of global industrialisation, the urbanisation of the region and continued strong natural resources demand.
The EMEA region includes the Czech Republic, Egypt, Hungary, Israel, Jordan, Morocco, Poland, Russia, South Africa and Turkey.
“The region of Emerging Europe, Middle East and Africa offers one of the most exciting investment opportunities in today’s market,” Price says.
“It has an investment universe of $1.5trn and with low correlation to the US, Europe and UK, and low inter-market correlation across the region it offers diversification benefits and the potential for significant risk-adjusted returns.”
Fidelity says the region is rich in natural resources, with 80% of the world’s proven oil reserves, 95% of the world’s chromium – as well as iron ore, nickel, copper and gold.
“As China and India continue to industrialise we will see rising levels of consumption, resulting in growing demand for oil and commodities from these countries,” Price says.
“In addition, the EMEA region is enjoying significant productivity gains that are a direct result of the global export of cheap manufactured goods from China and India.
“While this would be a potential threat to developed economies, the EMEA region can benefit from first time access to cheaper technology.”
The fund will typically hold between 50 and 70 stocks.
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