Investec launches Middle East and North Africa Fund

Investec Asset Management is pleased to announce the launch of its offshore Middle East and North Africa Fund.

The fund seeks to offer offshore investors the opportunity to access the burgeoning frontier markets of the Middle East and North Africa and is the latest addition to Investec Asset Management’s suite of frontier market products, complementing the Africa, Pan-Africa and Africa Middle East Funds.

The investment objective of the Fund is to achieve long-term total returns through investment in equities of companies domiciled in the Middle East and North Africa, or which derive a significant proportion of their earnings from these two regions. Investec’s Frontier Markets Investment Team manages the Fund.

Amr Seif, Portfolio Manager, commented: “Investec Asset Management’s creation of the new Middle East and North Africa Fund reflects our recognition of the investment case for the region and the interest that investors have shown in this area. The investment universe for the Fund offers access to 10 countries with a total population of over 200 million and an equity market capitalisation of over a trillion US$.

We have high conviction about this region as it has strong and distinctive macro and micro characteristics. At the macro level, MENA countries have spent the past years liberalising their economies, privatising and deregulating at a time of wealth accumulation driven by high commodity prices. This contributes to economic balances and strengthens local currencies and hence reduces risk premia. At a micro level, individual stocks are still valued attractively given the growth levels and risk profiles of these markets. Although more visible today, MENA markets are still understudied and hence inefficient. In addition they show low correlation with developed world indices.”

Investec Asset Management has established a strong track record of frontier markets experience with $34billion of a total $60billion of AUM managed from Africa. Investors can select Class A and F shares, both of which have a $3,000 minimum investment requirement. The Funds also offer Institutional or Class I and S shares.