FMG Middle East North Africa (MENA)
Description.
The term MENA stands for “Middle East and North Africa” and is the region that extends from Morocco in northwest Africa to Pakistan in southwest Asia. The MENA region has one of the strongest macro stories in the world. Central banks hold $500bn in reserves while sovereign wealth funds hold $1.5tn, widely exceeding regional GDP. With half of the population below 20 years old (in the US less than 1/3) in combination with strong population growth provides a very favorable backdrop for economic expansion.
The MENA region accounts for more than 60% of the world's proven oil reserves, 40% of gas reserves, yet only 34% and 20% respectively, of oil and gas production. We believe that much of the world's future needed capacity will be added from the region. The region is one of the world's lowest cost oil producers. The value of all the oil in the Gulf at a conservative oil price of $60 per barrel is $50tn, similar to world equity market capitalization.
The MENA markets are not on most investor's radar today but are likely to be so in the future. Qatar, Kuwait and UAE are under revision to be included in MSCI EM and the MENA markets could potentially account for 10-20% of MSCI EM. Improved regulations, democratization and privatization makes the region an exiting play and we expect corporate earnings to grow at double-digit figures
Strategy.
The Fund has exposure to about 15 MENA markets but with a focus on the GCC markets and Egypt. GCC is an abbreviation of Gulf Cooperation Council and it is a trade bloc constituting the six Arab states of the Arabian Gulf, namely; Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain, Oman.
The Fund is monitored on a daily basis by our analysts who are screening the universe of about 80 MENA funds. The Fund typically comprises of a mix of long only, special situations, hedge and country specific managers. By combining the skills of multiple managers the portfolio is diversified between complementary investment strategies, geographical areas and industry sectors. In this way, the risk is spread and effectively reduced. The majority of the exposure will be long only over time.
Information.
| Fund Start | April 1, 2006 |
| Risk Level | High |
| Management | Multi Managed |
| Investment Profile | Emerging Markets |
| Investment Focus | Middle East & North Africa |
| Dealing | Weekly, 1st Business Day |
| Investment Horizon | 3-5 Years |
| More Details | Request Factsheet & Prospectus below |
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