Makaseb Emirates Opportunities Fund to tap UAE stock markets
10 July 2006
Dubai, U.A.E: Makaseb Funds Company BSC (C) (MFC) has launched a dynamic new investment fund targeting the UAE's buoyant capital markets through a fully regulated mutual fund: the Makaseb Emirates Opportunities Fund (MEOF).Available to both expatriates and Nationals, the MEOF enables investors to participate in the combined Abu Dhabi (ADSM) and Dubai (DFM) stock markets, which have this year already grown by over 100 per cent relative to their 2004 close.
"The markets have been growing since 2003 and strong corporate earnings expected for the first half of this year will underpin growth" said Nabeel Waheed, Chairman of MFC.
The MEOF will compliment MFC's existing Makaseb Emirates Equity Fund (MEEF) launched in March 2005 by employing a more dynamic investment strategy. Since its launch last March, the net asset value (NAV) of MEEF has more than doubled to 114 per cent.
"While all mutual funds seek long term growth, some are more dynamic than others. A balanced investment portfolio should contain elements of both, and we recommend MEEF as a core component of the UAE portfolios and the more dynamic MEOF as a complement, depending upon the investor's risk appetite" said Waheed.
The MEOF fund will be listed on the Bahrain Stock Exchange and has been approved by the Bahrain Monetary Agency (BMA) and UAE Central Bank. It is an open-end fund denominated in US dollars with weekly subscriptions and redemptions. The minimum investment and holding is $10,000.
MEOF is the second UAE country specific fund and the third mutual fund in MFC's series of products, launched to offer investors local investment opportunities with one of the highest rates of growth in the world. MFC mutual funds are structured and regulated according to international standards for the investment management industry.
"The annual GDP growth of the GCC economies, particularly the UAE and Qatar, are far higher than in the developed world. With the sustained upward pressure on the price of oil and many other positive indicators, we do not see this changing any time soon" said Waheed.
MFC was incorporated earlier this year in Bahrain to provide the region with fully regulated investment funds. Given its expertise, Mashreq has been appointed as MFC's investment manager. It has also appointed Gulf Investment Corporation (GIC), one of the largest financial institutions in the Gulf and equally owned by the governments of the six GCC member states, as custodians and administrators of its various funds. In order to ensure transparency and adherence to the most stringent international standards, MFC appointed the international accountancy firm Deloitte as its auditors and Ernst & Young as its registrar and transfer agents.
Nabeel cautioned that investors needed to appreciate that, as with any investment in the stock market, the value of the fund can go down as well as up. "It is important that customers seek advice from their investment advisors on maintaining a diversified portfolio in different types of assets and sectors" he concluded.
For further information on MFC's equity fund products, downloads, and weekly NAV please visit www.makaseb.com
For further information please contact:
Maha Yassine
Corporate Communications Manager, Mashreq
Tel: Dubai 7066287
Email: mahay@mashreqbank.com