Sun Hung Kai Financial launches Alpha MENA fund to tap Middle East & North Africa growth
Leading Middle East asset management firm Algebra Capital appointed as the fund Investment Advisor
Sun Hung Kai Financial (“SHKF”), Hong Kong’s leading non-bank financial institution, announced that it will be launching in August the SHK Alpha MENA Fund through a strategic partnership between SHK Fund Management Limited (“SHKFM”) and Dubai-based Algebra Capital Limited (“Algebra Capital”), to provide professional investors with greater exposure to the growing Middle East and North Africa markets.
Developed as a long-only absolute return fund which aims to tap a growing base of high net worth investors in the Asia region, the SHK Alpha MENA Fund is not confined to the investment restrictions and daily liquidity constraints posed by retail mutual funds, and also features wider research services targeting hundreds of companies not currently included in the MSCI. Featuring a low correlation to traditional markets, it seeks to achieve long-term capital growth through a diversified investment strategy focusing on listed equity securities in the MENA region, including the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait, among many others.
Mr. Rizal Wijono, Managing Director, SHKFM, said: “We’re proud to partner with Algebra Capital as they boast a local presence in these key markets and enjoy a proven track record in investing in the MENA region. The region provides a safe port amidst a storm in global markets, which have been significantly impacted by deteriorating credit markets and an impending U.S. recession. It’s a region which has stood out and consistently delivered a strong performance.”
The Economist Intelligence Unit forecasts GDP growth in the MENA region to average 6.5% p.a. until 2010, with oil revenues expected to drive government spending on infrastructure, real estate and construction to the tune of approximately US$1.49 trillion over the next five years. Stock markets are also characterised by low valuations and high EPS growth rates, with currencies expected to appreciate by 13% to 40% over the next three years, according to the IMF.
SHKFM will act as the Investment Manager for the SHK Alpha MENA Fund with Algebra Capital being appointed as the fund Investment Advisor.
