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HSBC puts Gulf plans into play

HSBC Global Asset Management has launched a Middle East and North Africa fund.

The fund will be managed by Andrea Nannini and his team at Halbis, the active management specialist within HSBC Global Asset Management.

The Mena fund will typically hold between 50 and 60 stocks and is benchmarked against the MSCI Arabian ex-Saudi Arabia total return index.
The fund will invest in companies with a market capitalisation of more than $50m. It can also hold up to 10 per cent of its portfolio in Saudi Arabia.

HSBC Global Asset Management had originally planned to launch the fund some 12 months ago. However, the product was postponed amid global market volatility.

The fund will sit within HSBC’s Global Investment Funds Sicav, which is domiciled in Luxemburg and is available in more than 35 countries.
Nannini and his team will run the fund on a bottom-up, value-driven approach.

He says: “The Mena region is expected to benefit from continued rapid economic growth and increasing liberalisation of the financial markets. Many of these countries are positioned to benefit from a rebound in commodity prices, in particular those within the Gulf region.

“Additionally, ambitious infrastructure development programmes are under way, which provides an exciting investment theme.”

Minimum investment for the retail share class is $5,000. The fund has an annual management charge of 1.5 per cent.

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