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Dubai: Al Mal Capital, the UAE-based investment company announced yesterday the launch of Al Mal Mena Equity Fund.
The new fund, targeted at institutions and high networth clients, will not charge performance fees.
"We are one of the first funds that will not charge any performance fees. While the management fee will be just 1.75 per cent, we intend to keep the fee structure in alignment with global practices,"said Blair Look, managing director, asset management.
The fund is registered in Bahrain and denominated in dollars. It plans to invest primarily in listed equities of companies based in the Middle East and North Africa. It will be an open-end fund with weekly subscription and redemption.
"We are looking at a minimum fund size of $50 to $100 million. Initially we will market in the GCC and other Middle East markets and eventually we are planning to sell to institutions in Asia, Europe and the US," said Tariq Qaqish, Fund Manager of the new fund.
The Al Mal Mena Equity Fund will be benchmarked against the MSCI Arabia index which has about 60 per cent weightage from GCC equities. The new fund's asset allocation is expected to be in proportion to this weightage.
"The underlyings will be MENA equities with special weightage to GCC equities. Although the year to date performance has been disappointing, the valuations are indeed cheap while corporate earnings have been excellent," said Look.
The company has plans to introduce a Mena Fixed Return Fund and a regional real estate fund before the end of this year.
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