Barings launches MENA fund

Barings is to launch a Middle East and North Africa (MENA) fund to tap into the region’s growing economies.

The Dublin-domiciled Ucits III fund launches on 29 March and will be managed by head of Europe, Middle East and Africa equities Ghadir Abu Leil-Cooper and her team.

The fund will focus on sectors which Leil-Cooper says stand to grow considerably, such as banking, consumption, infrastructure, resources and property.

Benchmarked against the MSCI Arabian ex-Saudi Arabia index, the fund offers exposure to Egypt (29%), UAE (20%), Quatar (16%), Turkey (12%), Saudi Arabia (10%), Kuwait (7%), Jordan (4%) and Oman (2%). It has overweight positions in Turkey and Egypt and a large underweight position in Kuwait.

"We believe the long-term investment case for the region is compelling," Leil-Cooper says. "It offers strong long-term growth prospects as resource-rich countries benefit from the continued global demand for energy.

"This young and growing population ensures oil and gas are not the whole story, with sectors such as financial services and tourism also experiencing strong growth. Egypt has a population of 78 million with 70% of those under 30 years of age, while the population of MENA is expected to grow by 40% over the next two decades.

"All those stories about infrastructure are not only true but have to happen. You need roads, railways, hospitals and universities and that creates excellent opportunities for investors."

The Barings MENA fund has an initial charge of 5% and an AMC of 1.5%.

Barings has also launched five of its core offshore funds on Cofunds. The funds are all domiciled in Dublin and include the Baring ASEAN Frontiers fund, the Baring Australia fund, the Baring Hong Kong China fund, the Baring Eastern Europe fund, and the Baring Global Resources fund.