Pictet Launches New Middle East, North Africa Fund

Nick Parmee

16 May 2008

Pictet Funds, the investment fund distribution arm of Swiss private bank Pictet & Cie, is launching the Pictet Targeted Fund (LUX) Middle East and North Africa, managed by Pictet Asset Management, Pictet's institutional division. The new MENA fund will be run by Oliver Bell, head of Pictet's emerging markets specialist equities team, together with Emad Mostaque, investment manager from the same team. The specialist equities team forms part of PAM's London-based emerging markets group. The fund's investment universe includes the Gulf Cooperation Council countries and other selected countries including Jordan, Egypt, Morocco and Tunisia. Pictet's rationale is that, with over 300 million people, two-thirds of the world's oil reserves, approaching half of the world's gas reserves, but only 3 per cent of global stock market value, the MENA region offers great economic and financial development potential. With a lower rating than other emerging and developed markets, the region includes diverse and complementary stock markets with diversification benefits through low historic correlations against global markets. The firm sees foreign direct investment inflows being attracted by liberalisation and growing accessibility. Favourable demographics, which strengthen the labour force and underpin domestic demand, promise, it believes, strong and sustained economic growth long into the future. The emergence of sovereign wealth funds to safeguard current gains for future generations also helps to ensure the region's long-term stability. The fund is available to institutional, private banking and retail investors in France, Germany, Luxembourg, Spain, Switzerland, and the UK.