EFG Hermes Asset Management, an investment bank in the Middle East, has launched its first Ucits funds available to European investors, which gives them access to MENA and frontier markets.
The EFG Hermes MENA Equity fund is a Ucits mirror of the firm’s flagship MEDA fund. Meanwhile, the EFG Hermes Frontier Equity fund is focused on opportunities in South and East Asia, Sub-Saharan Africa and the Middle East.
It can invest in all frontier markets and will include markets in South East Europe and other regions where opportunities arise. The frontier fund will be benchmark agnostic and made up of 15-25 holdings of high conviction investment ideas.
Commenting on the launch, EFG Hermes’ head of asset management, Amr Seif, said: ‘This is our first entry into frontier markets and also offers a vehicle to accommodate a large pool of European assets. We will use our rigorous investment process used in MENA markets in the extended frontier universe.’
‘We are confident about generating superior risk-adjusted return as the fund capitalises on opportunities that benefit from growing domestic demand, driven by shifting demographics and an emerging middle class.’
Both the EFG Hermes Frontier Equity fund and the EFG Hermes MENA Equity fund are managed from Dubai and are domiciled in Ireland. Both will be available to investors across Europe subject to registration.
EFG Hermes Asset Management has around $2.6 billion in assets under management. It is one of the largest investment managers in the region with 46 professionals in three countries managing 18 country-specific and 9 regionally dedicated funds.