HSBC Global Asset Management has unveiled the GIF Middle East and North Africa fund a year after it was initially slated for launch.
The group, who says the postponement was due to "extreme global market volatility" believe the region now has a more secure outlook and but remains cheap.
Managed by Andrea Nannini at Halbis, HSBC's active management specialist, the HSBC GIF MENA fund will sit within the group's Luxembourg-domiciled Global Investment Funds Sicav.
Benchmarked against the MSCI Arabian ex-Saudi Arabia Total Return index, the fund will invest in companies with a market cap of over $50m and will typically hold 50-60 stocks.
Nannini will use a bottom-up, valuation-driven approach, selecting stocks with strong and sustainable business models, good corporate governance and attractive valuations.
"Despite the recent rebound, stock prices are still significantly below their pre-crisis levels and offer very compelling valuation levels," Nannini says.
"The fundamental outlook for the region is rapidly improving on the back of higher commodity prices, strong domestic demand and pro-active government policy. Therefore, we consider now is an excellent entry point for long-term investors."
Minimum investment is $5,000 while the annual management fee is 1.5%.
