Baring MENA Fund
as of 19/12/2017
Share Class Info
|Share Class||Class A GBP Inc|
|Accumulating / Distributing||Income|
|Share Class Inception Date||29/03/2010|
This fund closed on December 19, 2017. Please contact your advisor with any queries.
Summary fund objective
The objective of the Fund is to achieve long-term capital growth in the value of assets by investing in the Middle East and North Africa (“MENA”). (Please refer to the Prospectus for the full investment objective and policy.)
Glossary of common investment terms
Investment involves risk. The value of any investments and any income generated may go down as well as up and is not guaranteed. Past performance is not a guide to future performance.
This is not an offer to sell or an invitation to apply for any product or service of Baring Asset Management and is by way of information only. Before investing in any product, we recommend that recipients who are not professional investors contact their financial adviser. The Key Investor Information Document (KIID) must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information in this document does not constitute investment, tax, legal or other advice or recommendation or, an offer to sell or an invitation to apply for any product or service of Baring Asset Management.
This commentary relates to the month of October 2017- to be read in conjunction with the factsheet.
Overall market performance in October was weak with the region underperforming the broader emerging market universe. The Baring MENA Fund outperformed its performance comparator in relative terms driven predominantly by stock selection.
Qatar and Saudi Arabia continue to be challenged following the political standoff initiated by the sanctions imposed by the Saudi led embargo group with both markets underperforming. The Fund’s stock selection in Qatar was strong, additionally the Fund continued to have low exposure to Qatar compared with its performance comparator, both these factors contributed positively to the Fund performance over the month. A general market sell-off in Kuwait, where the fund had a negative bias, contributed positively towards performance. Stock selection in Kuwait was also a driver of the investment result and having no exposure to Mobile Telecommunication, a Kuwaiti telecommunication service provider proving beneficial.
Top contributors to performance included Raya Contact Center, an Egyptian outsourcing service provider, as the company recovered from a weak period following its IPO. Air Arabia benefited from strong results and improvements in its operations.
The major detractor to performance over the month was Saudi hospital operator Middle East Healthcare which reported poor third quarter results that were negatively impacted by medical staff cost inflation and higher provisions for bad debts.
During the month the fund conducted limited transactions, we continue to look for company specific opportunities which have attractive fundamentals with long term positive growth and valuation characteristics.
The information available on this website is not an offer to sell or an invitation to apply for this product and is by way of information only, nor is the information available on this website intended as an offering of this product to US Persons. Depending on your jurisdiction, you may not have access to this product. Individual investors should contact their financial advisor before investing in this product. The Key Investor Information Document (KIID), if applicable, must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information available on this website does not constitute investment, tax, legal or other advice or recommendation.