Arab Gateway Fund
The Arab Gateway Fund is an open-ended fund giving both regional and international investors access to 15 Arab equity markets, including the GCC. The Arab Gateway Fund is SHUAA Capital Asset Management’s flagship product.
|Structure ||An open ended investment fund registered in the British Virgin Islands. The Fund is recognised under the Mutual Funds Acts 1996 |
|Objective ||To achieve capital appreciation through investing in Arab Equities in a conventional manner |
|Markets covered ||Middle East and North Africa |
|Base currency ||USD |
|Management Fee ||1.50% |
|Performance Fee ||Performance Equalisation - 15% over 10% |
|Minimum subscription ||USD 100,000 |
|Subscription/Redemption ||Weekly |
|Administrator ||Close Funds Services Ltd. |
|Custodian ||RBC Dexia -London |
|Bloomberg ||ARABGAT VI |
|ISIN ||VGG0504F1009 |
The Fund Manager's Market Commentary as of May 28, 2013
The Arab Gateway Fund further gained +2.60% in May versus the S&P Pan Arab Composite’s gain of +2.26% over the same period. Consequently, the AGF’s alpha over the benchmark rises to nearly +9% YTD. The fund’s outperformance came mostly from Saudi Arabia as well as our underweights in certain smaller regional markets. Offsetting these gains slightly were retail driven, sharp movements in speculative names in the UAE which have a tendency to reverse over time.
Global markets have remained buoyant with the onset of summer evidently brushed aside by optimistic investors thus far. Murmurings of the fed easing up on QE by summers end seem to abound however we believe that such action is unlikely to be at the expense of the Fed’s evidently strong commitment to growth. We continue to expect some volatility in markets through summer months, however keenly observe global macro data and importantly central bank policy stances while maintaining our expectation of continued global growth for the year.
MENA markets performed well nearly across the board with a supportive international backdrop and after a rather solid first quarter earnings season. Notably, Saudi Arabia performed well breaking above twelve month highs on the back of strength in petrochemical and banking names, a trend we expect will continue given global growth prospects for the former and the strong commercial momentum evident in banking sector date for the latter. The UAE market also gained after a bumper April, however retail buying pushed up quite a few speculative names and consequently we wouldn’t be surprised to see some consolidation going into summer. A near term catalyst could be an MSCI review of a possible upgrade of the UAE and Qatar to Emerging Market status which is due mid-June. Both countries have missed the upgrade multiple times before, however a positive decision would certainly bring a near term boost to both markets and perhaps to GCC markets as a whole. Lastly, we note the recent positive performance of Egypt despite continuing political turmoil and despite liking a few names remain wary given little tangible change on the macro-economic front.
Accumulated Deemed Distributed Income
Arab Gateway Fund LTD has appointed PwC FS Tax GmbH Frankfurt to examine and certify the annual German Tax reporting figures including the Deemed Distribution Income (DDI), which is published in the electronic Federal Gazette as well as to WM Datenservice each year four months after the fiscal year end of respective funds at the latest.
To view the latest published Accumulated Deemed Distribution Income (ADDI) figures, please click on the attached Link.
SHUAA Capital psc, its affiliates, and the Fund do not provide tax advice, and nothing in this section should be construed as tax advice. Before acting on any such information, consult your own accountant or tax advisor.
Forms & Prospectus