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 April 30, 2013
The Arab Gateway Fund further added to its yearly gains rising +2.79% in April versus the S&P Pan Arab Composite’s gain of +1.37% over the same period. Consequently, the AGF’s alpha over the benchmark rises to nearly +8.4% YTD. The fund benefitted from most of its exposures across MENA as markets remained buoyant notably the UAE and Saudi Arabia.
Globally, some concerning macro-economic data emerged from the US and China. However, the all-important unemployment level continues to decline in the US alongside a recovering housing market, both supporting the market’s push to new highs. Despite this, we continue to expect some volatility in markets ahead of summer months. We keenly watch global macro data and importantly central bank policy stances, maintain our expectation of continued global growth for the year and look to exploit any near term weakness to add to core themes.
Key points to note this month were the surge in UAE markets, the continued rise of Kuwaiti equities and a rather solid earnings season across most of MENA. Whilst the UAE market continues to rise valuations remain undemanding compared to regional peers, especially in the banking sector. A near term consolidation or pullback would be healthy; given the robust economic recovery taking shape in the Emirates, it would bode well for a continued re-rating into the end of year and bring with it excellent buying opportunities. The Kuwaiti market continues to rise led by local buying of largely 2nd tier names, however key fundamental issues in Kuwait remain unresolved and valuations remain obdurately high given a benign macro-economic growth picture. Consequently despite the fund’s selection in Kuwait performing admirably, we remain UW thus far. Lastly, we note the rather solid first quarter earnings season across the gulf and more specifically the rising dividend payouts across some sectors making GCC market yields nearly double those of emerging markets. Improving bottom lines across the region, notably in Saudi Arabia and UAE also underscore the region’s strong fundamentals in addition to its enviable public financial position and keep us constructive on MENA equities. .
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