Sun Hung Kai Financial (SHKF), Hong Kong's leading non-bank financial institution, announced on Monday that it will be launching in August the SHK Alpha MENA Fund through a strategic partnership between SHK Fund Management Limited (SHKFM) and Dubai-based Algebra Capital Limited (Algebra Capital), to provide professional investors with greater exposure to the growing Middle East and North Africa markets. Developed as a long-only absolute return fund which aims to tap a growing base of high net worth investors in the Asia region, the SHK Alpha MENA Fund is not confined to the investment restrictions and daily liquidity constraints posed by retail mutual funds, and also features wider research services targeting hundreds of companies not currently included in the MSCI. Featuring a low correlation to traditional markets, it seeks to achieve long-term capital growth through a diversified investment strategy focusing on listed equity securities in the MENA region, including the United Arab Emirates, Saudi Arabia, Bahrain and Kuwait, among many others. Rizal Wijono, managing director, SHKFM, said: “We're proud to partner with Algebra Capital as they boast a local presence in these key markets and enjoy a proven track record in investing in the MENA region. The region provides a safe port amidst a storm in global markets, which have been significantly impacted by deteriorating credit markets and an impending U.S. recession. It's a region which has stood out and consistently delivered a strong performance.” The Economist Intelligence Unit forecasts GDP growth in the MENA region to average 6.5 percent per annum until 2010, with oil revenues expected to drive government spending on infrastructure, real estate and construction to the tune of approximately $1.49 trillion over the next five years. Stock markets are also characterized by low valuations and high EPS growth rates, with currencies expected to appreciate by 13 percent to 40 percent over the next three years, according to the IMF. SHKFM will act as the investment manager for the SHK Alpha MENA Fund with Algebra Capital being appointed as the fund investment advisor. SHKFM is a specialist in alternative investments and a subsidiary of Sun Hung Kai Financial. SHKFM aims to be a gateway for investors looking to capture the growth in Asia through a range of hedge and private equity funds. Its range of Asian funds is managed by top-tiered portfolio managers and their team of seasoned staff. SHKFM also partners with best-of-breed managers in providing Asian-based institutions access to SHK-branded global hedge funds. Algebra Capital is a leading emerging markets asset management firm specializing in the Middle East/North Africa region, Algebra Capital manages assets in private and public markets across all asset classes. __
