WEST PALM BEACH, FL (HEDGECO.NET)- The Securities and Investment Company [SICO] of Bahrain announced in a recent news conference that it is launching a new fund, the Khaleej Equity fund would beinvesting in equity securities listed on the regional stock exchange, known as the GCC Stock Exchange. The new fund hopes to raise US$20 million as its target goal according to released statements.
The long term investment objectives of the fund founders is capital appreciation. An investment manager of the new fund would select a portfolio of securities of companies with growth potentials. Such a portfolio is expected to meet the stipulated objectives of the new fund.
The new Khaleej Equity fund would be open for subscribers immediately, according to the released statements, and would initially close on February 29. No details about initial investments were provided, as well as fee structure if any.
�The GCC countries would offer strong capital appreciation opportunities for long term investors�, the released statement said. The GCC Exchange is comprised of Middle Eastern countries, including Kuwait, UAE, Saudi Arabia, Qatar, Bahrain and Oman. Kuwaiti market is livelier than other markets in the GCC countries.
The Saudi Arabia market is the largest of the GCC countries, the annual turnover (value of stocks traded per year) is about $14 billion, 77 percent less than for other comparable emerging markets. The sheer size of the Saudi market forces global fund managers investing in emerging markets to keep a close watch on it. All the members are emerging markets, struggling to establish a stable market to compete with those of the industrialized nations. However, the GCC markets are still in its infancy stages, and are generally run by the governments as opposed to private interests.
Market capitalization has increased among members of the GCC Exchange, but the markets are operating at far below expectations at the moment.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
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