Bullish on Equities

Dubai, 17 June 2015 - Mirabaud Asset Management, the investment management arm of the Mirabaud Group, is bullish on the growth of GCC equities. The Group, whose history started in 1819 in Geneva and whose track record of managing funds dates back to 1973, is focused on the GCC investment arena.

Mirabaud's commitment to the region goes back to 2007 when it started operations in the DIFC and later obtained a full banking licence to operate from the DIFC and purchased its own offices demonstrating that it is here to stay.   

An Upturn in the GCC Investment Cycle

Despite geopolitical risks, Mirabaud Asset Management's outlook for the GCC's next stage of development is very positive as it sees phenomenal investment opportunities being created across multiple sectors within the region in the UAE and Saudi. The GCC equity markets are very attractive and inefficiencies mean there are a number of undervalued stocks worth considering.

Majid Hassan, Head of Asset Management for Mirabaud Middle East Limited, commented: "Despite the recent fluctuations in oil prices, which are known to directly impact foreign investors' confidence, Mirabaud Asset Management is convinced that overall, the Middle East exhibits solid fundamentals and numerous specific companies deserve to be on investors' radars. As a long term investor, we can afford to remain cool headed during geopolitical and economic turbulences and as we mitigate them through our very thorough risk management process, we are well positioned to identify and seize these opportunities. Our strategy for developing our business in the Middle East is in line with our strategy in Europe as we cater to institutional investors while developing the wholesale or B2B market, where we see clear traction."

Saudi is Politically Stable and a Top Performing Country within the G20 Economies

Saudi Arabia has grown at an average of 5.4% over the past 5 years; it enjoys favourable demographics, currency stability through its peg to the dollar, high foreign exchange reserves and a market forward P/E ratio of 17%, with a 3% dividend yield. For all these reasons, Mirabaud Asset Management has been and continues to be very upbeat on the opportunity set in this market. The opening up of the Saudi equity market to Qualified Foreign Investors ("QFIs") further strengthens these convictions which are underpinned by an 8% overweight of Saudi equities in the Mirabaud Global Emerging Markets fund, compared with the MSCI Emerging Markets index (0%) and to many other GEM funds.

Daniel Tubbs, Head of Global Emerging Markets at Mirabaud Asset Management, stated: "With Saudi Arabia recently opening up its market to foreign investors, the Tadawul market, being the largest market by capitalization in the Middle East with a capitalisation of more than $560bn, could be reclassified into the MSCI Emerging Markets Index within 2 years. Tadawul's index weighting could make up around 4% of the MSCI Emerging Markets index, which is a larger percentage than Russia and approximately equal in size to Mexico."

"We have self-imposed restrictions as to how much we can invest in a particular country and we take into account political risk when we look for companies with capital growth and supportive dividend yields. Our significant overweight demonstrates just how bullish we are on the Saudi market." added Tubbs.

Mirabaud Asset Management believes that the region provides exceptional opportunities which will help attract significant investments, in billions of dollars, from both local and foreign investors and fund managers alike. Thereby continuing to support liquidity in the market and further boost investors' confidence.

Mirabaud's Asset Management provides investment services to GCC institutions including, Sovereign Wealth Funds, Pension Funds, Banking & non-Banking Financial Institutions and External Wealth Managers through its main hub in Dubai, UAE.

-Ends-

Mirabaud (Middle East) Limited
Operating out of Dubai, alongside other financial cities around the Globe, Mirabaud (Middle East) Limited is a gateway to the Middle East, India, Africa and Asia for investors interested in geographical diversification and in the strong growth in these markets. It is regulated by the Dubai Financial Services Authority having a full banking licence (category 1 DFSA licence), enabling it to provide an extended range of financial products and services to Professional Clients.

Mirabaud Asset Management

With offices in Paris, London, Montreal, Barcelona, Zurich and Geneva, the Mirabaud Asset Management focuses on investment management and advisory services.

Active management of equity funds and mandates (Switzerland, UK, France, Spain, Europe, North America, Asia, emerging markets, global), with special emphasis on alpha generation strategies, bond management, including convertible bonds and global high-yield bonds, alternative investment management and dynamic asset allocation.

With a focus on value creation, Mirabaud Asset Management's investment philosophy is based on a long-term vision, strong convictions and risk-adjusted performances.

For more information, please visit our website: www.mirabaud-am.com 

Media Contacts:
Dubai:
Racha Mhanna
FTI Consulting
racha.mhanna@fticonsulting.com
+97144372100

Majid Hassan
Mirabaud (Middle East) Limited
majid.hassan@mirabaud.com

© Press Release 2015