Dubai - Permal Group, one of the largest fund of hedge funds organisations in the world, has announced the launch of the Permal Silk Road Fund, an emerging markets fund of hedge funds, which focuses on many of the markets that made-up the ancient Silk Road.
Permal Silk Road covers a wide geographical area and includes the Middle East and Northern Africa (MENA), Asia (excluding Japan), Commonwealth of Independent States, and Turkey. Target markets include those that have experienced recent rapid economic development, through petrodollars, hydrocarbons, consumer goods and technologies.
The Fund will invest in a minimum of 20 underlying fund managers, with allocations to event driven, equity long/short, equity long-only, macro and fixed income strategies.
But what differentiates the Fund from other emerging market funds, is the focus on markets that have to date seen relatively little foreign investment.
The new Silk Road countries are rich in natural resources, with more than 80% of the world's proven oil reserves, and this has been a catalyst for much of the current growth, largely driven by strong demand from China and India. They are also benefiting from favourable demographics, with young and rapidly growing urbanised populations.
This economic growth has led to a significant transformation of their capital markets, attracting domestic and foreign investment in private and public markets; while regulatory bodies have been established in many centres, providing an additional safety blanket and further encouraging foreign capital.
Other attractions to these regions include:
Some of the last untapped, high growth markets left for global investors
Very low correlation to the rest of the world
Strength of the economic fundamentals, with some of the highest GDP growth rates in the world, on some of the highest capital account surplus/GDP ratios
High degrees of market volatility, creating significant investment opportunities.
Permal Silk Road Fund is registered in the British Virgin Islands and will be launched on 30 November, in partnership with Credit Suisse, which has exclusive distribution rights for the first six months.
Isaac Souede, Permal's Chief Executive Officer, commented: "The Silk Road conjures up evocative images of ancient eastern markets and the early traders. This was the emerging market opportunity of its day. Over the past decade these regions have undergone economic transformations, staking their places as the new emerging markets. With significant capital inflows, improved economic infrastructures, and strengthening oil prices, the investment potential is immense.
"We are seeing the best hedge fund managers look at these markets, as they scour the world for untapped investment opportunities. They recognise that the opportunities are immense - and the timing is good - made more so by the shifting balance of power from the more developed economies towards these exciting emerging economies."
Michael Philipp, Chairman and Chief Executive Officer of Credit Suisse for the Europe, Middle East and Africa (EMEA) region, said:
"We are delighted to be working in partnership with Permal on the Permal Silk Road Fund. Credit Suisse is committed to the emerging markets core to the Fund and we look forward to providing our clients access to these important growth markets."
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Permal Group
The Permal Group is one of the largest and most established alternative asset management groups in the world, with $35 billion under management.
The Permal Group, which was acquired by Legg Mason in 2005, has achieved an impressive track record since 1973, when it pioneered the use of hedge fund managers within multi-manager funds and setting the industry standard for fund of hedge fund investing. Today, Permal's Family of Funds covers a wide range of strategies, regions and risk/return objectives, in multi-strategy and singlestrategy portfolios.
Permal has international offices in all the major global financial centres, including New York, London, Paris, Dubai, Singapore and Hong Kong.
Credit Suisse
As one of the world's leading banks, Credit Suisse provides its clients with investment banking, private banking and asset management services worldwide. Credit Suisse offers advisory services, comprehensive solutions and innovative products to companies, institutional clients and high-networth private clients globally, as well as retail clients in Switzerland. Credit Suisse is active in over 50 countries and employs approximately 45,000 people. Credit Suisse's parent company, Credit Suisse Group, is a leading global financial services company headquartered in Zurich. Credit Suisse Group's registered shares (CSGN) are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.creditsuisse.com.
The original silk route
The Silk Road, stretching from the far East of China to the far West of Byzantium, has its origins circa 206 BC with the Han Dynasty, which expanded and protected its vast empire by forming pathways towards the West. These pathways were the foundation of the Silk Road. The Silk Road, developed into an interconnected series of trade routes acting as a pathway between the East and West, effectively bridging the two continents with northern and southern facing land routes.
In addition to being a conduit for foreign trade, the Silk Road was also the bridge between the two continents for the exchange of cultural, religious and political diversity. The golden age of the Silk Road was witnessed during the reign of the Tang Dynasty of China (618 to 907 AD). In effect, the Silk Road fuelled the economic and political boom of that era.
The Silk Road was made 'famous' in history by its most well known traveller, Marco Polo. Marco Polo's journey, beginning in 1271 AD, lasted 24 years and involved traversing the Silk Road (southern route) and returning to Italy (1295 AD) by ship, via Sumatra and India to Homuz and Constantinople, to tell his 'tales', becoming one of history's greatest travelogues.
Regulatory Information
IMPORTANT
This announcement is made by Permal Investment Management Services Limited ("PIMS") which is regulated in the United Kingdom by the Financial Services Authority and is made for the purposes of information only. This announcement does not constitute an offer to sell or solicitation of an offer to buy investments and may not be used to make such an offer. Therefore no person receiving a copy of the announcement may treat it as constituting an offer or invitation to him to buy investments, nor may he copy it for transmission to another person. No undertaking, representation, warranty or other assurance, express or implied, is made or given by or on behalf of Permal Silk Road Fund Ltd. (the "Fund") or PIMS or any of their respective directors, officers or employees, agents or advisers or any other person as to the accuracy or completeness or fairness of the information or opinions contained in this document.
The Fund is a collective investment company and is not a recognised scheme for the purposes of the Financial Services and Markets Act 2000 of the United Kingdom (the "FSMA"). The promotion of the Fund in the United Kingdom is accordingly restricted by law. This announcement is issued in the United Kingdom only to persons falling within article 20 (Persons in the business of disseminating information) of the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001. This announcement must not be relied upon or acted upon by any other persons.
It is the responsibility of every person reading this announcement to satisfy himself as to the full observance of the laws of any relevant country, including obtaining any government or other consent which may be required or observing any other formality which needs to be observed in that country.
Shares in the Fund have not been, and will not be, registered under the United States Securities Act of 1933, as amended. In addition, the Fund has not been and will not be registered under the United States Investment Company Act of 1940, as amended.
© Press Release 2007
