Clarity is key for MENA fund investors: S&P

Standard & Poor's Fund Services has asserted that investors with exposure to the Middle East and North Africa (MENA) region require clear information, now more than ever, on how their assets are utilised.

"Fund managers in the region are stressing sound valuations and growth potential at a time when the fundamentals offered by the Western world are far from compelling," said S&P Fund Services Head of Research Gokhan Saruhan while announcing the publication of its 2011 Middle East and North Africa Fund Management Ratings Directory.

S&P Fund Services, which has been analysing funds in the MENA region since 2007, continues to expand its coverage and use its expertise to offer the investor the broader picture with regards to regional exposure, he said.

The newly published directory covers 39 funds (up from 26 last year), of which some are managed within the region, while the others are controlled from Europe.

The funds are grouped based on their objective and the availability of a peer group to compare them. Fixed income has been named by many fund market observers as an asset class to watch in the region.

For the first time, the directory this year includes a section on specialist funds investing in the region, highlighting the diversity of MENA funds rated by S&P Fund Services.

The directory also includes the first fixed income fund in the region to be rated by S&P Fund Services, the Royal Capital MENA Fixed Income Plus Fund.

"As the MENA region continues to experience radical change, high-quality, independent information is a vital tool for making investment decisions," Saruhan said.