Standard Chartered Hosts Mutual Funds Services Forum In Dubai

Standard Chartered has hosted a client forum addressing the mutual funds landscape in the Middle East and North Africa region (MENA). The forum was attended by key senior representatives from the Bank’s wholesale banking clients, along with members of the Bank’s management team.

Discussions held during the forum were wide-ranging and engaged participants on the evolution, growth, regulatory changes and trends affecting the mutual funds industry across MENA.

Amin Al Kholy, Managing Director of Asset Management at Arqaam Capital, examined the potential of mutual funds in comparison with traditional direct investment into the equities market. Growth markets for mutual funds in the region were also discussed, with the UAE and Saudi Arabia referenced as examples.

Marc Hambach, CEO of GulfMena Investment Limited, explored the types of fund structures prevailing in the GCC, adding that Cayman and other offshore based funds were gaining popularity in the region.

Sumit Sharma, Head of Investment products and Advisory at Standard Chartered Bank , provided an overview of funds being invested in the region and shared best practices employed by professional distributors for funds selection.

Commenting on the Mutual Funds industry in the region, Stewart Adams, Regional Head of Investors and Intermediaries at Standard Chartered , said:

"The Mutual Funds industry represents less than 10% of the overall market capitalisation of the MENA region. This is due to a number of factors including low uptake of mutual funds by investors versus direct exposure to equities markets, an evolving regulatory environment and a lack of capital markets depth in terms of liquidity and range of asset types".

Adams was quick to add that the sector has significant growth potential. "The recent financial crisis has also prompted investors in the region to consider diversifying their equity heavy portfolios. Markets like Kuwait and Saudi Arabia have seen growth in mutual funds investments and the trend is likely to be picked up elsewhere in the region", added Adams.

Standard Chartered has been operating in the Middle East region for more than 92 years and offers various Investment products and services for its corporate and retail clients including a comprehensive securities services suite, catering for the requirement of mutual fund industry.

Emirate:  Dubai

Date: Mar 12, 2013

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