MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Middle East & North Africa
Q/ Where and what investment opportunities do you specifically see in MENA/GCC
at present ? Please elaborate.
A/ The massive infrastructure spending of the GCC governments, supported by the
accumulated foreign reserves and the budget surpluses of countries, will create a strong
base for a sustainable growth in the region for the coming years. Taking into
consideration the economic drivers and specifics of each country, the tickle-down effect
into the different sectors from this spending will create opportunities to identify and to
invest in. In line with this investment theory, Saudi Arabia stands out as an eventual
investment destination, where the banking sector and the consumer-related sectors will
be potential beneficiaries. The same investment case also stands in Qatar, with the FIFA
World Cup 2020 being a major milestone to achieve, reinforcing the government’s
spending programme.
Q/ What have been trends in fees for your products ?
A/ Fees for MENA Equities:
For the ING MENA Fund the fees are:
USD
EUR
Share Class P cap I cap I Dis S cap P cap P Dis X cap I cap S cap
Management
Fee
1.5 0.85 0.85 0.6 1.5 1.5 2 0.85 0.6
For mandates, the fees are based on the investment guidelines and restrictions.
Q/ What were the trends in flows (in fund and portfolios; by asset category) in
2011 ? in 2012YTD ?
A/ The flows in 2012 in MENA Equities have been robust based on demand from GCC
institutional clients.
Q/ What factors were the drivers for the flows described above?
A/ Combination of weak global growth, problems in the Euro Zone and the Arab spring
has resulted in reduced risk appetite from global investors. However, we see the GCC
institutional clients increasing their allocation in the region due to compelling valuations
and strong economic fundamentals of the region.
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