JEDDAH, 31 March 2005 — Mashreqbank, the oldest private bank in the UAE with a long history of marketing investment products, has set up a new investment company specializing in establishing, managing and promoting mutual funds, called Makaseb Funds Company (MFC).
Incorporated in Bahrain as an exempt stock company and approved by the Bahraini Monetary Agency (BMA) and UAE Central Bank, MFC will provide an umbrella structure enabling it to establish several mutual funds tailored to suit different investment strategies.
Mashreqbank has been formally appointed to act as the investment manager of MFC, while Gulf Investment Corporation (GIC) has been appointed custodian and administrator. To ensure transparency and impeccable fiduciary propriety, international accountancy firm Deloitte have been appointed auditors of MFC and Ernst & Young as its registrar and transfer agents.
“Mutual funds are one of the safest ways for the public to invest for long term capital growth with minimal risk,” said Mashreqbank CEO Abdul Aziz Al-Ghurair. “They epitomize the principle of not putting all your eggs in one basket. By investing in blue-chip companies across a wide range of industries, it cushions investments against any market fluctuations in specific sectors. MFC will focus its investments in GCC stock exchanges, which are outperforming world markets, particularly the dynamic UAE exchanges.”
Nabeel Waheed, chairman of MFC, said the company will fulfill a pent up demand in the marketplace for such an investment vehicle. “Mutual funds have particular appeal to many expatriates in the GCC who do not have state education, health or pension schemes to fall back on,” he said. “Mutual Funds offer high growth potential and also the flexibility of being encashed at any time without the penalties associated with some savings schemes.”
Shawki Khalaf, head of operations & global markets support, GIC said “MFC will be one of the region’s fully regulated, fully transparent mutual funds company. It will allow local investors to enjoy the same service and diversity of investment opportunities as international investors, while understanding the special needs and potential of the region”.
“Both GIC and Mashreqbank agree on the importance of service quality, efficiency and highest degrees of neutrality while conducting business. To have segregation by function is undoubtedly in clear strict compliance with international banking practices and the regional regulators mandatory guidelines.” added Khalaf.
MFC’s first fund is the Makaseb Emirates Equity Fund (MEEF) which is listed on the Abu Dhabi Stock Market (ADSM) and will be listed on Dubai Financial Market, Bahrain Stock Exchange, as well as he Dubai International Financial Exchange (DIFX) when it opens later this year.