Gulf fund outflows halve in June, EFG Hermes says

Outflows for Gulf funds halved to $26.1m with Saudi Arabia accounting for the bulk of the amount
Gulf fund outflows halve in June, EFG Hermes says
(Getty Images)
By Reuters
Tue 12 Jul 2011 04:35 PM

Fund managers in the Gulf saw investor outflows halve in June form the previous month, while the region continued to witness net redemptions, Egyptian investment bank EFG Hermes said in a research note.

Outflows for Gulf funds halved to $26.1m with Saudi Arabia, the largest Gulf Arab stock market, accounting for the bulk of the amount.

Middle East Africa-dedicated funds fared worse with a further $112m outflows in June, EFG said in a note dated July 11. Outflows from Middle East, North Africa (MENA) funds eased to $30.5 million, the note said.

Global emerging market funds increased their exposure to MEA funds to 0.82 percent of overall exposure, from a historic low of 0.71 percent in May.

The increase was primarily driven by a rise in exposure to Egypt, the North African country aiming to rebuild itself after a political crisis toppled the government.

Investment funds operating in the unsettled MENA region were forced to refuse redemption requests by clients earlier in the year following a prolonged closure of Egypt's bourse and a slump in stock market values.

 

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