ADS Securities, an Abu Dhabi-based financial services company has teamed up with Italy’s asset management company Duemme SGR to launch a new GCC market fund offering opportunities through equities and fixed income.

The result of their partnership is Duemme GCC Markets, a balanced fund investing in GCC markets, specifically the UAE, Saudi Arabia and Qatar.

Duemme SGR will manage the fund, available from the next weeks, with advisory services provided by ADS Securities. The fund will mainly invest in equities and bonds of issuers domiciled in a member country of the GCC and neighbouring countries or in companies that conduct their principal business activities in the GCC and neighbouring countries.

It may invest up to 50 per cent (minimum 30 per cent) in bond, up to 70 per cent (minimum 30 per cent) in equity, and will have as a benchmark of 60 per cent S&P GCC Composite and 40 per cent Barclays GCC credit + HY.

The fund’s investment strategy will be flexible and focused on diversification based on medium and long-term prospects, taking an active management approach to finding the best investment opportunities within GCC markets while implementing risk control techniques, with a volatility target over a range of 5-8 per cent.

ADS Securities will provide Duemme SGR with research, selection and advisory services for investments.

“We are extremely pleased to have found the right partner in ADS Securities to give our clients the chance to invest in markets and economies that have yet to be fully explored by global investors and that are currently undergoing significant expansion,” said Filippo Di Naro, CEO of Duemme SGR.

“The Duemme GCC Markets fund will allow us to optimize investment diversification, not only in terms of geography, but also in terms of asset class, currency and financial instrument.”

Matteo Legler, COO of ADS Securities, said: “The GCC has a very high per capita income and non-oil revenues now drive growth in the region. We always advise investors to look at the performance of GCC equities compared with other emerging markets, and we are confident they will be pleased by the potential which exists.”

The Duemme GCC Markets fund will be presented to a group of potential investors at two special invitation-only events – one at Banca Esperia offices on October 20 in Milan and one October at Villa Aurelia 22 in Rome.

Duemme SGR is owned by the Mediobanca and Mediolanum private banking group Banca Esperia. – TradeArabia News Service