Investing in Africa and the Middle East
Investing in Middle Eastern and developing African companies isn’t easy. Stock markets in these countries are small and young. Governments aren’t exactly rock-solid in some areas. But it’s exactly these qualities that make markets like these intriguing. Potential for growth is huge, although a long time horizon is likely a necessity.
Investing in individual stocks in Africa and the Middle East is extremely difficult. There aren’t many mutual funds specializing in Africa or the Middle East, but after some searching,I found one that might fit the bill.
T. Rowe Price Africa and Middle East Mutual Fund (TRAMX)
The fund invests in companies throughout the Middle East and Africa. Here are the top 10 holdings and breakdown of industrial percentages:
- Air Arabia
- Aldar Properties
- Bank Muscat SAOG
- Banque Audi sal- Audi Saradar Group
- DP World
- Damas International
- MTN Group Ltd
- MobiNil-Egyptian
- Qatar Electricity and Water
- Qatar National Bank SAQ
And Exposure by Country:
T. Rowe has a good reputation among mutual fund cos. No sales loads, which is always a plus. I bought a little of this fund today in my IRA. It’s obviously a long-term play, extremely volatile, and speculative as all hell. So don’t buy any without talking to an investment professional, etc, standard disclaimer. I’m not an investment advisor.
Just thought some people might want to know that there are options out there to invest in pre-emerging markets. So if India, China, and South Korea aren’t risky enough for you, there’s always TRAMX!
Disclosure: long TRAMX
4 Comments
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Allen Taylor
[...] story here Adam Sharp Mutual funds seek SEC review of TALF rules: report [...]
I am very surprised there aren’t more African mutual funds. Anyone with half a brain would realize it’s the undeveloped part of the world that has the most room for growth.
[...] Long TRAMX @ $5.66: (May ‘09) Now trades at $6.99 – Up 23%. Africa and Middle East mutual fund. If traditional emerging markets aren’t risky enough for you, you can buy this fund and get exposure to these politically volatile but fast-growing markets. Still holding. [...]