Finnish manager FIM’s Sahara fund has been awarded a 5 Star rating by Morningstar.
The fund, which has returned over 10% annually since inception, has seen its euro share class gain some 105% over the past three years.
Managers Hertta Alava och Mika Kannisto invest in Africa and the Middle East, areas of relatively new markets, but ones that they feel are set to play a bigger role in the global economy going forward.
FIM notes that there are more than a billion people living in the regions, while the Middle East produces a third of the world’s oil and 10% of its natural gas, a share expected to rise in future given that the majority of proven reserves and half of gas reserves are located there.
“Sentiment on stock markets around the Persian Gulf has risen along with the more stable oil price and a period of positive results. Especially, banks in the UAE published good results, and the outlook for the current year is positive thanks to lower credit losses. The outlook is also good for the consumer sector in Saudi Arabia, and we are continuing to focus on this sector alongside healthcare,” the managers said in their most recent note.