Of the five funds with more than a 10 per cent exposure to the country, just one returned more than the high-growth sector, but none lost investors’ money over one year. All of the funds have just a one-year track record.
Performance of funds over 1-yr
| Fund | 1-yr returns (%) |
Weighting to Egypt (%) |
| JPM Africa Equity |
22.29 |
12.5 |
| Investec Africa & Middle East |
13.76 |
17.5 |
| JPM Emerging Middle East Equity |
13.3 |
16.8 |
| GAM Star Frontier Opportunities |
12.5 | 10.9 |
| Franklin Templeton Franklin MENA |
9.82 | 16.8 |
Source: Financial Express Analytics
The figures come in light of a Trustnet poll suggesting that more than a third of investors intend to pull investments out of the region following continued instability in Egyptian capital Cairo.
Source: Trustnet.com
JPM Africa Equity is the best performer, returning more than 22 per cent over the year. Managed by Sonal Pandit and Oleg Biryulyov, the $462m Luxembourg-based fund invests primarily in consumer groups and financials.
Performance of funds over 1-yr
Source: Financial Express Analytics
Both Investec Africa & Middle East and JPM Emerging Middle East Equity also gave strong double-digit results. Industry experts are keeping an eye on the situation, but don’t expect a change in government to impact investments yet.
"In terms of GDP, Egypt is rather insignificant. Consequently a benign resolution of the conflict with a pro-Western government would barely produce a ripple across financial markets," Ignis Asset Management’s chief economist Stuart Thomson said.
"Unfortunately, the geopolitical importance of Egypt is considerably greater in terms of the flow of oil through the Suez Canal. While there are alternative routes, the disruption would undoubtedly drive global uncertainty."
GLG Global Emerging Markets’ manager Bart Turtelboom warned it would be difficult for investors to pull money from the region, as markets are closed. He has steered clear of the country in his portfolio, but remains invested in other Middle Eastern countries such as Qatar and UAE. "The Middle East is a big component of the Frontiers Markets Index – an index which is set to take a significant tumble in the coming months," he said.