FMG Investments will launch a fund investing solely in Iraq

FMG Investments will launch a fund investing solely in Iraq in the second quarter of this year. The FMG Special Opportunity fund aims to benefit from Iraq’s economic recovery and its rapidly growing energy sector.



It will mainly invest in stocks listed on the Iraq Stock Exchange but may also buy offshore-listed shares of companies that derive a significant part of their business and potential from Iraq.

Furthermore, the fund can hold dinar, dollar, euro cash and bonds.

FMG says the fund, which will be open to UK retail investors, will use no leverage and its exposure will predominantly be long-only. Investors should have a time horizon of at least three years as liquidity may occasionally be poor and the investment is considered high risk.

Iraq’s stockmarket capitalisation is only about $2.5 billion (£1.7 billion), which equals 1% of Russia’s or 0.8% of Saudi Arabia’s.

Some 90 companies are listed on the ISX stock exchange, which has remained largely untouched by international investors.

“Very few people invest in Iraq because they consider it as too corrupt and too scary, but that was the same case in Russia,” says Arild Johansen, the chief investment officer of FMG.


FMG forecasts that within 10 years Iraq, the world’s third-largest holder of oil reserves, could overtake Saudi Arabia as the largest oil producer. Johansen says Iraq has 115 billion barrels of of proven oil reserves but is one of the least explored countries.


“We went into Russia in the mid-1990s and Iraq reminds us very much of Russia,” he says. “Both countries suffered from collapsed regimes, have big needs of infrastructure and social problems that tend to be related to a common denominator, which is oil.”

FMG Investments is still in the process of selecting holdings for the fund. For to competitive reasons, it can not disclose the investment opportunities identified prior to the launch.

The fund is domiciled in Bermuda and has a minimum investment of $10,000.


http://www.fundstrategy.co.uk/funds/fmg-poised-for-iraq-only-portfolio/1011362.article

HERE IS THE LINK TO THAT FUND


http://www.fmgfunds.com/index.php/fund-prices/152-betonbaghdad

FMG Special Opportunity Fund

http://www.fmgfunds.com/index.php/funds-report?FundID=28&FundName=Iraq+-+SOF

Each country has different securities laws and it is up to the individual to determine if they will be in compliance with their country's laws in dealing with FMG.This information is not for use within the United States or with any U.S. persons (as defined in Rule 902 (k) promulgated under the U.S. Securities Act of 1933, as amended). FMG Funds are not available to United States citizens or residents.