CIVETS FUND GETS EGYPT AND TURKEY PROPERTY INVESTORS EXCITED

HSBC Global Asset Management (HSBC Gam) has launched their new CIVETS fund and is the first emerging markets fund to be introduced, according to the Financial Times.

CIVETS is a fund that invests in Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa. The countries have been predicted to have the best economies and are the favourite places to invest.

HSBC has selected the countries due to their fast growing, young populations, which is something the developed world lacks. The countries will receive money that will be financed by the fund’s managers at the global bank.

Sridhar Chandrasekharan at HSBC commented on the new fund: “ The CIVETS nations, which are among the next generation of emerging markets, echo many of the demographic qualities inherent in larger developing markets such as Brazil, Russia, India and China; the BRIC nations.”

The fund will hold 40-60 stocks and has a minimum investment of £3,098. The annual management charge of the fund is 1.75 per cent.

The countries making up the CIVETS group has a population of 600 million with an average age of 27 years. The figure represents 8 per cent of the world’s population.

The CIVETS fund is good news for the countries involved where their demographics and dynamism have been seen as very attractive to property investors.

The news has proven now is the best time to invest in Egypt and Turkey. The Turkish Association of Real Estate Investment Companies released figures earlier in the month that there has been a 40% increase in purchases of Turkish property by foreign investors in 2010.

It has been reported recently that Egypt is in its first stages of a real estate boom. The country has seen capital values and rents rise fast, according to Business Monitor International.

Property investors are taking advantage of this recent positive news and have confirmed any doubts that Egypt and Turkey are great places to invest.

Source: Financial Times & The Telegraph.