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Monday, 6 September 2010

Africa, Middle East funds sit on cash, wait for recovery | Reuters

Equity funds investing in the Middle East and North Africa (MENA) are sitting on high cash piles, signalling a lack of conviction and absence of viable opportunities in a region touted as the next big emerging play.

Research suggests MENA funds are holding as much as a quarter of their assets in cash against a more usual global average of 2 to 5 percent, suggesting the bullish tone of many managers is not backed by their allocations.

Some say they are being constrained by a lack of more sophisticated market strategies and techniques."