Algebra Capital has been appointed as sub-advisor to the Schroder International Selection Fund Middle East.

Schroders, the $276 billion global asset manager, has selected Algebra Capital, a specialist asset management firm in the MENA region, for its team's in-depth knowledge of investing in the region.

The open-ended fund was launched on September 3, 2007, and will invest in Middle Eastern companies, including those operating in the emerging Mediterranean markets, said an official spokesman.

The scope of the sub-advisory services being provided by Algebra Capital will cover the MSCI Arabian region, which includes the GCC, Jordan, Egypt and Morocco. The fund has $55m of assets under management currently which is expected to grow to $1 billion  and will invest in equities of various industries across the region from real estate to banking, telecommunications, oil & gas and other growing sectors.

With many undervalued stocks in Middle Eastern markets at present, carefully selected shares offer strong returns to international investors guided by local knowledge. The distribution of the fund has been initiated in Asia and will soon be available to investors globally.

Schroders views the investment as a significant long-term commitment to the region, and sees the potential for increased regional liquidity opening up more investment opportunities across the Middle East.

"It is globally recognised that the Middle East is one of the dynamic forces in the emerging markets, with the potential for strong returns," said head of Emerging Markets, Schroder Investment Management Limited, Allan Conway.- TradeArabia News Service