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Sat, Nov 08, 2025 | Jumada al-Awwal 17, 1447 | Fajr 05:11 | DXB 
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Algebra AUMs exceed $1b; plans to launch new funds
DUBAI -Algebra Capital, the Dubai-based asset management firm, yesterday announced its assets under management (AUMs) exceed $1 billion, a little under a year since the firm started managing money. "We hope to add another $0.5 billion to $1 billion in 2008," said the firm's founder and CEO, Ziad Makkawi. "This will depend on the success of existing funds and new funds to be launched," he added.
Among the new funds that will soon be launched are two fixed income funds, a Shariah-compliant and MENA credit fund. "These will launch in the next month or two," said Makkawi. These two open-ended funds will "predominantly invest in corporate bonds and a few of the available sovereign bonds," he said. The majority of investors in these funds are expected to be regional.
Algebra will also be launching at least three funds with Franklin Templeton, which owns a 25 per cent stake in Algebra. "Templeton is a strategic and not just a financial alliance. "We are looking to broaden our investor base through the distribution capability of our strategic partner," said Makkawi. The funds will be launched in the coming three to six months and will target global clients. More details will be announced in coming months.
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Algebra is aims to manage $4 billion of assets by 2012. In August 2007, it was appointed as sub-advisor on the Schroders International Selection Fund Middle East. It has also launched its flagship Equity fund, the Alpha MENA fund.
Last month Algebra also launched its Specials Situations Fund, which it capped at $55 million. "It will be re-opened when we can take more capacity," said Makkawi, emphasising that the firm is "concerned about the delivery of performance, not just volumes". This fund, which had previously been run as a managed account since June 07,returned 66 per cent to December 2007. Since its launch, the Specials Situations Fund is up 6.50 per cent as of February 28. It invests in about eight to 10 stocks which means the risk is more concentrated , he said. Since its inception in October 2007,the Alpha MENA fund has accumulated AUMs of over $500 million.
The market capitalisation of the MENA region is $1.2 trillion, with average earnings per share (EPS) of about 20 per cent," said Makkawi. Relative to the BRIC countries (Brazil, Russia, India and China) the MENA region is better valued, he added. "This is the attraction."
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