Dubai: Al Mal Capital signed an agreement with ATA Invest (Turkey) to act as a promoter to their flagship equity fund “ATA Return Driven Sub Fund“ in the United Arab Emirates.

ATA Asset Management (AAM) is an asset manager from Turkey. Its parent, Ata Finance Group, consists of multiple capital market businesses from asset management to brokerage and investment banking with offices in New York, Istanbul and Dubai.

Ata Return Driven Sub Fund replicates the strategy of AAM’s longer-running product, the Equity Fund (ATA Equity Fund), which has performed strongly since its inception in June 2010.

The Fund has provided a cumulative net return of 67.4% between June 2010 and March 2014, which beat the ISE-100 Index by 44.8%, creating an annual average alpha of 9% for its investors. ATA aims to offer its expertise in Turkish markets and fundamentally-driven alpha generating skills to MENA investors who wish to participate in the upside potential of Turkish markets.

Tariq Qaqish, head of asset management at Al Mal Capital, said: “We are excited to offer to our valued clients the opportunity to invest in Turkish equities. We aim to provide investors with best of breed products that offer our clients uncorrelated products for portfolio diversifications.”

Murat Demirel, chief executive officer of ATA Finance Group, said: “We are delighted to partner with Al Mal Capital for the promotion and distribution of ATA Return Driven Sub Fund in the UAE. ATA strongly believes in the long term potential of Turkish economy and capital markets. Based on our experience, Turkish stocks provide solid risk-adjusted return.”

During the last ten years, Turkey has witnessed serious sets of economic transformation resulting in lower inflation and interest rates while GDP per capita surpassed $10,000 levels. With a GDP of $800 billion, Turkey is considered the largest economy in the Middle East and Southern Europe. With a population of 77 million, it has a vibrant domestic market and has caught foreign investors’ attention. The Government aims to focus more on balanced growth as it tries to improve its large current account deficit and at the same time increase domestic savings, which will lead to a healthy growth in local capital market. Lower oil and energy prices as a result of Chinese slow-down should help Turkey which itself is a large importer of oil and natural gas.