- UAE is an around $44 million fund with a portfolio cramming 32 United Arab Emirates equities from the MSCI All UAE Capped Index.
- The Emirates' economy is growing at a healthy pace, with inflation kept at bay.
- The dirham is pegged to the U.S. dollar, so more interest rate hikes mimicking the Fed's suit seem inevitable.
- I appreciate the fund's low correlation with the U.S. market, together with a seemingly adequate valuation with a P/E of ~14.6x.
- Still, there are weaknesses that weigh on the overall profile and make UAE only a Hold.
For further details see:
UAE: Risks Are High Despite Steady Economic Expansion