National Bank of Bahrain has reported ‘very good' response to its latest capital-protected note linked to Middle East and North African equities.

The five-year Mena Note, which is issued by Barclays, offers 70% participation in the quarterly averaged rise of a fund that closely mirrors the actively managed EFG Hermes Meda fund. The product offers weekly liquidity from July 2008.“Investors have been reading and hearing about the promising outlook Middle East and North African equities (Mena) have over the medium term. And the fund selected by NBB - the EFG Hermes MEDA Fund - is an actively managed fund with a good track record,” said NBB director Hussain al Hussaini. He added that direct investors in the Meda fund earned 39% pa compounded annually, in the last five years.

In a statement, Al Hussaini also cited similar previously-launched notes linked to Indian, Chinese and Asian equity funds that have been performing well: the Indian note has generated a return of 126% in 34 months, the two Chinese notes 56% (22 months) and 66% (20 months), respectively, and the two Asian notes 22% (ten months) and 13% (eight months), respectively. “This performance is as at the end of February 2008, ie after the recent correction in these markets,” he said.

Mena Note is open for subscription to investors with over $100,000 in assets until 19 March for a minimum investment of $20,000.

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