EQUITY SALES AND TRADING
Enclave understands the needs and requirements of institutional investors. Whether trading in the U.S. or emerging markets, we provide our customers with a commitment to “best execution," access to corporate management, insightful research, and a continuous flow of timely market information and commentary.
Through our correspondent relationship with Beltone Financial located in Cairo, Egypt, Enclave has established the first institutional sales desk in the U.S. dedicated to the Middle Eastern and North African markets. Beltone has offices in Cairo, Doha, and Dubai, and is able to execute and settle trades on all MENA markets. Beltone also offers widely-followed and incisive research covering the banking, consumer products, construction, real estate and telecom sectors throughout the region.
For more on our trading and research capabilities in MENA, please visit:
www.BeltoneEnclave.com. Please see below for a description of the risk factors included in trading MENA securities. Please note that all foreign securities transactions are offered in the U.S. through Enclave Capital LLC, Member FINRA/SIPC.
In the U.S., our sales team focuses on micro, small and mid-cap companies, foreign and domestic, that are listed in the U.S. and fall with our core industries. We are currently expanding our coverage to include Asian and other emerging markets.
RISK FACTORS
An investment in MENA securities involves certain risks, including the risks specified below:
Emerging Market Risk
While the prospects for economic growth in MENA markets are considerable, generally accepted accounting, auditing and financial reporting practices in those markets may be, and frequently are, significantly different from those in developed markets. In relation to mature markets, some MENA markets may have a low level of regulation, enforcement of regulations and monitoring of investment activities. The securities markets of MENA markets are not as large as more established securities markets and may at times have substantially less trading volume, resulting in high price volatility and a lack of liquidity. The MENA markets have at times exhibited high volatility and sudden declines in prices and therefore cannot be assured to give stable and/or positive returns in the future.
Currency Risk
Most MENA markets operate under a fixed exchange rate regime with their currencies pegged to that of the U.S. Dollar. Any shift in the fixed exchange rate of a country may potentially expose investors to adverse fluctuation in returns.
Term of Investment
Equity investments by their nature are high-risk investments with possible sudden decline in prices due to various factors resulting in a potential loss of capital.
Liquidity
In many MENA markets, the liquidity and marketability of quoted securities may be limited due to lack of depth and narrow investor participation. The market capitalization of these markets is lower than that of more developed markets.
Economic and Political Stability
Investment in MENA markets may carry a high degree of economic and political risks. The economies of MENA markets while striving to diversify are primarily oil driven economies. A prolonged period of low oil prices can potentially affect the economic health of the MENA economies and may result in an overall recession in the region.
The foregoing is not a comprehensive list of investment risk factors, and potential investors are urged to consult with their professional advisors as to the legal, regulatory, tax and business risks involved in investing in MENA markets.
