Fund of the week: high stakes and big rewards in Iraq

published 21 November 2008

Bjrn Englund, 40, is no stranger to conflict. A former warrant officer, the Swede served as a UN peacekeeper in Lebanon and Kuwait more than 20 years ago. But now he's got an even bigger fight on his hands. As manager of the $23.6m Iraqi-focused Babylon Fund, he's trying to convince people that Iraq is a plausible long-term investment.

Launched in September 2006, 30% of the Babylon Fund is invested in bonds, including Iraqi sovereign debt. He lists the 5.8% coupon, maturing in 2028, as one of his favourites. The other 70% is in equities, half of which are foreign firms with significant operations in Iraq, including several oil groups.