Egypt's FRA approves establishment of fund to invest in Egyptian stocks .

CAIRO - 20 September 2022: The Financial Regulatory Authority (FRA) approved for "NI Capital Holding for Financial Investments" to launch of a new investment fund "NI Capital with a cumulative periodic return (Equity Fund), to invest in Egyptian and foreign securities listed on the Egyptian Stock Exchange, especially in shares.

 

The fund aims to invest in Egyptian and foreign securities listed on the Egyptian Exchange, in addition to investing in short and medium-term fixed-return instruments, including debt instruments whose credit rating is not less than the minimum acceptable by the Authority (BBB-) or its equivalent.

 

The founding company set aside 5 million pounds for the fund, in return for which it is permissible to receive subscriptions/or purchase requests in the fund's documents without a maximum limit. This comes In accordance with the Authority’s Resolution No. 1 of 2021, amending the Authority’s Board of Directors’ Decision No. 58 of 2018 regarding the rules, controls and procedures for licensing banks, and for some companies that engage in non-banking financial activities to undertake investment fund activity on their own or with others.

 

With the completion of the approval of the issuance of the fund's documents, the total issuance of funds that obtained a license from the authority will reach 139 investment funds with a total value of approximately LE 107.6 billion, including 14 funds during 2022.

 

The Authority is working on developing and improving the procedural matters related to the necessary approvals for issuing and offering investment fund documents, as it is an important investment channel for individuals and institutions.

 

The initial target size of the fund is LE 25 million, distributed over 2.5 million documents, with a nominal value of LE 10 per document.

 

Investment funds allow investors to diversify and distribute investments in a systematic way across a wider range of assets belonging to economic entities operating in different economic activities, thus contributing to reducing the risks of asset concentration and benefiting from the diversity of its returns.