The Financial Supervisory Authority approves the establishment of a fund to invest in Egyptian stocks

Dr. Mohamed Farid, Chairman of the Financial Supervisory Authority:

The total issuance of funds that obtained the authority’s license is 139 investment funds with net assets under management of 107.6 billion pounds

We are working to provide all aspects of support and assistance to enhance the activity of investment funds

The Financial Supervisory Authority of “NI Capital Holding for Financial Investments” has approved the launch of a new investment fund “NI Capital with a cumulative periodic return (Samy Fund), to invest in Egyptian and foreign securities listed on the Egyptian Stock Exchange, especially in stocks.” It is an investment fund. Open, its documents are offered through public offering.

The fund aims to invest in Egyptian and foreign securities listed on the Egyptian stock 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.

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, the fund founding company set aside 5 million Egyptian pounds. In return, receiving subscriptions/or purchase orders in the Fund’s documents without a maximum limit.

With the completion of the approval to issue the fund’s documents, the total issuance of funds licensed by the authority will reach 139 investment funds with a total value of approximately EGP 107.6 billion, including 14 funds during 2022, as the authority is working on developing and improving the procedural matters related to the approvals necessary for the issuance and offering of fund documents. Investment, being an important investment channel for individuals and institutions, where the initial target size of the fund is 25 million Egyptian pounds distributed over 2.5 million documents with a nominal value of 10 pounds per document.

For his part, Dr. Mohamed Farid, Chairman of the Financial Supervisory Authority, said that the authority always sets its eyes to work on issuing the approvals and rules necessary to develop and revitalize the stock market, especially investment funds, which are considered one of the most important financing and investment tools that meet the needs of categories of investors, where the authority is always keen To develop non-banking financial markets that provide various investment products for different segments of investors in a way that enhances the efforts of the Egyptian state towards achieving financial inclusion.

Investment funds allow investors to diversify and distribute investments in a systematic manner 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.

Dr. Farid continued that the authority continues to provide the required support and assistance to enhance the activity of investment funds, as legislative amendments have been made to the capital market law and its executive regulations, and complementary regulatory decisions have been issued by the authority’s board of directors to contribute to increasing the number of investment funds as one of the ways that support efforts to enhance liquidity And the Egyptian stock market trading.

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