Global launches Global Egypt Fund for investment in listed companies

Mr. Talal Samhouri, Head of MENA Asset Management for Global, said that Global is highly interested in this new fund which seeks to take advantage of huge and favorable potentials that Egyptian companies and market enjoy.

'The fund will offer to institutions and individual investors an opportunity to invest in a diverse and elected group of sectors through Fund assets diversification and mitigating aggregate risk on the strength of investment in various sectors of economy,' he added.

He added that the fund aims to achieve tempting returns for investors by investing in listed equities of Egyptian companies, IPO and per-IPO issues with an aim of posting above average returns by capitalizing on the economic growth and economic reforms of Egypt.

Samhouri pointed out that besides the series of privatization that is creating an opportunity in the market, the fund will enjoy the several investment opportunities due to the economic reforms and the Egyptian companies' potential for high growth and low degree of correlation risk.

It is worth mentioning that in 2002 the economy had a strong annual growth rate of 5.9% which was driven by the economic reforms program and The World Bank. That recognized these reforms by ranking Egypt as the world's top reformer in the survey for commercial business practice of 2006/2007.

Moreover, Egypt's ambitious for privatization has led in turn to significant capital inflows to the economy in the form of direct investments with foreign investment portfolios, which contributed to a growth of foreign currency reserves to standard levels, due to the sustained investment growth and great increase in local consumption.

He went on saying, that Cairo and the Alexandria Stock Market has recorded exceptional performance since 2002 as the growth rate of CASE 30 was at 86.9%. In spite of that unique performance, the valuation of Egyptian equities is still attractive since equities are traded close to minimum level of earning multiples in the last two years.

Furthermore, Egyptian equities are of attractive valuation compared to other MENA markets based on market capital. In which Egypt's equities offer a unique scope for portfolio diversification because of Egypt's low market correlation.

The funds characteristics is of varied capital ranging from $400m based in Bahrain with a minimum investment of $100,000, with a monthly basis closing period.

He mentioned that, this fund is the only fund to allocate its whole capital in the Egyptian market since early investors in the young market are achieving excellent returns before these markets are tapped by other players.'

Samhouri ended by saying, Global's fund managers long experience in managing assets and their excellence to deliver financial and investment products services go beyond market expectations.