EFG Hermes Asset Management Fixed Income desk leads market performance in 2009

The Fixed Income team currently manages four money market funds in Egypt, with Credit Agricole, Bank of Alexandria, National Societe Generale Bank, and Bank Audi as sponsoring banks. In addition to these funds, the fixed income team, based in Cairo and Dubai, manages several discretionary fixed income portfolios in Egypt and the region for some of the region's top institutions and high-net-worth individuals.

In 2009, the Bank of Alexandria Money Market Fund topped the ranking of the Egyptian Investment Management Association (EIMA), and was the best performing fund in its category over the past two years and three years as well. The fund was followed closely in the EIMA ranking by another EFG Hermes-managed money market fund, National Societe Generale Bank's Themar Fund, solidifying the firm's status as one of the best fixed income managers in the market.

In addition to leading in performance, the BOA Money Market Fund has retained its position as the Best Conventional Money Market Fund in Egypt in Zawya's funds ranking for the second consecutive quarter. The fund also received regional recognition in the annual MENA Fund Manager awards where it was named the region's Money Market Fund of the Year.

"Our strong performance in a very challenging year can be accredited to the experienced investment team managing the assets, and was only possible with the unwavering support from sponsor banks. The dynamic strategy which we have implemented in managing our funds has proven successful, and we will continue to utilize an active trading strategy, emphasizing diversification among maturities within the fixed-income universe. Our top-down approach and thorough economic analysis have enabled us to gain unparalleled access to the market, and the trust of each of our sponsor banks."

said Khalil El Bawab, Director of Fixed Income at EFG Hermes Asset Management.

The firm's Fixed Income desk got off to a strong start in 2010, with the Credit Agricole III Money Market Fund leading the market in year-to-date performance. Heading into 2010, El Bawab expects investor interest in fixed income products in Egypt to continue to thrive. "As the US dollar and euro rates remain low and global risk appetite returns, we expect increased foreign participation in the Egyptian treasury market," he noted.

"Additionally, continued global recovery in 2010, along with strong growth in the
Egyptian economy will increase domestic core inflation and apply upward pressure on interest rates in the second half of 2010." Regarding the firm's outlook for the coming period, El Bawab added that "2010 will be a strong year for the fixed income market in Egypt and for EFG Hermes with a diverse set of new fixed income products with a few of Egypt's premier banks."