EFG Hermes Asset Management’s Egypt equity funds have topped league tables for two consecutive years. The consistent performance of both conventional and Islamic equity funds has continued to outpace market averages in Egypt for the past two years delivering average returns of 19.9%, compared to a market average of 12.3% as of 24 October 2013.
With a total of 7 equity funds under management in Egypt, the firm’s 5 conventional funds have ranked between 1-5 out of a total of 23 funds in the market and its 2 Islamic funds have maintained positions 1-3 out of a total of 10 funds in the asset class.
“The fact that we have been able to sustain our market leadership over a 2-year period that has been characterized by a considerable amount of volatility is an achievement that we are certainly proud of,” said Nabil Moussa, Head of EFG Hermes Asset Management in Egypt.
The success story of the Egypt equity mandate can be largely attributed to a dynamic and highly experienced management team that has been able to maintain a good balanced strategy between defensive plays and growth stories. The team has also introduced new risk measures in stock picking that have helped to hedge against the negative impact of political events that continue to play out in Egypt.
“As events on the ground change, we have to react quickly and alter our strategy accordingly. It is this ability to react in a timely manner that has allowed us to succeed despite the market volatility,” said Moussa. According to Moussa, “There has been a mild increase in equity fund subscriptions in Egypt for the first time since 2008, a positive development that he attributes to the strong performance of the past 2 years. We are cautiously optimistic about the future. Although the country still faces considerable challenges we have some positive indicators that may signal that we are approaching the early stages of economic recovery.”
“The outlook however is largely dependent upon the unfolding of political developments such as the constitutional referendum and the parliamentary and presidential elections. If we manage to follow a robust political road map in a relatively calm manner we will see an improvement in both the subscriptions and performance of our funds as investment appetite increases,” he added.
EFG Hermes Asset Management has just been awarded “Best Asset Manager in Egypt 2013” by EMEA Finance Magazine’s annual African Banking Awards. The recognition is just the latest in a string of accolades for the team’s exemplary performance across all asset classes in 2012 and 2013 and a continuation of the strong track record that EFG Asset Management has built since 1994.
“The award is a recognition of a superior team effort; one which makes us all very proud. I am delighted with the consistency achieved across funds, as we exert every effort and use all our skills to perform – in very difficult times – and will continue to do so in the future,” said Amr Seif, Head of EFG Hermes Asset Management.