Egypt's Commercial International Bank (CIB) says it has launched the country's first retail fund offering investors exposure to the domestic stock exchange while providing full capital protection.
Hemaya is a one-year open-ended capital protected fund investing a maximum of 25% of the fund's value in the Egyptian Stock Exchange (EGX) with the remaining percentage invested in fixed-income investments. The public offering has a sales target of EGP200m (€27.4m) of initial capital with a nominal value per certificate of EGP100 (€13.7).
"People are moving away from stock markets to fixed-income securities and bank deposits and this is why we have launched this new financial product that is 100% protected," said Mohamed El-Toukhy, CIB's chief executive for consumer banking. "The timing of this product is very important; we are trying to meet customer demand in a time where the financial markets, and specially the Egyptian stock market, are going through a tough time," he added.
According to the bank, Hemaya is the first of its kind in Egypt, allowing monthly subscriptions and redemptions without any added fees.
The bank says the new fund is targeting a diverse range of consumers, individuals, corporations and investors, including insurance companies and pension funds.
The Hemaya fund can be subscribed by Egyptian investors by a minimum EGP5,000 (€687).