Cairo-based investment bank EFG-Hermes has announced the expansion of its existing range of products with the launch of HSBC Bank Egypt 2nd Fund, which introduces an innovative structure to the Egyptian market.

"The Egyptian market is continuously growing, and it is incumbent upon us to provide clients, both existing and potential, with unique opportunities that take advantage of our expertise and structuring abilities," said managing director and head of asset management at EFG-Hermes Hashem Montasser. The HSBC Bank Egypt 2nd Fund 'Estikrar’, is a three-year growth product owned by HSBCBank Egypt and managed by EFG-Hermes Asset Management. The product provides full capital protection over the term of the fund with 60% participation in the performance of the underlying Egyptian Case30 Index.

"Even with the growing interest in the financial sector and the willingness of more retail and institutional clients to access the market, there are still many untapped opportunities especially in the structured products arena," said senior vice president of asset management at EFG-Hermes, Khalil El Bawab. "By exploring these opportunities, we are expanding the options for investing in the Egyptian market, and we will continue to do this through other structured products."

HSBC Bank Egypt 2nd Fund sales volume reached EGP180m ($33.6m) and the product closed after just two months.

EFG-Hermes Asset Management has operations in Saudi Arabia, Egypt, the UAE and Qatar. It claims a dominant market share regionally across the breadth of its businesses.