The assets sector of NI Capital — one of the National Investment Bank’s companies — aims to increase the volume of assets under management during the next year to EGP 12bn, compared to the volume of assets currently amounting to EGP 10bn.
Mohamed El-Nabrawy — CEO of the Asset Management sector at NI Capital — said that a stock fund was recently launched with a target size of EGP 25m in addition to the funds launched and managed by the company, which vary between fixed and charitable income, in addition to cash.
Al-Nabarawy added in an interview with Daily News Egypt that opening the door for subscription in the stock fund would be with an initial capital of EGP 5m.
He explained that the return on investment in the fund is expected to exceed inflation rates, and stocks currently represent attractive opportunities due to the decrease in the market profitability multiplier to about five times, adding that stocks are increasing their lustre in light of the high levels of inflation affected by the global repercussions.
He also stressed the attractiveness of the Egyptian Exchange (EGX) in its various sectors, especially that some stocks offer high cash dividends, in addition to the recent rise in the market, compensating for the losses of the EGX 30 and achieving growth since the beginning of 2022 within the current 25%.
At the end of last month, the Financial Regulatory Authority (FRA) approved the launch of a new investment fund by NI Capital Holding for Financial Investments with a cumulative periodic return to invest in Egyptian and foreign securities listed in the EGX, especially in stocks.
This is in addition to investing in short- and medium-term fixed-return instruments, including debt instruments whose credit rating is no less than the minimum accepted by the Authority (BBB-) or its equivalent, according to Al-Nabrawy.
Al-Nabarawy added that the price of the document was set at EGP 10, and the size of the target fund will be determined as soon as the subscription door closes, pointing out that it is a company is owned by NI Capital and Egypt Post Investment Sevices.
Al-Masreya aims to create an integrated platform of investment funds — whether NI Capital’s or funds for other institutions — provided that subscription and redemption are provided through Egypt Post branches to reach individuals faster, he said.
He added that NI Capital aims to create an integrated group of funds to provide different investment alternatives to investors, pointing out that each of the funds has a different feature within the company’s strategic plan to provide innovative and new products to suit all segments of investors.
Furthermore, Al-Nabrawy pointed out that the company manages the GIG cash fund under the name Makasib, which is compatible with Islamic Sharia.
He also pointed out that the company launched over the past three years the 15/30 fund for fixed income instruments and the Liquidity cash fund, which have achieved an annual return since the beginning of 2022 that exceeds 11% and 10.2%, respectively.
Additionally, he explained that the liquidity fund enjoys high liquidity and aims to provide a distinctive savings and investment vessel commensurate with the low degree of risk associated with the invested instruments.
Al-Nabrawy also mentioned that the National Charitable Investment Fund for Education is considered the first charitable investment fund to support education in Egypt after the capital market legislation allowed the establishment of this type of fund to serve social and charitable purposes, noting that various companies, institutions, and individuals are allowed to subscribe to it through all branches of Banque Misr inside and outside of Egypt.