CAE Mutual Fund Number 4 – Al Thiqa

Crédit Agricole Egypt’ s Mutual Fund Number 4 – Balanced Fund (Al Thiqa) is an ideal way to invest in the Egyptian securities market to achieve your medium term investment objectives.

The New Fund – Initial Public Offering (IPO) phase- ended with success in August 7, 2011. For more details on the fund, Please refer to the Fact sheet,Prospectus summary and the Prospectus detailed (in Arabic).

Crédit Agricole Egypt Mutual Fund Number 4 “Al Thiqa” -Performance Snapshot

Fund Objective

The overall objective of Crédit Agricole Egypt’s Mutual Fund Number 4 – Balanced Fund (Al Thiqa) are:

• Capital preservation
• Achieve moderate growth with moderate risk by balancing its investments between stock and fixed income products
• Periodic income & prizes

Benefits & Features

• Moderate Growth and periodic income
• Moderate risk compared to other investment products
• A well balanced and diversified portfolio investing in top quality stocks and bonds
• Possible semi-annual income distribution
• Possible distribution of 5 prizes every six month’s worth of EGP 10,000 per prize (a total of 10 prizes worth of EGP 100,000 prizes per year)
• All the fund investments are denominated in Egyptian pounds currency only
• Best liquidity available among all similar funds for investors through 2 times a week subscription or redemption facility (Sunday or Wednesday)
• No subscription or issuance fees.(EGP 20 flat redemption fee)
• Minimal subscription and/or Investment Certificate (IC) holding balance – 10 ICs
• An account with Crédit Agricole Egypt is required for Mutual Fund purpose (Cannot be used for other bank services)
• Professional management by HC securities & investment company

Prizes Policy

Under the supervision of the Ministry of Social Solidarity, there is a possibility to distribute 5 prizes worth of EGP 10,000 per prize [subject to all taxes, levies or sovereign fee] every six months as long as net fund return achieved during the prizes eligible period is higher than CBE Corridor bid + 2% p.a.

-Prizes eligibility period is based on the fund performance starting January to end of June and July to end of December of each year.
-Prizes eligibility due date is end of June of December of each year.
-Investors entitled to the prizes are the ones who maintains a minimum of 10 IC’s and a holding period of 3 consecutive months starting from purchase date till prizes eligibility due date. For more details, please refer to the fund detailed prospectus available in this site.

Investment Policy

The fund manager can invest within the following main criteria:

• Stocks range between 35% up to a maximum of 65% of the fund’s Net Asset Value (NAV)
• Fixed income  range between 35% up to a maximum of 65% of the NAV
• Fixed income includes Time deposits, call accounts, Egyptian Treasury Bills/Bonds, Corporate bonds …..etc

Fund Manager

HC securities & Investment was established in 1996. The group currently manages 12 mutual funds in Egypt and in other emerging markets with total assets under management worth of EGP 6 billion [USD 1 billion] as of December 31 2010.

Fees

Free Subscription

Buying the ICs is free, and clients may submit their orders on any working day. However, the execution and final settlement value of the request will be based on fund’s NAV announced by end of working day of Sunday or Wednesday of each week.

Redemption Fee

A flat redemption fee of EGP 20 per single request regardless of its value. Again, clients may submit their sell orders on any day. However, the execution and final settlement value of the request will be based on fund’s NAV announced by end of working day of Sunday or Wednesday of each week.

Other Fee

• Investment Manager’s fees: 0.4% p.a. of Net Asset Value (NAV)
• Investment Manager’s Performance fees: 7.5% annually out of returns in excess of the average corridor rate announced by the Central Bank of Egypt, in addition to 2% p.a
• Bank’s fees: 0.6% of NAV annually
• Fund Services Company fees: 0.065% p.a.of NAV

For the Mutual Fund 4 Prospectus  click here