Egypt-based Beltone Financial Holding is planning to launch its draft prospectus for exchange-traded funds (ETFs) by the end of this week, according to CEO Alaa Sabaa.
On the sidelines of the 1st Annual Funds Conference kicked off in Cairo on Monday, Sabaa told Amwal Al Ghad about Beltone (BTFH.CA)’s plans to launch its ETFs prospectus by the end of the current week.
Beltone was the first firm to call for the launch of an index fund in Egypt in 2008, before the global financial crisis intervened.
Moreover, Sabaa further noted that the market needs need new and innovative tools and products to allure more investors onto the market, expecting the index fund will be warmly applauded among investors in Egypt.
Earlier this month, Egypt’s market watchdog, seeking to attract capital back to the stock market, has released rules to facilitate the creation of index and real estate funds as well as amendments to margin trading rules.
Sherif Samy, Chairman of the Egyptian Financial Supervisory Authority, said the changes would increase liquidity in the market and draw more local and foreign investors.
ETFs, which seek to track the movements of a market index, are less risky than other funds because they invest across the market and are not based on a single fund manager’s view.
Under the title “Mutual Funds’ Role in Supporting Egypt’s Economy”, the event is organized by Money Cycle, a specialized company in promoting the economic products/services in a different effective way that ensures success for the product/service and prosperity for the Egyptian economy.
The one-day event is set to shed the light on the mutual funds industry in Egypt in terms of the importance of such funds, exploring new investment opportunities, financing mechanisms, the risks, and the types classified by investment policy i.e. Equity Funds (traditional and Shariah-compliant stocks), Fixed-income Funds, Cash Liquidity Funds, etc.