BAM 30

The Beltone Asset Manager’s 30 Index (BAM 30 Index) is designed, calculated and managed by Beltone Financial Holding covering all publicly listed and traded equities on the Egyptian Exchange (EGX). The BAM 30 Index was designed with the purpose of creating a well-diversified representative benchmark of the Egyptian equity market, which takes into consideration Egyptian mutual fund’s investment guidelines as dictated by the Egyptian Financial Supervisory Authority (EFSA), while maximizing its liquidity and minimizing its company and sector concentrations. The unique selection criteria and calculation methodology associated with the BAM 30 index well equip it to support a wide range of investment products including actively managed mutual funds and portfolios, index funds and portfolios and exchange traded funds.

The BAM 30 Index is a free float adjusted, market capitalization weighted, price return index, calculated based on a clear set of procedures and criteria. The index construction methodology imposes weight restrictions per stock which is set at a cap of 10% to ensure having a well diversified representation of the Egyptian Market and to avoid any company or sector concentrations. These index procedures are regularly monitored by Beltone Financial and revised as necessary.

 

Eligibility Criteria

 

All stocks listed on the Egyptian Exchange are monitored and evaluated on a quarterly basis for potential inclusion into the BAM 30 Index. Any company listed on the Egyptian Exchange is eligible for inclusion into the BAM30 Index if it meets the following criteria:

a. Domicile:

    Index securities must be companies incorporated under Egyptian regulations and listed on the Egyptian Exchange.

b. Minimum Free Float:

    A minimum free float requirement of 15% is imposed on companies to be included in the index.

c. Trading Frequency:

    A share considered for inclusion to the BAM 30 index must not have more than 45 non-trading days in the past three calendar months.

d. Profitability:

    Companies reporting a net loss for three consecutive years are excluded from the BAM 30 Index.

e. Cross Holdings:

    Cross holdings equivalent or exceeding 30% are excluded from the BAM 30 Index

f. Foreign Ownership restrictions:

    Any securities restricted to foreign ownership are excluded from the BAM 30 Index so that it becomes more representative of the investable opportunities in the Egyptian equity market

 

 

 

Printed from the Beltone Financial website

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