Press Release

 

Beltone launches new CASE 30 Fund

 

Beltone Financial and the Egyptian Exchange are launching XT-MISR, an Exchange Traded Fund (ETF) that mirrors the performance of the CASE 30 Index, the investors’ yardstick for the Egyptian Exchange.

 

XT-MISR is the first fund of its kind to be listed in Egypt and the Arab region. The CASE 30 Index measures the movement of stocks, reflecting market price and market direction.

 

XT-MISR is an open-ended fund investing in a basket of securities mimicking the performance of the CASE 30 Index. The CASE 30 Index includes the top 30 traded companies in terms of liquidity and activity.  

 

Shares in XT-MISR can be bought initially at par value in units of EGP 10 and traded as easily as company shares.

 

XT-MISR responds to institutional and private investors who want to spread their exposure investing in the Egyptian Exchange’s growth performance without concentrating their investments in individual shares.

 

XT-MISR has many benefits over traditional mutual funds:

  • More efficient and economical: No sales charges and low management fees. Investing in XT-MISR replicates the gains and losses of a basket of securities without the expense and hassle of buying the underlying securities.
  • More transparent: The price of XT-MISR can be viewed and traded anytime during the trading hours of the Egyptian Exchange.
  • More diversified: Providing exposure across a portfolio of stocks rather than an investment in individual company’s shares.
  • More liquid: Market makers act as counterparties to buyers and sellers ensuring the liquidity of XT-MISR on the Egyptian Exchange.
  • More flexible: Investors can sell short, buy on margin, and invest as much or as little money as they wish.

Beltone Financial’s Chairman, Aladdin Saba, said: “XT-MISR is a first for the Arab region; a simple, easy ‘no frills’ means of spreading exposure in a diverse portfolio.

“The fundamental reasons for investing in the Egyptian Exchange remain convincing. XT-MISR is an excellent vehicle for institutions and individuals to take advantage of the investment opportunities that exist today. For people without great knowledge of investing in the market, XT-MISR offers the benefits of building up a quality investment in Egypt’s top companies.”

Maged Shawky, Chairman of the Egyptian Exchange, said: “Exchange Traded Funds have been successful in other regions for many years, particularly as they offer institutions and individuals the opportunity to invest in a market rather than one company’s shares.

“That appeals to investors who want to take advantage of a market, such as Egypt, where the fundamentals are sound and the prospects for long-term growth are very good.

XT-MISR should increase the volume of trading in the Egyptian Exchange and bring new investors to the market from Egypt and abroad.”

The CASE 30 Index was started on January 2nd, 1998 with a base value of 1,000 points. Since then it has risen to 6,917 points, an increase of 592% per cent. The CASE 30 is a price index, measuring the return on investment from the change in market value of the stock (capital appreciation/depreciation) only.

Liquidity is the most important criterion for selecting the constituents or companies that comprise CASE 30, not profitability. A loss-making company may be included. However, companies incurring three consecutive years of losses are excluded. For a company to be included in the CASE 30 Index, it must have at least 15% free float. This ensures market participants that the index constituents truly represent actively traded companies and that the index is a good and reputable barometer for the Egyptian market.

 

The CASE 30 Price Index is weighted by market capitalization and adjusted by the free float. Adjusted Market capitalization of a listed company is the number of its listed shares multiplied by the closing price of that company multiplied by the percent of freely floated shares.

Beltone Financial is the fastest-growing investment bank in the Middle East, with assets under management exceeding EG£ 27 billion. Beltone Financial’s head office is in Cairo and has offices in Qatar, the UAE, Saudi Arabia, London and New York.

The information contained in this press release is believed to be reliable and accurate, has not been independently verified and may be condensed or incomplete. Beltone Financial does not take any responsibility for decisions made on the basis of this information. This press release does not constitute a solicitation or an offer to buy or sell securities.

 

 

Printed from the Beltone Financial website

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