Kindly use Firefox or Google Chrome or Edge.

aaim logo
×

Our Investment Approach

Since its establishment in 2006, Arab African Investments Management has successfully increased the size of managed assets to 30 billion Egyptian pounds by the end of December 2023. This achievement is a result of our different strategies in managing diverse funds and portfolios.

Considering the significant growth we have achieved, we take pride in delivering performance that aligns with the varying market conditions, in addition to our ability to protect capital and manage volatility.

In the Egyptian market, there are two main asset classes that we can benefit from: the equity sector and fixed income instruments. Let us guide you towards the appropriate investment through our exceptional investment approach in each asset class.

aaim

Equity Investments

01/04
Investment Strategy

Our main focus is on wealth building by capitalizing on available investment opportunities through a neutral approach that covers various sectors and financial instruments in the Egyptian stock market. We aim to achieve appropriate returns in both equities and fixed income, and we strive to distribute our portfolios in a balanced manner across different types of financial assets in order to achieve diversification and minimize risks.

Our performance relies on our distinguished methodology in selecting stocks with a long-term investment horizon, utilizing in-depth analysis based on quantitative and qualitative data. We consider multiple factors in the stock selection process, such as analyzing company performance, management, and the industry it belongs to, as well as analyzing general economic and political trends in the market. We prioritize stability and continuous growth for our portfolios over the long term.

We are committed to our main goal of maximizing the wealth of our investors by combining strategic asset allocation (through meticulous financial studies) and tactical asset allocation (through selective trading) to identify and execute investment opportunities that we highly believe in.

02/04
Selecting Financial Instruments

we focus on companies that have stocks trading at prices below their intrinsic value, according to the following criteria:

  • Strong business models.
  • Impressive track record of company management teams.
  • Very good operational cash flows.
  • High ability to distribute dividends.
  • Commitment to environmental, social, and governance (ESG) standards.

We build our own valuation models to determine the underlying intrinsic value of the targeted companies and conducting analyses for different scenarios

03/04
Asset Allocation

Asset allocation is based on our study of the economic situation and analysis of different economic sectors, in addition to market analysis.

We also take advantage of market fluctuations and the movement of market indices in trading to benefit from them.

For each client, we distribute assets in sectors and companies that offer the highest risk-adjusted returns, and we strive to outperform competitors.

04/04
Monitoring

Our investment committee meets regularly to reassess the targeted asset allocation based on pre-defined investment guidelines.

We regularly review our assumptions and adjust our expectations after conducting company visits and meetings with management teams.

We closely monitor developments in companies to detect any changes in our existing perspectives or fair value estimations.

aaim

Fixed-Income Investments

01/04
Investment Strategy

Our primary focus is on capital preservation and income maximization by identifying undervalued securities and including them in a well-diversified portfolio across a wide range of fixed income instruments and cash markets.

We have a long-term investment horizon, utilizing in-depth analysis based on quantitative and qualitative data.

02/04
Security Selection

We select our market investments based on various factors, including:

  1. Geopolitical developments (event risks).
  2. Economic developments (inflation risks).
  3. Credit quality (credit risks).
  4. Market supply and demand (liquidity risks).
  5. Yield curve risks (interest rate risks).
  6. Time structure of interest rate fluctuations.
  7. Time structure of credit spreads.

We utilize comprehensive economic and risk analysis, taking into account:

  1. Economic outlook.
  2. Policies of the Egyptian Central Bank.
  3. Yield curve expectations.
  4. Duration risks.
  5. Reinvestment risks.
  6. Default delay risks.
  7. Credit spread risks.

We construct our own valuation models to determine the underlying intrinsic value of the targeted fixed income securities, after conducting comprehensive and detailed analyses of relevant factors, along with scenario analysis.

03/04
Asset Allocation

We build our fixed income portfolios based on the targeted asset allocation, taking into consideration risk tolerance and security selection.

Regarding risk tolerance, we consider:

  1. Target portfolio duration.
  2. Comparative analysis.
  3. Yield curve positioning.

In terms of security selection, we consider:

  1. Credit outlook of the issuer.
  2. Historical yield comparisons.
04/04
Monitoring

Our investment committee meets regularly to reassess the targeted asset allocation based on pre-defined investment guidelines.

We continuously reassess our investments based on new market information or from various sources.