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Egypt, Sunday, 10 April 2022: Subscription in Misr Takaful Insurance Company’s Sharia-compliant money market fund in Egyptian pounds has started. Its previously-announced EGP100-million target has been successfully covered with a value of EGP 260 million, implying a coverage ratio of 2.6 times target size of the fund at initial subscription. Thus, it was decided to close the subscription a month and a half early due to the high demand witnessed from about 120 investors institutional and individual investors.
Mr. Ahmed Morsi, Chairman & Managing Director of Misr Takaful Insurance Company, commented: “Misr Takaful Insurance Company is one of the subsidiaries of Misr Insurance Holding Group which is the largest and oldest non-banking financial entity in Egypt. By launching this fund, the company aims to provide an investment tool for both institutional and individual investors that is in compliance with the principles of Islamic Sharia. This new fund boasts an investment policy that makes it the ideal investment vehicle for managing cash liquidity for institutions and a distinct savings vehicle for individuals.”
Meanwhile, Mr. Mohamed Mostafa, Managing Director of Arab African Investment Management (AAIM), said: “We are pleased to cooperate with Misr Takaful Insurance Company, one of the distinguished companies in the Egyptian insurance sector, and we are honored by the confidence bestowed in AAIM to manage this investment product in view of AAIM’s expertise and superior investment returns generated for the funds it manages and for all its clients over the past years.”
Mr. Mostafa added that it was decided to close the subscription quickly after the good coverage witnessed by the fund, reflecting the high demand from individual and institutional investors. It is worth noting that the fund's assets will be invested in short- and medium-term liquid financial instruments, such as Treasury bills and bonds and savings vehicles in compliance with the principles of Islamic Sharia, with a maximum average maturity of 150 days, thus providing clients with a cumulative daily return.
Mr. Mostafa praised the efforts of the Financial Regulatory Authority in expanding the base of entities receiving subscriptions for investment fund certificates, noting that five entities have participated in receiving subscriptions of this new fund, namely Arab African International Securities (AAIS), Misr Capital, HC Securities Brokerage Company, Thunder, and Mubasher Securities Brokerage Company.