Lebanon Businessnews News
 

Blom launches an open-ended mutual fund
Chikhani: "our plan is to raise $20 million by early summer"
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This is the sixth fund launched by the bank in two and a half years.

The Pyramid fund is open ended with no target capital, but “it aims to raise as much as $20 million” by early summer, said Michel Chikhani, head of asset management at BlomInvest.

The fund promises investors with an annual return of 13 percent, a return distinctly higher than bank deposit rates.

It will be offered in dollars and not in Egyptian pounds, and thus it targets non-Egyptian investors. It seeks out to investors looking for diversification, those seeking good returns with a low risk over the medium term, and investors seeking capital appreciation avoiding excessive risk.

The fund seeks to invest a minimum of 50 percent in Egyptian debt instruments issued by the Egyptian government, the Central Bank and other Egyptian corporations.  It also intends to allocate a maximum of 50 percent of its investments to equities of Egyptian firms operating in the real-estate, banking, financial, and telecom sectors.

Minimal subscription to the fund was set at $5,000. Units will be issued and redeemed on weekly basis with a placement fee of $25 for every unit subscribed, the bank said.

Laws in Lebanon do not require that banks own a minimal seed capital. But Chikhani said that Blom Bank, along with its group of affiliates, including insurance companies, may invest in the fund “as subscribers and not as owners.”

Date Posted: May 19, 2010
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