Pharos Asset Management launches its first equity fund following changes in Capital Market Authority regulations allowing financial service firms to create independent companies through which to launch funds.
Cairo - Pharos Asset Management, the youngest of Pharos Holding for Financial Investments' subsidiaries, has launched its first Egypt-centric, equity fund; Pharos Fund I. This comes following recent changes in Capital Market Authority (CMA) regulations which have allowed financial services firms to create independent fund management companies; a privilege previously granted only to banks and insurance companies.
The fund is unique in mandate and structure in that it will invest 80% of its assets in the local market and will have the capability to invest up to 20% in other markets in the Middle East and North Africa (MENA) region that Pharos Holding views as undervalued.
Reforms implemented in the Egyptian banking sector starting the early 2000s have protected the local market from the grave impacts of the global financial crisis, leaving Egypt suffering only the impact of reduced aggregate demand. On the other hand, the Egyptian stock market has been penalized by the global crisis more than other emerging markets over the last 12 months.
"Pharos continues to believe that although markets have rallied in recent months, there still remains more value in Egypt compared to other emerging markets," said Shamel Aboul Fadl, Pharos Asset Management Managing Director. "Although the recovery in equity markets has been as aggressive as the fall, a consolidation in the markets provides for a good entry level given our positive view on the global markets in general and Egypt in particular."
The fund is issued by Pharos Investment Fund Company, which has mandated Pharos Asset Management as fund manager, both of which are subsidiaries of Pharos Holding. As such Pharos Holding will be both seeding and branding the Pharos Fund I. "The alignment of the issuing company and the fund manager under the umbrella of Pharos Holding will be to the benefit of the investors," said investment fund manager, Mahitab Orabi.
"Pharos Asset Management's mandate is to identify investment themes in various markets and invest in sectors that could potentially capture the most returns. The investment universe is comprised of sectors and stocks that are undervalued irrespective of the weighting in the local index," added Aboul Fadl.
-Ends-
Established in 2004, Pharos Holding is one of Egypt's youngest financial services companies. The firm is a full fledged financial services provider, offering securities brokerage, investment banking and asset management services, in addition to financial advisory and private equity to local, regional and institutional clients.
The company's brokerage arm ranked fifth on the Egyptian Exchange (EGX) at the end of Q1 2009 with four fully operational branches across Cairo. Throughout 2008, Pharos Securities obtained licenses for margin and intra-day trading as well as bookkeeping.
The Pharos Holding investment banking division has closed deals worth EGP 3.86 billion in 2008, including its role as a buy-side advisor in Solvay's acquisition of Alexandria Sodium Carbonate Company for EGP 760 million.
For further information about Pharos Holding, please visit www.pharosholding.com
For further information, please contact:
Fatima El-Saadani
Communications & Public Relations Manager
Pharos Holding for Financial Investments
fatima.elsaadani@pharosholding.com
T: 00 20 2 2739 3692
F: 00 20 2 2735 0651
M: 00 20 12 224 8541
© Press Release 2009
