Evolve Holding explores launching 2 precious metals open-end funds

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Egypt - Evolve Holding conducts advanced negotiations with financial institutions to manage two new funds that the company intends to launch in the coming period.

Sameh El Torgoman, CEO and founder of Evolve Holding, said in an interview with Daily News Egypt that the company plans to launch two new funds, and that negotiations are underway with two asset management companies to manage these funds.

He also said that the company is in the process of launching an open-end investment fund in gold, and an agreement has been reached with Azimut Egypt to manage the fund, pending necessary approvals from the Financial Regulatory Authority (FRA). It is expected to launch the fund within the next few days.

He pointed out that the new fund will give an opportunity for investors wishing to invest in gold to trade the asset through financial instruments that reflect the price of the metal according to the ups and downs of the market.

He said that individuals will be able to subscribe to the fund’s documents through financial institutions.

El Torgoman pointed out that all the gold investment funds that the company will launch will be backed by secured gold assets, if they are stored in specialized vaults recognized by the regulatory authorities.

He added that Evolve aims to establish an ecosystem for gold and precious metals that follows international standards. All operations connected to that, whether storing or managing logistics, will be subject to that standard. El Torgoman also pointed out that all the gold guarantor assets of the funds will be in Egypt, to give more reassurance to the watchdog and the investor alike, which is the business model followed in other countries such as India and Pakistan, as well as China.

Evolve Holding will partner with financial institutions to manage all logistics services needed for the transportation and management of gold through its subsidiary company.

El Torgoman added that the company is launching a digital platform to facilitate buying and selling of gold.

He pointed out that this platform will be launched during the coming period, stressing the importance of technology in today’s investment process, highlighting that the company has pumped investments into the company’s technological infrastructure estimated at EGP 80m.

Moreover, the company plans to launch microfinance products as part of its new product package, by negotiating with a number of financing companies to provide financing with the guarantee of gold owned by individuals, El Torgoman said.

He pointed out that the goal of this product is to transform gold into a bankable asset which allows borrowing with guarantee. Evolve Holding will provide the technological infrastructure for the financing companies which will partner with the company for this product.

There are four subsidiaries that fall under Evolve Holding, the first company GNT and its mission is to provide the necessary liquidity for the purchase of gold that guarantee the financial instruments to be launched.

The fourth company will undertake the process of evaluating the gold, and its establishment is being completed as soon as possible, and it will help in the possibility of lending against the guarantee of the precious metals that are being valued.

Regarding the impact of global changes on the gold market globally and locally, El Torgoman believes that changes in the global arena have a direct impact on globalization, and investors will give preference to investing in geographically close places.

He pointed out that global events led to the currency war, which pushes the global system to search for an alternative to currencies, on top of which gold is unrivaled.

He stressed that Egypt is one of the countries where gold plays a major role in the economy. This prompted the thought of creating financial tools for individuals to turn gold into a bankable asset in Egypt, especially that the financial culture in Egypt since time immemorial is linked to gold.

The company plans to double its capital by the end of this year, amounting to nearly EGP 100m, as it is currently negotiating with several financial institutions to subscribe to that increase, pointing out that the value of the increase will depend on the products that will be launched, according to El Torgoman.

El Torgoman said that the company plans to invest in the rest of the precious metals, starting with gold, followed by silver as a next stage, stressing the attractiveness of this tool for financial institutions and individuals.

He continued, “Investors have a great appetite for investment, but it depends on the quality of the financial instruments available.”

Evolve Holding’s capital, which amounts to about EGP 100m, is contributed to by nine local investors who are well-known in the fields of capital, commodities, and technology markets.