Beltone B-Alpha Fund

Beltone B-Alpha Fund follows an active investment approach aimed at generating returns that outperform the market by selecting the most attractive opportunities, rather than simply tracking indices. This strategy is built on three main pillars, starting with selective stock picking, where the fund focuses on companies with strong growth potential, undervalued stocks, and sectors experiencing upward cycles, with the objective of delivering excess returns above the market average.

The fund also offers a high degree of flexibility in asset allocation, as it is not bound by fixed weights or a benchmark index. This allows the manager to increase exposure to specific stocks, fully exit certain sectors, or even rebuild the portfolio entirely based on market conditions. This approach enables faster and more efficient decision-making compared to index funds.

In addition, the fund applies active risk management by reducing exposure during periods of volatility, increasing allocation to high-conviction opportunities, and managing liquidity tactically to balance risk and return. According to the prospectus, the fund invests at least 80% of its net assets in equities, while up to 20% may be allocated to cash or complementary investments, providing flexibility and adaptability to changing market conditions.

The B-Alpha Fund is an actively managed equity fund by Beltone Asset Management, denominated in Egyptian pounds, and represents the seventh issuance within the Beltone multi-issuance fund “Tharwat”, giving it a strong institutional structure and professional management backed by extensive experience in the Egyptian market.

B-Alpha provides high liquidity by allowing daily subscriptions and redemptions during business days. Transactions are executed based on the net asset value at the end of the day, with a minimum investment of one unit. Redemption proceeds are processed according to the settlement cycle specified in the prospectus, making it suitable for investors seeking flexibility without lock-up periods.

In terms of fees, the fund charges an annual management fee of 1.8% of net assets, in addition to a 15% performance fee on returns exceeding the EGX30 Capped index plus 3%, calculated on an annual basis. This means the manager only earns performance incentives when delivering returns above the market.

It is also important to note that management fees are embedded within the unit price (NAV), meaning that the reported returns reflect net performance after all fees and expenses have been deducted.