Beltone B-70 Fund ( B70 )

Beltone B-70 Fund (B70) is an open-ended investment fund specialized in investing in the constituent stocks of the equal-weighted EGX70-EWI Index. It is the ninth issuance under Belton’s multi-series “Tharwat” fund structure. The fund aims to provide investors with exposure to a broad segment of Egyptian mid- and small-cap stocks outside the main EGX30 Index constituents through a single investment vehicle managed professionally by Beltone Asset Management.

The investment policy of Beltone B70 Fund is based on tracking the performance of the EGX70-EWI Index by investing at least 90% of its net assets in the stocks included in the index. The remaining portion, not exceeding 10% of assets, may be allocated to low-risk instruments including money market funds, fixed income funds, current accounts, bank deposits supervised by the Central Bank of Egypt, and Treasury bills for the purpose of liquidity management and facilitating subscription and redemption requests.

The fund also adheres to a number of concentration limits designed to reduce investment risk. It may not invest more than 15% of its net assets in the shares of a single company or own more than 20% of that company’s securities. In addition, the fund may not invest more than 20% of its net assets in a single investment fund or own more than 5% of its total units.

What is the difference between B70 Fund and investing directly in EGX70 stocks?

The fund provides immediate exposure to a diversified portfolio of stocks included in the EGX70-EWI Index through a single investment unit, with periodic portfolio rebalancing in line with changes to the index constituents. Direct stock investing, on the other hand, requires investors to purchase individual stocks separately, monitor their weightings, and manage the portfolio on an ongoing basis.