Beltone Torohat Fund

Beltone Torohat Fund is the tenth issuance of Beltone’s multi-issuance Tharawat Fund. The issuance information memorandum identifies it as “Beltone Torohat – Cumulative Return and Periodic Distribution – Egypt-B.” The fund aims to invest in shares of companies through initial public offerings (IPOs) and secondary offerings in the Egyptian market, with the objective of achieving capital growth over the medium to long term. It may also invest in other financial instruments within the limits specified in the subscription prospectus.

Beltone Torohat Fund primarily directs its investments toward IPOs of Egyptian companies preparing to list on the stock exchange, subscription rights and secondary offerings of companies already listed on the main market, as well as exchange-traded funds (ETFs) and shares of companies that have been listed on the Egyptian Stock Exchange for less than five years.

Investments in this category range from a minimum of 30% to a maximum of 95% of the issuance’s funds. This category includes IPOs, subscription rights and secondary offerings on the main market, ETFs, and shares of recently listed companies. These percentages represent investment limits under the policy set out in the issuance prospectus and do not constitute a fixed portfolio allocation.

Part of the issuance’s funds may also be allocated to offerings, subscription rights and secondary offerings of companies listed on the Nile Stock Exchange (the small and medium-sized enterprises market), up to a maximum of 70%. Investment in this market involves risks, including price volatility, limited liquidity, and the possibility of difficulty exiting investments at the appropriate time.

If suitable investment opportunities in shares and offerings are unavailable, part of the issuance’s funds may be allocated to fixed-income instruments and bank liquidity, including deposits, interest-bearing current accounts, savings certificates, government Treasury bills and bonds, and units of fixed-income investment funds. The allocation to these instruments may range from 5% to 70% of the issuance’s funds, allowing the investment manager to deploy capital in alternative instruments according to market conditions and the limits specified in the prospectus.

The fund may also invest up to 5% of the issuance’s funds in sukuk listed on the Egyptian Stock Exchange, and up to 20% in units of other investment funds that invest in equities or ETFs, provided that the investment in any single fund does not exceed 5% of that fund’s total units.

The Financial Regulatory Authority may approve additional investments consistent with the objectives of the issuance, up to a maximum of 25% of the issuance’s funds, subject to the terms and conditions set out in the issuance information memorandum.