CI Real Estate Sectoral Fund ( CRE )

CI Real Estate Sectoral Fund is an open-ended investment fund specialized in shares of construction, contracting, and real estate development companies listed on the Egyptian Exchange. It is the first fund launched under the sector-focused fund series introduced by CI Asset Management (CI-CTOR) and targets investors seeking to benefit from growth opportunities in Egypt’s real estate and construction sector through a single investment vehicle that provides exposure to a diversified portfolio of companies operating within this industry.

The fund focuses on construction, contracting, and real estate development companies, in addition to related industries and activities such as building materials, contracting services, cables, and other businesses whose revenues are directly linked to real estate activity. Investments are selected according to specific criteria designed to ensure that the fund's assets remain concentrated within the targeted sector.

The fund’s investment policy allows it to invest up to 95% of the issue proceeds in shares of construction, contracting, and real estate development companies listed on the Egyptian Exchange, with the flexibility to reduce this allocation to 40% based on the investment manager’s outlook and market conditions. The fund may also allocate up to 60% of its assets to Treasury bills and government securities, maintain up to 10% in bank accounts and deposits, and invest up to 10% in other investment instruments approved by the Financial Regulatory Authority.

The fund is also subject to diversification and concentration limits aimed at reducing risk. It may not invest more than 15% of its net assets in securities issued by a single company, or more than 20% in securities issued by a related group of companies. In addition, the fund may not invest more than 20% of its net assets in another investment fund, nor own more than 5% of the total units of that fund.

What is the difference between CI Real Estate Sectoral Fund and buying real estate stocks directly from the stock market?

The fund provides exposure to a diversified portfolio of real estate and construction sector companies through a single investment unit, with professional management and continuous monitoring of asset allocation and stock selection. Direct investment in real estate stocks, on the other hand, requires investors to select individual companies themselves, monitor financial results, and actively manage their portfolios.

Is CI Real Estate Sectoral Fund suitable for long-term investors?

The fund is designed for investors seeking to benefit from the long-term growth potential of Egypt’s real estate and construction sector. It is suitable for those who can accept the volatility associated with investing in a specialized equity sector and may not be appropriate for investors seeking fixed or guaranteed returns.