EFG Hermes Money Market Fund

Hermes Money Market Fund is the first issuance under the Hermes Asset Management Fixed Income Investment Fund. It is an open-ended, multi-issue investment fund denominated in Egyptian pounds. According to the prospectus, the fund is classified as a low-risk investment, allocating its assets to debt instruments, bank deposits, Treasury Bills, and other short-term money market instruments. It is designed for investors seeking a highly liquid savings vehicle that offers returns commensurate with a low level of risk over the short and medium term.

The fund's investment policy is based on diversifying investments across money market and fixed-income instruments within predefined investment limits. Up to 100% of the fund's total assets may be invested in Egyptian Treasury Bills, 30% in Treasury Bonds, and 20% in corporate bonds, securitization bonds, and sukuk, provided that these instruments have a minimum credit rating of BBB or its equivalent at the time of purchase. The fund may also hold up to 100% of its assets in current accounts and bank deposits with banks supervised by the Central Bank of Egypt, invest up to 30% in units of other money market funds, allocate up to 40% to repurchase agreements (Repos), and invest up to 60% of its total assets in bank savings certificates. This limit may be amended with prior written approval from the founding entity and the Supervisory Committee if savings certificates become relatively more attractive in terms of yield.

The fund management is also required to comply with investment controls designed to preserve portfolio liquidity and limit risk. The maximum maturity of any individual investment may not exceed 396 days, while the weighted average maturity of the portfolio must not exceed 150 days, reflecting the short-term nature of money market funds.