Kenz EGX35 LV Fund

Kenz EGX35-LV Fund is the fourth issuance of the multi-issuance cumulative return equity investment fund “Kenz.” It aims to replicate the performance of the EGX35-LV Index on the Egyptian Exchange by achieving a correlation coefficient of no less than 80% with the index, while taking into account tracking error resulting from liquidity management and execution. The index comprises 35 low-volatility stocks selected from among the most liquid companies listed on the Egyptian Exchange, providing diversified exposure across a range of economic sectors.

The investment policy is based on investing at least 80% of the issuance’s total assets in the stocks included in the EGX35-LV Index, while allowing up to 20% of the assets to be held in the form of cash, current accounts, bank deposits, or units of other investment funds. The fund is also required to maintain at least 2% of the issuance’s total assets in liquid assets or assets readily convertible into cash to meet redemption requests.

The fund complies with the investment limits set out in the Executive Regulations of the Capital Market Law. Investments in the securities of a single company may not exceed 15% of the fund’s net assets or 20% of the total securities issued by that company. In addition, the fund may not invest more than 20% of its net assets in the units of another investment fund, provided that such investment does not exceed 5% of the total outstanding units of that fund. Investments in securities issued by related entities may not exceed 20% of the fund’s net assets, helping to reduce concentration risk and enhance portfolio diversification.