Kenz EGX70 EWI Fund

Kenz EGX70 EWI Fund is the third issuance of the multi-issuance Kenz cumulative return equity fund. It is an equity index fund that aims to replicate the performance of the EGX70 EWI Index on the Egyptian Exchange by targeting a correlation of no less than 80% with the index, while taking into account tracking error resulting from liquidity management and operational activities.

The index includes the 70 most actively traded and liquid companies after excluding the constituents of the EGX30 Index. It also follows an Equal Weight Index (EWI) methodology, which reduces the influence of large-cap companies and provides more balanced exposure across different sectors of the Egyptian economy.

The investment strategy is based on allocating at least 80% of the issuance's total assets to the stocks included in the EGX70 EWI Index, ensuring a close correlation with the index's performance. Up to 20% of the assets may be held in cash, current accounts, bank deposits, or units of other investment funds to support liquidity management and operational requirements.

The Kenz EGX70 EWI Fund is also required to maintain cash liquidity of no less than 2% of the issuance's total assets to meet redemption requests. This liquidity, along with any excess cash, may be invested in low-risk investments that can be readily converted into cash when needed.

The fund may not invest more than 15% of its net assets in the securities of a single company, nor more than 20% of the total securities issued by that company. It may also invest no 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 the underlying fund.

Units may be purchased or redeemed daily during official business days until 12:00 PM through the authorized receiving entities. Transactions are executed based on the unit price announced on the following business day.