Rakhaa Money Market Fund - The United Bank

Rakhaa Fund by The United Bank is an open-ended money market investment fund that is compliant with the principles of Islamic Sharia. It aims to achieve a daily cumulative return while preserving liquidity and capital through investment in short-term financial instruments. The fund is suitable for investors seeking an alternative to traditional bank deposits and current accounts while benefiting from professional management and daily liquidity.

The Rakhaa Fund invests exclusively in investment instruments denominated in Egyptian Pounds within the Egyptian market, in accordance with the regulations approved by the Sharia Supervisory Committee. These investments include Sharia-compliant current accounts and deposits, current accounts designated for Treasury Bills auctions, Egyptian Treasury Bills, and Egyptian Treasury Bonds when required. The Investment Manager may not invest the fund's assets in any other investment instrument without obtaining the approval of the Sharia Supervisory Committee.

The fund's investment policy is based on a set of investment limits designed to achieve a balance between liquidity and risk management. Up to 100% of the fund's assets may be held in cash, deposits, or savings instruments with banks or the Central Bank of Egypt whenever investment conditions require. The fund may also invest up to 95% of its total assets in Egyptian Treasury Bills, while investments in government bonds, Sukuk, and financing instruments issued by government entities and affiliated companies may not exceed 49% of the fund's total investments. In addition, investments in financing instruments issued by companies listed on the Egyptian Exchange may not exceed 20% of the fund's total investments.

To enhance portfolio quality, the fund requires that non-government financing instruments maintain a credit rating no lower than the minimum level approved by the Financial Regulatory Authority (currently BBB-). The fund also adheres to diversification requirements, ensuring that investment in any single issuance does not exceed 10% of the fund's net assets, excluding government securities, while maintaining at least 5% of invested assets in highly liquid instruments to meet redemption requirements.

Can I obtain financing using my fund units as collateral? According to the prospectus, unitholders may obtain Sharia-compliant financing from The United Bank using their fund units as collateral, subject to the bank's applicable Sharia rules and regulations.

Who manages the Rakhaa Fund? CI Asset Management serves as the Investment Manager of the Rakhaa Fund, while The United Bank acts as the founding bank, the subscription and redemption receiving entity, and the fund's custodian.