Shield Equity Fund - Arab African International Bank

Shield Equity Fund, affiliated with the Arab African International Bank, is one of the oldest equity investment funds in the Egyptian market. It was launched in February 1998 with the objective of achieving long-term capital growth through active investment in equities listed on the Egyptian Exchange. The fund follows an investment philosophy based on careful stock selection, focusing on companies with strong financial fundamentals and sustainable growth potential, rather than merely tracking market indices. This approach enables it to outperform the market in multiple periods.

In terms of investment structure, the fund is classified as an open-ended equity fund, where the majority of its assets—up to approximately 90%—are allocated to listed equities. A smaller portion is maintained in cash or money market instruments to manage liquidity and meet redemption requests. The fund manager adopts an active management strategy, allowing dynamic asset allocation in response to market conditions, with a focus on blue-chip companies, high-growth stocks, and tactical opportunities across short- and medium-term horizons.

From a cost perspective, the fund features a competitive fee structure. There are no subscription fees, while redemption fees stand at 0.75%. The annual management fee is 1% of the fund’s net assets, in addition to a 0.25% custody fee. A performance fee of 12% is applied on returns exceeding a benchmark linked to the Central Bank of Egypt’s discount rate.

Despite its strong performance, the fund remains exposed to several risks inherent to equity investments, including market volatility, liquidity risk, and macroeconomic fluctuations, as well as company-specific risks. Investments in the fund are not guaranteed, and the value of its units may fluctuate up or down in line with market movements.