This type of portfolio invests all of its assets in the Equity market which are listed in the Egyptian Stock Exchange and abroad. It is considered a risky portfolio but our carefully designed investment process helps minimize that risk by diversifying the portfolio in different stocks with different sectors.
Our Investment Committee follows an active investment strategy in managing different asset classes. Our process varies from long-term, when we view a stock as a strong one with significant potential, to short-term speculation to certain stocks following a certain news event or strong financials or maybe for a quick dividend yield. This assures us a strong backbone of both safety and quick returns.
The procedure of selecting our stocks is also supplemented by strong fundamental and technical research as well as an economic analysis of the sector it operates in.
Advantages of Stock Portfolios
The main advantage is to profit from the stock market’s performance to ensure an even higher performance to the portfolio as well as affording our clients with all their liquidity needs in short’s notice.
Investment Criteria
Equity Market: The portfolio is invested in stocks listed in the Egyptian stock market and those listed in international markets known as Global Depository Receipts (GDRs).
Management Policy
75% – 80% of the portfolio is invested in three main sectors with the ratio of each sector almost never exceeding 50% of the main bulk of sectors. This ensures a sound diversification process throughout the main asset classes. Each sector is then invested in different stocks which also increases the diversification and substantially minimizes risk
The remaining 20% – 25% is kept as liquid cash in an interest bearing bank account for speculation in the stock market to achieve fast profits.
The performance of the portfolio is compared to the performance of the index weekly, monthly and quarterly to ensure the portfolio is kept to a high standard.
