QNB Tawazon

The investment policy of the Tawazon Fund by QNB Al Ahli is based on maximum exposure limits rather than fixed asset allocation ratios. Equity investments may not exceed 60% of net asset value, with the same cap applied to fixed income instruments, in addition to allowing investments in other mutual funds up to 20% of assets. The equity component is primarily directed toward blue-chip companies linked to the EGX30 index, while concentration limits are imposed, including a maximum of 20% per single issuer and 15% per issue. Furthermore, certain fixed income instruments are subject to a minimum credit rating requirement of BBB.

Rather than relying on a fixed allocation between equities and fixed income, the fund operates within a flexible investment framework that defines upper limits for each asset class, while leaving allocation decisions within these boundaries to the fund manager based on market conditions. This approach shifts the focus away from static allocation percentages toward the timing of exposure adjustments, making performance more dependent on the manager’s ability to read and respond to market dynamics rather than adhering to a predefined allocation structure.

Description as published on the distribution platform.