CA Al Thiqa

Al Thiqa Balanced Fund by Crédit Agricole Egypt is not built on the traditional concept of fixed asset allocation between equities and fixed income instruments. Instead, it follows a flexible investment approach that allows the portfolio to be reshaped in line with market cycles, while operating within clearly defined investment limits.

Equity exposure is capped at 65% of net asset value, and similarly, fixed income instruments cannot exceed the same limit, with a maximum of 50% allocated to short-term instruments. Within the fixed income component, allocations are further structured with caps of 45% for treasury bills and 40% for bonds (government and non-government combined), with non-government bonds limited to 20%, and a maximum of 25% per sector. This framework reflects a structured approach to managing concentration risk within the portfolio.

A distinctive feature of the fund is its use of performance-linked distributions combined with a prize mechanism, where returns are not limited to capital appreciation. Instead, part of the profits may be distributed periodically or awarded as cash prizes, depending on the fund’s actual performance.

Subscriptions, purchases, and redemptions are conducted through Crédit Agricole Egypt branches, with requests accepted throughout the week and executed twice weekly (Sunday and Wednesday) based on the fund’s net asset value.

The fund does not charge any subscription or purchase fees, while a flat redemption fee of EGP 20 per request applies. Management fees include 0.4% annually for the investment manager, 0.6% administrative fees for the bank, and 0.065% for fund services. In addition, a performance fee of 7.5% is applied to returns exceeding the Central Bank corridor rate plus a 2% margin, aligning part of the cost structure with the fund’s actual performance

Description as published on the distribution platform.