Al Baraka Bank shariah compliant balanced Fund - Al Motawzeen

Al Baraka Egypt Balanced Fund is not built on the traditional concept of asset allocation; rather, it is structured around organizing sources of return within a Sharia-compliant framework, where returns are generated from multiple streams, each serving a specific role within the portfolio.

Instead of treating the investment as a single block, the fund approaches its components as distinct elements with different functions. Sharia-compliant equities are used to capture growth opportunities in the market, while Islamic financing instruments are utilized to generate periodic income and maintain stable cash flows.

This structure is not managed in a fixed manner, but rather as an adjustable framework, where asset weights shift within defined limits according to market conditions, without breaching Sharia guidelines or regulatory constraints. According to the prospectus, equity exposure can reach up to approximately 65% of the fund’s assets, reflecting a moderate level of flexibility rather than a fully open allocation.

In addition to equities and Islamic financing instruments, the portfolio may also include complementary assets such as Sukuk or other investment funds, aiming to create additional layers of diversification rather than relying on a single source of return.

Description as published on the distribution platform.