Azimut Holding launches equity fund manager in Egypt worth $61M: Bloomberg – Egypttoday

Azimut Holding launches equity fund manager in Egypt worth $61M: Bloomberg – Egypttoday

CAIRO - 8 July 2020: The Italian Company Azimut Holding SpA decided to launch the first equity fund manager, specialized in the Egyptian securities, worth $61 million, according to Bloomberg.

According to Bloomberg, Azimut's Luxembourg-based fund will initially allocate $50 million to about 25 stocks traded on the Egyptian Exchange (EGX).

"Egypt's 100-million population and the purchasing power of its consumers have the potential to fuel growth for companies as the economy emerges from its coronavirus lockdown,“ Managing Director of Azimut Egypt Ahmed Abo El-Saad told Bloomberg.

Azimut Egypt was opened in 2019 by Italy's largest independent money manager, Azimut, following the acquisition of a local investment firm.

He added that after a hit to equities this year that was more than five times worse than the average for emerging markets, valuations on Cairo stocks are relatively inexpensive, clarifying that this situation may draw investors, including thousands of Egyptians who work abroad and may be keen to increase their exposure to the market.

Bloomberg referred to Egypt's good position in the bond market, saying that the state resorted to the International Monetary Fund (IMF) in 2019 to secure $12 million loan which pushed it to apply reforms including cutting subsidies and