El Wefaq Investment Fund
Accumulative annual interest in accordance with the Islamic Shari’a
A lot of commercial and investment banks have recently issued several investment funds to mobilize new customers and to meet the needs of the existing customers
Due to the growth of the Islamic economy concept, the development of Islamic banking generally all over the world and particularly in Egypt, and the growth of demand on Islamic banking services, the Islamic investment Funds emerged in Egypt, Middle East and the United States of America. The fact that the Egyptian Islamic banks having licenses are only entitled to issue Islamic funds, leads to the decrease of the Islamic investment funds in the local market.
Therefore, both boards of ABE and Banque du Caire agreed on establishing El-Wefaq Investment Fund that gives a periodical accumulative interest in accordance with the Islamic Shari’a.
The Fund aims at achieving the utmost growth of investments funds through investing in the companies’ shares, financial instruments and the investment Funds documents that comply with Islamic Shari’a and that are approved by the Fund’s Sharia Supervisory committee.
|The Fund holder||ABE and Banque du Caire According to the money market law no. 95 of 1992 and its executive regulation.|
|Date of issuance||December 2011|
|The Fund’s capital||L.E 50 million divided on 5 million documents.
The nominal value of the document is L.E 10.
|The Fund’s Duration||25 years starting from the date when the authority approves that the Fund starts its activities.|
|Who can subscribe or purchase?||Egyptians and foreigners whether individuals or corporate.|
|The minimum limit of subscription or purchasing:||50 documents with no maximum limit.
After the first purchase process, the investor can purchase or redeem one document to the fund on condition that the balance is not less than 50 documents.
|Subscription or purchase applications||All ABE branches (whether Islamic or commercial branches) receive the applications of purchasing investment documents together with their amounts on the daily working hours.
These amounts are settled on the following working day on the basis of the market rate of the document at the end of the purchasing day.
|Issuance or purchasing fees||No fees, no commissions.|
|The Dividends||It is possible to distribute portion of the profits made annually in the form of free documents or in cash to all the documents’ holders. The investment manager determines that portion.|
|Redemption applications||All the branches of ABE (Upper and Lower Egypt branches, the Islamic banking branches) receive the redemption applications on the first official working day of every week till 12 p.m. provided that the redemption application is submitted to the same branch of subscription or purchase.
The document value must be paid during two working days according to the document portion of the Fund’s Assets net market value at the end of the day when the redemption application is submitted.
|The Redemption’s expenditures||No fees or commissions on the redemption|
|The document’s price||The document’s price is published on the first working day of the week in a widespread daily morning newspaper.|
|The investment manager||HC company for securities and investment that has great experience in the field of investments.|
|The Fund management services company||Noon company for investment funds management services.|
•The Fund’s interests are exempted from taxes.
•The nominal value of the document is L.E 10, most client segmentations are allowed to subscribe.
•An opportunity for the new investors to deal in the stock market.
•The Fund’s investments contribute to supporting the Egyptian Economy.
•Benefiting from the highest average revenue shares on the long run.
•Suitable for the investors to deal in shares complying with the Islamic Shari’a.
•Distributing portion of the achieved interests annually whether in the form of free documents or in cash.
The First Stage: The Public Subscription:
•The subscription is received on a daily basis (on the working hours) during the subscription period.
•No redemption during the subscription period.
•The public subscription to El-Wefaq Islamic Fund was covered on 15/12/2011 with a coverage percentage of 120,41% for 6,020,963 investment documents with a total paid value of L.E 60,209,630.
The Second Stage: purchasing and redemption:
First: Purchasing the documents:
•The purchasing applications are received during the working day throughout the week. The value is settled on the next official working day according to the document portion of the Fund’s Assets net market value at the end of the day when the redemption application is submitted.
•No fees or commissions on the purchase.
Second: The documents’ redemption:
•The redemption applications of some or all of the subscribed or purchased documents are received, on the first working day of the week till 12:00pm, by the branch where the documents were purchased. The value is paid during the first two working days following the day of submitting the redemption application, according to the document portion of the Fund’s Assets net market value at the end of the day when the redemption application is submitted.
•No fees or commissions on redemption.