Pharos Fund IQ & A
What is Pharos Fund I?
Pharos Fund I is an open-ended equity fund that aims at long-term capitalappreciation through investments in listed equities, primarily in Egypt & theirrespective GDRs listed on foreign stock markets, and with a maximum of 20%exposure in MENA markets.
Who is the investment manager?
The investment manager is Pharos Asset Management, a wholly owned
subsidiary of Pharos Holding Company. Pharos Holding’s issued and paid
- incapital is EGP 123 million. Dr. Mohamed Taymour founded Pharos Holding in2005.The asset management team has an extensive experience in the field of financialservices, specifically asset management.
Who should invest in the fund?
The fund is open to all investors interested in investing in the stock market.However it is particularly suited for both investors that do not have the technicalexpertise to invest in the market or those that do have the expertise but do nothave the time to follow the markets closely.
Is now the right time to invest?
Research has proven that investors cannot time the markets, and equity marketsoutperform fixed income over the long term. In the last 12 months the globaleconomy was hit by both a meltdown in financial system and a global recession.Reforms implemented in the Egyptian banking sector starting the early 2000shave protected the local market from the grave impacts of the global financialcrisis, leaving Egypt suffering only the impact of reduced aggregate demand.However in the last 12 months the Egyptian stock market was among the worsthit by the global financial crisis. Currently Egypt is among the cheapestemerging markets and hence it is expected to perform well in the coming period.The fund also has the flexibility to invest up to 20% in markets in the region thatPharos believes is undervalued.
How are investment decisions taken in the fund?
An investment committee comprised of the top management of the companymeets quarterly to analyze the investment themes and those sectors most affected.A weekly meeting follows up on any changes in the strategy and performance.The fund also has a dedicated fund manager that additionally follows the marketson a daily basis.