X Close
X Close

Asset Management

Pharos Asset Management is among the most trusted asset managers in the country

The Pharos Asset Management division offers tailored portfolios and structured fund products catering to high-net-worth individuals and financial institutions targeting risk-adjusted returns.

Pharos’ Asset Management division employs a multi-track communication strategy to ensure clients consistently receive regular updates on the performance of their investments.

The division offers portfolio management services to high-net-worth clients and institutional investors requiring solutions designed specifically to help them meet their investment goals, through top-down and bottom-up approaches.
  • Top-down Approach

    Involves a thorough process whereby economic and sector analysis is applied to identify market dynamics as they unfold.

  • EGP 3.9 bn

    In assets under management in financial year 2016

  • Bottom-up Approach

    Utilized when considering equity portfolios, identifies attractively priced securities.

  • +20%

    As of March 2017, Pharos' Asset Management funds have outperformed the EGX by an average of 20%.

  • Structured Fund Division

    Manages one equity fund, Pharos Fund I, with a range of new funds pipelined that will cater to a variety of investment strategies and horizons.

  • 45 Years

    Of combined experience across our asset management team.

Our Track Record

Consistently outperforming the market

Pharos Asset Management has attained proven investment results over a range of market conditions since its inception. We are keen to remain one of the best-performing asset manager for our largest institutional clients.

While Pharos Asset Management is a relatively new entity, it comprises a strong team of qualified professionals whose combined experience working in the Egyptian stock market exceeds 40 years, in addition to expertise in both regional and international markets.

Pharos Asset Management Performance vs. EGX 30 (Annualized)

Since inception, Pharos Asset Management’s performance has consistently outperformed the market.

Pharos Asset Management Performance vs. EGX 30 (Dec2014-Mar2016)

Throughout 2015, Pharos Asset Management's performance mirrored the EGX30

The Process

Helping clients meet their investment goals, with our approach tailored to each client’s goals and risk appetite.

I. Develop an Investment Policy Statement

IV. Execute, Monitor and Rebalance

II. Customize an Asset Allocation Strategy

III. Research Sectors and Securities

Based on the client’s investment objectives and constraints, the portfolio will be customized under one of the following portfolio categories.

  • Portfolio 1

    Appropriate for investors with high risk tolerance who are seeking long term appreciation of portfolio value.

    Gradually shifts to fixed income during market downturns.

  • Portfolio 2

    Appropriate for investors with moderately high risk tolerance who are seeking growth but with a considerable exposure to fixed income securities.

    In case of expected market downturns, the equity allocation will be reduced.

  • Portfolio 3

    Structured to appeal for investors with moderate risk appetite who seek both portfolio growth and liquidity.

    In case of expected market downturns, the equity allocation will be reduced.

  • Portfolio 4

    Structured to appeal for both institutional and retail investors with low risk appetite who seek moderate portfolio growth and liquidity.

    The portfolio will consist of different fixed income instruments & maturities.

Our Clients

Pharos Asset Management serves a diverse range of clients

  • Institutional Investors

    Pharos Asset Management provides a range of products for our institutional investors and key governmental entities varying from equity to capital-protected and fixed-income portfolios. We ensure that our clients are given optimum service through multi-channel communication including periodic

  • Individual Investors

    To meet the requirements of individual investors, we are focusing efforts on expanding our client network across the region. Portfolios for individual investors are customized according to individual needs with the goal of optimizing returns within capital and risk-management frameworks.

Investment Products

Pharos Asset Management serves clients through a dedicated equity fund and portfolio management.

Portfolio Management

Pharos Asset Management aims to provide unique financial solutions through innovative investment strategies. We undertake analysis to understand the client's investment needs and provide customised investment policy design, asset allocation, portfolio construction, risk management and investment monitoring.

Pharos Fund I

Pharos Fund is an open-ended equity fund, issued in July 2009, seeking long-term appreciation of capital. The fund invests principally in listed equities, primarily those trading in Egypt or their respective GDRs listed on foreign stock markets.

What is Pharos Fund I?

Pharos Fund I is an open-ended equity fund that aims to achieve long-term capital appreciation through investments in listed equities, primarily those listed in Egypt but also their respective GDRs trading on foreign stock markets.

 

Who is the investment manager?

The fund’s investment manager is Pharos Asset Management, a wholly owned subsidiary of Pharos Holding Company, founded by Dr. Mohamed Taymour in 2005. Pharos Holding’s issued and paid-in capital is EGP 123 mn. The asset management team exhibits extensive experience in the financial services field, with particular emphasis on asset management.

 

Who should invest in the fund?

This fund is open to all investors interested in investing in the Egyptian stock market. It is particularly well-suited for investors lacking the technical expertise to invest in the market directly, as well as those who may have the expertise but do not have the time to follow market trends closely.

 

Is now the right time to invest?

In the years following the January 25, 2011 Revolution, the Egyptian stock market has slowly recovered from the prolonged period of heightened political and economic uncertainty. Today, the market is showing strong signs of recovery, although we do believe that in the short-term some market volatility will prevail.

That said, we remain positive on the long-term fundamentals of the Egyptian economy, which is supported by strong demographics and a diversified sector base. Accordingly, we bet on a V-shaped recovery as the political environment is stabilizing driven by pent up demand.

The Pharos Fund has some flexibility, too, to invest up to 20% of its capital in markets in the region that Pharos deems to be undervalued and hence gives room for further diversification and risk minimization.

 

Investment Decision Process

An investment committee comprising the company’s top management meets on a quarterly basis to analyze key investment themes and identify those sectors most affected by economic, political and market trends. A weekly meeting among members of the investment team is held in order to access weekly performance and follow up on any change in strategy or asset allocation. The fund also has a dedicated fund manager who is in charge and follows the markets closely on a daily basis. Strategic allocation approved by the investment committee is based on in-depth fundamental and market analysis based on in house research, market reports and in house technical reports.

 

Portfolios

Pharos Asset Management offers five types of portfolios, providing clients with maximum choice in how their funds are invested.

  • Equity PortfolioEquity Portfolio

    This type of portfolio invests most of its assets in stocks of publicly traded companies. The portfolio manager seeks returns resulting from dynamic asset allocation using a combination of top-down and bottom-up analyses. The objective of an equity portfolio is long-term capital appreciation and optimizing the risk-adjusted returns. It can be actively or passively (index fund) managed. Index funds mimic a chosen index and its objective is to minimize the tracking error.

  • Balanced PortfolioBalanced Portfolio

    As its name suggests, a balanced portfolio balances between the equity and the fixed income components in the portfolio. The portfolio manager seeks a moderate risk exposure, providing income with partial exposure to the equity market’s performance.

  • Islamic Portfolio (Sharia-Compliant Portfolio)Islamic Portfolio (Sharia-Compliant Portfolio)

    The Islamic portfolio invests its assets in stocks of publicly traded companies and fixed income instruments that are Sharia-compliant. The objective of an Islamic equity portfolio is long-term capital appreciation through investing in Sharia-compliant securities.

  • Fixed Income PortfolioFixed Income Portfolio

    A fixed income portfolio invests primarily in government and corporate fixed income securities. The investment manager will seek dynamic allocation to fixed income securities to achieve risk-adjusted capital appreciation and income generating.

  • Capital Guaranteed PortfolioCapital Guaranteed Portfolio

    This type of portfolio invests primarily in fixed income instruments, but has a portion invested in equity with a mechanism to ensure capital preservation. This product targets above purely fixed income returns when equity markets are in an uptrend while guaranteeing the initial capital invested in bad equity markets.

Contacts

7 Abu El Feda Street
Zamalek 11211
Cairo, Egypt

Tel: +20 2 2739-3670
Fax: +20 2 2735-0661
pharoslive@pharosholding.com

<