Overview

EFG Hermes Asset Management offers its diverse and well-established client base a wide spectrum of mutual funds and discretionary portfolios with both country-specific and regional mandates. The division’s mandates range from equity, money market, fixed income, and indexed, to Sharia- and UCTIS-compliant mandates. The team serves a growing roster of clients, with a specific focus on long-term and institutional investors, offering tailored products accounting for individual needs, unique financial objectives, and risk appetites. Within the MENA region, EFG Hermes Asset Management is the only asset manager with an established track record as an investment manager, with the division’s funds consistently outperforming regional benchmarks.

Operational Highlights of 2019

2019 saw the MENA region confront itself with a second consecutive year of challenging macroeconomic and geopolitical conditions that impacted the investment climate across the region. Despite this, however, EFG Hermes Asset Management once again stood a head above others in the industry to post yet another year of successful results, maintaining its positioning as the region’s asset management house of choice.

The division hit a total regional AUM of USD 1.5 billion across as of the end of 2019 and EGP 16.3 billion in the Egyptian market. During the year, Egypt AUM rose 25.3% on the back of net inflows and the positive performance of both fixed-income portfolios and MMFs. On the regional front, rising geopolitical tensions saw a net capital outflow from large institutional investors during the year, which overshadowed an appreciation in the markets the division operates in and ultimately weighed down on total AUM, falling 30% during the year.

In early 2019, the Credit team launched the new FIM Global Sukuk Fund, a further testament to the division’s ability to launch new, diversified products in response to the changing needs of its client base. Immediately upon launch, the Fund generated positive returns and outperformed its benchmark, a positive momentum that carried into the entire year. As of year-end 2019, the Fund generated positive returns of 10% compared to the Markit iBoxx Sukuk, which rose 8.6% over the same period. In parallel, the Credit team continued to work in close partnership with the Sales team to actively market the FIM Credit Strategy. The division’s regional business at FIM continued to post solid growth across all funds, continuously outpacing their respective benchmarks.

Key Financial Highlights of 2019

Asset Management revenue contracted 29% Y-o-Y in FY19 to EGP 283 million as a general slowdown across the region weighed down on the division’s results.

Awards

Due to its continued resilience in the face of ever-shifting market conditions, EFG Hermes Asset Management was named Best Asset Manager in Egypt and Africa by the EMEA Finance African Banking Awards 2019.