Mubasher Financial Services (MFS) has obtained preliminary approvals from the Egyptian Financial Supervisory Authority (EFSA) to run investment funds.
The move comes within the company’s expansion plan, aiming to eventually turn into a holding company, according to Managing Director Ehab Rashad.
Rashad said the company finalised increasing its paid up capital from EGP 3m to EGP 5m, as well as increasing its authorised capital to EGP 50m to add investment funds management services.
The financial portfolio company was established in March 2013, after obtaining the necessary approvals from EFSA.
The company’s strategy aims for a minimum account balance of EGP 100,000, whereby the company is set to develop customers’ investment portfolios per order. Each customer can have one investment portfolio or allocate a percentage for every portfolio.
Rashad noted that Mubasher relies on both local and Gulf markets for attracting investors. He added that the company has successfully attracted financial portfolios of private foundations, especially after the decision to delay the capital gains tax for two years. He also said managing investment funds requires more experience within the local market, which also applies to taking part in tenders to run portfolios of major companies, whether private or public. He explained that it requires specific standards, including years of experience, and the size of managed portfolios.
When the company was established, it targeted running portfolios worth $30m. However, Rashad refused to disclose the total size of the portfolios his company is running.
