Thndr Blog

Introducing AZG (AZ Gold): Investing in Gold on Thndr

Ready, set, gold! One of Egypt’s favorite investment products is now on Thndr with the new AZG (AZ Gold) mutual fund. Investing in 24 karat gold is now just a tap away!

What is AZG (AZ Gold) and how does it work?

AZG is a precious metals fund launched in partnership between Azimut Egypt, one of Egypt’s largest investment managers and Evolve Investment Holding, who specialize in gold and precious metals100% of the money in the AZ Gold fund is invested in RJC “Responsible Jewellery Council” certified 24 karat gold, which is the official investment grade gold –  as opposed to the more widely known 21 karat gocld. 

For clarity, here’s how a fund works: a fund pools your money, with thousands of other people, and manages that pool by an assetmanager whose sole purpose is to implement the mandated investment strategy and help you generate as much profit as possible. 

Why invest in AZG? 

  • More convenience – you can buy and sell gold with a tap from your Thndr app
  • It’s safe and secure – The mutual fund is regulated by the Egyptian Financial Regulatory Authority. The fund is fully backed by physical gold stored in state of the art vaults at EGY Cash a subsidiary of the Central Bank of Egypt as well as insured against any loss or damage
  • The fund operates under Sharia board supervision to certify that it is in compliance with the principles of Islamic Sharia.
  • It’s more transparent – prices are always clear and up to date tracking the gold prices announced by the EGX. 
  • Buy a fraction of gold – With AZG you don’t have to invest in a full bar of gold; if you want to start small, the fund allows you to buy a certificate, which is equivalent to buying a fraction of gold. 

What are the advantages of investing in Gold?

  • Protect your money from inflation: Typically, when the value of a currency decreases, the value of gold rises.
  • Diversification: As we always say at Thndr, diversify your investments! Your portfolio needs to have a little bit of everything. Gold’s price movements are often independent of other assets such as stocks and bonds. This can help reduce overall portfolio risk.
  • Universal store of value: Tried by all & tested by time. Gold has been used as a store of value for thousands of years. It’s recognized and accepted as a valuable asset around the world and has been used as a form of currency throughout history. 

What are the risks? 

  • Price volatility: Gold prices can be highly volatile, experiencing significant fluctuations over short periods of time. While gold is often seen as a safe-haven asset during times of economic uncertainty or geopolitical instability, it is important to note that gold prices can also exhibit volatility even in stable market conditions. This means that even when things are relatively stable, gold prices can still experience sharp declines or sudden drops, potentially resulting in substantial gains or losses for investors.
  • Local versus international gold price: There are three factors that would result into a delta between international gold price and local price
    • Currency exchange risk: Fluctuations in currency exchange rates can affect the local price of gold when converted from international prices. Variations between official and black market exchange rates can impact the final local price of gold.
    • Supply and Demand: The local supply and demand dynamics for gold can affect its price. Local factors such as jewelry demand, investment demand, availability of gold supply, and local production can influence the local price of gold
    • Relative local economic outlook: The economic conditions and outlook of a specific country can also impact the local price of gold. Factors such as inflation rates, interest rates, economic growth, political stability, and investor sentiment can influence the demand for gold within the country.

To learn more about other risks, here is a link to the prospectus, which includes detailed information on the fund. 

How can I invest in AZG on Thndr?

You can find AZG on Thndr by going to the explore tab. You’ll find the ‘Gold’ theme listed first. You can also search “Gold” or “AZG” or “Dahab” to find the fund easily. 

When can I buy & sell AZG? 

Buy & sell orders can be submitted on Mondays, Tuesdays, Wednesdays, and Thursdays with a daily cut-off time of 11:30am. Orders are executed the following working day at that day’s closing price.

For example:

  • If you place your order after 11:30am on Monday and before 11:30am on Tuesday  your order will be executed on Wednesday (on the Wednesday end of day execution price).

What are the fees for investing in AZG?

There are no fees associated with subscription, however there is a 4.9% fee on redemption. The fee is calculated based on the value you subscribed with, not the value you are redeeming at.  

The breakdown of the 4.9% fee is as follows:

  • Marketing and distribution fee: Up to a 1.5% fee associated with the expenses paid by the asset manager to market the fund. 
  • Gold purchase cost: Up to a 3.4% fee associated with buying the gold bullions from the gold trading entity. 

These fees are amortized over a period of 3 years, as such the fees are tiered as follows:

  • If you sell in your first year you will pay a 4.9% fee that is amortized on a daily basis.
  • If you sell in your second year you will pay a 3.3% fee that is amortized on a daily basis.
  • If you sell in your third year you will pay a 1.6% fee  that is amortized on a daily basis.
  • If you sell after the third year you will pay no fees.

More About Azimut: 

Azimut Egypt is one of the largest asset management companies in Egypt. With over 20 years of experience and whose Assets under Management exceed EGP 8.5 billion. They are the local investment arm of Azimut Group which operates in 18 countries around the Globe. Azimut Group manages around USD 70 billion in different asset classes.

More about Evolve: 

Evolve Holding is an impact-driven investment company leading the development of a robust precious metals’ ecosystem in Egypt by providing alternative and innovative investment solutions that meet international standards and are delivered through compliant and secure channels. 

Ready to tap into this golden opportunity?

Don’t miss out on this exciting new investment option. Start investing in AZG (AZ Gold) on Thndr today!

Have more questions about AZG? You’ll find all your answers here

New to investing? No problem!

Thndr is the easiest way to become an investor in Egypt. As a matter of fact, 86% of all new entrants in the EGX in 2022 became investors through Thndr.

Learn more about investing with Thndr here.

[Sources: Azimut Egypt, Evolve Holding and Thndr learn platform]