What if we told you that you can now invest in the highest performing EGX index? BMM (Meya Meya) is the first and only fund to track the EGX100 that includes the top 100 companies on the Egyptian exchange. Before today, to mimic that performance you’d have to place 100 orders on a monthly basis – doesn’t sound like something you would ever do, right? Now you can invest in all 100 companies in a click.
That’s right – we’re bringing you the first fund tracking the EGX100 from Beltone
BMM (Meya Meya) is designed to passively invest in the 100 companies in the EGX 100, an index of the 100 most traded companies on the EGX. BMM is expected to mirror the performance of the EGX100. If the collective performance of the stocks of the top 100 companies in the market go up, the fund price will go up, and vice versa.
*Performance in the past 5 years
Is this the right investment for me?
Everyone has mid and long-term goals, whether it’s buying a car in 5 years, taking that trip, or saving for your kid’s university fees. A fund like BMM is best suited for people ready to take action to achieve those medium and long term goals and ready to commit to investing on a monthly basis. With the nature of BMM investing in companies, comes the nature of its volatility (more on that below), investing on a monthly basis is your savior and booster for achieving those high returns to finance your goals.
Why we’re excited for BMM (Meya Meya) & you should be too!
- The index has historically been on the rise: If we look at the performance of the index in the past, we’ll see that it has grown by +334% in the past 5 years. Additionally, if we measure it against the EGX30, the performance is even more surprising – keep reading if you’re interested to see that comparison below.
- Gears you for monthly investing: Investing in a fund which passively tracks an index is often a great choice for a habitual investor – if you’re the type to regularly put money aside every month, this is a great investment option for you.
- Highest industry exposure: BMM (Meya Meya) invests in 100 companies across various industries (including all 12 industries on EGX 30), tapping into 4 more industries such as building materials & education, not available in other indices.
- Expert-led: Your investment is in good hands! The asset manager needs to manage the funds in a way that reduces overall cost while ensuring proper tracking of the index. Beltone Asset Management is a leading asset manager in Egypt, with EGP 21.15 billion in assets under management as of June 2023. The company has a long track record of managing assets for high-net-worth individuals, corporations, banks, and government institutions.
BMM (Meya Meya) vs. CI30?
BMM is new to the market, but not the first fund to track an index – CI30 is a similar fund which tracks the EGX30 Capped. You might be wondering how they stack up to one other, and what the major differences are. We’ve put together a table to help you compare the two..
Reward comes with risk – here’s what to watch out for:
- Is it doing what it promises to do? Although BMM aims to accurately mirror the EGX100 Index’s performance, there is always a chance that it doesn’t keep up with the index’s changing composition. The difference between an index fund’s performance and the index it is trying to mimic is known as “tracking error”. That’s why we recommend comparing it regularly to the performance of the EGX100 to keep track of how the fund is performing and to continually reassess your investment choice.
- Higher volatility: Because the fund includes 100 companies, this comes with the added element of less liquidity; not all companies within this index are liquid which translates to higher price swings, more fluctuation in market moves, and hence more volatility. This is why this investment is best suited for you if you are an investor who sticks to the habit of putting aside money monthly in the fund, allowing you to ride out any turbulent waves.
A quick overview of how it works: How does BMM (Meya Meya) invest your money?
Asset managers always put guidelines that they need to follow for every fund that they create. This helps them invest the fund’s money in the way that they promised. Here are the guidelines set for BMM (Meya Meya)
• To effectively track the EGX100, at least 90% of BMMs assets need to be invested in the index’s stocks.
• The fund needs to keep 10% of the fund’s initial value in money market funds and/or cash & cash equivalents
To learn more details about the fund, we recommend you read the prospectus here.
What are the fees for investing in BMM (Meya Meya)?
Great news – there are no subscription or redemption fees on the fund besides Thndr’s regular transaction fee of EGP 2 + 0.1% on every buy and sell order.
When can I invest in BMM (Meya Meya) on Thndr?
Time matters: If you place a buy/sell order before 10:00 AM, it will be sent to Beltone on the same day but executed the next day at the new certificate price. If you place a buy/sell order after 10:00 AM, it will be sent to Beltone the next working day, and your order will be executed the day after at the new certificate price.
Placing orders: You can place a buy order for BMM starting today, but the fund will activate on Tuesday the 3rd of September – which means that your order will only be executed on that day. Once the fund is activated, you can buy & sell BMM on a daily basis.
How can I invest in BMM (Meya Meya)?
You can also search “BMM” or “ بلتون مية مية ”
It only takes a few taps to invest in 100 companies at once!
To find the fund on Thndr you can check out our ‘Mutual Funds’ theme.
Interested in investing passively through index funds? Thndr’s got you covered!
CMS:
An equity fund that aims to provide returns through investing directly in the EGX33 Sharia index containing the most traded 33 sharia-compliant stocks listed and traded on the EGX.
CI30:
The CI EGX30 Capped (CI30) is a fund that tracks the EGX 30 Capped index performance. What does that mean? It means that it invests in the top 30 companies in the Egyptian stock market with a maximum weight of 15% per company.
