The FRA issued board decision No. 269 of 2024, compelling private insurance funds to allocate between a minimum of 5% and a maximum of 20% of their total assets into open-ended investment funds focused on listed equities. The decision aims to diversify investment options for these funds and help them maximize returns for their subscribers, especially upon retirement.
In coordination with the Egyptian Investment Management
Association (EIMA), the FRA organized an interactive workshop where investment
managers showcased to representatives of private insurance funds how to invest
their capital in these stock market funds.
The FRA views this step as integrating with its ongoing
policies to boost the efficiency of investment management within private
insurance funds and increase awareness among their management regarding
investment mechanisms in the Egyptian capital market.
The workshop was attended by Dr. Islam Azzam, Chairman of
the Egyptian Exchange (EGX); Dr. Ahmed Abdel Aziz, Advisor to the FRA Chairman
and Supervisor of the Insurance Sector; Mohamed Ayyad, Media Advisor to the FRA
Chairman; and Dr. Mahmoud Samaha, Deputy Assistant to the FRA Chairman.
The event also saw active participation from EIMA and its
members, which include asset management companies and investment managers
licensed by the FRA.
During the workshop, EIMA and asset managers presented over
15 presentations detailing how to manage private insurance fund investments in
EGX-listed equities through open-ended investment funds.
Private insurance funds are registered with the FRA as independent legal entities established to provide insurance or social benefits—such as supplementary pensions, savings benefits, or social and health coverage—to a group of employees sharing a common affiliation.