EFG Hermes, a leading investment bank in the region, has announced that it has successfully closed the initial subscription period for its newest money market fund, the Arab Investment Bank Money Market Fund.

Following its launch in late May, the Fund, which is the fifth money market fund under the management of the firm’s asset management division, managed to attract subscription that exceeded its target size, signalling the demand for the product which is AIB’s first mutual fund, said a top official.

“We are delighted to announce the close of our fifth Money Market Fund. EFG Hermes’ management of the fund served as a strong selling point for clients searching for a safe and liquid investment in these challenging times,” said Khalil El Bawab, director of Fixed Income at EFG Hermes Asset Management.

“The successful launch solidifies our position in the market as the new fund joins the roaster of top performing money market funds managed by EFG and marks the beginning of our cooperation with AIB as they launch their first mutual fund.”

He said the EFG Hermes had brought its extensive experience in asset management to the partnership.

The open-ended money market fund offers its investors high-liquidity through daily subscription and redemption with no fees, with investments that are restricted to low risk liquid instruments. The Fund’s returns are tax-free, he said.

Initial subscription in the fund began on May 30 and closed on June 15 and is open to further subscriptions through AIB’s branch network, El Bawab added.

EFG Hermes Asset Management currently manages five money market funds in Egypt, with Credit Agricole, Bank of Alexandria, National Societe Generale, Bank Audi, and Arab Investment Bank as sponsoring banks.

After garnering the top two positions in the performance ranking of money market funds in Egypt during 2009, the firm’s funds remained as 2010’s best performing funds to date with Credit Agricole Money Market Fund and the Bank of Alexandria Money Market Fund as the first and second top performers respectively.

In addition to these funds and the recently-launched Fixed Income Fund with Bank of Alexandria, the fixed income team, based in Cairo and Dubai, manages several discretionary fixed income portfolios in Egypt and the region for some of the region’s top institutions and high-net-worth individuals.-TradeArabia News Service