Cairo-based investment bank Beltone Financial will put LE 5 million ($880,000) into a new open-ended equity fund that will make investments relying only on technical analysis, Bloomberg reported.
With LE 24.5 billion in assets under management, Beltone will issue shares in the fund Aug. 29 through government-owned Banque Misr, according to the fund’s prospectus. The fund will have a total initial investment of LE 10 million, it said.
The fund aims to attract local and regional investors and plans to target European investors in about six months, manager of the fund and head of trading at Beltone Asset Management Ayman Waked told Bloomberg by telephone.
Stocks will have to meet certain “fundamental criteria” before the investment decisions based on technical analysis are made, he said.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast changes in a security, commodity, currency or index.