The Egypt Financial Regulatory Authority has amended the rules for executing redemption requests in open-ended charitable investment funds, giving funds more flexibility to meet redemption demand while managing liquidity and protecting investors. The change is intended to improve the handling of unit holders' needs, particularly when redemption requests linked to charitable purposes increase. Under the revised rules, redemption requests will continue to be executed up to the level of purchase requests submitted at the close of the same redemption day. If the number of units requested for redemption exceeds the number requested for purchase, redemptions will be allocated on a pro rata basis. The amendment also allows a fund's prospectus or information memorandum to permit redemptions above purchase requests, rather than waiting for redemptions and purchases to balance, provided the investment manager gives supporting justification and the fund's board or supervisory committee approves. Egypt's market currently has five open-ended charitable investment funds with total net assets of EGP 1.1 billion.
Egypt Financial Regulatory Authority 2026-05-11
Egypt Financial Regulatory Authority eases redemption rules for open-ended charitable investment funds
The Egypt Financial Regulatory Authority has amended rules for executing redemption requests in open-ended charitable investment funds to provide greater flexibility in meeting redemption demand while managing liquidity and protecting investors. Redemptions will continue to be executed up to the level of purchase requests, with excess requests allocated pro rata, and funds may permit redemptions above purchase levels if justified by the investment manager and approved by the board. Egypt currently has five such funds with total net assets of EGP 1.1 billion.