The IMF adds that it believes the structural reforms aimed at improving the business environment, improving competition and removing the constraints that have weighed on higher investment and job creation will help Egypt maintain economic progress.
Tactical Target
Many financial advisors shy away from putting client money into single-country funds because they deem them too risky. Others use these funds as tactical overlays to achieve specific objectives.
Lopez from VanEck says EGPT can provide targeted exposure to a country—in this case, Egypt—that appears to have a favorable outlook but which is under represented within the broader emerging markets.
But first, people need to understand how and why a fund like this can work inside an investment portfolio.
“Advisors need a plan on why they’re providing that type of exposure,” Lopez says.