{"id":19710341,"date":"2025-12-07T15:21:26","date_gmt":"2025-12-07T13:21:26","guid":{"rendered":"https:\/\/fra.gov.eg\/fra_news\/%d9%84%d8%a3%d9%88%d9%84-%d9%85%d8%b1%d8%a9-%d8%a7%d9%84%d8%b1%d9%82%d8%a7%d8%a8%d8%a9-%d8%a7%d9%84%d9%85%d8%a7%d9%84%d9%8a%d8%a9-%d8%aa%d9%8f%d9%84%d8%b2%d9%85-%d8%b5%d9%86%d8%a7%d8%af%d9%8a%d9%82\/"},"modified":"2025-12-14T11:22:17","modified_gmt":"2025-12-14T09:22:17","slug":"%d9%84%d8%a3%d9%88%d9%84-%d9%85%d8%b1%d8%a9-%d8%a7%d9%84%d8%b1%d9%82%d8%a7%d8%a8%d8%a9-%d8%a7%d9%84%d9%85%d8%a7%d9%84%d9%8a%d8%a9-%d8%aa%d9%8f%d9%84%d8%b2%d9%85-%d8%b5%d9%86%d8%a7%d8%af%d9%8a%d9%82","status":"publish","type":"fra_news","link":"https:\/\/fra.gov.eg\/en\/fra_news\/%d9%84%d8%a3%d9%88%d9%84-%d9%85%d8%b1%d8%a9-%d8%a7%d9%84%d8%b1%d9%82%d8%a7%d8%a8%d8%a9-%d8%a7%d9%84%d9%85%d8%a7%d9%84%d9%8a%d8%a9-%d8%aa%d9%8f%d9%84%d8%b2%d9%85-%d8%b5%d9%86%d8%a7%d8%af%d9%8a%d9%82\/","title":{"rendered":"FRA Directs Government Insurance Funds to Start Investing in Open-Ended Funds \u2013 Sunday 7 December 2025"},"content":{"rendered":"<ul>\n<li><span style=\"color: #800000;\">FRA seeks to boost returns on government insurance funds by investing via Stock Exchange open-ended funds.<\/span><\/li>\n<\/ul>\n<p><strong>Dr. Mohamed Farid:<\/strong><\/p>\n<ul>\n<li><span style=\"color: #800000;\">Regulating Government Insurance Funds\u2019 investments is essential to maximize returns.<\/span><\/li>\n<li><span style=\"color: #800000;\">Every pound in governmental insurance funds is a public trust belonging to citizens, and it is our duty to preserve and maximize its return.<\/span><\/li>\n<li><span style=\"color: #800000;\">The Funds must be managed in the best interest of beneficiaries, adhering to top standards of investment, governance and risk management.<\/span><\/li>\n<li><span style=\"color: #800000;\">The resolution mandates Funds with over EGP 100 million in assets to invest 5% to 20% of total assets in listed equities via open-ended investment funds.<\/span><\/li>\n<li><span style=\"color: #800000;\">A six-month compliance grace period has been granted. As of June 30, the total investment volume of these Funds stood at EGP 2.1 billion.<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>In a first-of-its-kind regulatory step aimed at boosting the efficiency and management of government insurance funds, FRA chaired by Dr. Mohamed Farid, issued a resolution mandating these funds to invest in open-ended funds.<\/p>\n<p>The resolution mandates that Funds exceeding EGP 100 million in investments must allocate between 5% and 20% of their total assets to listed equities. Investment in any single open-ended fund must not surpass 5% of the government fund\u2019s assets or 10% of the open-ended fund\u2019s net asset value (NAV), whichever is lower. The Authority set a 6-month grace period for compliance, with the possibility of extension.<\/p>\n<p>Dr. Mohamed Farid asserted that regulating these investments is essential to maximize returns and enhance management efficiency. This move is part of a comprehensive vision to strengthen the Funds&#8217; capacity to achieve their core insurance and social objectives.<\/p>\n<p>Government insurance funds are distinct from social insurance (pensions). Established by state decree and supervised by FRA, these funds protect specific groups &#8211; benefiting approximately 29 million people &#8211; from risks typically declined by insurance companies or those the government chooses to manage directly.<\/p>\n<p>Dr. Farid added: &#8220;These Funds must be managed in the best interest of beneficiaries, adhering to top standards of investment, governance and risk management.&#8221;<\/p>\n<p>FRA Chairman explained that every pound in government insurance funds is a public trust belonging to citizens, and their duty is to preserve and maximize its return. He stressed that these decisions safeguard beneficiary rights and guarantee Funds&#8217; ability to meet their obligations.<\/p>\n<p>He affirmed that the future of citizens&#8217; insurance services relies on the professional management of these assets, noting that any improvement in investment return directly translates into an enhanced capacity for the Fund to fulfill its commitments.<\/p>\n<p>He highlighted that deepening coordination between the Capital Market and the Insurance Sector is now a fundamental pillar for improving the investment performance of all insurance funds. This is achieved through strategic partnerships that enable the diversification of financial instruments and expand opportunities for safe investment.<\/p>\n<p>FRA registers approximately six government insurance funds covering diverse sectors, including custody risks, postal services, commercial fishing vessel insurance, fast transport vehicles accidents and insurance\/care for Al-Azhar students.<\/p>\n<p>The total investment volume of government insurance funds reached EGP 2.1 billion as of June 30, 2025. These assets are distributed across various channels, including money market and fixed-income funds, unlisted equities, current accounts, treasury bills and bank deposits.<\/p>\n<p>These efforts align with the Authority&#8217;s integrated approach to enhance the competitiveness of the non-banking financial sector and ensure professional fund management, benefiting both the State and the beneficiaries.<\/p>\n<p>On the other hand, FRA mandated private insurance funds last February to allocate between 5% and 20% of their assets to invest in open-ended funds that invest in listed equities.<\/p>\n<p>The Authority also required insurance companies to invest at least 5% of their free funds in open-ended funds that invest in listed equities<\/p>\n","protected":false},"author":7,"featured_media":15368796,"parent":0,"template":"","format":"standard","categories":[142,144],"tags":[3700,3753,3754,3755],"fra_news_taxonomy":[2137,2138],"news_paper_taxonomy":[],"_links":{"self":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news\/19710341"}],"collection":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news"}],"about":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/types\/fra_news"}],"author":[{"embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/users\/7"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/media\/15368796"}],"wp:attachment":[{"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/media?parent=19710341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/categories?post=19710341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/tags?post=19710341"},{"taxonomy":"fra_news_taxonomy","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/fra_news_taxonomy?post=19710341"},{"taxonomy":"news_paper_taxonomy","embeddable":true,"href":"https:\/\/fra.gov.eg\/en\/wp-json\/wp\/v2\/news_paper_taxonomy?post=19710341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}