TIDMEGP 
 
 




  The Egypt Trust 


 




  Interim Management Statement 


 




  for the quarter ended 30 June 2010 


 




  The Egypt Trust Fund (the "Fund"), is publishing this Interim Management Statement in accordance with DTR 4.3 of the FSA Handbook. 


 




  This interim management statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose. 


 




  This interim management statement relates to the period from 1 April 2010 to 30 June 2010, and contains information that covers this period, and up to the date of publication of this interim management statement. 


 




  The Fund seeks to achieve medium to long-term capital appreciation through investments, principally in equities, listed on the Egyptian Stock Exchanges (EGX). The Fund's investment strategy is to invest in undervalued assets with a tangible discount to their fair value on a relative basis. 


 




  Highlights: 


 




  Over the 3 month period from 1 April 2010 to 30 June 2010: 


 
 
    -- The Fund's net asset value (NAV) fell by 11.20% compared to a fall of 




       13.67% in the benchmark index (IFC Investable Egypt in USD). 


 
    -- During the same period the Fund's share price fell by 6.19%. 
 
    -- By the end of the quarter, the Fund was trading at a -3.5% discount 




       compared to a discount of -6.1% the previous quarter. 


 




  During the second quarter of 2010, Egyptian stocks followed global markets which all but a few recorded losses during the quarter. This was a result of renewed fears of further shocks to the global financial system triggered by heightened worries about a possible sovereign default in Greece, Spain and/or Portugal. 


 




  On the local front, the economy has shown some improvements as GDP growth for the quarter came in at 5.2% on an annual basis; this shows the strength of the private domestic demand in Egypt, which continues to be the locomotive of economic growth. FDI however remains, expectedly, below 2008/2009. While domestic demand ensures a stable growth rate, Egypt needs FDI to achieve its target of 7-8% GDP growth. Current account deficit declined during the quarter largely as a result of a decrease in the trade deficit and balance of payment returned to positive territory again. Additionally, corporate earnings came in largely as expected which confirms our view that the worst is probably over for Egypt - barring any further shocks to the global financial system. 


 




  Long Term Performance (Annualised): 


 
                  1-Year  3-Year  5-Year  Inception 
Net Asset Value   +6.26%  -4.73%  +8.58%  +8.01% 
S&P IFCI Egypt    +5.54%  -8.54%  +2.36%  +6.20% 
 
 




  Top Ten Holdings: 


 
                                    31/03/10 30/06/10 
=---------------------------------------------------- 
National Societe General Bank       6.72%    7.88% 
=---------------------------------------------------- 
Egyptian Int'l Pharmaceuticals Co.  6.50%    6.82% 
=---------------------------------------------------- 
Orascom Telecom Holding             5.68%    6.69% 
=---------------------------------------------------- 
Telecom Egypt                       6.06%    6.13% 
=---------------------------------------------------- 
Talaat Moustafa Group Holding       5.25%    5.50% 
=---------------------------------------------------- 
Orascom Construction Industries     5.42%    5.11% 
=---------------------------------------------------- 
EFG- Hermes Holding                 4.35%    4.38% 
=---------------------------------------------------- 
Alexandria Mineral Oils Co.         4.08%    4.13% 
=---------------------------------------------------- 
Citadel Capital                     2.80%    3.77% 
=---------------------------------------------------- 
Sidi krir Petrochemicals            4.01%    3.61% 
=---------------------------------------------------- 
 
 




  Sector Allocation 


 
                         31/03/10  30/06/10 
=------------------------------------------- 
Financials               21.00%    21.75% 
=------------------------------------------- 
Materials                15.93%    15.04% 
=------------------------------------------- 
Real Estate              15.22%    14.60% 
=------------------------------------------- 
Telecom                  14.01%    14.09% 
=------------------------------------------- 
Petrochemicals           8.08%     7.74% 
=------------------------------------------- 
Consumer Discretionary   5.40%     7.36% 
=------------------------------------------- 
Healthcare               7.04%     7.28% 
=------------------------------------------- 
Industrial               9.67%     7.12% 
=------------------------------------------- 
Other                    3.65%     5.02% 
=------------------------------------------- 
 
 




  Material Transactions and Events: 


 




  Shares in public hands 


 




  On 8 June 2010 the Fund announced it had become aware that, as a result of the quarterly share redemptions offered by the Fund, two shareholders, National Bank of Egypt and Banque Misr (the "Major Shareholders") hold 1,501,315 ordinary shares and 391,384 ordinary shares respectively in the capital of the Fund, which as at the date of this interim management statement represents 93.2 per cent. of the Fund's issued share capital. In light of the size of the combined holding of the Major Shareholders, the Fund confirmed it has informed the UKLA that it is currently not able to comply with the requirement to hold at least 25 per cent. of its issued share capital in public hands. The Board continues to explore all possible and appropriate options available to redress the Fund's current free float position and will keep shareholders updated. 


 




  Quarterly redemptions 


 




  On 8 April 2010 the Fund announced that valid redemption requests representing 4,640 shares in the capital of the Fund had been received in accordance with its quarterly redemption facility. These shares were redeemed at a price of US$30.28 per share (net of redemption fees). 


 




  On 16 July 2010 the Fund announced that valid redemption requests representing 11,490 shares in the capital of the Fund had been received in accordance with its quarterly redemption facility. These shares were redeemed at a price of US$28.41 per share (net of redemption fees). 


 




  Following the above redemptions, the total number of ordinary shares with voting rights in the Fund is 2,029,787. 


 




  The Board of Directors is not aware of any other significant events or transactions that have occurred between 1 April 2010 and the date of this interim management statement that would have a material impact on the financial position or performance of the Company. 


 




  For further information please contact: 


 




  Arbuthnot Securities Limited (+44) 020 7012 2000Alastair MoretonHannah Pearce
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