AL Mal UAE Equity Fund — Fund Information / Factsheet 2016

Aug 10, 2016

MONTHLY FACT SHEETS July 2016

Al Mal UAE Equity Fund Al Mal MENA Equity Fund Al Mal Saudi Shariah Equity Fund Al Mal MENA Income Fund Al Mal Liquidity Fund

Al Mal Investments Funds – Performance Review

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Equity Funds

	Equity Funds
	As of 27 July	Launch Date	NAV Per Unit	Week To Date	Month To Date	YTD 2016	Since Inception
	Al Mal UAE Equity Fund (Performance Inclusive of Dividends)	April 2006	AED 1.23*	-0.24%	5.33%	7.74%	28.07%
	S&P UAE Composite Index			-0.32%	6.34%	10.18%	-36.95%
	Al Mal MENA Equity Fund	June 2008	USD 7.85	-0.63%	3.43%	-0.13%	-21.50%
	S&P Pan Arab Large Cap Index			-1.01%	2.10%	-2.60%	-47.48%
	Al Mal Saudi Sharia Equity Fund	March 2011	USD 1.05**	-3.41%	-2.05%	0.10%	5.96%
	S&P Saudi Large Midcap Sharia Index			-2.62%	-1.10%	-2.09%	-3.48%
	Income Funds
	As of 27 July	Launch Date	NAV Per Unit	Yield	Month To Date	YTD 2016	Since Inception
	Al Mal MENA Income Fund (Performance Inclusive of Dividends)	Feb 2009	USD 12.71	2.01%***	0.51%	2.35%	36.35%
	Al Mal Liquidity Fund (AED)	April 2009	AED 1.19*	1.81%***	0.14%	0.90%	19.07%

• Please note that NAV Per Unit is rounded to two decimal places for reporting purposes only. The actual NAV Per Unit for trading purposes is calculated to six decimal places.

• ** The inception date of the Fund was March 23[rd] 2011. Please note that the NAV Per Unit is rounded to two decimal places for reporting purposes only. The actual NAV Per Unit for trading purposes is calculated to three decimal places. Please also note that the Fund’s performance figures are being calculated from the Fund’s launch date.

• *** Average YTM for the invested portion (excl cash portion) of the Al Mal MENA Income Fund; 7-day annualized portfolio yield (net) for the Al Mal Liquidity Fund (AED).

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Al Mal UAE Equity Fund– Monthly Factsheet

27 July 2016

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NAV Per Unit: AED 1.23

Geographic Allocation

Fund Manager Commentary

NAV Per Unit: AED 1.23	NAV Per Unit: AED 1.23		27July 2016	27July 2016
Fund Manager Commentary Al Mal UAE Equity Fund was up 5.3% in July v/s. 6.3% Increase in S&P UAE Index. Since inception, the Fund has outperformed the benchmark by 65%. DFM Index increased 5% in July, almost in-line with the MSCI emerging market index, which increased by 4.7%, driven by increased inflows into emerging markets. Although Q2 earnings were above expectations, albeit quality of earnings was not fairly satisfactory. In the banking sector, Dubai-based banks fared better than their Abu Dhabi peers. Key themes were: tighter spreads due to higher cost of funds (reflecting tight liquidity conditions in Q2), provisioning were well-contained, as corporate loan book held-up quite well. Partial repayment by Limitless and better restricting terms by Al Jaber also helped. In the real estate sector, value of property investments in H1 2016 increased by 7.5% year-on-year, according to Dubai Land Department data. This fact was also alluded by positive set of results reported by Emaar - better than consensus estimates, primarily due to continued momentum in pre-sales in Dubai. According to the latest report by CBRE, prime retail assets in Abu Dhabi continue to see stable rentals and occupancy rates. The UAE PMI increased to 55.3 in July vs 53.4 in June, mainly due to higher domestic demand outweighing weaker export orders. Fund Key Information 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 Apr-06 Dec-06 Aug-07 Apr-08 Dec-08 Aug-09 Apr-10 Dec-10 Aug-11 Apr-12 Dec-12 Aug-13 Apr-14 Dec-14 Aug-15 Apr-16 Al Mal UAE Equity Fund S&P UAE Index (Rebased)		Geographic Allocation Top Portfolio Holdings % of Fund Emaar Properties 12.4 ADCB 8.8 FGB 8.3 Fund Characteristics UAE Fund UAE Index ( 3 Years) Standard Deviation 24.2% 27.0% Sharpe Ratio 0.18 0.13 Beta 0.89 - Banks 40% Real Estate 21% Services 6% Transport 10% Diversified Fin 5% Investment 7% Telecom 4% Others 6% Cash 1% Abu Dhabi 40% Dubai 53% Nasdaq 6% Cash 1%	Fund Key Information
			The Al Mal UAE Equity Fund’s objective is to achieve medium to long-term capital growth by investing primarily in equities listed on the UAE Exchange.
			Fund Manager	TariqQaqish
			Inception Date	5th April 2006
			Fund Registration	UAE
			Currency	AED
			Subscription	Weekly
			Dividend Frequency	Yearly
			Min Subscription	USD 100,000
			Management Fee	1.50%
			Performance Fee	20% over 10% hurdle with high watermark
			Subscription Fee	Upto 2%
			Redemption	Weekly
			Benchmark Index	S&P UAE Composite Index
			Fund Type	Open Ended
			Administrator	Standard Chartered
			Custodian	Standard Chartered
			Financial Year End	31st December
			Auditors	Deloitte
			ISIN	AEA003630026
			Zawya Code	MALEQTY.MF
			Bloomberg Code	MALUAEQUH
			Reuters Code	LP65038334
			Morningstar Sec ID	F00000JQIN
Performance Jan F	eb Mar Apr May June July Aug Sept Oct	Nov Dec YTD 2016 2015 2014 2013 2012	2011 2010 2009 2008 2007 2006 Since Inception**
UAE Fund -13.4% 12	.9% 5.1% 5.6% -5.4% -0.4% 5.3%	7.7% -15.3% 11.2% 81.4% 28.7%	-18.4% -1.0% 31.2% -56.9% 50.4% -19.1% 28.1%
UAE Index -12.1% 13	.0% 5.5% 4.4% -6.9% 1.7% 6.3%	10.2% -17.6% 7.5% 88.0% 23.5%	-17.7% -8.8% 24.6% -69.4% 54.8% -35.2% -37.0%

Fund Key Information

• Inception Date of the Fund is 5thApril 2006

Private and Confidential

Al Mal MENA Equity Fund– Monthly Factsheet

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NAV Per Unit: USD 7.85

27 July 2016

Fund Manager Commentary

Geographic Allocation

Fund Manager Commentary	Fund Manager Commentary	Fund Manager Commentary		Geographic Allocation	27 July 2016	27 July 2016
Al Mal MENA Equity Fund was up 3.4% in July v/s. 2.1% increase in the S&P Pan Arab Index. The Fund has outperformed the benchmark by 26% since its launch in June 2008. Q2 corporate earnings season was very diverse, with Qatar and UAE reporting low quality earnings beat while Saudi companies posting subdued numbers. In Qatari banking sector, the loan growth momentum slowed with loans falling 2.4% sequentially in June, mainly driven by c.7% month-on- month fall in loans to public sector. In Saudi Arabia, dismal corporate earnings announcements indicate continued delay in project executions and delay in cash disbursements. According to media reports, Kuwait plans to invest c. USD 16 bn in its 2017-18 development plan, with major chunk expected to come from private sector. While the investment amount is sizeable, but timely deployment of investment outlays has always been a concern in Kuwait. In Egypt, talks continue with the IMF for USD 12 bn package; fixing the budget and passage of the VAT law is critical for IMF support. In the meantime, the Cabinet has approved a Eurobond issue of USD 3-5 bn. PMI data points for KSA and UAE suggests continued resilience in domestic demand with softer pace of export orders. PMI data points for Egypt showed slight improved reading of 48.9 in July v/s. 47.5 in June, still contraction but new export orders improved. Fund Key Information 2.0 4.0 6.0 8.0 10.0 12.0 14.0 Jun-08 Feb-09 Oct-09 Jun-10 Feb-11 Oct-11 Jun-12 Feb-13 Oct-13 Jun-14 Feb-15 Oct-15 Jun-16 Al Mal MENA Equity Fund S&P Pan Arab LargeCap Index (Rebased)				Sector Allocation Top Portfolio Holdings % of Fund Amanat Holdings PJSC 6.8 Ooredoo QSC 5.4 NBAD 4.4 Fund Characteristics 3Yrs MENA Fund MENA Index Standard Deviation 17.3% 16.9% Sharpe Ratio -0.26 -0.38 Beta 0.98 - Materials 7% Real Estate 14% Cash 2% Others 12% Services 2% Banks 30% F&B 4% Investment 7% Energy 4% Capital Goods 5% Telecoms 13% Abu Dhabi 23% Qatar 20% Dubai 19% Egypt 12% Kuwait 3% Saudi Arabia 19% Nasdaq 2% Cash 2%	Fund Key Information
					The objective of the Fund is to achieve significant capital appreciation, primarily through investment in equity and equity related securities in the Middle East and North African markets
					Fund Manager	Tariq Qaqish
					Inception Date	15th June 2008
					Fund Registration	Bahrain
					Currency	USD
					Subscription	Weekly
					Min Subscription	USD 250,000
					Management Fee	1.75%
					Subscription Fee	Up to 3%
					Redemption	Weekly
					Benchmark Index	S&P Pan Arab Large Cap
	Al Mal MENA Equity Fund	S&P Pan Arab LargeCap Index (Rebase
					Fund Type	Open Ended
					Administrator	Apex
					Custodian	Standard Chartered
					Financial Year End	31st December
					Auditors	Deloitte
					Zawya Code	MALMENA.MF
					Bloomberg Code	MALMENE BI
					Reuters Code	LP65123002
					Morningstar Sec ID	F00000JQIQ
	Oct-09 Jun-10 Feb-11 Oct-11 J
Performance	Jan Feb Mar Apr May June July Aug Sept O			ct Nov Dec YTD 2016 2015 2014 2013
MENA Fund	-12.2% 8.7% 3.9% 4.0% -4.9% -1.4% 3.4%
MENA Index	-13.4% 6.9% 2.6% 5.4% -3.9% -0.9 2.1%

• Inception Date of the Fund is 15thJune 2008

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Al Mal Saudi Shariah Equity Fund– Monthly Factsheet

27 July 2016

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NAV Per Unit: USD 1.05

NAV Per Unit: USD 1.05	NAV Per Unit: USD 1.05	NAV Per Unit: USD 1.05	NAV Per Unit: USD 1.05		27July 2016	27July 2016
Fund Manager Commentary Al Mal Saudi Shariah Equity Fund was down 2.1% in July as compared to 1.1% drop in S&P Saudi Shariah Index. The Fund has outperformed the benchmark by 9.4% since its launch in march 2011. Q2 corporate earnings were largely subdued, with banking sector being an exception. In the banking sector, most banks reported higher spreads mainly due to improved asset yields as banks redeployed liquidity from low-yielding treasuries to higher yielding government bonds. Deposits shrunk q-o-q by 1.1% while loan growth was muted at 1.5% q-o-q, leading to c.2% increase in loans-to-deposit ratio to c.84%. Most of the banks saw sequential increase in impairments on deteriorating asset quality trends. Liquidity continues to be tight, as evidenced by rising SAIBOR and the fact that SAMA had to offer USD 4 billion liquidity injection to banks. In Petrochemicals sector, despite sharp y-o-y spike in earnings reported by majority of ethylene producers, the stocks witnessed profit booking as sustainability was a concern, especially with weakness in oil prices. Cement companies reported subdued numbers due to headwinds in construction sector and slowing momentum in take-off of projects. Al Khodari’s operating loss in Q2 is reflective of this trend. A number of companies, healthcare sector included, showed strain on working capital due to delay in receiving payments from the government. The PMI for July was 56.0, up from 54.4 in June, due to combination of higher domestic demand and momentum in export orders. Fund Key Information 0.60 0.80 1.00 1.20 1.40 1.60 1.80 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Al Mal Saudi Shariah Equity Fund S&P Saudi Shariah Index				Sector Allocation Materials, 21% Banks, 22% Telecom, 15% F&B staples, 12% Others, 5% Cash, 2% Com & Prof Supplies, 3% Commercial Services, 2% Real Estate, 5% Healthcare, 12% Transportation, 1%	Fund Key Information
					To achieve significant capital appreciation primarily through Shariah -compliant investments in equity and equity-related securities issued by countries based in, or with a significant proportion of their business activities in, the Kingdom of Saudi Arabia.
					Fund Manager	Vijay Harpalani
					Inception Date	23rd March 2011
					Fund Registration	UAE
					Currency	USD
					Subscription	Weekly
					Min Subscription	USD 50,000
					Management Fee	1.75%
				Top Portfolio Holdings % of Fund	Subscription Fee	Up to 3%
				Al Rajhi Bank 16.3 Saudi Telecom Co. 11.0 Saudi Basic Industries Corp 10.9 Shariah Supervisory Board Dr. Mohamed Ali Elgari Dr. Osama Al Dereai Dr. Mohd Daud Bakar Dr. Muhammad Amin Ali Qattan Fund Characteristics 3Yrs Saudi Fund Saudi Index Standard Deviation 18.5% 21.8% Sharpe Ratio -0.30 -0.38 Beta 0.83 -	Redemption	Weekly
					Benchmark Index	S&P Saudi Large Midcap Shariah
					Fund Type	Open Ended
					Administrator	Standard Chartered
					Custodian	Standard Chartered
					Financial Year End	31st December
					Auditors	Deloitte
					Zawya Code	AEA003630018
					Bloomberg Code	MALSSEF.MF
					Reuters Code	MALSSEQ UH
					Morningstar Sec ID	LP68128853
	Mr-11 Jun-11	Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 p
Perf	orma	nce Jan Feb Mar Apr May June July Aug		Sept Oct Nov Dec YTD 2016 201	5 2014 2013 2012 2011 Since Inception**
Sau	di Fu	nd -9.7% 4.7% 3.0% 8.0% -2.7% -0.1% -2.1%		0.1% -15.6% -3.5% 22.9% 6.5% 0.10% 6.0%
Saudi Index -15.7% 6.5% 3.5% 9.6% -2.8% 0.0% -1.1%				-2.1% -17.9% -9.1% 23.1% 8.6% -0.54% -3.5%

• Inception Date of the Fund is 23rdMarch 2011

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27 July 2016

Al Mal MENA Income Fund– Monthly Factsheet

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NAV Per Unit: USD 12.71

NAV Per Unit: USD 12.71	NAV Per Unit: USD 12.71	27 July 2016	27 July 2016
Fund Manager Commentary Al Mal MENA Income Fund was up 0.5% in July. The Fund has delivered returns of 36.4% since its launch in February 2009. Second consecutive positive data points for US payroll data, better than expectations. Consequently, probability of Fed rate hike in September rose to 20% right after the announcement. We believe there is higher possibility of a rate hike next year, but less likely this year. The Bank of England announced aggressive action post Brexit in form of monetary stimulus by cutting interest rates to 0.25% and indicating its willingness to buy more government and corporate bonds. This action was more of less priced-in by the markets in anticipation of post- Brexit reaction. Credit rating agencies swung back into the action with oil prices back above USD 40. S&P revised credit outlook of Sharjah sovereign to ‘negative’ from ‘stable’ siting economic and fiscal risks. DP World’s standalone credit rating got a boost from Fitch while S&P affirmed its ‘AA’ long-term sovereign ratings on Abu Dhabi with ‘stable’ outlook, supported by its strong fiscal and external positions. Export-import data from China and outcome of the Fed meeting, scheduled in September, will be keenly watched. Fund Key Information Geographic Allocation Sector Allocation Top Portfolio Holdings Credit Rating: S&P/Moody % of Fund 7.5% CBQ 2019; BBB+/ Baa1 8.7 5.5% MDC-GMTN 2021 AA/Aa2 4.3 7% JAFZ Sukuk Ltd - 2019 Baa3 4.2 Portfolio Analysis Portfolio Maturity 2.2 years Avg. YTM (Gross) of Investments 2.01% Weighted avg. Rating of Portfolio (S&P) BBB+ Dubai Money Market - UAE Qatar Abu Dhabi Sharjah 0% 10% 20% 30% 40% Banks Money Market Transportation Investment Holdings Real Estate Telecom Retail Governement Bonds Energy 0% 10% 20% 30% 40% 9.8 10.3 10.8 11.3 11.8 12.3 12.8 13.3 13.8 14.3 Dec-10 Aug-11 Apr-12 Dec-12 Aug-13 Apr-14 Dec-14 Aug-15 Apr-1 Al Mal MENA Income Fund HSBC / S&P MENA USD Bond Index**		Fund Key Information
		The Al Mal MENA Income Fund’s objective is to pursue an income-oriented investment strategy which permits distribution of periodic and consistent payment of dividends to unit holders, whilst seeking to preserve and grow the capital of the Fund.
		Fund Manager	Tariq Qaqish & Vijay Harpalani
		Inception Date	1st February 2009
		Fund Registration	Cayman Islands
		Currency	USD
		Subscription	Weekly
		Min Subscription	USD 100,000
		Management Fee	1.00%
		Subscription Fee	Up to 2%
		Redemption	Weekly
		Benchmark Index	S&P MENA Bond Index
		Fund Type	Open Ended
		Administrator	Al Mal Capital
		Custodian	Al Mal Capital
		Financial Year End	31st December
		Auditors	Deloitte
		Zawya Code	MALMNIF.MF
		Bloomberg Code	ALMENAI KY
		Reuters Code	LP65154947
		Morningstar Sec ID	F00000JQIR
Performa	nce Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD 2016 2015 20

Fund Manager Commentary

Al Mal MENA Income Fund was up 0.5% in July. The Fund has delivered returns of 36.4% since its launch in February 2009.

Second consecutive positive data points for US payroll data, better than expectations. Consequently, probability of Fed rate hike in September rose to 20% right after the announcement. We believe there is higher possibility of a rate hike next year, but less likely this year. The Bank of England announced aggressive action post Brexit in form of monetary stimulus by cutting interest rates to 0.25% and indicating its willingness to buy more government and corporate bonds. This action was more of less priced-in by the markets in anticipation of postBrexit reaction. Credit rating agencies swung back into the action with oil prices back above USD 40. S&P revised credit outlook of Sharjah sovereign to ‘negative’ from ‘stable’ siting economic and fiscal risks. DP World’s standalone credit rating got a boost from Fitch while S&P affirmed its ‘AA’ long-term sovereign ratings on Abu Dhabi with ‘stable’ outlook, supported by its strong fiscal and external positions.

Export-import data from China and outcome of the Fed meeting, scheduled in September, will be keenly watched.

• Inception Date of the Fund is 1stFebruary 2009

Private and Confidential

Al Mal Liquidity Fund– Monthly Factsheet

27 July 2016

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NAV Per Unit: AED 1.19

Fund Manager Commentary

The Al Mal Liquidity Fund was up 0.14% in June, and has delivered returns of ~ 19.1% since its launch in April 2009.

1-week EIBOR continued its upward trajectory by increasing from 0.39% in mid-July to around 0.44% in end-July. The movement during the month was more stable compared to extremely volatile movement in June due to Brexit shock.

The Fund’s net yield is around 1.81% level, well above the benchmark which is at 0.44%

Fund Key Information

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1.20
1.18 Fund NAV 1 Week EIBOR (Benchmark)
1.16
1.14
1.12
1.10
1.08
1.06
1.04
1.02
1.00
Apr-09 Nov-09 Jun-10 Jan-11 Aug-11 Mar-12 Oct-12 May-13 Dec-13 Jul-14 Feb-15 Sep-15 Apr-16
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Months to Maturity

Al Mal Liquidity Fund offers you:

• Weekly liquidity

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6-12 25%
2-3 42%
0-1 33%
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• Higher interest income than deposit rates

• Access to cash in case of emergency

• Diversify your portfolio (core asset class)

• Suitable for risk-averse allocation

• Park liquidity during uncertain and volatile markets

Fund Key Information	Fund Key Information
The Fund’s investment objective is to provide investors with capital preservation and above average money market returns. The assets will be invested primarily in UAE and GCC short term paper and deposit instruments.
Fund Manager	Tariq Qaqish & Vijay Harpalani
Inception Date	15th April 2009
Fund Registration	UAE
Currency	AED
Subscription	Weekly
Min Subscription	AED 100,000
Management Fee	0.40%
Redemption	Weekly
Notice Period	3 business days
Fund Type	Open Ended
Administrator	Al Mal Capital
Custodian	Al Mal Capital
Financial Year End	31st December
Auditors	Deloitte
Zawya Code	MALAEDF.MF
Bloomberg Code	AMALLIQ UH
Reuters Code	LP65135775
Morningstar Sec ID	F00000JQIP

Performance	Jan	Feb	Mar	Apr	May	June	July	Aug	Sept	Oct	Nov	Dec	YTD 2016	2015	2014	2013	2012	2011	2010	Since Inception*
Al Mal Liquidity Fund	0.12%	0.11%	0.13%	0.11%	0.14%	0.17%	0.14%						0.90%	1.50%	1.73%	1.89%	2.05%	2.63%	3.82%	19.07%

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Disclaimer

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This document is provided for informational and illustration purposes only. It does not constitute a solicitation, recommendation or offer to buy or sell any investment product or subscribe to any investment management or advisory service. Past performance of the Fund as illustrated herein is not a guarantee of future returns. Prospective investors in the Fund must obtain and carefully read the Fund’s most current Prospectus prior to making an investment in the Fund. The information contained herein, including any expression of opinion, has been obtained from or is based upon sources believed to be reliable, and is believed to be fair and not misleading, however, Al Mal Capital does not guarantee its accuracy or completeness. This document is not for distribution to the general public. It is directed at persons authorized to invest in the Fund and residing in jurisdictions where the Fund is authorized for distribution or where no such authorization is required. The information contained herein must not be reproduced in whole or in part without the prior written consent of Al Mal Capital.

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