AL Mal UAE Equity Fund — Fund Information / Factsheet 2016

Jul 17, 2016

MONTHLY FACT SHEETS June 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 29 June	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 1.17*	-2.87%	-0.38%	2.28%	21.58%
	S&P UAE Composite Index			-2.43%	1.74%	3.61%	-40.70%
	Al Mal MENA Equity Fund	June 2008	USD 7.59	-2.19%	-1.43%	-3.44%	-24.10%
	S&P Pan Arab Large Cap Index			-1.07%	-0.88%	-4.60%	-48.56%
	Al Mal Saudi Sharia Equity Fund	March 2011	USD 1.07**	-0.28%	-0.09%	2.19%	8.18%
	S&P Saudi Large Midcap Sharia Index			-0.43%	0.01%	-1.00%	-2.40%
	Income Funds
	As of 29 June	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 12.65	2.36%***	0.46%	1.84%	35.66%
	Al Mal Liquidity Fund (AED)	April 2009	AED 1.19*	1.73%***	0.17%	0.77%	18.91%

• 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

NAV Per Unit: AED 1.17

29 June 2016

Geographic Allocation

Fund Manager Commentary

NAV Per Unit: AED 1.17	NAV Per Unit: AED 1.17	NAV Per Unit: AED 1.17		29 June 2016	29 June 2016
Fund Manager Commentary Al Mal UAE Equity Fund was down 0.4% in June v/s. 1.7% Increase in S&P UAE Index. Since inception, the Fund has outperformed the benchmark by 62.3%. While DFM Index was flat in June, Abu Dhabi Index was up 5%, outperforming the MSCI Emerging Market Index, which increased by c.3%. The rally in June was primarily driven by the performance of banking sector stocks after the announcement of merger between NBAD and FGB to form the biggest bank in the region with USD 175 bn in assets. The news led to spike in stock price of some other banks as well, owing to speculation of further consolidation in the sector. Dubai airport passenger traffic grew to 6.72 mn, up 7% month-on-month, a very encouraging sign given the off-peak season. We expect Q22016 numbers for UAE corporates to be mixed. We expect hospitality sector to report relatively good set of numbers due to busy tourism activity in Q2, despite seasonal slowdown. Banking sector is expected to show divergence in reported numbers as we expect some banks to increase impairments while a few banks are likely to see reversal of impairments. The UAE PMI decreased to 53.4 in June vs 54.0 in May, still pointing towards growth, but slightly lower than the May, which was eight-month high. Fund Key Information Performance Jan Feb Mar Apr May June July Aug Sept Oct UAE Fund-13.4% 12.9% 5.1% 5.6% -5.4% -0.4% UAE Index-12.1% 13.0% 5.5% 4.4% -6.9% 1.7% 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 11.6 First Gulf Bank 8.7 Amanat 6.9 Fund Characteristics UAE Fund UAE Index ( 3 Years) Standard Deviation 24.4% 27.1% Sharpe Ratio 0.26 0.19 Beta 0.89 - Banks 28% Real Estate 18% Services 6% Transport 10% Diversified Fin 5% Investment 7% Telecom 4% Others 7% Cash 15% Abu Dhabi 30% Dubai 49% Nasdaq 6% Cash 15%	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
				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
	Dec-08 Aug-09 Apr-10 Dec-10
		May June July Aug Sept Oct	Nov Dec YTD 2016 2015 2014 2013 2012	2011 2010 2009 2008 2007 2006 Since Inception**
		-5.4% -0.4%	2.3% -15.3% 11.2% 81.4% 28.7% -18.4% -1.0% 31.2% -56.9% 50.4% -19.1% 21.6%
		-6.9% 1.7%	3.6% -17.6% 7.5% 88.0% 23.5% -17.7% -8.8% 24.6% -69.4% 54.8% -35.2% -40.7%

• Inception Date of the Fund is 5thApril 2006

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Al Mal MENA Equity Fund– Monthly Factsheet

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NAV Per Unit: USD 7.59

29 June 2016

Fund Manager Commentary

Geographic Allocation

	Fund Manager Commentary	Fund Manager Commentary	Fund Manager Commentary		Geographic Allocation	29 June 2016	29 June 2016
1 1	Al Mal MENA Equity Fund was down 1.4% in June v/s. 0.9% decrease in the S&P Pan Arab Index. The Fund has outperformed the benchmark by 25% since its launch in June 2008. While the Brexit theme dominated global markets late June, the regional markets were majorly driven by domestic factors, as most of them recovered after the initial shock. In order to achieve cost and revenue synergies, a wave of consolidation has kicked-off in the UAE with merger announcement of FGB and NBAD and a possible merger of Mubadala and IPIC. In Saudi Arabia, the inter-bank rates moderated, pointing towards an improvement in liquidity. Q2 2016 earnings for real estate sector is expected to be muted due to uncertainty over white lands tax, while banking sector would likely show some contraction in NIMs due to the higher cost of funds. Egypt’s current account deficit widened, increasing chances of further devaluation in near future. In Qatar, withdrawal of deposits by the government further squeezed the liquidity conditions with current loans-to-deposit ratio soaring to 132% vs 130% in last month. KSA and UAE PMI data points suggests continued growth in non-oil sectors, while Egypt PMI was marginally down to 47.5 v/s. 47.6 in May, still showing contraction in the economy. Fund Key Information 2.0 4.0 6.0 8.0 0.0 2.0 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 7.1 Ooredoo QSC 5.2 Dana Gas 4.5 Fund Characteristics 3Yrs MENA Fund MENA Index Standard Deviation 17.3% 16.9% Sharpe Ratio -0.22 -0.36 Beta 0.98 - Abu Dhabi 14% Qatar 19% Dubai 18% Egypt 11% Kuwait 3% Saudi Arabia 18% Cash 17% Materials 7% Real Estate 13% Cash 17% Others 12% Banks 20% F&B 2% Investment 7% Energy 4% Capital Goods 5% Telecoms 13%	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
		Al Mal MENA Equity Fund	S&P Pan Arab LargeCap Index (Rebased			Benchmark Index	S&P Pan Arab Large Cap
						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 A
	MENA Fund -12.2% 8.7% 3.9% 4.
	MENA Index -13.4% 6.9% 2.6% 5.

• Inception Date of the Fund is 15thJune 2008

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Al Mal Saudi Shariah Equity Fund– Monthly Factsheet

29 June 2016

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NAV Per Unit: USD 1.07

Fund Manager Commentary

Al Mal Saudi Shariah Equity Fund was down 0.1% in June as compared to flat S&P Saudi Shariah Index. The Fund has outperformed the benchmark by 10.6% since its launch in march 2011.

The Tadawul index was up 0.7% in June, deviating from the regional markets, which were majorly driven by domestic events. After a sizeable decline over prolonged period, the foreign reserves in Saudi Arabia were marginally up in June, largely due to USD 10 bn bonds issued by the government. The Saudi inter-bank rates moderated, pointing towards an improvement in liquidity conditions. The Government’s decision to award Pfizer and 3M a direct investment license to operate in the kingdom, and allowing 100% foreign ownership in retail segment is a step in right direction, and shows commitment from the government to implement the National Transformation plan. Liquidity in the banking sector appears to be stretched at c.90% as total deposits declined by 3.4% year-on-year, while the loans grew at 9.5% year-on-year, possibly due to higher working capital requirement by corporates due to slower payment by government. Spending on infrastructure by the government, albeit at a much slower pace, combined with the introduction of white land tax, is likely to spur growth in the construction sector (in the long-term); the sector continues to witness challenging outlook due to stalled projects and slower payment schedule by the government.

The PMI for June was 54.4, slightly down from 54.8 in May, reflecting stable growth in non-oil economy.

Fund Key Information

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Al Mal Saudi Shariah Equity Fund S&P Saudi Shariah Index
1.80
1.60
1.40
1.20
1.00
0.80
0.60
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
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Fund Key Information	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%
Subscription Fee	Up to 3%
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

Sector Allocation

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Healthcare, Transportation,
10% 2%
Real Estate, Materials,
3% 13%
Commercial
Services, 2%
Com & Prof
Supplies, 3% Banks, 21%
Cash, 21%
Others, 2%
F&B staples, Telecom,
8% 15%
% of
Top Portfolio Holdings
Fund
Al Rajhi Bank 16.2
Saudi Telecom Co. 11.1
Saudi Basic Industries Corp 10.1
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	Fund Characteristics 3Yrs	**Saudi Fund **	Saudi Index
	Standard Deviation	18.4%	21.8%
	Sharpe Ratio	-0.18	-0.30
	Beta	0.83	-

Shariah Supervisory Board Dr. Mohamed Ali Elgari Dr. Osama Al Dereai Dr. Mohd Daud Bakar Dr. Muhammad Amin Ali Qattan

Performance	Jan	Feb	Mar	Apr	May	June	July	Aug	Sept	Oct	Nov	Dec	YTD 2016	2015	2014	2013	2012	2011*	Since Inception*
Saudi Fund	-9.7%	4.7%	3.0%	8.0%	-2.7%	-0.1%							2.2%	-15.6%	-3.5%	22.9%	6.5%	0.10%	8.2%
Saudi Index	-15.7%	6.5%	3.5%	9.6%	-2.8%	0.0%							-1.0%	-17.9%	-9.1%	23.1%	8.6%	-0.54%	-2.4%

• Inception Date of the Fund is 23rdMarch 2011

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29 June 2016

Al Mal MENA Income Fund– Monthly Factsheet

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NAV Per Unit: USD 12.65

NAV Per Unit: USD 12.65	NAV Per Unit: USD 12.65	29June 2016	29June 2016
Fund Manager Commentary Al Mal MENA Income Fund was up 0.50% in June. The Fund has delivered returns of 35.7% since its launch in February 2009. June was full of surprises on all fronts. Extremely weak U.S. employment report for May, which showed that the data was weakest in six years, raised renewed concerns over the health of the U.S. economy. Consequently, the Fed meeting, which was held prior to the UK referendum for Brexit, came out with a unanimous vote of not raising interest rates in July. Thereafter, the U.K. announced that it would exit the EU, shocking the financial markets as consensus had not factored-in Brexit. Post the Brexit vote, there was a speculation that the Fed might even reduce rates due to uncertainty on level of impact Brexit could potentially have on the U.S. economy. All these fears were put to rest when June employment data came out better than expected. The primary market wasn’t that active compared to last month. The secondary market, however, saw lot of action on duration pick-up trades as consensus do not expect any rate hike this year. 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 4.4 7% JAFZ Sukuk Ltd - 2019 Baa3 4.3 Portfolio Analysis Portfolio Maturity 2.5 years Avg. YTM (Gross) of Investments 2.36% Weighted avg. Rating of Portfolio (S&P) BBB+ 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** Dubai Fixed Deposits - UAE Qatar Cash Abu Dhabi Sharjah Saudi Arabia 0% 10% 20% 30% 40% Banks Cash Transportation Telecom Governement Bonds 0% 10% 20% 30% 40%		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
	Al Mal MENA Income Fund HSBC / S&P MENA USD Bond Index**	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
	0 Aug-11 Apr-12 Dec-12 Aug-13 Apr-14 Dec-14 Aug-15 A	Morningstar Sec ID	F00000JQIR
Performance Jan Feb Mar Apr May June July
Al Mal MENA Income Fund (Perf. Inclusive of Dividends.) -1.6% 1.4% 0.7% 0.6% 0.3% 0.5%

• Inception Date of the Fund is 1stFebruary 2009

Private and Confidential

Al Mal Liquidity Fund– Monthly Factsheet

29 June 2016

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NAV Per Unit: AED 1.19

Fund Manager Commentary

The Al Mal Liquidity Fund was up 0.17% in June, and has delivered returns of ~ 18.9% since its launch in April 2009.

1-week EIBOR was very volatile during June, ending the month at 0.53% v/s. 0.39% in May. The increase was mainly due to temporary uncertainty caused by the Brexit shock. The EIBOR has since eased back to 0.41% level in second week of July.

The Fund’s net yield is around 1.73% level, well above the benchmark which is at 0.40%

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 38%
0-1 37%
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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%							0.77%	1.50%	1.73%	1.89%	2.05%	2.63%	3.82%	18.91%

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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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