AL Mal UAE Equity Fund — Fund Information / Factsheet 2017

Mar 15, 2017

MONTHLY FACT SHEETS February 2017

Al Mal UAE Equity Fund Al Mal MENA 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 22 February	Launch Date	NAV Per Unit1	Week To Date	Month To Date	YTD 2017	Since Inception
Al Mal UAE Equity Fund (Performance Inclusive of Dividends)	April 2006	AED 1.30	0.62%	1.41%	5.13%	34.85%
S&P UAE Composite Index			1.02%	1.06%	4.68%	-34.70%
Al Mal MENA Equity Fund	June 2008	USD 7.86	0.90%	1.16%	3.83%	-21.40%
S&P Pan Arab Large Cap Index			0.23%	0.02%	2.98%	-42.17%

Income Funds

Income Funds
As of 22 February	Launch Date	NAV Per Unit1	Yield2	Month To Date	YTD 2017	Since Inception
Al Mal MENA Income Fund (Performance Inclusive of Dividends)	Feb 2009	USD 12.74	3.58%	0.65%	1.01%	36.63%
Al Mal Liquidity Fund	April 2009	AED 1.20	1.87%	0.14%	0.28%	20.34%

Notes:

Performance data is net of fees. Performance computation is done internally based on reports from third-party administrators (Standard Chartered/Apex/Al Mal)

1. NAV Per Unit is rounded to two decimal places for reporting purposes only.

2. For Al Mal MENA Income Fund, yield refers to average Yield to Maturity (“Yield”) for the invested portion (excl cash portion). For Al Mal Liquidity Fund, yield refers to 7-day annualized portfolio return (net).

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48 Burj Gate, Downtown Dubai, Sheikh Zayed Road, Office 901, P.O. Box 119930, Dubai, UAE Tel +971 4 360 1111, Fax +971 4 360 1122 www.almalcapital.com 2
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Al Mal UAE Equity Fund– Monthly Factsheet

NAV Per Unit: AED 1.30

Performance Graph

Al Mal UAE Equity Fund was up 1.4% in February v/s. 1.1% increase in S&P UAE Index. Since inception, the Fund has outperformed the benchmark by 69.6%.

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Al Mal UAE Equity Fund S&P UAE Index (Rebased)
1.8
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Apr-06 Sep-06 Feb-07 Jul-07 Dec-07 May-08 Oct-08 Mar-09 Aug-09 Jan-10 Jun-10 Nov-10 Apr-11 Sep-11 Feb-12 Jul-12 Dec-12 May-13 Oct-13 Mar-14 Aug-14 Jan-15 Jun-15 Nov-15 Apr-16 Sep-16 Feb-17
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Market Overview & Fund Manager Comments

DFM Index was down 0.3% while ADSMI ended month sharply lower, down 5.5%, underperforming the MSCI emerging market index which ended positive 3%.

Q4 earnings season ended on a mixed note with Air Arabia posting first-ever operating loss and a dividend cut, and Drake & Scull and Arabtec surprising markets with massive losses in Q4. These results provide reassurance to our view that it requires a deep-dive analysis into the industry structure and company’s business models to isolate ‘quality’ from the ‘crowd’, and that not all ‘high dividend-yielding companies’ will be able to sustain the yields.

1Benchmark was MSCI UAE Index since inception until Dec 2008, replaced thereafter by S&P UAE Composite Index

According to the Central Bank data, month-on-month credit growth for the banking sector in January was 0.2%, driven by flat-to-slightly negative growth from private sector as well as GREs, while deposit growth was 0.1%, pointing towards stable liquidity conditions. The Central Bank also issued capital adequacy rules seeking to confirm with Basel III, effective retroactively from 1 Feb 2017. Looking at core capital ratios of major banks, conventional banks seem to be better capitalized v/s. Islamic banks.

	Performance2	Fund	Benchmark3	Relative Performance
	MTD YTD	1.4% 5.1%	1.1% 4.7%	0.3% 0.4%
	1 Year	16.1%	14.9%	1.2%
	3 Year 5 Year**	-7.6% 110.1%	-15.9% 96.8%	8.2% 13.3%
	Since Inc.*	34.9%	-34.7%	69.5%

The UAE PMI Increased to 56.2 in February v/s. 57.1 in January, which was a 23-month high. The data suggests that while non-oil economic activity continues to be robust, on back of strong growth in output and new orders, this was not being reflected in higher employment yet.

Source: Al Mal internal performance measurement based on reports from third-party administrators (Standard Chartered)

2 Performance is net of fees; 3-year and 5-year return is cumulative 3S&P UAE Composite Index

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22 February 2016

Fund Key Information	Fund Key Information
Fund Objective: 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	Al Mal Capital
Inception Date	5th April 2006
Fund Registration	UAE
Currency	AED
Subscription	Weekly
Dividend Frequency	Yearly
Min Subscription	AED 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

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48 Burj Gate, Downtown Dubai, Sheikh Zayed Road, Office 901, P.O. Box 119930, Dubai, UAE Tel +971 4 360 1111, Fax +971 4 360 1122 www.almalcapital.com 3
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Al Mal UAE Equity Fund – Monthly Factsheet

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Fund Performance[1]

Top Portfolio Holdings % of Fund Emaar Properties 12.9 ADCB 9.5 Aramex 8.3 NBAD 7.7 DP World 6.6 Total # of Holdings 23 Performance Yearly Fund Benchmark Relative Perf. YTD 2017 5.1% 4.7% 0.4% 2016 7.9% 9.0% -1.1% 2015 -15.3% -17.6% 2.3% 2014 11.2% 7.5% 3.7% 2013 81.4% 88.0% -6.6% 2012 28.7% 23.5% 5.2% 2011 -18.4% -17.7% -0.7% 2010 -1.0% -8.8% 7.8% 2009 31.2% 24.6% 6.6% 2008 -56.9% -69.4% 12.5% 2007 50.4% 54.8% -4.4% 2006 -19.1% -35.2% 16.1% Since Inc. 34.9% -34.7% 69.5% 1Performance is net of fees	Performance Monthly Fund Benchmark Relative Perf.
	Jan 3.7% 3.6% 0.1% Feb 1.4% 1.1% 0.3% Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 5.1% 4.7% 0.4%
	Fund Characteristics2 Fund Benchmark
	Standard Deviation 20.9% 23.3%
	Sharpe Ratio 0.63 0.48
	Beta 0.88
	Tracking Error 4.7%
	Information Ratio 0.17
	2Calculated using 5-year weekly data

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Sector Allocation
Cash
Others
Telecom
Capital Goods
Energy
Diversified Fin
Transport
Real Estate
Banks
0% 10% 20% 30% 40%
Benchmark Fund
Geographic Allocation
Cash
Nasdaq
Dubai
Abu Dhabi
0% 20% 40% 60%
Benchmark Fund
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Source: Al Mal internal performance measurement based on reports from third-party administrators (Standard Chartered/Apex)

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48 Burj Gate, Downtown Dubai, Sheikh Zayed Road, Office 901, P.O. Box 119930, Dubai, UAE Tel +971 4 360 1111, Fax +971 4 360 1122 www.almalcapital.com 4
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Al Mal MENA Equity Fund – Monthly Factsheet

NAV Per Unit: USD 7.86

Al Mal MENA Equity Fund was up 1.2% in February v/s. 0.02% Increase in the S&P Pan Arab Index. The Fund has outperformed the benchmark by 20.8% since its launch in June 2008.

Market Overview & Fund Manager Comments

Regional markets were down month-on-month in February, except Qatar, which was up 1%. Subdued Q4 earnings season, coupled with weakness in oil, prices led to the decline.

We spoke to management of Saudi companies from various sectors to hear their outlook for rest of the year. There was a one common theme across the board – companies were not willing to commit to expansion capex, and the most had very modest growth expectations in 2017, given uncertainties on pending payments by the government, concerns over impact on consumer demand due to expat levies. In the banking sector, liquidity situation appears to be quite comfortable, post the international bond issuance by the government and as demand for corporate loans is restricted to flat-to-low single digit growth. We continue to see opportunities in the under-penetrated insurance sector. In Qatar, the banking sector trends suggest that domestic liquidity is quite stretched. Domestic month-on-month credit growth in Jan was 1.2%, while deposit shrank by 1.3%, leading to domestic LDR of 140%. In Egypt, inflation accelerated above 30% in February, although the pace of increase on month-on-month basis slowed-down, which was a encouraging sign.

PMI data points in Egypt improved to 46.7 in February compared to 43.3 in January, the highest reading in six months. Saudi PMI rose to 18-month high to 57.0 v/s. 56.7 in January due to improved liquidity, partial payment of arrears by the Government and improved sentiments due to higher oil prices.

Performance Graph

Performance1 4.0 6.0 8.0 10.0 12.0 Jun-08 Feb-09 Oct-09 Jun-10	Fund Benchmark2 Relative Perf. Feb-11 Oct-11 Jun-12 Feb-13 Oct-13 Jun-14 Feb-15 Oct-15 Jun-16 Feb-17 Al Mal MENA Equity Fund S&P Pan Arab LargeCap Index (Rebased)
MTD YTD 1 Year 3 Years 5 Year Since Inc.	1.2% 0.0% 1.2% 3.8% 3.0% 0.8% 4.8% 15.9% -11.1% -20.0% -18.8% -1.2% 12.9% -0.1% 13.0% -21.4% -42.2% 20.8%

Source: Al Mal internal performance measurement based on reports from third-party administrators (Apex)

1 Performance is net of fees; 3-year and 5-year return is cumulative 2S&P Pan Arab Composite LargeCap Index

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22 February 2016

Fund Key Information	Fund Key Information
Fund Objective: 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	Al Mal Capital
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
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

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48 Burj Gate, Downtown Dubai, Sheikh Zayed Road, Office 901, P.O. Box 119930, Dubai, UAE Tel +971 4 360 1111, Fax +971 4 360 1122 www.almalcapital.com 5
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Al Mal MENA Equity Fund – Monthly Factsheet

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Fund Performance[1]

Performance	Fund	Benchmark	Relative
			Perf.
YTD 2017	3.8%	3.0%	0.8%
2016	-3.7%	4.1%	-7.8%
2015	-12.5%	-17.6%	5.1%
2014	-0.7%	-1.5%	0.8%
2013	31.1%	18.9%	12.2%
2012	6.6%	2.6%	4.0%
2011	-8.8%	-15.1%	6.3%
2010	15.7%	13.9%	1.8%
2009	17.7%	12.7%	5.0%
2008	-47.5%	-49.9%	2.4%
Since Inc.	-21.4%	-42.2	20.8%

	Since Inc. -21.4% -42.2	20.8%
1	Performance is net of fees
	Top Portfolio Holdings	% of Fund
	Dubai Islamic Bank	6.9
	Emaar	6.2
	Ooredoo QSC	4.9
	ADCB	4.8
	Aramex	4.8
	Total # of Holdings	38

Source: Al Mal internal performance measurement based on reports from third-party administrators (Apex)

Performance	Fund	Benchmark	Relative
			Perf.
Jan	2.6%	3.0%	-0.4%
Feb	1.2%	0.0%	1.2%
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2017	3.8%	3.0%	0.8%

Fund Characteristics2	Fund	Benchmark
Standard Deviation	14.8%	14.2%
Sharpe Ratio	0.04	-0.14
Beta	0.97	-
Tracking Error	5.6%
Information Ratio	0.49

2 Calculated using 5-year weekly data

Sector Allocation

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Cash
F&B
Materials
Energy
Others
Transportation
Capital Goods
Diversified Fin
Telecoms
Real Estate
Banks
0% 20% 40% 60%
Benchmark Fund
Geographic Allocation
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Cash
Other
Nasdaq
Saudi Arabia
Kuwait
Egypt
Dubai
Qatar
Abu Dhabi
0% 10% 20% 30% 40% 50%
Benchmark Fund
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48 Burj Gate, Downtown Dubai, Sheikh Zayed Road, Office 901, P.O. Box 119930, Dubai, UAE Tel +971 4 360 1111, Fax +971 4 360 1122 www.almalcapital.com 6
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Al Mal MENA Income Fund – Monthly Factsheet

NAV Per Unit: USD 12.74

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22 February 2016

NAV Per Unit: USD 12.74	NAV Per Unit: USD 12.74	NAV Per Unit: USD 12.74	NAV Per Unit: USD 12.74	22 February 2016	22 February 2016
Performance Graph Geographic Allocation Sector Allocation Top Portfolio Holdings Credit Rating: S&P/Moody % of Fund Comm. Bank of Qatar 19 BBB/ A2 8.4 4.25% Batelco BB-/BB+ 7.5 ICD Sukuk Not Rated 7.5 Total # of Holdings 23 Portfolio Analysis Portfolio Maturity 4.0 years Avg. YTM (Gross) of Investments 3.8% Weighted avg. Rating of Portfolio BBB+ Performance2 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2017 2016 2015 Al Mal MENA Income Fund (Perf. Inclusive of Dividends.) 0.4% 0.7% 1.0% 1.5% 0.9% 1Benchmark was HSBC MENA Bond Index since inception until Dec 2013, replaced thereafter by S&P MENA Bond Index 9.8 10.3 10.8 11.3 11.8 12.3 12.8 13.3 13.8 14.3 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Al Mal MENA Income Fund HSBC / S&P MENA USD Bond Index Market Overview & Fund Manager Comments** Al Mal MENA Income Fund was up 0.7% in February. The Fund has delivered returns of 36.6% since its launch in February 2009. US 10 year treasury yield continued to inch upwards in beginning of March towards 2.5% area, as it became clear from the Fed announcements that the March hike is imminent, supported by strong U.S. employment data. We continue to witness influx of primary market issues from both GCC sovereigns as well as corporates. On the sovereign side, Kuwait issued USD 8 billion in its debut bond in 5-year and 10-year tenors priced at 2.75% and 3.5%, respectively. The issue was well received with order books of over 3x. Apart from Kuwait, we expect Oman, Government of Dubai, and Bahrain to print more paper this year. On the corporate side, Bank of Sharjah issued 5-year bond at 4.23% while we Majid Al Futtaim, Warba Bank and Qatar Insurance to issue new paper this year. Dubai Money Market - UAE Qatar Oman Abu Dhabi Bahrain Sharjah Kuwait 0% 10% 20% 30% 40% 50% Banks Money Market Real Estate Transportation Retail Financial Services Telecom Utilities Governement Bonds 0% 10% 20% 30% 40% 50%				Fund Key Information
				Fund Objective: 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 Managers	Al Mal Capital
				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
		Al Mal MENA Income Fund HSBC / S&P MENA USD 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
		mark was HSBC MENA Bond Index since inception until Dec 2013, replaced thereafter by S&P MENA Bond Index Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16
				Reuters Code	LP65154947
				Morningstar Sec ID	F00000JQIR
				2014 2013 2012 2011 2010 2009 Since Inception 5.5% 1.8% 12.6% 7.6% 3.8% -2.0% 36.6%
	Performance2 Jan Feb Mar Apr May June July Aug		Sept Oct Nov Dec 2017 2016 2015
	Al Mal MENA Income Fund (Perf. Inclusive of Dividends.) 0.4% 0.7%		1.0% 1.5% 0.9%

Source: Al Mal internal performance measurement based on reports from Al Mal Capital/Operations

2 Performance is net of fees

Private and Confidential

Al Mal Liquidity Fund – Monthly Factsheet

22 February 2016

NAV Per Unit: AED 1.20

NAV Per Unit: AED 1.20	22 February 2016	22 February 2016
Market Overview & Fund Manager Comments The Al Mal Liquidity Fund was up 0.14% in February, and has delivered returns of c.20.3% since its launch in April 2009. 1-week EIBOR increased 5 bps to 0.75% towards the end of February as March Fed hike began to price-in. However, due to prevailing comfortable liquidity situation, the EIBOR eased back to 0.70% levels around early March. Fund Key Information Months to Maturity Al Mal Liquidity Fund offers you: Weekly liquidity 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 1.00 1.05 1.10 1.15 1.20 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-11 Apr-12 Oct-12 Apr-13 Oct-13 Apr-14 Oct-14 Apr-15 Oct-15 Fund NAV 1 Week EIBOR (Benchmark) 10% 30% 21% 38% 0-1 2-3 4-6 7-12	Fund Key Information
	Fund Objective: 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 Managers	Al Mal Capital
	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
Performance1 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec 2017 2016
	2015 2014 2013 2012 2011 2010 ~~Since~~ Inception
Al Mal Liquidity Fund 0.14% 0.14% 0.28% 1.7%	1.5% 1.7% 1.9% 2.1% 2.6% 3.8% 20.3%

Source: Al Mal internal performance measurement based on reports from our back office

2 Performance is net of fees

Private and Confidential

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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48 Burj Gate, Downtown Dubai, Sheikh Zayed Road, Office 901, P.O. Box 119930, Dubai, UAE Tel +971 4 360 1111, Fax +971 4 360 1122 www.almalcapital.com 9
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