Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

AL Mal UAE Equity Fund Fund Information / Factsheet 2017

Jun 14, 2017

66382_rns_2017-06-14_2a802fe5-9b0e-427e-ae3e-84c3b7cc778e.pdf

Fund Information / Factsheet

Open in viewer

Opens in your device viewer

MONTHLY FACT SHEETS May 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

==> picture [156 x 53] intentionally omitted <==

Equity Funds

Equity Funds
As of 31 May 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 1.32 -0.08% 1.25% 6.48% 36.57%
S&P UAE Composite Index -1.18% -1.57% -0.60% -38.00%
Al Mal MENA Equity Fund June 2008 USD 8.04 1.01% 3.47% 6.21% -19.60%
S&P Pan Arab Large Cap Index 0.04% 0.70% -0.34% -44.04%

Income Funds

Income Funds
As of 31 May 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 12.90 3.48% 0.51% 2.19% 38.22%
Al Mal Liquidity Fund April 2009 AED 1.21 1.78% 0.18% 0.79% 20.95%

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).

==> picture [720 x 30] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

Al Mal MENA Equity Fund – Monthly Factsheet

NAV Per Unit: USD 8.04

Markets had mixed performance in May with Dubai being the worst losing -2.2%. The sentiment is not really improving and price fluctuations is still high due to volatile oil prices and heightened geopolitical tension in the GCC. Nevertheless, we stay focused on our underlying investments fundamentals and future prospects. In these uncertain times, the Fund managed to add +3.5% vs. +0.7% for the benchmark.

The Power of Unlocking Value

One of our core holdings Emaar Properties decided to list its UAE development business. We like the announcement for 4 major things 1) It shows the managements’ value creation by distributing most of the IPO proceeds as dividends. This takes place when many other companies piles up cash and splash it on destructive acquisitions, lose it by speculating in the stock market or commit the most naïve act which is investing it in fixed income instruments generating yield of 4% while their cost of equity is at least 10% 2) It will enhance the Return of Equity for Emaar 3) It will reduce uncertainty regarding the UAE development business value, hence, decrease the risk premium 4) It will raise the bar for other companies.

The other side of Aviation

Unlike their global peers airline carriers are not doing really well in MENA. Many of them are losing money and would disappear without government support, while the few profitable ones saw their bottom lines fall by more than 50%. The reason is not slowing demand, but rather increased competition. The picture is not the same across the whole value chain. Aircrafts leasing is doing well due to high demand, increased passenger traffic and the very simple fact of mobility of the leased asset, so it can follow demand across the globe. A valuable addition to our portfolio this month was ALAFCO in Kuwait. The company will double its fleet by 2020 and has a long track record in the business.

Performance Graph

==> picture [243 x 198] intentionally omitted <==

----- Start of picture text -----

12.0 Al Mal MENA Equity Fund
S&P Pan Arab LargeCap Index (Rebased)
10.0
8.0
6.0
4.0
Jun-08 Nov-08 Apr-09 Sep-09 Feb-10 Jul-10 Dec-10 May-11 Oct-11 Mar-12 Aug-12 Jan-13 Jun-13 Nov-13 Apr-14 Sep-14 Feb-15 Jul-15 Dec-15 May-16 Oct-16 Mar-17
----- End of picture text -----

Performance1 Fund Benchmark2 Relative Perf.
MTD
YTD
3.5%
6.21%
0.7%
-0.34%
2.8%
6.6%
1 Year 4.8% 8.6% -3.8%
3 Years -23.2% -25.2% 2.0%
5 Year 16.2% -0.2% 16.4%
Since Inc. -19.6% -44.04% 24.44%

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

==> picture [156 x 53] intentionally omitted <==

31 May 2017

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 Marwan Haddad, CFA
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

==> picture [720 x 30] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

Al Mal MENA Equity Fund – Monthly Factsheet

==> picture [156 x 53] intentionally omitted <==

Fund Performance[1]

Performance Fund Benchmark Relative
Perf.
YTD 2017 6.2% -0.3% 6.5%
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. -19.6% -44.04% 24.44%
Since Inc.
-19.6%
-44.04%
24.44%
1 Performance is net of fees
Top Portfolio Holdings % of Fund
Aramex 7.2
NMC Health 7.0
DP World 7.0
Emaar Properties 5.8
ALAFCO 4.7
Total # of Holdings 23

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

Performance Fund Benchmark Relative
Perf.
Sector Allocation Allocation
Jan 2.6% 3.0% -0.4%
Cash
Feb 1.2% 0.0% 1.2% Insurance
Mar -2.5% -3.1% 1.4% Materials
Apr 1.4% -0.8% 2.2% Others
Education
May
Jun
3.5% 0.7% 2.8% Industrial
Transportation
Jul
Aug
Real Estate
Telecoms
Fin Services
Sep Banks
Oct 0% 20% 40% 60%
Nov
Dec
Benchmark Fund
2017 6.2% -0.3% 6.5% Geographic Allocation

==> picture [184 x 153] intentionally omitted <==

----- Start of picture text -----

Cash
Other
Nasdaq
Saudi Arabia
London
Kuwait
Egypt
Dubai
Qatar
Abu Dhabi
0% 10% 20% 30% 40% 50%
Benchmark Fund
----- End of picture text -----

Fund Characteristics2 Fund Benchmark
Standard Deviation 14.6% 14.0%
Sharpe Ratio 0.09 -0.13
Beta 0.96 -
Tracking Error 5.6%
Information Ratio 0.56

2 Calculated using 5-year weekly data

==> picture [720 x 30] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

Al Mal UAE Equity Fund– Monthly Factsheet

NAV Per Unit: AED 1.32

Performance Graph

Sentiment is not really improving and price fluctuations is still high due to volatile oil prices and heightened geopolitical tension in the GCC. Nevertheless, we stay focused on our underlying investments’ fundamentals and future prospects. In these uncertain times, the Fund managed to add +1.3% versus a -1.6% drop for the benchmark.

==> picture [237 x 151] intentionally omitted <==

----- Start of picture text -----

Al Mal UAE Equity Fund S&P UAE Index (Rebased)
1.80
1.60
1.40
1.20
1.00
0.80
0.60
0.40
0.20
0.00
Apr-06 Nov-06 Jun-07 Jan-08 Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12 Apr-13 Nov-13 Jun-14 Jan-15 Aug-15 Mar-16 Oct-16 May-17
----- End of picture text -----**

The Power of Unlocking Value

One of our core holdings Emaar Properties decided to list its UAE development business. We like the announcement for 4 major things 1) It shows the managements’ value creation by distributing most of the IPO proceeds as dividends. This takes place when many other companies piles up cash and splash it on destructive acquisitions, lose it by speculating in the stock market or commit the most naïve act which is investing it in fixed income instruments generating yield of 4% while their cost of equity is at least 10%, 2) It will enhance the Return of Equity for Emaar, 3) It will reduce uncertainty regarding the UAE development business value, hence, decrease the risk premium, 4) It will raise the bar for other listed companies.

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

Performance2 Fund Benchmark3 Relative
Performance
MTD 1.3% -1.6% 2.9%
YTD
1 Year
6.5%
12.6%
-0.6%
6.5%
7.1%
6.2%
3 Year
5 Year**
-15.1%
118.5%
-27.5%
97.3%
12.4%
21.2%
Since Inc.* 36.8% -38.0% 74.8%

Core Support

A big support this month came from our key holdings NMC Health and DP World. NMC continued to rally as they are more comfortable now with the higher end of their guidance after the government decided to reverse the 20% co-payment for Thiqa patient (Abu Dhabi government health insurance for local Emiratis). For DP World, investors are getting more comfortable with Jebel Ali operations after showing signs of stabilization in the first quarter of 2017. Moreover, the company acquired the majority remaining stake in its Brazilian and South Korean operations and just announced recently in a new acquisition in Spain.

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

==> picture [156 x 53] intentionally omitted <==

31 May 2017

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 Marwan Haddad, CFA
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

==> picture [720 x 30] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

Al Mal UAE Equity Fund – Monthly Factsheet

==> picture [156 x 53] intentionally omitted <==

Fund Performance[1]

Top Portfolio Holdings
% of Fund
Emaar Properties
12.8
Aramex
12.2
First Abu Dhabi Bank
11.8
Total # of Holdings
9
Performance
Yearly
Fund
Benchmark
Relative
Perf.
YTD 2017
6.5%
-0.6%
7.1%
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.
36.6%
-38.0%
74.8%
1Performance is net of fees
Fund Characteristics2
Fund
Benchmark
Standard Deviation
20.5%
22.7%
Sharpe Ratio
0.74
0.56
Beta
0.89
Tracking Error
4.6%
Information Ratio
0.34
Performance
Monthly
Fund
Benchmark
Relative
Perf.
Jan
3.7%
3.6%
0.1%
Feb
1.4%
1.1%
0.3%
Mar
-1.5%
-4.5%
3.0%
Apr
1.5%
1.0%
0.5%
May
1.3%
-1.6%
2.9%
Jun
Jul
Aug
Sep
Oct
Nov
Dec
2017
6.5%
-0.6%
7.1%
Sector Allocation
Geographic Allocation
0%
10%
20%
30%
40%
Banks
Real Estate
Transport
Diversified Fin
Healthcare
Cash
Benchmark
Fund
Abu Dhabi
Dubai
Nasdaq
London Stock
Exchange
Cash

==> picture [162 x 135] intentionally omitted <==

----- Start of picture text -----

Cash
London Stock
Exchange
Nasdaq
Dubai
Abu Dhabi
0% 20% 40% 60%
Benchmark Fund
----- End of picture text -----

2 Calculated using 5-year weekly data

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

==> picture [720 x 30] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----

==> picture [156 x 53] intentionally omitted <==

Al Mal MENA Income Fund – Monthly Factsheet

31 May 2017

NAV Per Unit: USD 12.90

NAV Per Unit: USD 12.90 NAV Per Unit: USD 12.90 31 May 2017 31 May 2017
Performance Graph
1Benchmark was HSBC MENA Bond Index since inception until Dec 2013, replaced thereafter by S&P MENA Bond Index
Market Overview & Fund Manager Comments
Al Mal MENA Income Fund was up 0.5% in May. The Fund has delivered
returns of 38% since its launch in February 2009.
US 10 year treasury yield ended 11 bps lower at 2.2% at end of may, as inflation
expectation subsided and the fed now is expected to change its tone to be more
moderate on back of lower than expected farm payroll increases and lower
inflation. We believe June hike is discounted by the market and the focus now
will be on the forward guidance by fed.
Volatility remain subdued during the month of may while we saw some uptick
during start of June owing to heightened Qatar risk. QAR forward rates jumped
to 543bps vs 175 bps at end of may which led to yield expansion to cover risk of
currency peg.
9.8
10.3
10.8
11.3
11.8
12.3
12.8
13.3
13.8
14.3
Dec-10
May-11
Oct-11
Mar-12
Aug-12
Jan-13
Jun-13
Nov-13
Apr-14
Sep-14
Feb-15
Jul-15
Dec-15
May-16
Oct-16
Mar-17
Al Mal MENA Income Fund
HSBC / S&P MENA USD Bond Index**
Geographic Allocation
Sector Allocation
Top Portfolio Holdings
Credit
Rating:
S&P/Moody
% of
Fund
Comm. Bank of Qatar 19
BBB/ A2
8.2
ICD Sukuk
Not Rated
7.4
4.25% Batelco
BB-/BB+
7.4
Total # of Holdings
23
Portfolio Analysis
Portfolio Maturity
3.9 years
Avg. YTM (Gross) of Investments
3.6%
Weighted avg. Rating of Portfolio
BBB
Banks
Money Market
Real Estate
Transportation
Retail
Financial Services
Telecom
Utilities
Governement Bonds
0% 10% 20% 30% 40% 50%
Dubai
Money Market - UAE
Qatar
Oman
Abu Dhabi
Bahrain
Sharjah
Kuwait
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
rk was HSBC MENA Bond Index since inception until Dec 2013, replaced thereafter by S&P MENA Bond Index
May-11
Oct-11
Mar-12
Aug-12
Jan-13
Jun-13
Nov-13
Apr-14
Sep-14
Feb-15
Jul-15
Dec-15
May-16
Oct-16
Mar-17
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%
38.2%
Performance2
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
YTD
2017
2016
2015
Al Mal MENA Income Fund (Perf.
Inclusive of Dividends.)
0.4%
0.7%
0.2%
0.4%
0.5%
2.2%
1.5%
0.9%

Market Overview & Fund Manager Comments

Al Mal MENA Income Fund was up 0.5% in May. The Fund has delivered returns of 38% since its launch in February 2009.

US 10 year treasury yield ended 11 bps lower at 2.2% at end of may, as inflation expectation subsided and the fed now is expected to change its tone to be more moderate on back of lower than expected farm payroll increases and lower inflation. We believe June hike is discounted by the market and the focus now will be on the forward guidance by fed.

Volatility remain subdued during the month of may while we saw some uptick during start of June owing to heightened Qatar risk. QAR forward rates jumped to 543bps vs 175 bps at end of may which led to yield expansion to cover risk of currency peg.

Performance Graph

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

NAV Per Unit: AED 1.21

31 May 2017

NAV Per Unit: AED 1.21 31 May 2017 31 May 2017
Market Overview & Fund Manager Comments
The Al Mal Liquidity Fund was up 0.18% in may, and has delivered returns of c.21.0% since its launch in April 2009.
1-week EIBOR had been ranging between 0.83% to 0.88% in may and ended the month at 0.83%. Liquidity
conditions continue to be at comfortable levels – according to the April aggregate numbers announced by the Central
Bank, deposits were up 2.7% YTD vs loan growth of 1.3%.government deposits were up 3% during the month
showing good growth in sticky deposits
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
Jun-09
Aug-09
Oct-09
Dec-09
Feb-10
Apr-10
Jun-10
Aug-10
Oct-10
Dec-10
Feb-11
Apr-11
Jun-11
Aug-11
Oct-11
Dec-11
Feb-12
Apr-12
Jun-12
Aug-12
Oct-12
Dec-12
Feb-13
Apr-13
Jun-13
Aug-13
Oct-13
Dec-13
Feb-14
Apr-14
Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Jun-15
Aug-15
Oct-15
Dec-15
Feb-16
Apr-16
Jun-16
Aug-16
Oct-16
Dec-16
Feb-17
Apr-17
Fund NAV
1 Week EIBOR (Benchmark)
10%
33%
23%
35%
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% 0.18% 0.15% 0.18%
0.79%
1.7%
1.5%
1.7%
1.9%
2.1%
2.6%
3.8%
21.0%

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

2 Performance is net of fees

Private and Confidential

Disclaimer

==> picture [156 x 53] intentionally omitted <==

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.

==> picture [720 x 30] intentionally omitted <==

----- Start of picture text -----

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
----- End of picture text -----