AL Mal UAE Equity Fund — Fund Information / Factsheet 2017

Apr 12, 2017

MONTHLY FACT SHEETS March 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 29 March	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 1.28	0.10%	-1.47%	3.58%	32.86%
S&P UAE Composite Index			-1.03%	-4.47%	0.00%	-37.62%
Al Mal MENA Equity Fund	June 2008	USD 7.66	0.13%	-2.54%	1.19%	-23.40%
S&P Pan Arab Large Cap Index			0.02%	-3.11%	-0.22%	-43.97%

Income Funds

Income Funds
As of 29 March	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 12.77	3.58%	0.22%	1.23%	36.93%
Al Mal Liquidity Fund	April 2009	AED 1.21	1.88%	0.18%	0.46%	20.56%

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 MENA Equity Fund – Monthly Factsheet

NAV Per Unit: USD 7.66

March is known for profit taking as the dividend season concludes and investors unwind excess capacity. This led the Fund to fall by -2.5% in March v/s. - 3.11% decrease for the benchmark. On the other hand, April started on a very strong foot on the back of redeploying dividends across the region and as investors cheered the new FGB-NBAD merger in the UAE . We like the new entity and we think it will rarely come as straight forward as this one. The bank’s cost to income ratio is below 30%, the same old NBAD rating, ~16% sustainable Return on Equity, dividend yield of > 4.0% assuming a dividend cut from 2016 levels and above all backed by Abu Dhabi. We would not bet against the name.

Major Cleaning

Last month we exited 9 positions of our lower conviction ideas and concentrated the portfolio where we have the highest convictions. We still see further room to concentrate our holdings and should only stay focused where we can adequately price risk.

In the UAE we increased our exposure to Aramex where we see huge potentials. 40% of Aramex’s revenues is from e-commerce, a market with huge growth potentials across the GCC and Asia. With double digit expected growth and 15.1x 2018 P/E and 3.1% dividends yield we honestly believe the market is not giving the management its true value. One last thought, just ponder how the management doubled its DPS since 2011.

Another name we believe that it is unjustifiably underpriced is Aluminum Bahrain. The recent rally might scare investors, but the company is still trading 6.8X versus 5 years average of 9.1x, a 25% discount. This is assuming $1,800/ton price for Aluminum and similar production to last year. Current Aluminum price is $1,960/ton and their production came +5% higher in the first quarter versus the same period last year.

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.	-2.5% -3.1% 0.6% 1.2% -0.2% 1.4% -1.7% 9.4% -11.1% -24.8% -24.0% -0.7% 2.0% -8.4% 10.3% -23.4% -44.0% 20.6%

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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29 March 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

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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 MENA Equity Fund – Monthly Factsheet

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Fund Performance[1]

und Performance1
Performance Fund Benchmark Relative Perf. YTD 2017 1.2% -0.2% 1.4% 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. -23.4% -44.0% 20.6%	Performance Fund Benchmark Relative Perf.
	Jan 2.6% 3.0% -0.4% Feb 1.2% 0.0% 1.2% Mar -2.5% -3.1% 1.4% Apr May Jun Jul Aug Sep Oct Nov Dec 2017 1.2% -0.2% 1.4%

	Since Inc. -23.4% -44.0%	20.6%
1	Performance is net of fees
	Top Portfolio Holdings	% of Fund
	Aramex	7.4
	DP World	6.2
	Emaar	6.1
	NMC Health	3.9
	Dana Gas	3.8
	Total # of Holdings	29

Fund Characteristics2	Fund	Benchmark
Standard Deviation	14.7%	14.1%
Sharpe Ratio	-0.10	-0.26
Beta	0.96	-
Tracking Error	5.6%
Information Ratio	0.44

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

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
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Geographic Allocation
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Cash
Other
Nasdaq
Saudi Arabia
Kuwait
Egypt
Dubai
Qatar
Abu Dhabi
0.0% 10.0%20.0%30.0%40.0%50.0%
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 4
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Al Mal UAE Equity Fund– Monthly Factsheet

NAV Per Unit: AED 1.28

Performance Graph

Same as other MENA markets, March witnessed a correction along with dividend payments. The Fund fell by -1.5% in March v/s. -4.5% decrease for the benchmark. The main event in April was the new FGB-NBAD merger. We like the new entity and we think it will rarely come as straight forward as this one. The bank’s cost to income ratio is below 30%, the same old NBAD rating,~16% sustainable Return on Equity, dividend yield of > 4.0% assuming a dividend cut from 2016 levels and above all backed by Abu Dhabi. We would not bet against the name.

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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 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 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 Apr-16 Oct-16
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Major Cleaning

Last month we exited 8 positions of our lower conviction ideas and concentrated the portfolio where we have the highest convictions. We still see further room to concentrate our holdings and should only stay focused where we can adequately price risk.

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

One of the key additions to our UAE strategy was NMC Health. NMC has been growing significantly into more specialty services over the past 2 years and just recently acquired Al Zahra hospital. The management has managed to increase the Return of Employed Capital to >30.0% recently from ~20.0% 4 years ago and at the same time capital invested jumped by more than 3.0 times. This is a management that creates real value to its shareholders.

	Performance2	Fund	Benchmark3	Relative Performance
	MTD YTD	-1.5% 3.6%	-4.5% 0.0%	3.0% 3.6%
	1 Year 3 Year*	8.8% -13.1%	4.1% -22.4%	4.7% 9.3%
	5 Year Since Inc.**	97.8% 32.9%	77.0% -37.6%	20.8% 70.5%

We also increased our exposure to Aramex where we see huge potentials. 40% of Aramex’s revenues is from e-commerce, a market with huge growth potentials across the GCC and Asia. With double digit expected growth and 15.1x 2018 P/E and 3.1% dividends yield we honestly believe the market is not giving the management its true value. One last thought, just ponder how the management doubled its DPS since 2011.

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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29 March 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

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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 UAE Equity Fund – Monthly Factsheet

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Fund Performance[1]

Top Portfolio Holdings % of Fund Emaar Properties 12.7 Aramex 11.9 DP World 7.9 Total # of Holdings 16 Performance Yearly Fund Benchmark Relative Perf. YTD 2017 3.6% 0.0% 3.6% 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. 32.9% -37.6% 70.5% 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 -1.5% -4.5% 3.0% Apr May Jun Jul Aug Sep Oct Nov Dec 2017 3.6% 0.0% 3.6%
	Fund Characteristics2 Fund Benchmark
	Standard Deviation 20.5% 22.7%
	Sharpe Ratio 0.62 0.45
	Beta 0.89
	Tracking Error 4.5%
	Information Ratio 0.35
	2Calculated using 5-year weekly data

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

Sector Allocation

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Cash
Healthcare
Telecom
Capital Goods
Energy
Diversified Fin
Transport
Real Estate
Banks
0% 10% 20% 30% 40%
Benchmark Fund
Geographic Allocation
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Cash
London Stock
Exchange
Nasdaq
Dubai
Abu Dhabi
0% 20% 40% 60%
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

29 March 2017

NAV Per Unit: USD 12.77

NAV Per Unit: USD 12.77		29 March 2017	29 March 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 0.2% in March. The Fund has delivered returns of 37% since its launch in February 2009. US 10 year treasury yield was very volatile in March. The yield rose 21 bps to 2.6%, a day prior to the Fed rate hike in mid-March. However, surprisingly, the yield fell to 2.4% area due to higher investor demand for USD treasuries and possibly due to some sort of skepticism to the ‘inflation’ theme. There has been a strong interest in recently launched primary issues with most of them well-bidded. Bank of Sharjah’s 5-year issue launched in early March at par received huge interest post the Fed hike and bids are now seen around 102 mark. Damac offered to buy-back its 2019 sukuks at 1.5% premium above par – while this was a fair deal, we believe that over 4% YTM for sukuk maturing in 2 years is still quite attractive to hold. We will continue to see more paper from GCC sovereigns and corporates ahead of imminent Fed hikes. 9.8 10.3 10.8 11.3 11.8 12.3 12.8 13.3 13.8 14.3 Dec-10 Sep-11 Jun-12 Mar-13 Dec-13 Sep-14 Jun-15 Mar-16 Dec-16 Al Mal MENA Income Fund HSBC / S&P MENA USD Bond Index** Money	Geographic Allocation Sector Allocation Top Portfolio Holdings Credit Rating: S&P/Moody % of Fund Comm. Bank of Qatar 19 BBB/ A2 8.3 4.25% Batelco BB-/BB+ 7.5 ICD Sukuk Not Rated 7.5 Total # of Holdings 23 Portfolio Analysis Portfolio Maturity 3.9 years Avg. YTM (Gross) of Investments 3.6% Weighted avg. Rating of Portfolio BBB Dubai Market - UAE Qatar Oman Abu Dhabi Bahrain Sharjah Kuwait 0% 10% 20% 30% 40% 50% Banks Real Estate Retail Telecom Governement… 0% 20% 40% 60%	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
		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
		2014 2013 2012 2011 2010 2009 Since Inception 5.5% 1.8% 12.6% 7.6% 3.8% -2.0% 36.9%
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%	1.2% 1.5% 0.9%

Market Overview & Fund Manager Comments

Al Mal MENA Income Fund was up 0.2% in March. The Fund has delivered returns of 37% since its launch in February 2009.

US 10 year treasury yield was very volatile in March. The yield rose 21 bps to 2.6%, a day prior to the Fed rate hike in mid-March. However, surprisingly, the yield fell to 2.4% area due to higher investor demand for USD treasuries and possibly due to some sort of skepticism to the ‘inflation’ theme.

There has been a strong interest in recently launched primary issues with most of them well-bidded. Bank of Sharjah’s 5-year issue launched in early March at par received huge interest post the Fed hike and bids are now seen around 102 mark. Damac offered to buy-back its 2019 sukuks at 1.5% premium above par – while this was a fair deal, we believe that over 4% YTM for sukuk maturing in 2 years is still quite attractive to hold. We will continue to see more paper from GCC sovereigns and corporates ahead of imminent Fed hikes.

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

29 March 2017

NAV Per Unit: AED 1.21	29 March 2017	29 March 2017
Market Overview & Fund Manager Comments The Al Mal Liquidity Fund was up 0.18% in March, and has delivered returns of c.20.6% since its launch in April 2009. 1-week EIBOR increased 9 bps to 0.84% towards the end of March – much of the hike came around mid-March, right after the Fed rate hike. Fed’s projections were unchanged compared to the one made in December as it expects two more 25 bps hike this year and three in 2018. Keeping in mind the Fed outlook, we have positioned the maturity accordingly to take advantage of potentially higher deposit rates (c.43% of the deposits mature in the next 3 months). 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 18% 25% 31% 26% 0-1 2-3 4-6 7-12 1.00 1.05 1.10 1.15 1.20 1.25 Apr-09 Jan-10 Oct-10 Jul-11 Apr-12 Jan-13 Oct-13 Jul-14 Apr-15 Jan-16 Oct-16 Fund NAV 1 Week EIBOR (Benchmark)	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% 0.46% 1.7%	1.5% 1.7% 1.9% 2.1% 2.6% 3.8% 20.6%

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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