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AL Mal UAE Equity Fund — Fund Information / Factsheet 2017
Aug 16, 2017
66382_rns_2017-08-16_d6d64abc-42ce-4d03-bb9a-9eceba21f636.pdf
Fund Information / Factsheet
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MONTHLY FACT SHEETS July 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 26 July | 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 1.36 | 0.02% | 3.43% | 10.06% | 41.16% |
| S&P UAE Composite Index | -0.71% | 4.29% | 5.11% | -34.44% | ||
| Al Mal MENA Equity Fund | June 2008 | USD 8.26 | -0.72% | 0.00% | 9.11% | -17.40% |
| S&P Pan Arab Large Cap Index | 0.34% | 0.15% | 4.03% | -41.58% |
Income Funds
| Income Funds | ||||||
|---|---|---|---|---|---|---|
| As of 26 July | 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 12.86 | 3.84% | 0.55% | 1.85% | 37.77% |
| Al Mal Liquidity Fund | April 2009 | AED 1.21 | 1.65% | 0.13% | 1.06% | 21.27% |
Notes:
Performance data is net of fees. Performance computation is done internally based on reports from third-party administrators (Standard Chartered/Apex/Al Mal)
-
NAV Per Unit is rounded to two decimal places for reporting purposes only.
-
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
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NAV Per Unit: USD 8.26
After a very volatile month, markets finished almost flat as strong performance from the UAE was offset by weakness in Saudi Arabia. During the month of July, the benchmark added +0.15% versus a flat performance for the Fund.
Something to keep an eye on is the nearing FTSE emerging market upgrade in September. Saudi Arabia and to a lower extent Kuwait will attract ~USD4.5 billion of passive inflows if upgraded.
Core Names Support
DP World, a core stock in the fund reported a strong rebound in Q2 container volumes which grew 11% to 17.6m TEU (Twenty foot equivalent unit), driven by terminals in Europe & the Americas. Recently, the company signed a pact to advice on development of a port and logistics zone in Indonesia, strengthening its presence in emerging markets. Aramex also reported a double digit growth in the second quarter recurring earnings confirming our view. The CEO reaffirmed "the company is actively identifying acquisitions and strategic partnerships to expand our global reach” in the second half of the year. For us Aramex represent the future which is “e-commerce”
One of our top picks- Emaar Properties is moving fast with the planned spinning off its real estate unit- it hired Goldman Sachs for the IPO and expect to finalize it by November. Investors currently assign very low valuation to the core Dubai property development business and we think this strategy is an excellent crystallization of unlocking shareholders’ value. The IPO is expected to raise USD2.0 billion which will be mostly paid in a onetime dividend.
In Kuwait, one of our alpha names ALAFCO reported stellar results with earnings up 35%. The aircraft lessor sold 6 planes with lease contracts at $163m each.
Performance Graph
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Al Mal MENA Equity Fund
S&P Pan Arab LargeCap Index (Rebased)
12.0
10.0
8.0
6.0
4.0
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 Feb-17
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| Performance1 | Fund | Benchmark2 | Relative Perf. | |
|---|---|---|---|---|
| MTD YTD |
0.0% 9.1% |
0.2% 4.0% |
-0.2% 5.1% |
|
| 1 Year | 5.2% | 11.2% | -6.0% | |
| 3 Years | -21.9% | -23.6% | 1.7% | |
| 5 Year | 19.4% | 5.2% | 14.1% | |
| Since Inc. | -17.4% | -41.6% | 24.2% |
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
26 July 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]
| Performance | Fund | Benchmark | Relative |
|---|---|---|---|
| Perf. | |||
| YTD 2017 | 9.1% | 4.0% | 5.1% |
| 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. | -17.4% | -41.6% | 24.2% |
| Since Inc. -17.4% -41.6% |
24.2% | |
|---|---|---|
| 1 | Performance is net of fees | |
| Top Portfolio Holdings | % of Fund | |
| NMC Health | 9.2 | |
| Aramex | 7.4 | |
| DP World | 6.8 | |
| Emaar Properties | 6.5 | |
| Al Rajhi Bank | 6.2 | |
| Total # of Holdings | 24 |
Source: Al Mal internal performance measurement based on reports from third-party administrators (Apex)
| Performance | Fund | Benchmark | Relative Perf. |
Sector Allocation | Sector Allocation | Sector Allocation | Sector Allocation | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan | 2.6% | 3.0% | -0.4% | Others | |||||||||
| Feb | 1.2% | 0.0% | 1.2% | Healthcare | |||||||||
| Mar | -2.5% | -3.1% | 1.4% | Services Cash |
|||||||||
| Apr | 1.4% | -0.8% | 2.2% | F&B | |||||||||
| May Jun |
3.5% 2.7% |
0.70% 4.2% |
2.8% -1.5% |
Industrial Transportation |
|||||||||
| Jul | 0.0% | 0.2% | -0.2% | Fin Services | |||||||||
| Aug | Real Estate Telecoms |
||||||||||||
| Sep | Banks | ||||||||||||
| Oct | 0% | 10% | 20% | 30% | 40% | 50% | 60% | ||||||
| Nov Dec |
Benchmark | Fund | |||||||||||
| 2017 | 9.1% | 4.0% | 5.1% | Geographic Allocation |
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Cash
Other
Nasdaq
Saudi Arabia
London
Kuwait
Egypt
Dubai
Qatar
Abu Dhabi
0% 10% 20% 30% 40% 50%
Benchmark Fund
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| Fund Characteristics2 | Fund | Benchmark |
|---|---|---|
| Standard Deviation | 14.5% | 14.0% |
| Sharpe Ratio | 0.12 | -0.06 |
| Beta | 0.95 | - |
| Tracking Error | 5.8% | |
| Information Ratio | 0.48 |
2 Calculated using 5-year weekly data
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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 1.32
Performance Graph
July came very strong with the benchmark adding +4.3%, while the Fund returned +3.4% during the month.
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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 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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Underperformance mainly resulted from Etisalat Group rallying ahead of the dividends and speculative buying in Damac Properties and SHUAA Capital. We don’t favor Etisalat at the current levels given its rich valuation. On the positive side, Dubai Investment Company and DP World also performed strongly during the month.
Core Names Support
DP World, a core stock in the fund reporter a strong rebound in Q2 container volumes which grew 11% to 17.6m TEU (Twenty foot equivalent unit), driven by terminals in Europe & the Americas. Recently, the company signed a pact to advice on development of a port and logistics zone in Indonesia, strengthening its presence in emerging markets.
1Benchmark was MSCI UAE Index since inception until Dec 2008, replaced thereafter by S&P UAE Composite Index
Aramex also reported a double digit growth in the second quarter recurring earnings confirming our view. The CEO reaffirmed "the company is actively identifying acquisitions and strategic partnerships to expand our global reach” in the second half of the year. For us Aramex represent the future which is “ecommerce”
| Performance2 | Fund | Benchmark3 | Relative Performance |
|
|---|---|---|---|---|
| MTD | 3.4% | 4.3% | -0.9% | |
| YTD 1 Year |
10.1% 10.2% |
5.1% 4.0% |
5.0% 6.2% |
|
| 3 Year 5 Year** |
-10.6% 116.1% |
-18.9% 99.3% |
8.4% 16.7% |
|
| Since Inc.* | 41.16% | -34.4% | 75.6% |
One of our top picks- Emaar Properties is moving fast with the planned spinning off its real estate unit- it hired Goldman Sachs for the IPO and expect to finalize it by November. Investors currently assign very low valuation to the core Dubai property development business and we think this strategy is an excellent crystallization of unlocking shareholders’ value. The IPO is expected to raise USD2.0 billion which will be mostly paid in a onetime dividend.
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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26 July 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 14.9 Aramex 13.0 First Abu Dhabi Bank 12.0 Total # of Holdings 10 Performance Yearly Fund Benchmark Relative Perf. YTD 2017 10.1% 5.1% 5.0% 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. 41.2% -34.4% 75.6% 1Performance is net of fees |
Fund Characteristics2 Fund Benchmark Standard Deviation 20.5% 22.7% Sharpe Ratio 0.73 0.57 Beta 0.89 - Tracking Error 4.7% Information Ratio 0.25 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 -0.1% 1.4% -1.5% Jul 10.1% 5.1% 5.0% Aug Sep Oct Nov Dec 2017 10.1% 5.1% 5.0% Sector Allocation Geographic Allocation 0% 10% 20% 30% 40% Banks Real Estate Transport Fin Services Other Healthcare Cash Benchmark Fund Abu Dhabi Dubai Nasdaq LSE Cash |
|---|---|
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Cash
LSE
Nasdaq
Dubai
Abu Dhabi
0% 20% 40% 60%
Benchmark Fund
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2 Calculated using 5-year weekly data
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 6
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Al Mal MENA Income Fund – Monthly Factsheet
26 July 2017
NAV Per Unit: USD 12.86
| NAV Per Unit: USD 12.86 | 26 July 2017 | 26 July 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 0.6% in July. The Fund has delivered returns of 38% since its launch in February 2009. We expect the Fed to continue its hawkish tone and we might see one more rate hike in 2H 2017.The US GDP data is expected to remain strong while core inflation is expected to remain low. We believe despite euphemism around Donald Trump policy move the increased spending and inflation will take time to show the real impact Regional markets remain volatile due to continued suspense over Qatar issues though we have seen some recovery in bond prices but overall sentiment still remain negative. Dana gas sukuk restructuring remain another overhang on market sentiments as this has shaken the confidence of global investors in regional sukuk offerings We remain tactically overweight on some names in Qatar due to attractive yields and limited impact from ongoing issue 9.8 10.3 10.8 11.3 11.8 12.3 12.8 13.3 13.8 14.3 14.8 Dec-10May-11Oct-11Mar-12Aug-12Jan-13Jun-13Nov-13Apr-14Sep-14Feb-15Jul-15Dec-15 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 CBQ Finance Ltd. Not Rated 8.4 3.508% ICD Sukuk Co. Ltd. BB-/BB+ 7.8 Batelco 4.25% Not Rated 7.8 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 Money Market - UAE Qatar Oman Abu Dhabi Bahrain Sharjah Kuwait 0% 20% 40% 60% Banks Money Market Real Estate Financial Services Transportation Retail Telecom Utilities Governement Bonds 0% 10% 20% 30% 40% |
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% 37.8% |
|||
| 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% 0.6% -0.9% 0.6% |
1.9% 1.5% 0.9% |
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
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NAV Per Unit: AED 1.21
26 July 2017
| NAV Per Unit: AED 1.21 | 26 July 2017 | 26 July 2017 |
|---|---|---|
| Market Overview & Fund Manager Comments The Al Mal Liquidity Fund was up 0.13% in July, and has delivered returns of c.21.3% since its launch in April 2009. 1-week EIBOR had been in ranging between 1.09% to 1.15% in July and ended the month at 1.15%.The fed has already increased the rates twice in 2017 and might go for one more hike if the job creation data remain strong Liquidity conditions continue to be at comfortable levels with most of the government deposits coming back to the system up 5.4% year to date. 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 1.25 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 Fund NAV 1 Week EIBOR (Benchmark) 23% 15% 15% 47% 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% 0.13% 0.13% 1.1% 1.7% |
1.5% 1.7% 1.9% 2.1% 2.6% 3.8% 21.3% |
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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