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AL Mal UAE Equity Fund Fund Information / Factsheet 2017

Jul 11, 2017

66382_rns_2017-07-11_41c396d5-4b35-4c89-8a00-4a9ea25b811c.pdf

Fund Information / Factsheet

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MONTHLY FACT SHEETS June 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 28 June 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 -0.44% -0.07% 6.40% 36.48%
S&P UAE Composite Index -0.59% 1.39% 0.78% -37.14%
Al Mal MENA Equity Fund June 2008 USD 8.26 0.73% 2.74% 9.11% -17.40%
S&P Pan Arab Large Cap Index 1.33% 4.23% 3.87% -41.67%

Income Funds

Income Funds
As of 28 June 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 12.78 3.82% -0.87% 1.30% 37.02%
Al Mal Liquidity Fund April 2009 AED 1.21 1.76% 0.14% 0.93% 21.12%

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 8.26

Performance Graph

Saudi Arabia dominated the scene in June after the MSCI watch-list addition. We have been increasing our allocation to Saudi, but still cautious in adding names. The Fund is up for the 3rd consecutive month increasing by +2.7% versus +4.2% for the benchmark. June’s relative underperformance is due to lower exposure to Saudi.

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12.0 Al Mal MENA Equity Fund
S&P Pan Arab LargeCap Index (Rebased)
10.0
8.0
6.0
4.0
Performance [1] Fund Benchmark [2] Relative Perf.
MTD 2.7% 4.2% -1.5%
YTD 9.1% 3.9% 5.2%
1 Year 8.8% 13.4% -4.6%
3 Years -18.0% -20.3% 2.3%
5 Year 21.5% 4.9% 16.6%
Since Inc. -17.4% -41.7% 24.3%
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
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Many will argue that the recent rally in Saudi will be short lived. While we do not have a crystal ball and also believe volatility will stay high, we view recent developments as positive. It is not just about the inclusion into MSCI index itself, but we actually like the new energy among Saudi decision makers and if the positive momentum continues, Saudi is a place where we definitely want to be invested in. Indeed, there one aspect of the Saudi story on which we are getting very comfortable: not only Saudi leaders have the ability to change things, but more importantly they now have the willingness to do so.

Saudi Banks

We believe there are strong arguments for higher allocation– Fundamentally, improving net interest margins, better system liquidity, strong capitalization, cheap valuations and higher payouts. Technically, it is all about the MSCI upgrade next year and FTSE by year end.

Generally speaking banks are more like a “black box”, as we do not know to whom they are lending and how much risk they assume. Therefore, we like banks which maintains a nice balance between their credit and sales cultures, and at the same time have enough scale to control costs. A clear reflection of a healthy culture is payout ratio. Indeed, banks who are more comfortable with their loan book, future profitability and capital base maintains healthy dividends. One bank which we believed is close to a reflection point is National Commercial Bank.

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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28 June 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%
3.9%
5.2%
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%
-41.7%
24.3%
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
1.4%
-0.8%
2.2%
May
3.5%
0.70%
2.8%
Jun
2.7%
4.2%
-1.5%
Jul
Aug
Sep
Oct
Nov
Dec
2017
9.1%
3.9%
5.2%
Sector Allocation
Geographic Allocation
0%
10%
20%
30%
40%
50%
60%
Banks
Materials
Telecom
Real Estate
Food & Beverage
Utilities
Transportation
Insurance
Consumer Services
Financial Services
Industrial Food
Healthcare
Technology
Industrial General
Services
Cash
Other
Benchmark
Fund
Since Inc.
-17.4%
-41.7%
24.3%
1 Performance is net of fees
Top Portfolio Holdings % of Fund
Aramex 7.0
NMC Health 6.5
DP World
Emaar Properties
6.5
6.2
National Commercial Bank 5.8
Total # of Holdings 23

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

Cash
Fund Characteristics2 Fund Benchmark Other
Standard Deviation
Sharpe Ratio
Beta
Tracking Error
Information Ratio
2Calculated using 5-year weekly data
14.6%
0.15
0.96
5.7%
0.53
14.1%
-0.06
-
Saudi Arabia
Qatar
Kuwait
Abu Dhabi
Dubai
Egypt
Nasdaq Dubai
London
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 4
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Al Mal UAE Equity Fund– Monthly Factsheet

NAV Per Unit: AED 1.32

Performance Graph

The market rebounded in June and added +1.4%, while the Fund retracted by -0.1% on a flatfish performance by our core names. This brings our yearto-date performance to +6.4% outperforming the benchmark by +5.6%. Most of the index performance can be explained by the rally in Dana Gas. The company surprised the market by declaring its USD700 million Sukuk maturing in October, 2017 as unlawful under the sharia law, hence the UAE law. This might seem perplexing, but a lot can be explained by understanding Dana’s current troubles.

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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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The Dana Story:

Dana Gas has around USD900 million (47% of its capital) in receivables, and even though the Egyptian government paid part of its dues recently, timely collections are still the company’s biggest challenge. The bulk of receivables are in Kurdistan and the situation there is not clear. There is an independence referendum in September this year and as a result military buildup on the Turkish border, therefore, it might be years before we see a solution there. Moreover, there is no guarantee that receivables won’t build up again in Egypt.

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

Performance2 Fund Benchmark3 Relative
Performance
MTD
YTD
-0.1%
6.4%
1.4%
0.8%
-1.5%
5.6%
1 Year 12.2% 6.0% 6.2%
3 Year
5 Year**
-7.0%
117.2%
-11.9%
97.0%
4.9%
20.2%
Since Inc.* 36.48% -37.1% 73.6%

It is true the company has good assets and a dozen of law suits, but the best firms can collapse on cash-flow shortage, and this is where the situation got critical for the company. Maintaining current spending and production levels was almost impossible with such high interest rates (USD69 million on the Sukuk in 2016, which is 28% of their net revenue for the year), therefore, some drastic measures needed to take place.

Since the current Sukuk are unlawful, the company is trying to price the new ones at 50% lower, which is kind of harsh in our opinion and might affect confidence in the market. Usually equity investors suffer before bondholder, but it seems not in this case.

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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28 June 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]

Performance
Yearly
Fund Benchmark Relative
Perf.
Performance
Monthly
Fund Benchmark Relative
Perf.
Sector Allocation Sector Allocation Sector Allocation Sector Allocation Sector Allocation Sector Allocation Sector Allocation Sector Allocation Sector Allocation Sector Allocation Sector Allocation Sector Allocation
YTD 2017 6.4% 0.8% 5.6% Jan 3.7% 3.6% 0.1%
Cash
2016 7.9% 9.0% -1.1% Feb 1.4% 1.1% 0.3%
2015 -15.3% -17.6% 2.3% Mar -1.5% -4.5% 3.0% Healthcare
2014
2013
2012
11.2%
81.4%
28.7%
7.5%
88.0%
23.5%
3.7%
-6.6%
5.2%
Apr
May
Jun
1.5%
1.3%
-0.1%
1.0%
-1.6%
1.4%
0.5%
2.9%
-1.5%
Transport
Diversified
2011 -18.4% -17.7% -0.7% Jul Real Estate
2010 -1.0% -8.8% 7.8% Aug
Sep
Banks
2009 31.2% 24.6% 6.6%
Oct 0% 10% 20% 30% 40%
2008 -56.9% -69.4% 12.5%
2007 50.4% 54.8% -4.4% Nov
Dec
Benchmark Fund
2006 -19.1% -35.2% 16.1% 2017 6.4% 0.8% 5.6% Geographic Allocation
Since Inc. 36.5% -37.1% 73.6%
1Performance is net of fees
Top Portfolio Holdings % of Fund Fund Characteristics2 Fund Benchmark Cash
Emaar Properties
Aramex
14.8
12.8
Standard Deviation
Sharpe Ratio
Beta
20.4%
0.73
0.89
22.7%
0.56
-
Nasdaq
London Stock
Exchange
First Abu Dhabi Bank 12.5 Tracking Error 4.6% Dubai
Total # of Holdings 9 Information Ratio
2Calculated using 5-year weekly
data 0.31 Abu Dhabi
Source: Al Mal internal performance measurement based on reports from third-party administrators (Standard Chartered/Apex) 0% 20% 40% 60%
Benchmark Fund

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Sector Allocation
Cash
Healthcare
Diversified
Transport
Real Estate
Banks
0% 10% 20% 30% 40%
Benchmark Fund
Geographic Allocation
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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

28 June 2017

NAV Per Unit: USD 12.78

NAV Per Unit: USD 12.78 28 June 2017 28 June 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 down 0.9% in June. The Fund has delivered
returns of 37% since its launch in February 2009.
US Fed delivered the much anticipated rate hike last month on back of
improving economic activity & lower unemployment, although it did take note
of the recent downtrend in inflation. The central bank reiterated its gradual
stance on future rate hikes- the median projections for both 2017 & 2018
remained unchanged indicating 3 hikes of 25 bps each year, despite inflation
staying below its 2% objective for an extended time period.
Local fixed income markets saw significant downward price movements amidst
a tense regional political environment after 6 Arab countries led by Saudi
Arabia moved to cut diplomatic & economic ties with Qatar. Barclays GCC
bond OAS index gained 9%. 5 year CDS spreads expanded across the board.
Furthermore, Fitch revised Oman's outlook to negative from stable, on
declining oil prices- the country's fiscal deficit widened to 21% of GDP in 2016.
9.8
10.3
10.8
11.3
11.8
12.3
12.8
13.3
13.8
14.3
14.8
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
Al Mal Liquidity Fund
BBB/ A2
20.8
CBQ Finance Ltd.
Not Rated
6.8
3.508% ICD Sukuk Co. Ltd.
BB-/BB+
6.3
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
Sharjah
Abu Dhabi
Qatar
Fixed Deposit
Muscat
Kuwait
Bahrain
0%
10%
20%
30%
40%
50%
Government Bonds
Utilities
Banking
Real Estate
Financial Services
Transportation
Banks
Retail
Telecom
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%
37.0%
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%
1.3%
1.5%
0.9%

Market Overview & Fund Manager Comments

Al Mal MENA Income Fund was down 0.9% in June. The Fund has delivered returns of 37% since its launch in February 2009.

US Fed delivered the much anticipated rate hike last month on back of improving economic activity & lower unemployment, although it did take note of the recent downtrend in inflation. The central bank reiterated its gradual stance on future rate hikes- the median projections for both 2017 & 2018 remained unchanged indicating 3 hikes of 25 bps each year, despite inflation staying below its 2% objective for an extended time period.

Local fixed income markets saw significant downward price movements amidst a tense regional political environment after 6 Arab countries led by Saudi Arabia moved to cut diplomatic & economic ties with Qatar. Barclays GCC bond OAS index gained 9%. 5 year CDS spreads expanded across the board. Furthermore, Fitch revised Oman's outlook to negative from stable, on declining oil prices- the country's fiscal deficit widened to 21% of GDP in 2016.

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

28 June 2017

NAV Per Unit: AED 1.21 28 June 2017 28 June 2017
Market Overview & Fund Manager Comments
The Al Mal Liquidity Fund was up 0.14% in June, and has delivered returns of c.21.1% since its launch in April 2009.
1-week EIBOR jumped from 0.82% to end the month at 1.07% as did interbank rates across the GCC region, because
of the crisis in Qatar. As of May though, the last data available from the Central Bank, liquidity in the banking sector
was comfortable as measured by the Lending to Stable Resources Ratio of 84.8%. Govt. deposits were up 10%
compared to the first quarter.
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% 0.14%
0.9%
1.7%
1.5%
1.7%
1.9%
2.1%
2.6%
3.8%
21.1%

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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