AL Mal UAE Equity Fund — Fund Information / Factsheet 2017

Dec 13, 2017

MONTHLY FACT SHEETS November 2017

Al Mal UAE Equity Fund Al Mal MENA Equity Fund

Al Mal Investments Funds – Performance Review

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Equity Funds

Equity Funds
As of 29 November	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	-0.14%	-3.81%	10.86%	42.41%
S&P UAE Composite Index			0.37%	-6.63%	-0.96%	-38.22%
Al Mal MENA Equity Fund	June 2008	USD 8.46	0.83%	0.83%	15.77%	-12.36%
S&P Pan Arab Large Cap Index			0.96%	-0.90%	0.01%	-43.84%

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

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NAV Per Unit: USD 8.46

November was among the most volatile months so far this year and ended with the benchmark losing -0.9%. Whether it is for the right or wrong reasons many investors were left nervous on the back of Saudi Arabia’s crackdown on corruption, but the irony was Kuwait and the UAE selloff came much stronger than in Saudi Arabia. The dichotomy of performance is due to strong institutional buying in Saudi Arabia and GCC investors selling in Kuwait and UAE. Nevertheless, the Fund advanced by +0.8% during the month, bringing the year-to-date outperformance to +15.8%. Outperformance last month mainly came from WALAA Insurance which advanced by 17.2% during the period. In addition, Egypt Kuwait Holding which we discussed last month added 6.4%.

Saudi Insurance

We discussed the investment case for Saudi insurers several times over the past months. One of our value picks in the sector WALAA Insurance reported strong third quarter results with bottom line increasing 11% versus 2016; they also decided to distribute 10% bonus shares to support future growth. The company is still attractive at a 2018 Price-to-Book value of 1.9x and Return on Equity of 22.4%. Consolidation is the next big thing for Saudi insurers and the sector should benefit from allowing women to drive. In addition, further reforms to reduce the gap of uninsured cars in the Kingdom (50% at the moment) should also support growth.

Medium term outlook

With OPEC deal extension and lower geopolitical tension the biggest risk for investors at this stage would be to stay out of the market. The region is still going through massive structural political and economic changes and volatility will probably stay elevated, but the best way to leverage on these changes and ride volatility is by investing in sound businesses.

Performance Graph

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Al Mal MENA Equity Fund
12.0 S&P Pan Arab LargeCap Index (Rebased)
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 Oct-17
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	Performance1	Fund	Benchmark2	Relative Perf.
	MTD YTD	0.8% 15.8%	-0.9% 0.0%	1.7% 15.8%
	1 Year	18.1%	3.3%	14.8%
	3 Years	-7.7%	-18.0%	10.3%
	5 Year	27.2%	0.7%	26.5%
	Since Inc.	-12.4%	-43.8%	31.4%

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

29 November 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]

Top Portfolio Holdings % of Fund NMC Health 7.7 Walaa Insurance 5.7 Budget 5.0 EK Holding 5.0 DP World 4.5 Total # of Holdings 25 Performance Fund Benchmark Relative Perf. YTD 2017 15.8% 0.0% 15.8% 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. -12.4% -43.8% 31.4% 1Performance is net of fees

Fund Characteristics2 Fund Benchmark Standard Deviation 14.5% 14.1% Sharpe Ratio 0.20 -0.14 Beta 0.94 - Tracking Error 6.1% Information Ratio 0.80 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 0.0% 0.2% -0.2% Aug 1.2% 0.1% 1.1% Sep 1.2% -1.0% 2.2% Oct 2.7% -2.2% 4.9% Nov 0.8% -0.9% 1.7% Dec 2017 15.8% 0.0% 15.8% Sector Allocation Geographic Allocation Abu Dhabi Qatar Dubai Egypt Kuwait London Saudi Arabia Nasdaq Other Cash 0% 10% 20% 30% 40% 50% 60% Banks Real Estate Telecoms Fin Services Industrial Transportation F&B Services Cash Healthcare Insurance Others Benchmark Fund

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

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

November was among the most volatile months so far this year and ended with the benchmark losing -6.6%. The correction was triggered by Saudi Arabia crackdown on corruption, which left many investors nervous. The irony was Kuwait and the UAE selloff came much stronger than in Saudi Arabia. The dichotomy of performance is due to strong institutional buying in Saudi Arabia and GCC investors selling in Kuwait and UAE.

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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 Jul-17
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The Fund declined by -3.8% during the month.

Emaar Development investors receive full allocation

Emaar Development is among the strongest in Dubai real estate market. The company Sales backlog of AED 40 billion to be recognized over the next 4 years will generate net cash inflow of close to AED16 billion and so we think the targeted dividend of AED6.2 billion over the coming 3 years should be pretty comfortable. At current price this implies a dividend yield of around 10%. This is higher than directly buying real estate and any visibility concerns should be more than offset by much higher liquidity versus directly investing in real estate.

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

	Performance2	Fund	Benchmark3	Relative Performance
	MTD	-3.8%	-6.6%	-2.8%
	YTD 1 Year	10.9% 15.9%	-1.0% 2.9%	11.9% 13.1%
	3 Year*	-6.4%	-18.8%	12.5%
	5 Year*	96.2%	74.9%	21.3%
	Since Inc.*	42.4%	-38.2%	80.6%

In addition, the Joint Venture with Dubai government related entities – especially Meraas - allows access to excellent land bank, on which Emaar Development plans to launch 10,000 units in each of the next 5 years.

Given the typically high margin involved in regional IPOs, receiving full allocation had caught many punters off-guard, and once margins are cleared from the system we expect the stock to trade around its true fundamentals.

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 November 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 NMC Health 14.9 Emaar 14.1 DP World 12.5 Total # of Holdings 12 Performance Yearly Fund Benchmark Relative Perf. YTD 2017 10.9% -1.0% 11.9% 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. 42.4% -38.2% 80.6% 1Performance is net of fees

Fund Characteristics2 Fund Benchmark Standard Deviation 20.4% 22.7% Sharpe Ratio 0.60 0.43 Beta 0.88 - Tracking Error 5.0% Information Ratio 0.35 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 1.5% -0.4% 1.9% Sep -1.1% -1.4% 0.3% Oct 4.0% 2.8% 1.2% Nov -3.8% -6.6% 2.8% Dec 2017 10.9% -1.0% 11.9% Sector Allocation Geographic Allocation 2Calculated usin 5-ear weekl data 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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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 7
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