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AL Mal UAE Equity Fund — Fund Information / Factsheet 2017
Nov 9, 2017
66382_rns_2017-11-09_5785aef6-433d-4a62-ba3d-01cca11439aa.pdf
Fund Information / Factsheet
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MONTHLY FACT SHEETS October 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 25 October | 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 1.37 | 1.77% | 4.02% | 15.25% | 48.04% |
| S&P UAE Composite Index | 0.67% | 2.83% | 6.08% | -33.83% | ||
| Al Mal MENA Equity Fund | June 2008 | USD 8.39 | 0.36% | 2.69% | 14.82% | -13.09% |
| S&P Pan Arab Large Cap Index | -0.08% | -2.18% | 0.92% | -43.33% |
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 8.39
October was a very decent month for the fund as we add another 2.7% of performance supported by EK Holding in Egypt and NMC Healthcare in the UAE. Meanwhile, the benchmark lost -2.2% during the month with Saudi, Qatar and Oman being the weakest market over the period.
Allocating to Oman for the first time this year
Oman is canceling the bidding process for the third mobile license. We stay very skeptical of any material development on the third license and believe the regulator will settle with just two operators for the moment. This development did not come as surprise to us and were suspecting such a thing after the incumbent operator Omantel acquired a stake in Kuwait’s largest player Zain Telecommunications and the bid was extended from its original date in September. We built a position in Ooredoo Oman prior to the event as it was trading at battered valuations and we saw very limited downside risk even when pricing in a third operator. It is amongst the cheapest telecoms within the MENA universe at EV/EBITDA of 2.6x, P/E ratio of 9x times and a dividend yield of 7.9%.
Holding Curse
Holding companies are loathed by most investors and we agree on most occasions, especially when underlying companies are coming from unrelated industries. However, when a holding operates within the same industry, but through several companies, we keep a close eye on it, as the traditional “holding discount” could bring in great opportunities. EK Holding , managed to overcome many hurdles and continues to divest non-core businesses. We believe the company still has more to add given its attractive valuation, a strong balance sheet and a probable dividend hike.
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 Oct-17
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| Performance1 | Fund | Benchmark2 | Relative Perf. | |
|---|---|---|---|---|
| MTD | 2.7% | -2.2% | 4.9% | |
| YTD | 14.8% | 0.9% | 13.9% | |
| 1 Year | 14.4% | 9.5% | 4.8% | |
| 3 Years 5 Year |
-16.3% 24.7% |
-25.3% 1.1% |
9.0% 23.6% |
|
| Since Inc. | -13.1% | -43.3% | 30.2% |
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
25 October 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 | 14.8% | 0.9% | 13.9% |
| 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. | -13.1% | -43.3% | 30.2% |
| Since Inc. -13.1% -43.3% |
30.2% |
|---|---|
| 1Performance is net of fees | |
| Top Portfolio Holdings | % of Fund |
| NMC Health | 8.5 |
| Budget | 5.8 |
| Walaa Insurance | 5.3 |
| EK Holding | 5.1 |
| DP World | 5.0 |
| 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 | 1.2% | 0.1% | 1.1% | Real Estate Telecoms |
||||||||
| Sep | 1.2% | -1.0% | 2.2% | Banks | ||||||||
| Oct | 2.7% | -2.2% | 4.9% | 0% | 10% | 20% | 30% | 40% | 50% | 60% | ||
| Nov Dec |
Benchmark | Fund | ||||||||||
| 2017 | 14.8% | 0.9% | 13.9% | 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% | 14.1% |
| Sharpe Ratio | 0.19 | -0.11 |
| Beta | 0.94 | - |
| Tracking Error | 6.0% | |
| Information Ratio | 0.73 |
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
UAE Markets rebounded in October and added +2.8% supported by Drake n’ Scull and Dubai Investments. We believe gains in DSI are not sustainable given the big dilution post Tabarak’s AED500 capital injection. The Fund performed well adding +4.0% during the month on the back of gains in NMC Health and DP World.
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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-06Sep-06 Feb-07Jul-07 Dec-07May-08 Oct-08 Mar-09Aug-09Jan-10Jun-10 Nov-10Apr-11Sep-11 Feb-12Jul-12 Dec-12May-13 Oct-13 Mar-14Aug-14Jan-15Jun-15 Nov-15Apr-16Sep-16 Feb-17Jul-17
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More strength from DP World
DP World – one of our core holding – disclosed a good set of volume numbers for the third quarter of 2017. Like for like growth across all regions came in at +9.3% versus the same period last year (yoy), driven by sustained improvement in global trade. This is ahead of Drewry Maritime’s industry throughput growth estimate of 5.5% for this year. The UAE handled 3.9m TEU (twenty foot equivalent unit), up 5.3% yoy despite the ban of trade with Qatar. The company’s unique value offering to its clients (logistical infrastructure and value chain across the globe) should help DP World to generate above sector average growth in the years to come.
1Benchmark was MSCI UAE Index since inception until Dec 2008, replaced thereafter by S&P UAE Composite Index
| Performance2 | Fund | Benchmark3 | Relative Performance |
|
|---|---|---|---|---|
| MTD | 4.0% | 2.8% | 1.2% | |
| YTD 1 Year |
15.3% 22.3% |
6.1% 11.2% |
9.2% 11.1% |
|
| 3 Year 5 Year** |
-6.2% 108.0% |
-17.2% 86.3% |
10.9% 21.7% |
|
| Since Inc.* | 48.0% | -33.8% | 81.8% |
Emaar Development IPO
The upcoming IPO of Emaar Development continues to make the headlines. The holding company Emaar Properties stated it would only offer 20% of its stake in Emaar Development which is lower than the initial announcement of up to 30%. The proceeds will be paid in the form of a special dividend to the parent’s company shareholders. We think the market (and most retail investors) are underestimating the value of this one off dividend. We indeed believe that this one off dividend could be higher than what is implied by the cash inflow from the equity sale (~AED5.6 billion or AED0.79 per share). This possible upside surprise could bring in more excitement on the story.
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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25 October 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 15.4 NMC 14.4 DP World 12.2 Total # of Holdings 10 Performance Yearly Fund Benchmark Relative Perf. YTD 2017 15.3% 6.1% 9.2% 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. 48.0% -33.8% 81.8% 1Performance is net of fees |
Fund Characteristics2 Fund Benchmark Standard Deviation 20.4% 22.5% Sharpe Ratio 0.68 0.51 Beta 0.89 - Tracking Error 4.8% Information Ratio 0.30 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 Dec 2017 15.3% 6.1% 9.2% Sector Allocation Geographic Allocation 2Calculated using 5-year weekly 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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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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