AL Mal UAE Equity Fund — Fund Information / Factsheet 2019

Dec 9, 2019

NAV Per Unit: USD 8.56

Al Mal MENA Equity Fact Sheet

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November 2019

Fund Manager Charles-Henry Monchau, CFA Sherif El Haddad Vrajesh Bhandari, CFA Tamara Tannir, CFA Inception Date 15th June 2008 Fund Size USD 25 million Strategy Size USD 80 million Fund Registration Bahrain Currency USD Subscription Weekly Min Subscription USD 250,000 Bloomberg Code MALMENE BI Reuters Code LP65123002 Management Fee 1.75% Subscription Fee Up to 3% Redemption Weekly Benchmark Index S&P Pan Arab Composite Fund Type Open Ended Administrator Apex Custodian Standard Chartered Auditors PricewaterhouseCoopers 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. Key Terms: Perf 1 Mo YTD 1 Ye 3 Ye 5 Ye Sinc Perf 201 201 201 201 201 201 201 201 201 201 200 200 Sinc	ormance Fund Benchmark Relative Perf.
	9 4.5% 2.4% 2.1% 8 2.6% 6.8% -4.1% 7 17.8% 1.3% 16.5% 6 -3.7% 4.1% -7.8% 5 -12.5% -17.6% 5.1% 4 -0.7% -1.5% 0.8% 3 31.1% 18.9% 12.2% 2 6.6% 2.6% 4.0% 1 -8.8% -15.1% 6.3% 0 15.7% 13.9% 1.8% 9 17.7% 12.7% 5.0% 8 -47.5% -49.9% 2.4% e Inc. -4.3% -37.5% 33.2%
	ormance1 Fund Benchmark2 Relative Perf.
	nth -0.5% 0.4% -0.9% * 4.5% 2.4% 2.1% ar 6.2% 3.3% 2.9% ars 29.0% 13.9% 15.2% ar 0.9% -11.2% 12.1% e Inc.** -4.3% -37.5% 33.2%

Performance

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Al Mal MENA Equity Fund S&P Pan Arab Composite Index (Rebased)
12.0
10.0
8.0
6.0
4.0
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19 Jun-19 Oct-19
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• As of 27[th] of November 2019

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 Index

Al Mal MENA Equity Fact Sheet

NAV Per Unit: USD 8.56

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November 2019

Fund Manager Commentary:

MENA Equities once again underperformed global markets in November as the S&P Pan Arab Index added just 0.4% in the month while US index S&P 500 jumped 3.5% and MSCI EM gained 1.1%. As we go into the last lap of 2019, Kuwait is leading the pack though Egypt is right behind in USD terms. November was only the third month in 2019, where our Fund performance was behind the benchmark.

The news flow remains dominated by the Aramco IPO. Saudi Arabia has just pulled off the biggest IPO, raising $25.6 bn, ahead of Alibaba's $21.8bn. The IPO values Aramco at roughly $1.7 tn, making it the most valuable publicly traded company in the world. MSCI stated that if Aramco starts trading on or before 12 Dec’19, it would add the company to the Indices on the 17th. The central bank doubled leverage limits for retail investors - banks are permitted to lend at a ratio of 2 to 1. For corporate and institutional customers, the financing is based on each one’s creditworthiness. The company has promised minor investors a prorated share of at least $75 bn in dividends for the coming 5 years, guaranteeing a yield and allowing the stock to be viewed as a quasisovereign bond. Regardless of the immediate upside, we believe this is a strong medium-term story that can anchor different kinds of portfolios.

In Egypt, EK Holding reported a good set of 3Q results as net income grew 15% y/y. Contributions came from both the major segments - Sprea’s bottom-line jumped 48%, while ONS delivered strong numbers on the back of the gas production ramp-up.

	Top Portfolio Holdings	% of Fund
	National Bank of Kuwait	8.4
	Al Rajhi Bank	5.9
	Qatar National Bank	5.3
	Saudi Basic Industries Corp	3.7
	Emirates NBD	3.7
	Total # of Holdings	38

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

	Fund Characteristics2	Fund	Benchmark
	Standard Deviation	9.1%	9.8%
	Sharpe Ratio	0.77	0.26
	Beta	0.72
	Tracking Error	6.3%
	Information Ratio	0.58

2 Calculated using 3-year weekly data

Qatar Electricity and Water’s subsidiary, Nebras Power, announced that is has acquired an 80% stake in a portfolio of four major solar projects in Brazil with total installed capacity of 482.6 MW. It also bought a 10% stake in a renewal energy company in Oman, which owns the solar PV project with an expected power generation capacity of up to 105MW.

Aviation Lease and Finance Co (Alafco) in Kuwait has sold 13 planes from the firm's portfolio through an auction as well as signed new leasing contracts. This helped the company register profits worth KWD 7.8mn during the fiscal year ended Sep 2019.

Geographic Allocation

Sector Allocation

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Other Consumer Staples
Real Estate
Cash
Cash
Egypt
Consumer Discretionary
Qatar Telecom
Industrials
Kuwait
Materials
United Arab Emirates
Others
Saudi Arabia Financials
0% 10% 20% 30% 40% 50% 60% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Benchmark Fund Benchmark Fund
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Disclaimer

None of the information and opinions contained herein is intendedto form the basis for any investment or trading decision, and no specific recommendations are intended. The products and transactions described herein are not suitable for every investor. Such products and transactions are only suitable for sophisticatedand knowledgeable professional users of financial instruments, and are structured and customizedto the needs and objectives of each investor. The information and opinions contained herein have been prepared for informational purposes only and do not constitute an offer to sell, or solicitation of an offer to purchase, any security, any commodity futures contractor commodity-related product, any derivative product, or any trading strategy or service described herein.

Neither Al Mal Capital PSC nor any of its affiliates, directors, authorizedmanagers and/or employees accepts liability for any loss arising from the use of or makes any representation as to the accuracy or completeness of the terms and conditions of products and transactions described herein. Finalizedterms and conditions are subject to further discussion and negotiation, andwill be determinedin part on the basis of pricing andvaluation models, data, and assumptions that are proprietary to Al Mal Capital and its affiliates. No assurance can be given that a product or transaction can, in fact, be executed on any representative terms indicated herein.

AZ Al Mal MENA Equity Fact Sheet

NAV Per Unit: USD 4.77

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November 2019

Investment Manager Azimut (DIFC) Limited Investment Advisers Al Mal Capital PJSC Inception Date 26th June 20191 Fund Size USD 48 million Strategy Size USD 80 million Fund Registration Luxembourg Currency USD Subscription Weekly (Tuesday, 1:00PM CET) Min Subscription USD 1 (Retail) -250,000 (Institutional) Bloomberg Code AZ3AZUA LX Management Fee 0.85% (Institutional); 1.5-2% (Retail) Subscription Fee Up to 2% Redemption Weekly (Tuesday, 1:00PM CET) Benchmark Index S&P Pan Arab Composite Fund Type Open Ended Administrator BNP Paribas Custodian BNP Paribas Auditors PricewaterhouseCoopers 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. Key Terms:

Performance2 Fund Benchmark3 Relative Perf. 1 Month -0.6% 0.4% -1.1% YTD -4.6% -6.3% 1.7% 1 Year 6.3% 3.3% 2.9% 3 Years 29.1% 13.9% 15.2% 5 Year 0.9% -11.2% 12.1% Since Inc. -4.6% -6.3% 1.7% Performance Fund Benchmark Relative Perf. 2019 -4.6% -6.3% 1.7% 2018 2.6% 6.8% -4.1% 2017 17.8% 1.3% 16.5% 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.* -4.6% -6.3% 1.7%

Performance

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Al Mal MENA Equity Fund S&P Pan Arab Composite Index (Rebased) AZ Al Mal Equity Fund
12.0
10.0
8.0
6.0
4.0
Jun-08 Oct-08 Feb-09 Jun-09 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 Oct-13 Feb-14 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19 Jun-19 Oct-19
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• As of 27[th] of November 2019

• ** The AZ Al Mal Equity Fund was launched on June 30th, 2019. The fund follows the same investment strategy as the Al Mal MENA Equity Fund. Source: Al Mal internal performance measurement based on reports from third-party administrators (BNP Paribas)

• 1 The fund inception of the Al Mal MENA Equity Fund (Bahrain Domicile) is June 15th 2008

• 2 Performance is net of fees; 3-year and 5-year return is cumulative; returns are calculated using the data of Al Mal MENA Equity Fund

• 3 S&P Pan Arab Composite Index

AZ Al Mal MENA Equity Fact Sheet

NAV Per Unit: USD 4.77

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November 2019

Fund Manager Commentary:

MENA Equities once again underperformed global markets in November as the S&P Pan Arab Index added just 0.4% in the month while US index S&P 500 jumped 3.5% and MSCI EM gained 1.1%. As we go into the last lap of 2019, Kuwait is leading the pack though Egypt is right behind in USD terms. November was only the third month in 2019, where our Fund performance was behind the benchmark.

The news flow remains dominated by the Aramco IPO. Saudi Arabia has just pulled off the biggest IPO, raising $25.6 bn, ahead of Alibaba's $21.8bn. The IPO values Aramco at roughly $1.7 tn, making it the most valuable publicly traded company in the world. MSCI stated that if Aramco starts trading on or before 12 Dec’19, it would add the company to the Indices on the 17th. The central bank doubled leverage limits for retail investors - banks are permitted to lend at a ratio of 2 to 1. For corporate and institutional customers, the financing is based on each one’s creditworthiness. The company has promised minor investors a prorated share of at least $75 bn in dividends for the coming 5 years, guaranteeing a yield and allowing the stock to be viewed as a quasisovereign bond. Regardless of the immediate upside, we believe this is a strong medium-term story that can anchor different kinds of portfolios.

In Egypt, EK Holding reported a good set of 3Q results as net income grew 15% y/y. Contributions came from both the major segments - Sprea’s bottom-line jumped 48%, while ONS delivered strong numbers on the back of the gas production ramp-up.

Qatar Electricity and Water’s subsidiary, Nebras Power, announced that is has acquired an 80% stake in a portfolio of four major solar projects in Brazil with total installed capacity of 482.6 MW. It also bought a 10% stake in a renewal energy company in Oman, which owns the solar PV project with an expected power generation capacity of up to 105MW.

	Top Portfolio Holdings	% of Fund
	NATIONAL BANK OF KUWAIT	8.3
	AL RAJHI BANK	5.9
	QATAR NATIONAL BANK	5.4
	SAUDI BASIC INDUSTRIES CORP	3.7
	EMIRATES NBD PJSC	3.7
	NMC HEALTH PLC	3.1
	EMIRATES TELECOM GROUP CO	3.1
	EMIRATES TELECOM GROUP CO	3.1
	KUWAIT FINANCE HOUSE	3.1
	DP WORLD PLC	2.9
	Total # of Holdings	38.00

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

	Fund Characteristics2	Fund	Benchmark
	Standard Deviation	9.0%	9.7%
	Sharpe Ratio	0.54	0.05
	Beta	0.86
	Tracking Error	6.4%
	Information Ratio	0.52

2 The fund characteristics are based on the historical data of the Al Mal MENA Equity Fund as the AZ Al Mal Equity Fund will continue to follow the same strategy. It is calculated using 3-year weekly data

Aviation Lease and Finance Co (Alafco) in Kuwait has sold 13 planes from the firm's portfolio through an auction as well as signed new leasing contracts. This helped the company register profits worth KWD 7.8mn during the fiscal year ended Sep 2019.

Geographic Allocation

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Sector Allocation
Others Others
Health Care
Cash
Real Estate
Egypt
Communication Services
Qatar
Industrials
Kuwait
Materials
United Arab Emirates
Consumer Discretionary
Saudi Arabia Financials
0.00 20.00 40.00 60.00 0.00 20.00 40.00 60.00
Benchmark Fund Benchmark Fund
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Disclaimer

None of the information and opinions contained herein is intendedto form the basis for any investment or trading decision, and no specific recommendations are intended. The products and transactions described herein are not suitable for every investor. Such products and transactions are only suitable for sophisticatedand knowledgeable professional users of financial instruments, and are structured and customizedto the needs and objectives of each investor. The information and opinions contained herein have been prepared for informational purposes only and do not constitute an offer to sell, or solicitation of an offer to purchase, any security, any commodity futures contractor commodity-related product, any derivative product, or any trading strategy or service described herein. Neither Al Mal Capital PSC nor any of its affiliates, directors, authorizedmanagers and/or employees accepts liability for any loss arising from the use of or makes any representation as to the accuracy or completeness of the terms and conditions of products and transactions described herein. Finalizedterms and conditions are subject to further discussion and negotiation, andwill be determinedin part on the basis of pricing andvaluation models, data, and assumptions that are proprietary to Al Mal Capital and its affiliates. No assurance can be given that a product or transaction can, in fact, be executed on any representative terms indicated herein.

Al Mal UAE Equity Fact Sheet

NAV Per Unit: AED 1.20

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November 2019

	November 2019
	Fund Manager Charles-Henry Monchau, CFA Sherif El Haddad Vrajesh Bhandari, CFA Tamara Tannir, CFA Inception Date 5th April 2006 Fund Registration UAE Currency AED Fund Size AED 38mn 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 Up to 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 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. Key Terms: Performance1 1 Month YTD 1 Year 3 Years 5 Year Since Inc. Performance Yearly 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 Since Inc.*	Fund Benchmark2 Relative Perf. Fund Benchmark Relative Perf. 6.5% -1.2`% 7.7% -5.7% -7.7% 2.0% 7.8% -1.6% 9.4% 7.9% 9.0% -1.1% -15.3% -17.6% 2.3% 11.2% 7.5% 3.7% 81.4% 88.0% -6.6% 28.7% 23.5% 5.2% -18.4% -17.7% -0.7% -1.0% -8.8% 7.8% 31.2% 24.6% 6.6% -56.9% -69.4% 12.5% 50.4% 54.8% -4.4% -19.1% -35.2% 16.1% 39.7% -44.0% 83.7%
		-1.1% -2.4% 1.4% 6.5% -1.2% 7.7% 3.7% -3.7% 7.4% 0.0% 13.7% -13.7% -6.8% -8.2% 1.3% 39.7% -44.0% 83.7%

Performance

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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 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11 Apr-12 Aug-12 Dec-12 Apr-13 Aug-13 Dec-13 Apr-14 Aug-14 Dec-14 Apr-15 Aug-15 Dec-15 Apr-16 Aug-16 Dec-16 Apr-17 Aug-17 Dec-17 Apr-18 Aug-18 Dec-18 Apr-19 Aug-19
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• As of 27[th] of November 2019

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

1 Performance is net of fees; 3-year and 5-year return is cumulative

2S&P UAE Composite Index

Al Mal UAE Equity Fact Sheet

NAV Per Unit: AED 1.20

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November 2019

Fund Manager Commentary:

As it has been the case in recent history, the UAE equity markets performance is struggling in the fourth quarter. Both Dubai and Abu Dhabi closed in the negative territory last month. For our fund, NMC was a major contributor in November with a 19% gain that led to strong outperformance for Al Mal UAE Equity Fund.

Emirates NBD’s rights issue received total funded commitment in excess of AED 18bn, implying oversubscription by 2.8 times. NonUAE investors demand made up more than 60% of this, driven by the recent increase in Foreign Ownership Limit from 5% to 20%. We have further added to this high conviction name for 2020, along with DP world - which has been beaten down very heavily this year.

Air Arabia was introduced as a new idea to the fund this month. The airline announced the purchase of 120 new Airbus planes. Earlier the carrier formed a JV with Abu Dhabi’s Etihad Airways, which we think has a lot of potential. The airline has benefitted from rationalization within the industry along with other factors – grounding of 737 MAX and exit of Jet airways – and is expected to get a boost from the Expo.

	Top Portfolio Holdings	% of Fund
	Emirates NBD	15.2
	NMC Health	12.3
	Emaar Properties	11.9
	Total # of Holdings	10

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

	Fund Characteristics2 Standard Deviation	Fund 12.1%	Benchmark 13.2%
	Sharpe Ratio	0.17	-0.35
	Beta	0.75
	Tracking Error	7.6%
	Information Ratio	0.80

2 Calculated using 3-year weekly data

Portfolio holding DP World announced that the company’s expansion worth USD520mn (of which it owns 49%) of the Ain Sokhna seaport will be completed by the second quarter of 2020. The project involves building a second dock that will increase the port’s capacity to 1.75mn TEUs, from 970k.

October saw Dubai property sales hit highest monthly mark since 2008, as per data from DLD. Property finder says: “There is a lot of new supply in the market that is priced affordably and as we get closer to Expo 2020, we have seen many consumers decide this is the right time to buy. This is an indication of consumer confidence in the market leading to 2020’’. Off-plan properties account for 60% of the residential transactions to date and are still the favorite for investors due to attractive prices, payment plans and waiver of fees.

Geographic Allocation

Sector Allocation

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Energy
Cash
Cash
Abu Dhabi
Telecom
Real Estate
Other
Industrials
Nasdaq
Financials
Dubai Other
0% 20% 40% 60% 80%
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Benchmark Fund
Benchmark Fund
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Disclaimer

None of the information and opinions contained herein is intendedto form the basis for any investment or trading decision, and no specific recommendations are intended. The products and transactions described herein are not suitable for every investor. Such products and transactions are only suitable for sophisticatedand knowledgeable professional users of financial instruments, and are structured and customizedto the needs and objectives of each investor. The information and opinions contained herein have been prepared for informational purposes only and do not constitute an offer to sell, or solicitation of an offer to purchase, any security, any commodity futures contractor commodity-related product, any derivative product, or any trading strategy or service described herein. Neither Al Mal Capital PSC nor any of its affiliates, directors, authorizedmanagers and/or employees accepts liability for any loss arising from the use of or makes any representation as to the accuracy or completeness of the terms and conditions of products and transactions described herein. Finalizedterms and conditions are subject to further discussion and negotiation, andwill be determinedin part on the basis of pricing andvaluation models, data, and assumptions that are proprietary to Al Mal Capital and its affiliates. No assurance can be given that a product or transaction can, in fact, be executed on any representative terms indicated herein.