AI assistant
AL Mal UAE Equity Fund — Fund Information / Factsheet 2021
Nov 4, 2021
66382_rns_2021-11-04_433ce856-73d5-498f-9d7e-a24681a787ce.pdf
Fund Information / Factsheet
Open in viewerOpens in your device viewer
AZ Al Mal MENA Equity Fact Sheet October 2021
==> picture [102 x 27] intentionally omitted <==
==> picture [102 x 24] intentionally omitted <==
NAV Per Unit: USD 6.77
==> picture [133 x 49] intentionally omitted <==
Fund Manager Commentary
US markets closed out a very strong October with NASDAQ and S&P 500 showing 7.2% and 6.9% gains, respectively. October’s performance was largely driven by robust quarterly numbers from the big banks, followed by a heavy rotation into cyclical names. Brent prices continued their upward trajectory, passing the USD 85 per barrel mark, as more supply shortages coincided with higher demand from the power sector heading into the winter months as they look to substitute steep natural gas prices. Depleting stockpiles in the US and increasing demand in China all point towards continued stability and strength in the oil markets.
KSA banking stats issued by SAMA alleviated some concerns over a slowdown in mortgage growth, showing a 63% m/m increase to amount to SAR 13bn in August, suggesting the previous slowdown was rather seasonal. The mortgage theme continues to be instrumental for loan growth in our view and have positioned accordingly. Portfolio holding eXtra reported another solid quarter of earnings, with EPS up 67% y/y on the back of strong performance from its consumer finance arm Tas’heel while revenue increased 12% y/y on growth across all divisions. The CEO indicated that he continues to see strength in the electronics segment as prices of home appliances are set to rise by 10-20%, due to the global shipping crisis and notable support from IPhone 13 sales.
This month we saw Egypt state owned payment firm E-finance make its stock market debut. The stock was up c.50% on its first day of trading with the Finance Minister Mohamed Maait noting the IPO saw participation from US, UK and European investors. The Minister also noted the country is looking to list up to six state-affiliated companies this fiscal year under the nation’s recently resumed IPO program. We continue to like E-finance’s long-term growth prospects, at the center of Egypt’s efforts to digitize its payment and tax collection channels.
In Kuwait, Portfolio holding National Bank of Kuwait (NBK) reported a 63% y/y surge in Q3 earnings, on the back of a drop in provisioning, improved cost of risk and solid loan growth. We continue to like the name which has upside risks via the new mortgage law, underpinned by an O&G reliant economy, both of which are in an upswing. The improved macro backdrop should give some support to the name but we remain broadly cautiously optimistic on Kuwait.
Sector Allocation
==> picture [160 x 146] intentionally omitted <==
==> picture [64 x 138] intentionally omitted <==
----- Start of picture text -----
41% - Financials
10% - Materials
10% - Information Technology
9% - Consumer Discretionary
6% - Communication Services
6% - Industrials
5% - Health Care
4% - Cash
4% - Consumer Staples
3% - Real Estate
2% - Energy
----- End of picture text -----
Objective
Achieve capital appreciation, primarily through investment in equity and equity related securities in the Middle East and North African markets.
Fund Performance
| Fund Performance | |||||
|---|---|---|---|---|---|
| Performance1 | Fund | Benchmark2 | Alpha | ||
| 1 Month | 7.1% | 3.5% | 3.6% | ||
| YTD3 | 30.5% | 31.2% | -0.7% | ||
| 1 Year | 39.1% | 41.0% | -1.9% | ||
| 3 Year | 53.6% | 41.1% | 12.5% | ||
| 5 Year | 78.7% | 63.7% | 15.0% | ||
| Since Inc. | 35.3% | 26.8% | 8.5% |
1 Performance is net of fees; return is cumulative
2 S&P Pan Arab Composite Index
3 As of 27th Oct2021
Top 5 Holdings
| Holding | Top 5 Hongs | % of Fund | ||
|---|---|---|---|---|
| Al Rajhi Bank | 9.1 | |||
| Mouwasat Medical Services | 5.3 | |||
| United Electronics | 4.6 | |||
| Saudi National Bank | 4.6 | |||
| Saudi Basic Industries | 3.6 | |||
| Fund Analysis | ||||
| Matrix4 | Fund | Benchmark | ||
| Standard Deviation | 13.1% | 14.9% | ||
| Tracking Error | 5.5% | |||
| Beta | 0.8 | |||
| No. of Holdings | 47 |
4 The fund characteristics are based on the historical data of the Al Mal MENA Equity Fund as the AZ Al Mal Equity Fund continues to follow the same strategy; calculated using 3-year weekly data
Fund Information
| Investment Manager | Azimut (DIFC) Limited |
|---|---|
| Investment Advisers | Al Mal Capital PJSC |
| Fund Manager | Sherif El Haddad |
| Inception Date | June 26, 2019 |
| Fund Size | USD 86 million |
| Strategy Size | USD 250 million |
| Domicile | Luxembourg |
| Currency | USD |
| Subscription & Redemption | Weekly |
| Min Subscription | USD 1 (Retail) -250,000 (Institutional) |
| Bloomberg Code | AZ3AZUA LX |
| Management Fee | Up to 2.0% |
| Benchmark Index | S&P Pan Arab Composite |
| Fund Type | Open Ended |
| Administrator & Custodian | BNP Paribas |
Disclaimer
10Y Fund Strategy Performance
==> picture [337 x 173] intentionally omitted <==
----- Start of picture text -----
20
Al Mal MENA Equity Fund
18 S&P Pan Arab Composite Index (Rebased)
AZ Al Mal Equity Fund
50% - Saudi Arabia 16
14% - Egypt
14
14% - United Arab Emirates
8% - Qatar 12
5% - Others
10
5% - Kuwait
4% - Cash 8
6
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
----- End of picture text -----
Geographic Allocation
==> picture [159 x 139] intentionally omitted <==
None ofthe information andopinions containedherein is intendedto form the basis for any investment or trading decision, andno specific recommendations are intended. The products andtransactions describedherein are not suitable for every investor. Such products and transactions are only suitable for sophisticated and knowledgeableprofessionalusers of financialinstruments, and are structured and customized to the needs and objectives of each investor. The information and opinions contained herein have beenprepared 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 AlMalCapitalPSC nor any of its affiliates, directors, authorized managers 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. Finalized terms and conditions are subject to further discussion and negotiation, and will be determined in part on the basis of pricing and valuation 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.
October 2021
==> picture [117 x 36] intentionally omitted <==
Al Mal MENA Equity Fact Sheet
NAV Per Unit: USD 11.06
==> picture [133 x 49] intentionally omitted <==
Fund Manager Commentary
US markets closed out a very strong October with NASDAQ and S&P 500 showing 7.2% and 6.9% gains, respectively. October’s performance was largely driven by robust quarterly numbers from the big banks, followed by a heavy rotation into cyclical names. Brent prices continued their upward trajectory, passing the USD 85 per barrel mark, as more supply shortages coincided with higher demand from the power sector heading into the winter months as they look to substitute steep natural gas prices. Depleting stockpiles in the US and increasing demand in China all point towards continued stability and strength in the oil markets.
KSA banking stats issued by SAMA alleviated some concerns over a slowdown in mortgage growth, showing a 63% m/m increase to amount to SAR 13bn in August, suggesting the previous slowdown was rather seasonal. The mortgage theme continues to be instrumental for loan growth in our view and have positioned accordingly. Portfolio holding eXtra reported another solid quarter of earnings, with EPS up 67% y/y on the back of strong performance from its consumer finance arm Tas’heel while revenue increased 12% y/y on growth across all divisions. The CEO indicated that he continues to see strength in the electronics segment as prices of home appliances are set to rise by 10-20%, due to the global shipping crisis and notable support from IPhone 13 sales.
This month we saw Egypt state owned payment firm E-finance make its stock market debut. The stock was up c.50% on its first day of trading with the Finance Minister Mohamed Maait noting the IPO saw participation from US, UK and European investors. The Minister also noted the country is looking to list up to six state-affiliated companies this fiscal year under the nation’s recently resumed IPO program. We continue to like E-finance’s long-term growth prospects, at the center of Egypt’s efforts to digitize its payment and tax collection channels.
In Kuwait, Portfolio holding National Bank of Kuwait (NBK) reported a 63% y/y surge in Q3 earnings, on the back of a drop in provisioning, improved cost of risk and solid loan growth. We continue to like the name which has upside risks via the new mortgage law, underpinned by an O&G reliant economy, both of which are in an upswing. The improved macro backdrop should give some support to the name but we remain broadly cautiously optimistic on Kuwait.
Sector Allocation
==> picture [159 x 147] intentionally omitted <==
==> picture [63 x 138] intentionally omitted <==
----- Start of picture text -----
40% - Financials
10% - Materials
9% - Information Technology
9% - Consumer Discretionary
6% - Communication Services
6% - Industrials
6% - Cash
5% - Health Care
4% - Consumer Staples
3% - Real Estate
2% - Energy
----- End of picture text -----
Objective
Achieve capital appreciation, primarily through investment in equity and equity related securities in the Middle East and North African markets.
| Fund Performance | |||||
|---|---|---|---|---|---|
| Performance1 | Fund | Benchmark2 | Alpha | ||
| 1 Month | 7.0% | 3.5% | 3.5% | ||
| YTD3 | 29.5% | 31.2% | -1.7% | ||
| 1 Year | 39.2% | 40.4% | -1.2% | ||
| 3 Year | 49.8% | 39.5% | 10.3% | ||
| 5 Year | 78.3% | 68.7% | 9.6% | ||
| Since Inc. | 34.1% | -15.4% | 49.5% |
1 Performance is net of fees; 3-year and 5-year return is cumulative
2 S&P Pan Arab Composite Index
3 As of 27th Oct 2021
Top 5 Holdings
| Top 5 Holdings | ||||
|---|---|---|---|---|
| Holding | % of Fund | |||
| Al Rajhi Bank | 9.4 | |||
| Mouwasat Medical Services | 5.2 | |||
| United Electronics | 4.5 | |||
| Saudi National Bank | 4.5 | |||
| Saudi Basic Industries | 3.6 | |||
| Fund Analysis | ||||
| Matrix4 | Fund | Benchmark | ||
| Standard Deviation | 13.2% | 14.8% | ||
| Tracking Error | 5.3% | |||
| Beta | 0.8 | |||
| Dividend Yield 2021 | 4.0% | |||
| No. of Holdings | 45 |
4 The fund characteristics are based on the historical data of the Al Mal MENA Equity Fund as the AZ Al Mal Equity Fund continues to follow the same strategy; calculatedusing 3-year weekly data
Fund Information
| Fund Manager Fund Manager |
Sherif El Haddad Sherif El Haddad |
|---|---|
| InceptionDate Inceptio Date |
15th June 2008 15th June 2008 |
| FundSize Fu Size |
USD 28 million USD 34 million |
| StrategySize Strateg Size |
USD 250 million USD 250 million |
| Domicile Do |
Bahrain Bahrain |
| Currency Cu |
USD USD |
| Subscription & Redemption Su |
Weekly Weekly |
| Min Subscription Min S |
USD 250,000 USD 250,000 |
| BloombergCode Blo Code |
MALMENE BI MALMENE BI |
| ManagementFee Manag Fee |
1.75% 1.75% |
| BenchmarkIndex Ben Index |
S&P Pan Arab Composite S&P Pan Arab Composite |
| FundType Fu Type |
Open Ended Open Ended |
| Administrator Ad |
Apex Apex |
| Custodian Cu |
Standard Chartered Standard Chartered |
10Y Fund Strategy Performance
Disclaimer
Geographic Allocation
==> picture [140 x 138] intentionally omitted <==
==> picture [343 x 166] intentionally omitted <==
----- Start of picture text -----
20
18 Al Mal MENA Equity Fund Benchmark
50% - Saudi Arabia
16
14% - UAE
14
14% - Egypt
8% - Qatar 12
5% - Cash
10
4% - Kuwait
4% - Morocco 8
1% - Oman
6
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
----- End of picture text -----
None ofthe information andopinions containedherein is intendedto form the basis for any investment or trading decision, andno specific recommendations are intended. The products andtransactions describedherein are not suitable for every investor. Such products and transactions are only suitable for sophisticated and knowledgeableprofessionalusers of financialinstruments, and are structured and customized to the needs and objectives of each investor. The information and opinions contained herein have beenprepared 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 AlMalCapitalPSC nor any of its affiliates, directors, authorized managers 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. Finalized terms and conditions are subject to further discussion and negotiation, and will be determined in part on the basis of pricing and valuation 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 October 2021
==> picture [117 x 36] intentionally omitted <==
NAV Per Unit: AED 1.44
==> picture [77 x 57] intentionally omitted <==
Fund Manager Commentary
In October, Dubai announced a five-year budget of AED 290bn. Of the AED 59bn allocated to 2022’s budget, 41% is allocated to development and social benefits. Around 3.8% of the budget has been allocated to the infrastructure and financial resources sector. In addition, Dubai’s real estate sector continued to show strength with real estate transactions worth AED 42bn booked in Q3 2021, the highest in the Emirate’s history. 56.6% of all transactions in Dubai were for secondary or ready properties, whilst off-plan properties accounted for the remaining 43.4% balance, providing a positive read-through to portfolio holding Emaar.
Over the month, UAE locked in USD 4bn with its first federal DCM issue after orders for its three-tranche bond deal topped USD 22.5bn. The inaugural bonds comprised tranches with maturities of 10, 20 and 40 years. The finance ministry sold USD 1bn in the 10-year portion at 70bps over UST, USD 1bn in 20 year bonds at 105 bps over UST and USD 2 bn in 40 year notes at 3.25%. The tight pricing and the longer duration type funding secured with the strong demand reinforces our positive long-term outlook.
UAE’s national banking champion, First Abu Dhabi Bank (FAB) reported a very good set of results. FAB’s 9M 2021 net profit grew 26% y/y to AED 9.2 bn, with Return on Tangible Equity at 15.2% versus 12.4% in 9M 2020. The enhancement in profitability is a result of the improving macro environment, and the realisation of strategic initiatives taken by management. Revenues for 9M 2021 was up 17% y/y on the back of solid non-interest income growth, from strong trading performance and fee generation. Operating costs have ramped up 15% y/y, largely due to the consolidation of Bank Audi Egypt, but cost/income has been kept in control at 26.7% versus 27.5% in 9M 2020. Management is well on track to beat their guidance on most metrics, with a lot of opportunities on the horizon as the macroeconomic environment continues to improve.
Objective
Achieve medium to long-term capital growth by investing primarily in equities listed on the UAE Exchange.
Fund Performance
| Fund Performance | |||||
|---|---|---|---|---|---|
| Performance1 | Fund | Benchmark2 | Alpha | ||
| 1 Month YTD3 1 Year |
2.9% 23.6% 37.9% |
1.7% 31.9% 47.6% |
1.2% -8.3% -9.7% |
||
| 3 Year | 29.1% | 13.3% | 15.8% | ||
| 5 Year | 50.7% | 14.3% | 36.4% | ||
| Since Inc. | 82.4% | -32.0% | 114.4% |
1 Performance is net of fees; return is cumulative
2 S&P UAE Composite Index
3 As of 27th Oct 2021
Top 3 Holdings
| Top 3 Holdings | ||||
|---|---|---|---|---|
| Holding First Abu Dhabi Bank Abu Dhabi Commercial Bank |
% of Fund 9.5 9.3 |
|||
| Emirates NBD | 9.0 | |||
| Matrix4 | Fund Analysis Fund |
Benchmark | ||
| Standard Deviation | 16.9% | 23.2% | ||
| Tracking Error | 11.1% | |||
| Beta | 0.7 | |||
| Dividend Yield 2021 | 4.0% | |||
| No. of Holdings | 20 |
4 Calculated using 3-year weekly data
Fund Information
Disclaimer
| Fund Manager | Sherif El Haddad | ||
|---|---|---|---|
| Fund Size | AED 52 million | ||
| Domicile | UAE | ||
| Currency | AED | ||
| Subscription & Redemption | Weekly | ||
| Min Subscription | AED 100,000 | ||
| Management Fee | 1.50% | ||
| Performance Fee | 20% over 10% hurdle with high watermark |
||
| Financial Year End | 31st December | ||
| Benchmark Index | S&P UAE Composite Index | ||
| Fund Type | Open Ended | ||
| Administrator & Custodian | Standard Chartered |
==> picture [225 x 159] intentionally omitted <==
----- Start of picture text -----
Sector Allocation
39% - Financials
14% - Communication Services
13% - Real Estate
10% - Industrials
9% - Consumer Staples
4% - Consumer Discretionary
4% - Cash
4% - Health Care
2% - Energy
1% - Information Technology
----- End of picture text -----
==> picture [344 x 185] intentionally omitted <==
----- Start of picture text -----
10Y Fund Strategy Performance
Al Mal UAE Equity Fund Benchmark
24
22
20
18
16
14
52% - Abu Dhabi
12
36% - Dubai
10
8% - KSA
8
4% - Cash
6
Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
----- End of picture text -----
Geographic Allocation
==> picture [140 x 136] intentionally omitted <==
None ofthe information andopinions containedherein is intendedto form the basis for any investment or trading decision, andno specific recommendations are intended. The products andtransactions describedherein are not suitable for every investor. Such products and transactions are only suitable for sophisticated and knowledgeableprofessionalusers of financialinstruments, and are structured and customized to the needs and objectives of each investor. The information and opinions contained herein have beenprepared 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 AlMalCapitalPSC nor any of its affiliates, directors, authorized managers 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. Finalized terms and conditions are subject to further discussion and negotiation, and will be determined in part on the basis of pricing and valuation 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.