AL Mal UAE Equity Fund — Fund Information / Factsheet 2022

Aug 5, 2022

AZ Al Mal MENA Equity Fact Sheet July 2022

==> picture [102 x 27] intentionally omitted <==

==> picture [102 x 24] intentionally omitted <==

NAV Per Unit: USD 7.04

==> picture [133 x 49] intentionally omitted <==

Fund Manager Commentary

Objective

Achieve capital appreciation, primarily through investment in equity and equity related securities in the Middle East and North African markets.

The GCC market performed positively with Oman seeing the biggest monthly gain of 9.9% closely followed by Qatar and Saudi Arabia with gains of 9.7% and 5.9%, respectively. The S&P 500 and Nasdaq fell into bear market territory after shedding more than 20% since the beginning of the year as recession fears loom amidst rising inflation and Fed policy. Inflation reached 9% in June and by July-end, and the Fed raised rates by 225bps.

Fund Performance

			Fund Performance
	Performance1	Fund	Benchmark2	Alpha
	1 Month	0.9%	2.9%	-2.0%
	YTD3 1 Year	3.7% 15.3%	2.8% 10.0%	0.9% 5.3%
	3 Year	39.4%	26.5%	12.9%
	5 Year	71.1%	46.9%	24.2%
	Since Inc.	40.8%	28.3%	12.5%

U.S. President Joe Biden flew to Saudi Arabia in July, where he attended a summit of Gulf allies to call for them to pump more oil, however no firm commitment was communicated, especially as spare capacity at OPEC members is already running low.

We saw a raft of earnings reported during the month. One of our top holdings, SNB, reported Q2 profits of SAR 4.6bn, up 98% y/y, with NII expanding thanks to higher LtDs and NIMs, combined with a lower C/I ratio, and loan growth totalling at 7.5% YtD. Also in Saudi, Portfolio Holding Abdullah Al Othaim Markets Co’s Board approved the offer submitted by Al Othaim Holding Co. to acquire its entire stake in Abdullah Al-Othaim Investment Co. for SAR 846m, a value unlocking event.

• 1 Performance is net of fees; return is cumulative

	2S&P Pan Arab Composite Index 3As of 27thJuly 2022 Holding	Top 5 Holdings	% of Fund
	Saudi National Bank		9.1
	Al Rajhi Bank Saudi Arabian Oil Company Qatar National Bank		5.3 4.1 4.1
	Alinma Bank		3.8
	Matrix4	Fund Fund Analysis	Benchmark
	Standard Deviation Tracking Error Beta No. of Holdings	13.9% 5.5% 0.8 35	15.7%

In Qatar, QIBK reported 13.6% y/y higher net income, thanks to 7.7% y/y growth in NII, while NBK in Kuwait reported a more impressive 59% y/y growth in net income, largely on the back of lower credit costs and decent revenue generation thanks to its dominant franchise.

In the UAE, CBRE data continues to show Dubai rents rising at their fastest rate since mid-2014, with villas and apartments rents up 21.7-21.2% y/y, respectively. The UAE is also attracting tourist inflows, with more to come ahead of the Qatar World Cup. Sequentially, industry experts eye a 20% increase in room rates as the event comes to fruition, at 100% occupancy. Inflation did spike during the month of June with 5.84% y/y and 1.23% m/m, largely driven by rising fuel prices, recreation, and F&B. Transportation, recreation, and F&B prices are now up 33.3%, 35.8%, and 8.8% y/y, respectively.

• 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

Lastly, in the UAE, portfolio holding Emirates NBD reported stellar Q2 numbers with a 42% y/y expansion in its bottom-line, helped by stronger retail lending, and lower impairments.

Fund Information

	Investment Manager	Azimut (DIFC) Limited
	Investment Advisers	Al Mal Capital PJSC
	Fund Advisor	Faisal Hasan, CFA
	Inception Date	June 26, 2019
	Fund Size	USD 67 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

We expect markets to remain rangebound but with stock specific movement based on corporate earnings. The inflation overhang lingers on international markets which should impact the regional markets as well. We expect the Fed to continue raising rates until the end of the year and we remain more positive on attractive dividend plays but maintain cash in order to take advantages of the volatility in the markets.

Sector Allocation

==> picture [49 x 65] intentionally omitted <==

----- Start of picture text -----

41% - Financials
19% - Cash
10% - Materials
8% - Consumer Staples
7% - Energy
----- End of picture text -----

==> picture [142 x 126] intentionally omitted <==

==> picture [353 x 203] intentionally omitted <==

----- Start of picture text -----

7% - Communication Services
Administrator & Custodian BNP Paribas
5% - Industrials
2% - Consumer Discretionary 10Y Fund Strategy Performance
24
1% - Utilities Al Mal MENA Equity Fund
22 S&P Pan Arab Composite Index (Rebased)
45% - Saudi Arabia 20 AZ Al Mal Equity Fund
19% - Cash 18
14% - UAE
16
12% - Qatar
14
5% - Kuwait
12
3% - Bahrain
10
2% - Others
8
6
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
----- End of picture text -----

Geographic Allocation

==> picture [118 x 120] intentionally omitted <==

Disclaimer

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 describedherein. 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 MENA Equity Fact Sheet July 2022 NAV Per Unit: USD 11.50

==> picture [117 x 36] intentionally omitted <==

==> picture [133 x 49] intentionally omitted <==

Fund Manager Commentary

Objective

Achieve capital appreciation, primarily through investment in equity and equity related securities in the Middle East and North African markets.

The GCC market performed positively with Oman seeing the biggest monthly gain of 9.9% closely followed by Qatar and Saudi Arabia with gains of 9.7% and 5.9%, respectively. The S&P 500 and Nasdaq fell into bear market territory after shedding more than 20% since the beginning of the year as recession fears loom amidst rising inflation and Fed policy. Inflation reached 9% in June and by Julyend, and the Fed raised rates by 225bps.

	Performance1	Fund	Fund Performance Benchmark2	Alpha
	1 Month	2.2%	2.9%	-0.7%
	YTD3 1 Year	3.7% 15.9%	2.8% 11.6%	0.9% 4.3%
	3 Year	41.4%	29.7%	11.7%
	5 Year	70.0%	49.9%	20.1%
	Since Inc.	39.4%	-14.4%	53.8%

U.S. President Joe Biden flew to Saudi Arabia in July, where he attended a summit of Gulf allies to call for them to pump more oil, however no firm commitment was communicated, especially as spare capacity at OPEC members is already running low.

We saw a raft of earnings reported during the month. One of our top holdings, SNB, reported Q2 profits of SAR 4.6bn, up 98% y/y, with NII expanding thanks to higher LtDs and NIMs, combined with a lower C/I ratio, and loan growth totalling at 7.5% YtD. Also in Saudi, Portfolio Holding Abdullah Al Othaim Markets Co’s Board approved the offer submitted by Al Othaim Holding Co. to acquire its entire stake in Abdullah Al-Othaim Investment Co. for SAR 846m, a value unlocking event.

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 July 2022

	Holding	Top 5 Holdings	% of Fund
	Saudi National Bank		9.3
	Al Rajhi Bank Saudi Arabian Oil Company Qatar National Bank		5.3 4.2 4.0
	Alinma Bank		3.8
	Matrix4	Fund Fund Analysis	Benchmark
	Standard Deviation Tracking Error Beta	13.7% 5.2% 0.8	15.4%
	Dividend Yield 2021	4.0%
	No. of Holdings	34

In Qatar, QIBK reported 13.6% y/y higher net income, thanks to 7.7% y/y growth in NII, while NBK in Kuwait reported a more impressive 59% y/y growth in net income, largely on the back of lower credit costs and decent revenue generation thanks to its dominant franchise.

In the UAE, CBRE data continues to show Dubai rents rising at their fastest rate since mid-2014, with villas and apartments rents up 21.7-21.2% y/y, respectively. The UAE is also attracting tourist inflows, with more to come ahead of the Qatar World Cup. Sequentially, industry experts eye a 20% increase in room rates as the event comes to fruition, at 100% occupancy. Inflation did spike during the month of June with 5.84% y/y and 1.23% m/m, largely driven by rising fuel prices, recreation, and F&B. Transportation, recreation, and F&B prices are now up 33.3%, 35.8%, and 8.8% y/y, respectively.

Lastly, in the UAE, portfolio holding Emirates NBD reported stellar Q2 numbers with a 42% y/y expansion in its bottom-line, helped by stronger retail lending, and lower impairments.

6 8 10 12 14 16 18 20 22 24 Jan-12 45% - Saudi Arabia 17% - Cash 15% - UAE 12% - Qatar 5% - Kuwait 4% - Bahrain 2% - Morocco stock specific movement based ngers on international markets We expect the Fed to continue ain more positive on attractive dvantages of the volatility in the 41% - Financials 17% - Cash 11% - Materials 9% - Consumer Staples 7% - Energy 6% - Communication Services 5% - Industrials 2% - Consumer Discretionary 2% - Utilities	Fund Information	Fund Information
	Fund Manager Sherif El Haddad Fund Manager Faisal Hasan, CFA
	Inception Date 15th June 2008 Inception Date 15th June 2008
	Fund Size USD 28 million Fund Size USD 22 million
	Strategy Size USD 250 million Strategy Size USD 250 million
	Domicile Bahrain Domicile Bahrain
	Currency USD Currency USD
	Subscription & Redemption Weekly Subscription & Redemption Weekly
	Min Subscription USD 250,000 Min Subscription USD 250,000
	Bloomberg Code MALMENE BI Bloomberg Code MALMENE BI
	Management Fee 1.75% Management Fee 1.75%
	Benchmark Index S&P Pan Arab Composite Benchmark Index S&P Pan Arab Composite
	Fund Type Open Ended Fund Type Open Ended
	Administrator Administrator	Apex Apex
	Custodian Custodian	Standard Chartered Standard Chartered
		Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 l MENA Equity Fund Benchmark 10Y Fund Strategy Performance
	Al Ma	l MENA Equity Fund Bench
	Jan-13 Jan-14 Jan-15	Jan-16 Jan-17 Jan-18 Jan-19 Jan-20

We expect markets to remain rangebound but with stock specific movement based on corporate earnings. The inflation overhang lingers on international markets which should impact the regional markets as well. We expect the Fed to continue raising rates until the end of the year and we remain more positive on attractive dividend plays but maintain cash in order to take advantages of the volatility in the markets.

Sector Allocation

==> picture [131 x 122] intentionally omitted <==

Geographic Allocation

==> picture [110 x 111] intentionally omitted <==

Disclaimer

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 describedherein. 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 July 2022 NAV Per Unit: AED 1.68

==> picture [117 x 36] intentionally omitted <==

==> picture [77 x 57] intentionally omitted <==

Fund Manager Commentary

The DFM General Index bounced back to positive monthly growth in July-2022 after reporting a decline in the previous two months. The benchmark increased by 3.6% to close at 3,338.0 points after witnessing significant declines during the middle of the month.

The FTSE ADX index returned to growth during July-2022 after witnessing declines for the previous two months. The index registered a growth of 3.1% to close the month at 9,663.5 points in July-2022.

The UAE Minister of Energy disclosed that oil production is nearing maximum capacity based on the current OPEC+ production baseline. For the first time in two years, the UAE shipped oil to Europe, as the latter begins to minimize its reliance on Russian oil. On the non-oil front, non-oil trade expanded 20.5% y/y during Q1 22.

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	1.7% 8.7%	2.3% 4.5%	-0.6% 4.2%
	1 Year	23.4%	23.7%	-0.3%
	3 Year 5 Year Since Inc.	51.3% 49.6% 112.2%	27.9% 12.4% -25.8%	23.4% 37.2% 138.0%

1 Performance is net of fees; return is cumulative

CBRE data continues to show Dubai rents rising, with villas and apartments rents up 21.7-21.2% y/y, respectively. The UAE is also attracting tourist inflows, with potentially more to come ahead of the Qatar World Cup. Sequentially, industry experts eye a 20% increase in hotel room rates as the event comes to execution, at 100% occupancy. This should prove to be beneficial for portfolio holding Air Arabia, who expects to carry >1M passengers in 2022, up from 800k in 2021.

Inflation did spike during the month of June with 5.84% y/y and 1.23% m/m, largely driven by rising fuel prices, recreation, and F&B. Transportation, recreation, and F&B prices are now up 33.3%, 35.8%, and 8.8% y/y, respectively.

Lastly, portfolio holdings reported decent Q2 number insofar: Emirates NBD reported stellar Q2 numbers with a 42% y/y expansion in its bottom-line, helped by stronger retail lending, and lower impairments. Aldar reported a 54% increase in EPS as property sales surged, while raising its FY 22e guidance for property sales (AED 7-8bn from AED 5-6bn previously) and recurring EBITDA (+23%). The company also earmarked up to AED 5bn in expansions via equity capital over the next 12M. DU also reported a strong recovery in P&L with EPS up 26% y/y thanks to market share gains in the fixed segment, combined with a recovery in the mobile segment.

2 S&P UAE Domestic 10% Capped Index

3 As of 27th July 2022

Top 3 Holdings

	y	Top 3 Holdings
	Holding		% of Fund
	Dubai Islamic Bank		9.4
	Emaar Properties		8.7
	First Abu Dhabi Bank		8.7
		Fund Analysis
	Matrix4	Fund	Benchmark
	Standard Deviation	17.2%	23.9%
	Tracking Error	10.6%
	Beta	0.7
	Dividend Yield 2021 No. of Holdings	4.0% 20

4 Calculated using 3-year weekly data

We expect markets to remain rangebound but with stock specific movement based on corporate earnings. The inflation overhang lingers on international markets which should impact the regional markets as well. We expect the Fed to continue raising rates until the end of the year and we remain more positive on attractive dividend plays but maintain cash in order to take advantages of the volatility in the markets.

Fund Information

	Fund Manager Fund Size	Faisal Hasan, CFA AED 59 million
	Domicile	UAE
	Currency	AED
	Subscription & Redemption Min Subscription	Weekly AED 40,000
	Management Fee Performance Fee	1.50% 20% over 10% hurdle with high watermark
	Financial Year End	31st December
	Benchmark Index	S&P UAE Domestic 10% Capped Index
	Fund Type	Open Ended
	Administrator & Custodian	Standard Chartered

==> picture [502 x 306] intentionally omitted <==

----- Start of picture text -----

Sector Allocation
41% - Financials Min Subscription AED 40,000
Management Fee 1.50%
18% - Cash
Performance Fee 20% over 10% hurdle with high
14% - Real Estate watermark
Financial Year End 31st December
9% - Industrials
Benchmark Index S&P UAE Domestic 10% Capped Index
8% - Communication Services
Fund Type Open Ended
4% - Energy Administrator & Custodian Standard Chartered
4% - Consumer Staples
1% - Utilities
1% - Materials 10Y Fund Strategy Performance
Al Mal UAE Equity Fund Benchmark
33
Geographic Allocation 30
42% - Abu Dhabi 27
24
40% - Dubai
21
18
18% - Cash
15
12
9
6
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
----- End of picture text -----

Disclaimer

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 describedherein. 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.