AL Mal UAE Equity Fund — Fund Information / Factsheet 2022

Oct 4, 2022

AZ Al Mal MENA Equity Fact Sheet September 2022

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NAV Per Unit: USD 6.93

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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 S&P 500 contracted to lower lows as Fed policy and a hawkish Jerome Powell took center stage. The Fed raised rates in line with expectations but noted two more rate hikes were set to happen, a combined 1.25% before year end. As of September end, the S&P decline has totalled 21% YTD, breaching the technical 20% mark of a bear market. Bond yields leapt also at the close of September, with the 10-year Treasury yield touching 4% at one point marking its highest level since 2010. Meanwhile the BOE raised rates just 50 bps vs the ECB and Fed’s 75bps hikes causing the GBP to dip to an all-time low of $1.0382. The pound has since recuperated slightly from BOE promising bond buybacks to calm investor sentiment.

			Fund Performance
	Performance1	Fund	Benchmark2	Alpha
	1 Month	-3.8%	-8.2%	4.4%
	YTD3 1 Year 3 Year	2.2% 9.8% 42.1%	-3.8% -2.0% 27.1%	6.0% 11.8% 15.0%
	5 Year	64.5%	38.7%	25.8%
	Since Inc.	38.7%	20.0%	18.7%

Economic indicators in the region have recently fared well with Saudi Arabia’s manufacturing sector posting double digit y/y growth consecutively in 2022. Industrial production grew by 17.7% y/y in August supported by boisterous growth in mining and manufacturing; the former backed by an increase in oil production to more than 10m barrels per day. Outside Saudi, Dubai’s tourism emerged strong during the summer months reaching total visits of 8.1m in Jan-July 2022; almost 3x the 2.9m in Jan-July 2021 with regional tourism particularly increasing from Oman (880k visitors) and Saudi Arabia (678k visitors) accounting for close to 1/5th of visitors into Dubai in Jan-July 2022.

1 Performance is net of fees; return is cumulative

• 2 S&P Pan Arab Composite Index

	3As of 28thSeptember 2022 Holding Saudi National Bank	Top 5 Holdings	% of Fund 6.4
	Qatar Gas Transport		4.3
	Tanmiah Food Company		4.0
	Adnoc Drilling Company Saudi Telecom Company	Fund Analysis	3.9 3.5
	Matrix4 Standard Deviation	Fund 14.0%	Benchmark 15.9%
	Tracking Error	5.7%
	Beta No. of Holdings	0.8 28

Portfolio Holding Al Othaim Markets shareholders approve stake sale in subsidiary Al Othaim Investment, during the AGM held on 27 September, the sale of the company’s total 13.65m shares in Abdullah Al Othaim Investment Co. for SAR846.54m to Al Othaim Holding Co. The transaction also includes the sale of a c106k sqm land plot in Medina, owned by Al Othaim Markets, for SAR211.33m. Over the first half of 2022, net profits of Othaim Markets amounted to SAR 137.94 million, a y/y growth of 30.61% when compared to SAR 105.61 million.

We continue to expect volatility in the markets, and remain extremely selective, preferring companies with robust earnings growth and valuations with significant margin of safety. We also retain a high cash exposure for the time being to take advantage of the volatility in the near-term.

• 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
	Investment Manager	Azimut (DIFC) Limited
	Investment Advisers	Al Mal Capital PJSC
	Fund Advisor	Faisal Hasan, CFA
	Inception Date	June 26, 2019
	Fund Size	USD 66 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

Sector Allocation

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31% - Financials
Currency USD
29% - Cash Subscription & Redemption Weekly
11% - Energy Min Subscription USD 1 (Retail) -250,000 (Institutional)
Bloomberg Code AZ3AZUA LX
7% - Consumer Staples
Management Fee Up to 2.0%
7% - Industrials Benchmark Index S&P Pan Arab Composite
6% - Communication Services Fund Type Open Ended
Administrator & Custodian BNP Paribas
5% - Materials
2% - Consumer Discretionary 10Y Fund Strategy Performance
24
2% - Utilities Al Mal MENA Equity Fund
22 S&P Pan Arab Composite Index (Rebased)
34% - Saudi Arabia 20 AZ Al Mal Equity Fund
29% - Cash 18
19% - United Arab Emirates
16
12% - Qatar
14
3% - Bahrain
12
2% - Kuwait
10
1% - Morocco
8
6
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
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Geographic Allocation

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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.

September 2022 NAV Per Unit: USD 11.33

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Al Mal MENA Equity Fact Sheet

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Fund Manager Commentary

The S&P 500 contracted to lower lows as Fed policy and a hawkish Jerome Powell took center stage. The Fed raised rates in line with expectations but noted two more rate hikes were set to happen, a combined 1.25% before year end. As of September end, the S&P decline has totalled 21% YTD, breaching the technical 20% mark of a bear market. Bond yields leapt also at the close of September, with the 10-year Treasury yield touching 4% at one point marking its highest level since 2010. Meanwhile the BOE raised rates just 50 bps vs the ECB and Fed’s 75bps hikes causing the GBP to dip to an all-time low of $1.0382. The pound has since recuperated slightly from BOE promising bond buybacks to calm investor sentiment.

Economic indicators in the region have recently fared well with Saudi Arabia’s manufacturing sector posting double digit y/y growth consecutively in 2022. Industrial production grew by 17.7% y/y in August supported by boisterous growth in mining and manufacturing; the former backed by an increase in oil production to more than 10m barrels per day. Outside Saudi, Dubai’s tourism emerged strong during the summer months reaching total visits of 8.1m in JanJuly 2022; almost 3x the 2.9m in Jan-July 2021 with regional tourism particularly increasing from Oman (880k visitors) and Saudi Arabia (678k visitors) accounting for close to 1/5th of visitors into Dubai in Jan-July 2022.

Portfolio Holding Al Othaim Markets shareholders approve stake sale in subsidiary Al Othaim Investment, during the AGM held on 27 September, the sale of the company’s total 13.65m shares in Abdullah Al Othaim Investment Co. for SAR846.54m to Al Othaim Holding Co. The transaction also includes the sale of a c106k sqm land plot in Medina, owned by Al Othaim Markets, for SAR211.33m. Over the first half of 2022, net profits of Othaim Markets amounted to SAR 137.94 million, a y/y growth of 30.61% when compared to SAR 105.61 million.

We continue to expect volatility in the markets, and remain extremely selective, preferring companies with robust earnings growth and valuations with significant margin of safety. We also retain a high cash exposure for the time being to take advantage of the volatility in the near-term.

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	-3.9%	-8.2%	4.3%
	YTD3 1 Year 3 Year	2.2% 8.1% 40.0%	-3.8% -2.2% 24.7%	6.0% 10.3% 15.3%
	5 Year	63.9%	37.3%	26.6%
	Since Inc.	37.4%	-20.0%	57.4%

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

• 2 S&P Pan Arab Composite Index

3 As of 28th September 2022

	Holding Saudi National Bank	Top 5 Holdings	% of Fund 6.5
	Qatar Gas Transport		4.4
	Tanmiah Food Company		4.0
	Saudi Telecom Company Qatar National Bank	Fund Analysis	3.5 3.5
	Matrix4	Fund	Benchmark
	Standard Deviation	13.8%	15.7%
	Tracking Error	5.4%
	Beta Dividend Yield 2021	0.8 4.0%
	No. of Holdings	30

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Sector Allocation
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31% - Financials
28% - Cash
10% - Energy
8% - Consumer Staples
7% - Materials
6% - Industrials
6% - Communication Services
2% - Consumer Discretionary
2% - Utilities
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		Fund Information
	Fund Manager Fund Manager	Sherif El Haddad Faisal Hasan, CFA
	Inception Date Inception Date	15th June 2008 15th June 2008
	Fund Size Fund Size	USD 28 million USD 25 million
	Strategy Size Strategy Size	USD 250 million USD 250 million
	Domicile Domicile	Bahrain Bahrain
	Currency Currency	USD USD
	Subscription & Redemption Subscription & Redemption	Weekly Weekly
	Min Subscription Min Subscription	USD 250,000 USD 250,000
	Bloomberg Code Bloomberg Code	MALMENE BI MALMENE BI
	Management Fee Management Fee	1.75% 1.75%
	Benchmark Index Benchmark Index	S&P Pan Arab Composite S&P Pan Arab Composite
	Fund Type Fund Type	Open Ended Open Ended
	Administrator Administrator	Apex Apex
	Custodian Custodian	Standard Chartered Standard Chartered

10Y Fund Strategy Performance

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Geographic Allocation
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35% - Saudi Arabia
28% - Cash
18% - UAE
12% - Qatar
3% - Bahrain
2% - Kuwait
2% - Morocco
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24
22 Al Mal MENA Equity Fund Benchmark
20
18
16
14
12
10
8
6
Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22
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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 September 2022 NAV Per Unit: AED 1.65

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Fund Manager Commentary

Objective

The DFM General Index rebounded in July with performance at 4.25% for the month and then experienced a modest growth at 1.95% in August. During September, the index experienced a sharp fall in performance, particularly towards the end of the month with overall monthly performance falling by 2.09%.

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	-2.0% 7.3%	-4.0% 2.6%	2.0% 4.7%
	1 Year	17.3%	13.9%	3.4%
	3 Year	43.5%	25.7%	17.8%
	5 Year	44.2%	11.5%	32.7%
	Since Inc.	109.5%	-27.1%	136.6%

The FTSE ADX index returned to growth during both July and August. The index registered a similar performance to the DFM General index for those months with performance in July and August at 3.41% and 1.90%, respectively. In the month of September, overall change in price was borderline negligible with an inconsequential increase of 0.48% as positive fluctuations that happened in the first half of the month were offset by a steep downturn that took place during the tail end of the month.

Portfolio Holding Air Arabia and Sudanese Dal Group have partnered to launch a new low-cost airline based at Khartoum International Airport. Air Arabia Sudan will be a joint venture between the two companies, they said in a joint statement on Thursday, without providing details on the ownership structure. The move is the latest in a series of JV agreements by Air Arabia to launch new budget airlines. UAE-listed Air Arabia signed JV deals to establish new airlines in Abu Dhabi in 2020, and in Armenia and Pakistan in 2021.

1 Performance is net of fees; return is cumulative

2 S&P UAE Domestic 10% Capped Index

3 As of 28th September 2022

Top 3 Holdings

	Holding Dubai Islamic Bank	% of Fund 7.7
	Emirates NBD First Abu Dhabi Bank	7.1 7.0

Finally, Portfolio Holding ADNOC Drilling signed a sale and purchase agreement (SPA) worth USD140m to acquire two new offshore jack-up drilling units. The contract marks the company’s fourth acquisition in 2022 (two rigs in May and one in June), supports its fleet expansion programme and its plan to raise and sustain production capacity. As per the SPA, operations are aimed to start by end-2022. Since its listing, ADNOC Drilling has expanded its fleet from 96 to 105 owned rigs, as of July 31, 2022. With the latest addition, the company will own one of the largest operating fleets of offshore jack-up rigs in the world, totaling 32.

Fund Analysis

		Fund Analysis
	Matrix4	Fund	Benchmark
	Standard Deviation	16.8%	23.8%
	Tracking Error	10.6%
	Beta	0.7
	Dividend Yield 2021	4.0%
	No. of Holdings	19

We continue to expect volatility in the markets, and remain extremely selective, preferring companies with robust earnings growth. We maintain decent exposure to the Financials sector considering future rate hikes amidst a hawkish Fed. We also retain a high cash exposure for the time being to take advantage of the volatility in the nearterm.

4 Calculated using 3-year weekly data

		Fund Information
	Fund Manager	Faisal Hasan, CFA
	Fund Size	AED 58 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

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Sector Allocation
36% - Financials
18% - Cash
12% - Communication Services
12% - Industrials
11% - Real Estate
5% - Energy
3% - Consumer Staples
1% - Utilities
1% - Materials
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10Y Fund Strategy Performance
Al Mal UAE Equity Fund Benchmark
33
30
27
24
21
18
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
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Geographic Allocation

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51% - Abu Dhabi
31% - Dubai
18% - Cash
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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.