AL Mal UAE Equity Fund — Fund Information / Factsheet 2023

Oct 6, 2023

September 2023 NAV Per Unit: USD 12.18

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Al Mal MENA Equity Fact Sheet

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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.

Global economic growth continues to vary among regions, as inflationary forces and central bank strategies began to diverge. As global central banks approach the zenith of their tightening efforts, the trajectories and rates of disinflation vary among regions, portending a potential policy divergence in the future. Price pressures are continuing to abate as the demand for goods and supply chains return to normalcy. The FOMC emphasized a "higher for longer" approach in its recent communication. We expect oil prices to continue rising, at least staying relatively high and contributing to elevated inflation. Nevertheless, it is crucial to monitor key risks, including the possibility of a more pronounced-than-expected economic downturn, missteps by central banks, a resurgence in inflation, the trajectory of Chinese economic growth, and geopolitical tensions.

	Performance1	Fund	Fund Performance Benchmark2	Alpha
	1 Month	-2.0%	-2.9%	0.9%
	YTD3 1 Year 3 Year	15.5% 11.9% 56.0%	0.8% -3.7% 27.0%	14.7% 15.6% 29.0%
	5 Year	64.3%	25.5%	38.8%
	Since Inc.	53.8%	-22.9%	76.7%
1	Performance is net of fees; return is cumulative
2 3	S&P Pan Arab Composite Index As of 27thSeptember 2023

During the month of September, global equity markets experienced selling pressure as reflected by the 4.5% decline in in the MSCI World index. In US, the S&P 500 Index showed a monthly decline of 4.9% while the tech-heavy NASDAQ reported the monthly decline of 5.8%. In the GCC region, MSCI GCC Index was down 2.7% in September. This was mainly due to the 3.8% decline in the Saudi index. Dubai ended in green and recorded growth of 2.0% in the month while DFM Index was up 2.0%.

	Holding	Top 5 Holdings	% of Fund
	ELM Company		5.5
	Al Rajhi Bank		4.9
	Saudi Telecom Company		4.6
	Adnoc Drilling Company		4.6
	Saudi National Bank		4.3
		Fund Analysis
	Matrix4	Fund	Benchmark
	Standard Deviation	10.6%	12.0%
	Tracking Error Beta No. of Holdings	4.9% 0.8 34

Among our major holdings, ARAMCO will start talks to buy a 10% stake in Jiangsu Eastern Shenghong Co’s Shenghong Petrochemical, its refining and petrochemical company. This would give ARAMCO access to a 320,000b/d refinery and petchem complex. ARAMCO also agreed to buy fuel distributor Esmax Distrucion in Chile, as part of its push to expand its refining and chemicals operations globally. Another portfolio company, ACWA signed multiple early agreements with state-owned China Southern Power Grid International and MingYang Smart Energy to collaborate in China and globally on clean energy.

Al Mal Equity strategies has consistently demonstrated resilience and growth, delivering exceptional returns for its investors. Al Mal MENA Equity Fund has reported YTD growth of 15.5% in 9M-2023 as compared to the index growth of 0.8% in the same period resulting in outperformance of 14.7% in the first nine months of the year. In recognition of this exceptional performance, Al Mal Capital PSC is pleased to announce a 4% dividend for unitholders. This dividend reflects our commitment to sharing the success of our funds with those who have placed their trust in us. The fund remains well diversified with 34 names with financials accounting for 23% of the fund. The top-3 holdings constitute 15% of the fund.

4 Calculated using 3-year weekly data

		Fund Information
	Fund Manager Inception Date	Faisal Hasan, CFA 15th June 2008
	Fund Size	USD 25 million
	Strategy Size	USD 250 million
	Domicile	Bahrain
	Currency	USD
	Subscription & Redemption	Weekly
	Min Subscription	USD 50,000
	Bloomberg Code	MALMENE BI
	Management Fee	1.75%
	Benchmark Index	S&P Pan Arab Composite
	Fund Type	Open Ended
	Administrator	Apex
	Custodian	Standard Chartered

Sector Allocation

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23% - Financials Currency
15% - Energy Subscription & Redemption Weekly
Min Subscription USD 50,000
9% - Consumer Discretionary
Bloomberg Code MALMENE BI
8% - Information Technology
Management Fee 1.75%
8% - Industrials Benchmark Index S&P Pan Arab Composite
8% - Cash Fund Type Open Ended
8% - Utilities Administrator Apex
Custodian Standard Chartered
7% - Communication Services
5% - Real Estate
10Y Fund Strategy Performance
5% - Materials
4% - Consumer Staples 24
22 Al Mal MENA Equity Fund Benchmark
20
47% - Saudi Arabia 18
29% - UAE 16
8% - Qatar 14
8% - Cash 12
5% - Kuwait 10
8
2% - Morocco
6
1% - Bahrain Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23
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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. Suchproducts and

transactions are only suitable for sophisticated andknowledgeable professional users offinancialinstruments, andare structuredandcustomized to the needs andobjectives ofeachinvestor. The information andopinions containedherein have beenpreparedfor 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 AlMalCapital PSCnor any ofits affiliates, directors, authorized managers and/or employees accepts liability for any loss arising from the use ofor makes any representation as to the accuracy or completeness ofthe terms andconditions ofproducts andtransactions 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 August 2023 NAV Per Unit: AED 1.82

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Fund Manager Commentary

Global economic growth continues to vary among regions, as inflationary forces and central bank strategies began to diverge. As global central banks approach the zenith of their tightening efforts, the trajectories and rates of disinflation vary among regions, portending a potential policy divergence in the future. Price pressures are continuing to abate as the demand for goods and supply chains return to normalcy. The FOMC emphasized a "higher for longer" approach in its recent communication. We expect oil prices to continue rising, at least staying relatively high and contributing to elevated inflation. Nevertheless, it is crucial to monitor key risks, including the possibility of a more pronounced-than-expected economic downturn, missteps by central banks, a resurgence in inflation, the trajectory of Chinese economic growth, and geopolitical tensions.

In Sep 2023, the DFM general index experienced a growth of 2.0% while Abu Dhabi FTSE ADX Index dipped 0.3%. Only Dubai and Qatari markets saw gains this month with a broadly based decline in GCC markets. DFM Index is the best performing index in the region on YTD basis as it registered a YTD growth of 24.8 % at the end of September. However, FTSE ADX index still is in the red, showing the YTD decline of 4.2% in the same period. In UAE, Dubai said that it has lowered its total debt to 25% of GDP, repaying a combined AED 28.5bn (USD 7.8bn) over the past year and a half in loans that it had secured from Abu Dhabi and the UAE Central Bank.

Among our major holdings, YAHSAT has received a mandate from the UAE government worth 18.7 billion dirhams to provide satellite capacity and managed services for 17 years. It also announced that it will pay an interim cash dividend of 8.23 fils per share. ADNOC Logistics received 8 jack-up barges via its unit Zakher Marine International Holding which will allow the company to expand in Iraq.

Al Mal Equity strategies has consistently demonstrated resilience and growth, delivering exceptional returns for its investors. Al Mal UAE Equity Fund has reported YTD growth of 16.0% in 9M-2023 as compared to the index growth of 7.2% in the same period resulting in outperformance of 8.8% in the first nine months of the year. In recognition of this exceptional performance, Al Mal Capital PSC is pleased to announce a 4% dividend for unitholders. This dividend reflects our commitment to sharing the success of our funds with those who have placed their trust in us. It is a token of our appreciation for the unwavering support of our investors. The fund remains well diversified with 23 names with financials accounting for 30% of the fund. The top-3 holdings constitute 20.6% of the fund.

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Sector Allocation
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30% - Financials
14% - Cash
13% - Real Estate
12% - Industrials
10% - Energy
9% - Utilities
8% - Consumer Discretionary
2% - Materials
2% - Communication Services
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Objective

Achieve medium to long-term capital growth by investing primarily in equities listed on the UAE Exchange.

Fund Performance

	Performance1	Fund	Benchmark2	Relative Perf.
	1 Month YTD* 1 Year	2.2% 16.0% 14.8%	2.1% 7.2% 6.3%	0.1% 8.8% 8.5%
	3 Years	86.0%	68.4%	17.6%
	5 Year	67.8%	29.6%	38.2%
	Since Inc.	140.5%	-22.5%	163.0%

1 Performance is net of fees; return is cumulative

2 S&P UAE Domestic 10% Capped Index

3 As of 27th September 2023

Top 3 Holdings

	Holding Emirates NBD Abu Dhabi Ports		% of Fund 7.0 6.9
	Emaar Properties		6.7
	Fund Analysis
	Matrix4	Fund	Benchmark
	Standard Deviation	11.3%	14. 7%
	Tracking Error Beta No. of Holdings	6.8% 0.7 23

4 Calculated using 3-year weekly data

Fund Information

	Fund Manager	Faisal Hasan, CFA
	Fund Size	AED 51 million
	Domicile	UAE
	Currency	AED
	Subscription & Redemption	Weekly
	Min Subscription	AED 40,000
	Management Fee	1.50%
	Performance Fee	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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10Y Fund Strategy Performance
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Geographic Allocation

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50% - Abu Dhabi
34% - Dubai
14% - Cash
2% - KSA
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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 Jan-23
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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. Suchproducts and

transactions are only suitable for sophisticated andknowledgeable professional users offinancialinstruments, andare structuredandcustomized to the needs andobjectives ofeachinvestor. The information andopinions containedherein have beenpreparedfor 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 AlMalCapital PSCnor any ofits affiliates, directors, authorized managers and/or employees accepts liability for any loss arising from the use ofor makes any representation as to the accuracy or completeness ofthe terms andconditions ofproducts andtransactions 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.