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    AAIB Mutual Fund (Shield) : Fact Sheet December 2013

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    The fund seeks long-term capital appreciation by investing in publicly traded Egyptian stocks. In December 2013, the local bourse ended up 9.7% for the month, bringing its 2013 gains to 24.2%. The fund (Shield) sealed a yearly gain of 21.7% during 2013 and distributed EGP10.5 per certificate on January 8th, 2014. The top five holdings of the fund are in the banking, telecom, real estate, petrochemicals, and building materials sectors.

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    AAIB Mutual Fund (Shield) : Fact Sheet December 2013

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    The fund seeks long-term capital appreciation by investing in publicly traded Egyptian stocks. In December 2013, the local bourse ended up 9.7% for the month, bringing its 2013 gains to 24.2%. The fund (Shield) sealed a yearly gain of 21.7% during 2013 and distributed EGP10.5 per certificate on January 8th, 2014. The top five holdings of the fund are in the banking, telecom, real estate, petrochemicals, and building materials sectors.

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    The fund seeks long-term capital appreciation by investing in publicly traded Egyptian stocks. In December 2013, the local bourse ended up 9.7% for the month, bringing its 2013 gains to 24.2%. The fund (Shield) sealed a yearly gain of 21.7% during 2013 and distributed EGP10.5 per certificate on January 8th, 2014. The top five holdings of the fund are in the banking, telecom, real estate, petrochemicals, and building materials sectors.

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    Download as PDF, TXT or read online from Scribd
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    39 views2 pages

    AAIB Mutual Fund (Shield) : Fact Sheet December 2013

    Uploaded by

    api-237717884
    The fund seeks long-term capital appreciation by investing in publicly traded Egyptian stocks. In December 2013, the local bourse ended up 9.7% for the month, bringing its 2013 gains to 24.2%. The fund (Shield) sealed a yearly gain of 21.7% during 2013 and distributed EGP10.5 per certificate on January 8th, 2014. The top five holdings of the fund are in the banking, telecom, real estate, petrochemicals, and building materials sectors.

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    AAIB Mutual Fund (Shield)

    Fact Sheet December 2013

    Investment Objective
    The fund seeks long-term capital appreciation by investing in publicly traded Egyptian stocks.

    Fund Details Fund Type Fund Manager Launch Date Structure Domicile Fund Currency Administrator Custodian Auditors NAV per Certificate* Subscription/Redemption** Management Fee Performance Fee Administration Fee Custodian Fee Equity Fund AAIM February 26,1998 Open Ended Egypt EGP AAIB AAIB KPMG Hazem Hassan EGP 120.99 Daily 0.9% 12% above excess return over CB discount rate 1.0% 0.25% None 0.75% 1 certificate

    Fund Managers Commentary


    The local bourse ended the last month of the year up 9.7%, bringing its 2013 gains to 24.2%. December gains were accentuated by a number of economic catalysts coupled with the announcement of the constitution referendum date (January 14-15, 2014), which is viewed as a key pillar in concluding the transitional roadmap. Nonetheless, reservations remain in place over achieving stability over the immediate short-term as political polarization continues to escalate. Violence spread across the nation including a deadly attack in the Nile Delta city, leading the interim government to officially designate the Muslim Brotherhood as a terrorist group, giving the authorities power to charge any member of the group and/or finances it. On a positive note, Fitch Ratings revised Egypts Longterm foreign and local currency Issuer Default Ratings (IDR) to Stable from Negative and affirmed the IDRs at B-, in line with Standard & Poor's recent upgrade. On the economic spectrum, the government paid down c.USD1.0-1.5 billion to oil and gas foreign companies out of the USD6.3 billion outstanding amount. The government agreed to repay a further USD3.0 billion in monthly installments up to 2017 and is currently negotiating terms to repay the remaining amount. The move aims to reinstate confidence in the economy and to ensure higher local supply as well as increasing investments in the sector, which represents on average 60.0% of FDIs. Already the government officially approved eight oil and gas exploration agreements, collectively valued at USD2.1 billion. We view this as a positive move, specifically for the industrials sector, which continues to face subdued utilization rates. Meanwhile, the government continues to focus its efforts to revive the economy by officially announcing a second stimulus package valued at c.EGP20 billion, revised down from a previous estimate of EGP30 billion, bringing the total support package to roughly EGP50 billion. The second package will be financed via funds extended from oil-rich economies and will be slated towards public investments and to finance the increase in the minimum wage. In the FX market, on the other hand, the EGP weakened against the USD at the latest Central Bank of Egypt (CBE) auction. The CBE instructed banks to "strictly conform" to prevailing international market rates in trading non-USD foreign currencies so not to inflate the cross rates and hence reflect a higher embedded USD/EGP rate. We would like to inform our investors that Shield sealed yearly gain of 21.7% during 2013 and distributed EGP10.5 per certificate on January 8th, 2014.

    Subscription Fee Redemption Fee Min. Initial Investment

    *As of 31/12/2013 ** Daily subscription and redemption until 12 pm throughout AAIB branches NAV is published weekly in Al Masry Al Yom Newspaper

    Fund Performance

    December 2013 Shield EGX30 5.9% 9.7%

    2013 YTD 21.7% 24.2%

    2012

    2011

    28.3% 50.8%

    -27.1% -49.3%

    Shield vs. EGX30*

    140 120 100 80 60 40 20 -

    Shield

    EGX30

    *Performance since 15/10/2008 date at which AAIM started managing the fund

    Sector Allocation
    Cash & Others Real Estate Telecoms Banks Consumer Oil & Petrochemicals Non-Banking Financials Building Materials Construction Others 0% 2.3% 5% 10% 15% 20% 5.0% 8.0% 7.9% 7.5% 11.9% 10.4% 14.8% 17.2% 15.1%

    Top Holdings Company Sector Weight

    CIB GTH TMG Holding Sidi Kerir Ezzsteel

    Banks Telecoms Real Estate Petrochemicals Building Materials

    9.6% 8.4% 8.4% 6.6% 5.7%

    Key Statistics* Shield Standard Deviation EGX 30

    Return vs. Volatility *

    10.0%

    16.2% -0.17 0.30 -9.7% 61.0%

    29.0% -0.31 N/A -20.9% 55.9%


    Return

    8.0% 6.0% 4.0% 2.0% 0.0% 0% 10%

    Shield

    Investment Approach Sharpe Ratio**


    Information Ratio*** Max. Monthly Loss % Of Positive Months

    EGX 30

    *Data since 15/10/2008 date at which AAIM started managing the fund **Measures risk adjusted return compared to risk free rate ***Measures risk adjusted return compared to EGX 30

    20% Standard Deviation

    30%

    40%

    *Annualized data since 15/10/2008 date at which AAIM started managing the fund

    We are value investors. We invest in quality companies we believe are undervalued by the market. In an effort to limit downside risk and maximize upside potential, we typically seek out companies that have strong competitive positions, solid financials, and capable management teams. Our goal is to generate return through stock selection. We seek inefficiencies in the valuation of companies we aim to invest in. Our investment decisions are primarily long term and research driven.

    About Arab African Investment Management Arab African Investment Management (AAIM), a subsidiary of the Arab African International Bank (AAIB), was established in 2006 with investment management as our area of expertise. AAIM covers different asset classes in effort to enhance investors diversification and investment opportunities through Shield (Equity Fund), Juman (Money Market Fund), and Gozoor (Fixed Income Fund). We also manage tailored portfolios for institutions and high-net-worth individuals. Contact Details Arab African Investment Management 5 Midan Al-Saraya Al Koubra, Garden City 11516, Cairo, Egypt Tel. +202 27926825(7)(9) - Fax +202 27961879 Website: www.aaim.com.eg AAIB Call Center: 19555

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