AAIB Mutual Fund (Shield)

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Fact Sheet

September 2013

Fund Details
Investment Objective

Fund Type
The fund seeks long term capital appreciation by investing in publicly traded Egyptian stocks. Fund Managers Commentary Dear Investor, Geopolitical concerns regarding a possible military strike against Syria spilled over the EGX30 index performance during the first week of the month, however news that Russia proposed to get Syria to surrender its chemical weapons to prevent a US strike on Syria triggered a strong rally in the local equities market. The EGX30 Index advanced 6.7% during the month also supported by signs of political stability in light of the governments decision to further relax curfew hours. Trading volumes advanced significantly compared to recent months averages to an average of EGP 420.3 million. EGX30 reversed its YTD losses to record a gain of 2.9% by the end of September 2013. On the economic front, net international reserves (NIR) inched up slightly during August to stand at USD18.9 billion. Qatar decided to withdraw its USD 2.0 billion in deposits at the Central Bank of Egypt during September, while Kuwait has deposited 2.0 billion during the same period. Furthermore, the cabinet announced that the minimum wage for workers in the public sector will be set at EGP 1,200 a month effective January 2014, which will add roughly EGP 15.0 billion to the government budget. The Monetary Policy Committee (MPC) decided to cut the overnight deposit rate and overnight lending rate for the second consecutive month to 8.75% and 9.75%, respectively. The discount rate was also cut by 50 basis points to 9.25%. Consequently, yields on government treasury bonds dropped to a three year low reflecting positively on equities performance. On continued plans to drive economic growth, the government approved the EGP 22.3bn fiscal stimulus package and announced that it will take place over the coming seven months. On the political front, the transitional road map has been going as planned so far. The 50-member committee has been formed and is currently reviewing and making amendments to the draft of the constitution. Within 30 days of the final draft being approved, the interim president will announce a national referendum to vote on the constitution.

Equity Fund AAIM 26 February 1998 Open Ended Egypt EGP AAIB AAIB KPMG Hazem Hassan EGP 107.3 Daily 0.9% 12% above excess return over CB discount rate 1.0% 0.25% None 0.75% 1 certificate

Fund Manager Launch Date Structure Domicile Fund Currency Administrator Custodian Auditors NAV per certificate* Subscription/Redemption** Management Fee Performance Fee Administration Fee Custodian Fee Subscription Fee Redemption Fee Min. Initial Investment

*As of 30/9/2013 ** Daily subscription and redemption until 12 pm throughout AAIB branches NAV is published weekly in Al Masry Al Yom Newspaper

Fund Performance
September 2013 Shield EGX30 4.6% 6.7% 2013 YTD 8.0% 2.9% 28.3% 50.8% -27.1% -49.3% 2012 2011

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 Telecoms Real Estate Banks Consumer Non-Banking Financials Oil & Petrochemicals Building Materials Construction Others 0% 4.4% 3.5% 5% 10% 15% 20% 8.1% 7.6% 6.7% 10.6% 10.2% 14.8% 18.0% 16.1%

Top Holdings Company

CIB TMG Holding GTH Sidi Kerir Bisco Misr

Sector
Banks Real Estate Telecoms Petrochemicals Food

Weight
8.3% 7.4% 7.3% 5.7% 5.5%

Key Statistics* Shield

Standard Deviation 16.4% -0.46 0.36 -9.7% 58.9%

Return vs. Volatility * EGX 30

29.5% -0.51 N/A -20.9% 55.4%

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

Return

Investment Approach Sharpe Ratio**

7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% 0% 10%

Shield

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- Saray Al Koubra, Garden City 11516, Cairo,Egypt Tel. (202) 27926825/7/9 - Fax (202) 27961879 Website: www.aaim.com.eg AAIB Call Center: 19555