Al Durra Islamic Fund Report - February 2022

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1. Kuwait Market I Equity Al Durra Islamic Fund Factsheet I February 2022 Fund Information Fund Objective & Strategy Benchmark KIA Kuwait Islamic Liquid Capped Index Domicile Kuwait Launch Date March 2004 Structure Open-Ended NAV KWD 2.0836 Current Fund Size KWD 47.20 m Base Currency Kuwaiti Dinar (KWD) Initial Investment KD1,000 NAV Frequency Weekly Initial Charge 49,999 and less 2% 50,000 - 499,999 1.5% 500,000 and above 1% Fees Management 1.0% p.a. Custodian & Controller 0.125% p.a. Performance None Redemption None The fund seeks to achieve long-term capital bottom-up stock selection methodology appreciation by investing in a diversified along with a macroeconomic overlay to portfolio of Shariah compliant stocks listed identify growth opportunities in Kuwait. Boursa Kuwait. The fund invests in multiple sectors and The investment process is based on a growth/value categories. KIA Kuwait Islamic Liquid Capped Index 290 240 190 140 90 40 Feb-22 Dec-20 Sep-19 Jul-18 May-17 Mar-16 Dec-14 Oct-13 Aug-12 Jun-11 Apr-10 Jan-09 Nov-07 Sep-06 Fund Manager Kamco Investment Company Al-Durra Islamic Fund 340 Jul-05 Sharia Advisory Al Mashora & Al Raya for Islamic Financial Consulting Auditors Deloitte & Touche, Al Wazzan & Co. Bloomberg Code GLISLAM 390 Apr-04 Custodian & Controller Gulf Custody Company (K.S.C.C.) KWD100 Invested Since Inception Cumulative Returns (%) 1M 3M 6M YTD 1Y 3Y 5Y *SI Fund 4.3% 11.3% 6.7% 8.0% 31.2% 58.4% 75.7% 108.4% Benchmark 3.6% 12.5% 8.3% 8.1% 36.2% 75.7% 95.4% 121.5% Difference 0.7% -1.2% -1.6% -0.1% -4.9% -17.3% -19.7% -13.1% Yearly Performance Ending 31st December (%) 2016 2017 2018 2019 2020 2021 Fund 1.8% Benchmark 11.5% 11.8% 6.5% 22.4% -5.7% 25.7% 14.4% 11.5% 23.1% 1.4% 30.4% Statistics over 5 years Tracking Error Beta Information Ratio Sharpe Ratio Standard Deviation 3.03% 0.98 (1.42) 0.62 15.12%
2. Kuwait Market I Equity Al Durra Islamic Fund Top Five Fund Holdings Market Cap Weightings Zain 60 .0% Kuwait Finance House 40.0% Agility Public Warehousing 20.0% 52.9% 52.5% 18.0% 15.0% 16.3% 15.3% 6.7%5.9% 5.9%6.5% 0.9%1.8% Boubyan Bank 0.0% > 1.6bn Humansoft Holding Co Al Durrah Islamic Fund <50mn Benchmark Sector Allocation vs. Benchmark Sector Breakdown 2.7% 1.6bn-0.8bn 0.8bn-0.4bn 0.4bn-0.2bn 0.2bn-50mn -5% 0.8% Banking 5.4% 30.6% 14.8% 0% Industrials Basic Materials 10% -1.53% 6.32% Telecommunications 15.0% 5% 0.49% -3.60% Financial Services -1.04% Consumer Discretionary -0.89% 29.7% Banking Real Estate Basic Materials Consumer Discretionary Industrials Telecommunications Financial Services Consumer Staples Consumer Staples -0.49% Market Commentary In February, the geo-political fallout from Russia-Ukraine tensions weighed heavily on the global equity markets. Accordingly, US markets continued correction as S&P 500 index fell 3.1% during the month. Elsewhere, the MSCI EM Index also eased 3% whereas MSCI EAFE index dropped 2%. Also, the conflict resulted in a sharp spike in commodities as Bloomberg Commodities Index gained 6% during the month, taking the y-t-d gains to 16%. Notably, Brent oil gained 10.7% despite the expectations about the coordinated strategic reserves release as the supply outlook clouded due to the war. Moving to the region, contrary to the global trends, the MSCI GCC Index returned 4.1% in February- helped by a combination of higher oil and a USD pegged currency status- providing a unique investment case in the EM context. Moving to the countries, the Saudi Tadawul Index gained 2.6% during the month. Like the previous month, the market continued to remain supportive by a stronger energy backdrop. Qatar index also jumped 3.6% during the month reflecting the continued interest in the market driven by FIFA 2022 event, strong LNG and the hikes in the FOLs attracting additional flows. Similarly, Kuwait also recorded strong gains returning 3.8%. Finally, the UAE was the best performer with both Dubai and Abu Dhabi returned 4.7% and 7% respectively- bucking the geopolitical headwinds. While the latest conflict increases uncertainty, risk and volatility, overall, for the year 2022, our outlook for the GCC countries remains positive due to the stable oil prices supporting the fiscal space and a continued economic recovery in the post-pandemic world. In addition, the USD pegged currencies are expected to bode well for the regional markets in the EM context in the rising rate scenario. The regional markets have outperformed global equities and valuations remain on the higher side on the EM context but remain well below the DM markets driven by the higher earnings growth expectations. We expect macro events like rate hikes to keep the markets volatile and accordingly, our strategy for alpha generation will be by positioning the markets selectively and opportunistically throughout the year.