Global GCC Islamic Fund Report - May 2017

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1. Global MENA Funds May 2017 Global GCC Islamic Fund Fund Objective & Strategy The fund aims to maximize returns through investing in a portfolio of Shari’ah compliant companies as per the predefined Shari’ah criteria set forth in the GCC markets. Asset allocation takes into consideration the market cap weightings of Shari’ah complaint companies in each country while anticipating changing market conditions. USD100 Invested Since Inception Asset Type Equity Geographic Focus GCC Markets Fund Manager Global Investment House Benchmark S&P GCC Islamic Index Domicile Bahrain Launch Date July 2007 Structure Open-ended fund NAV USD 97.65 Current Fund Size USD 12.65 m Base Currency US Dollar Initial Investment USD 10,000 Subsequent Investment USD 5,000 *Note: We have changed the benchmark to S&P GCC Islamic Index on Sept 30, 2010 NAV Frequency Weekly Cumulative Returns (%) Initial Charge (US$) 2% Management Fee 1.75% p.a Custodian Fee 0.22% p.a Performance Fee 20% over 10% p.a Custodian HSBC Bank Middle East Limited, Bahrain Redemption Fee 0.25% p.a Auditors KPMG Fakhro, Bahrain Sharia Board Bait Al Tadqeeq Al Sharie Bloomberg Code GCCISLM ISIN Code BH000A0QY1N7 200 160 120 80 Jul-16 Sep-15 Nov-14 Jan-14 Mar-13 May-12 Aug-11 Oct-10 Dec-09 Feb-09 Apr-08 - Jun-07 40 May-17 Fund Information Global GCC Islamic Fund S&P GCC Shariah Large Mid Custom Capped Index 1M 3M 1Y 2Y YTD *SI Fund -1.2% -1.4% 5.5% -19.2% 1.5% -2.4% Benchmark -1.1% -3.3% 10.6% -17.2% -0.6% -32.0% Difference -0.2% 1.9% -5.1% -2.1% 2.1% 29.6% *Since Inception (July 2007) Yearly Performance Ending 31st December (%) 2012 2013 2014 2015 2016 Fund 8.4% 25.9% 1.9% -12.3% 0.4% Benchmark 4.0% 21.1% -2.4% -18.4% 8.2% Risk Metrics - 5 years to May 2017 Market Review Tracking Error 3.8% The Global GCC Islamic Fund decreased by 1.2% M/M in May, Underperforming the benchmark which decreased by 1.1 % M/M. Beta 0.92 Information Ratio 1.98 Sharpe Ratio 0.38% Standard Deviation 15.3% Positive Contributors: Our UW position in SAFCO, which decreased by 5.8% M/M, contributed positively to the fund relative performance. Negative Contributors: Our UW position in Al Marai, which increased by 11.0%, contributed negatively towards the fund relative performance.
2. Global MENA Funds May 2017 Top Five Holdings Top Three Overweight / Underweight versus Benchmark SABIC AL MOUWASAT 0% 2% 4% 6% 80% UAE RJHI Saudi Arabia SABIC Saudi Arabia KFH Kuwait Al Mouwasat Saudi Arabia Country Weights Market Cap Weightings 100% EMAAR TAWUNIYA Al Marai -2% Country Advanced Al Rajhi -4% Stock Country Benchmark (%) Fund (%) Saudi 50.9 48.3 UAE 12.9 20.3 Kuwait 17.4 17.6 Qatar 15.9 9.1 Oman 2.3 0.0 Bahrain 0.5 0.0 Cash NA 4.7 Global GCC Islamic Fund S&P GCC Shariah Large Mid Custom Capped Index 60% 40% 27% 29% 21% 25% 13% 20% 34% 28% 19% 5% 0% 0% >20bn 10bn-20bn 5bn-10bn <5bn Cash Market Commentary Sector Breakdown Banks 26.7% Real estate 17.5% Material 14.1% Telecom 7.4% Insurance 7.1% Consumer services 5.3% Health Care 5.4% Capital goods 3.2% Transportation Food and beverages Others Cash For further information: MENA Asset Management Global Investment House Global Tower, Sharq, Kuwait Tel: +965 2295 1151 2.7% 0.0% 6.0% 4.7% Global markets continued the positive momentum with both US and European markets inching up in May. During the month, the released Fed minutes indicated that a rate hike could be imminent in Junesecond such increase during the year. For oil markets, the highlight of the month was the OPEC deal, where the oil-bloc agreed to extend the cuts in the oil output for additional nine months. This means that the existing agreement of the 1.8mn barrel per day production cut will roll over until the first-quarter of 2018. The move is expected to support oil prices as the lower production is forecasted to reduce global oil inventory levels to a 5-year average. In the GCC, the last month remained eventful from a geopolitical perspective as the US president visited Saudi Arabia- although the markets had a muted reaction to the visit. During the month, Qatar fell 1.6% as the market continued to readjust post March FTSE upgrade and lack of catalysts justifying current valuation levels. Additionally, Moody’s downgraded the Qatar sovereign by one notch to Aa3 and changed the outlook to stable from negative. Further, the rating agency upgraded both UAE and Kuwait’s outlook from negative to stable, while the rating remained stable at Aa2. We see this as a positive development on the backdrop of higher oil prices and the acknowledgement of fiscal reforms in these countries. Despite the broadly positive first quarter results, GCC markets remained weak during the month. The main bourses including Saudi, Abu Dhabi and Dubai ended lower by roughly 2% MoM. Kuwait remained the best performing market y-t-d with a gain of 18%, although it fell 0.8% during the month. As we head into Ramadan and the summer months, expect the trading activity to shrink across the GCC. We continue to expect news flow related to passive flows to continue to drive the Saudi market in June. We can expect a near-term excitement if there is any positive progress on Saudi inclusion in MSCI EM Index watch list in June. Accordingly, we continue to expect the market to trade range bound with risks being on the upside Fax: +965 2295 1167 www.globalinv.net Past performance is not a guide to future returns. All the information contained in this document is believed to be reliable but may be inaccurate or incomplete. A full explanation of the characteristics of the investment is given in the prospectus. Any opinions stated are honestly held but are not guaranteed. The outlook expressed in this fact sheet represents the views of the fund manager at the time of preparation and are not necessarily those of the Global Investment House as a whole. They may be subject to change and should not be interpreted as investment advice. The document is meant for financial promotion and does not provide you with all the facts you need to make an informed decision about investing and hence is not intended to constitute investment advice. The information provided should not be considered as a recommendation or solicitation to purchase, sell or hold these securities. It should also not be assumed that any investment in these securities was or will be, profitable.