-
Investor Monthly Newsletter
For the Month Ending 31st December 2012
Inside this issue: Egypt banking sector continued to witness interest from major regionl banks
Topic of the month – Regional Outlook in 2013
The UAE markets stood out and outperformed all other GCC markets
TNI MENA UCITS outperformed its benchmark by 7.6% for the year
TNI MENA Special Sits slightly reduced its net equity exposure, mainly in Morocco
IMPORTANT NOTICE
THIS “INVESTOR MONTHLY NEWSLETTER” IS CONFIDENTIAL TO THE ADDRESSEE AND SHOULD NOT BE DISCLOSED NOR DISTRIBUTED TO ANY THIRD PARTY WITHOUT THE PRIOR CONSENT OF THE NATIONAL INVESTOR (HEREINAFTER REFERRED TO AS “TNI”)
THIS NEWSLETTER IS FOR INFORMATION AND DOES NOT CONSTITUTE A PROSPECTUS OR OFFERING CIRCULAR OR AN OFFER OR INVITATION TO SUBSCRIBE FOR UNITS OR SHARES IN ANY OF TNI FUNDS. ALL TNI FUNDS (THE “FUNDS”) ARE AVAILABLE FOR SUBSCRIPTION ONLY ON THE BASIS OF THE RELEVANT PRIVATE PLACEMENT MEMORANDUM, SUBSCRIPTION AGREEMENT AND APPLICATION FORM WHICH ARE AVAILABLE ONLY TO INVESTORS THAT SATISFY THE APPLICABLE ELIGIBILITY CRITERIA FOR INVESTMENT.
TNI FUNDS INCLUDED IN THIS NEWSLETTER ARE UNREGULATED FUNDS FOR THE PURPOSES OF THE UNITED KINGDOM FINANCIAL SERVICES AND MARKETS ACT 2000 (“FSMA”), THE PROMOTION OF WHICH IN THE UNITED KINGDOM IS RESTRICTED BY SECTIONS 21 AND 238 OF FSMA. ACCORDINGLY, NO TNI FUNDS’ SHARES OR UNITS MAY BE OFFERED OR SOLD IN THE UK OTHER THAN (I) BY A PERSON AUTHORIZED BY THE UK FINANCIAL SERVICES AUTHORITY (THE “FSA”) (AN “AUTHORIZED PERSON”) IN ACCORDANCE WITH THE FINANCIAL SERVICES AND MARKETS ACT 2000 (PROMOTION OF COLLECTIVE INVESTMENT SCHEMES - EXEMPTIONS) ORDER 2001 OR THE FSA CONDUCT OF BUSINESS RULES; OR (II) BY A PERSON OTHER THAN AN AUTHORIZED PERSON IN ACCORDANCE WITH THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005. THE FUNDS ARE NOT REGULATED BY THE FSA AND INVESTORS WILL NOT HAVE THE BENEFIT OF THE FSA FINANCIAL SERVICES COMPENSATION SCHEME AND OTHER PROTECTIONS AFFORDED BY FSMA OR ITS RULES AND REGULATIONS.
8.1%
8.8%
8.9%
8.9%
9.5%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
ENBD
NBAD
Emaar
FGB
Etisalat
`
48.2%
33.5%
7.8%
10.5%
Abu Dhabi
Dubai
DIFX
Cash
TNI UAE BLUE CHIP FUNDFact Sheet as of June 30, 2011
Fund Profile
Focus: Although the fund may participate in markets throughout the Gulf Cooperative
Countries (‘GCC’), its investments will be primarily focused on publicly traded equities of UAE
firms with large capitalization, which present a steady and recurrent track record of earnings
growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths,
competitiveness, profitability, growth prospects and quality of management. The allocation
will be based on fundamental research and will incorporate a blend of top-down and a
bottom-up analytical approach.
Objective: The fund aims to provide long-term capital appreciation through investing in
equity securities publicly traded, primarily in the UAE, and, to a lesser extent, in other GCC
markets.
Suitability: Units of the Fund are speculative and involve a high degree of risk. The Fund is
therefore designed for sophisticated investors who are able to understand the risks involved
in emerging markets’ equity investments, particularly in the GCC equities.
Asset Allocation Top Holdings
Fund Performance since Inception
Fund Performance (%)
Monthly PerformanceWTD -0.9
MTD 0.9
YTD -1.3
Since Inception -61.3
Value Blend GrowthLarge
Medium
Small
Fund Profile
WTD -0.9
MTD 0.5
YTD -0.8
Since Inception -49.8
Fund Facts
Index comparison is used for illustrative purposes only.
% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD
2005 - - - - 2.7 6.9 -11.2 6.0 5.9 4.3 1.3 -4.1 12.2
2006 -5.4 -4.7 -3.4 -8.5 -5.7 -2.9 -2.4 5.2 2.2 -3.4 -8.4 0.3 -32.9
2007 -0.8 2.5 -5.1 3.7 18.8 -1.7 0.0 -3.8 1.6 18.9 4.4 9.1 54.9
2008 -3.7 7.2 -6.1 9.8 -0.5 -1.8 0.8 -15.0 -15.7 -22.4 -23.2 -12.1 -60.7
2009 -9.7 4.9 8.7 5.8 9.3 -1.8 5.0 4.2 13.2 -2.9 -4.8 -13.1 16.2
2010 -8.3 -3.4 16.7 -1.7 -9.1 -2.9 -1.8 -1.9 10.5 5.0 -4.0 -1.4 -5.1
2011 -0.9 -7.9 6.4 7.0 -5.1 0.5 -0.8
Inception Date May 01, 2005
Base Currency AED
Dealing Currencies AED - USD
Minimum Inv. AED 350,000
NAV / Unit AED 5.02
Net Assets AED 127.40m
Initial Fee 3% (max.)
Management Fee 1.5%
Custody/Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Hurdle Rate EIBOR (3M)
Redemption Fee 1% after 1 Year
NAV Weekly (No Lock-up)
Custodian Deutsche Bank
Administrator Deutsche Bank
Auditors KPMG
Lawyers Tamimi & Co
Fund Manager TNI
Domicile UAE
ListingDubai Financial Market –TNIUAEBCF
Reuters Lp65037579
Bloomberg TNIUAEF UH Since Inception %
TNI UAE Blue Chip Fund -49.8
S&P UAE Dom Capped -61.3
MSCI UAE Index -69.3
S&P UAE Dom Capped Index (%)
The National Investor
Headquarters
TNI Tower | Zayed 1st Street Khalidiya|
P.O. Box 47435 | Abu Dhabi | UAE
Phone: +971 2 619 2300
Fax: +971 2 619 2400
Email: [email protected]
www.tni.ae
0%
20%
40%
60%
80%
100%
120%
140%
160%
Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11
TNI BCF
MSCI UAE Index
S&P UAE Dom Capped Index
TNI ASSET MANAGEMENT Team Members Fund Management Walid Hayeck Managing Director +971 2 619 2321 [email protected] Sebastien Henin Senior Vice President +971 2 619 2337 [email protected]
Ali Adou Senior Vice President +971 2 619 2327 [email protected]
Divye Arora Analyst +971 2 619 2322 [email protected]
Business Development Kashif Zia Director +971 2 619 2305 [email protected] Sani Tsuruta Senior Vice President +971 2 619 2356 [email protected]
Risk Management and Middle Office Imran Ladhani Senior Manager +971 2 619 2334 [email protected]
Malik Al Zyadat Senior Manager +971 2 619 2425 [email protected] Ahmed Bakir Analyst +9712 619 2329 [email protected]
Legal & Compliance Ajith Mathew Senior Vice President, Compliance +971 2 619 2366 [email protected] Reine El Asfar Senior Associate, Legal +971 2 619 2318 [email protected]
Custody & Administration Deutsche Bank Mike Cowley +971 4 361 1700 [email protected] Apex Fund Services Peter Hughes +144 1 292 2793 [email protected] HSBC Fund Services Glyn D Gibbs +971 4 4236138 [email protected] Citibank John Dwyer +9714 604 4450 [email protected]
Auditors KPMG Munther Dajjani +971 2 634 3318 [email protected]
Deloitte & Touche Wissam Moukahal +971 2 676 0606 [email protected]
0%
20%
40%
60%
80%
100%
120%
140%
160%
Jan-06 Oct-06 Jul-07 Apr-08 Jan-09 Oct-09 Jul-10 Apr-11 Jan-12 Oct-12
DJ / DIFC Arabia 50
S&P Pan Arab CompositeLarge/MidCap Index
S&P GCC CompositePrice Index
PERFORMANCE REVIEW December 2012
Market Performance
December witnessed a strong rally across MENA markets. The S&P Pan Arab Composite jumped 2.6% during the period. The Saudi market, the biggest and most liquid one in the region outperformed the regional index; the market gained 4.9%. The Egyptian market has been the best performer, gaining 15.8%. The Lebanese market recorded a strong rebound, the market went up 8.1% and reached its highest level since May. Oil price was flat, the Brent quality closed the period at US$ 111.11 per bbl.
Manager’s Comments
TNI UAE Blue Chip Fund
The UAE markets stood out and outperformed all other GCC markets. The S&P UAE Domestic Capped index ended the year up 18%. The outperformance came on the back of an improvement in the overall macro environment. TNI UAE Blue Chip Fund ended the year up 18.2%. During December the Fund Manager was fully invested and maintained the exposure to other GCC markets at 5.4%.
TNI MENA Special Situations Fund
The Fund decreased by 0.2% in December. We maintained our bets on the fixed income side. We reduced slightly our net equity exposure, mainly in Morocco where we sold a trading bet.
MENA UCITS Fund
TNI MENA UCITS Fund ended the year up 11.3%, outperforming its benchmark S&P Pan Arab 5/10/40 Capped Index by 7.6%. The outperformance was driven by all sectors in particular Telecommunications and Banking. During the month of December, the Fund Manager maintanied the cash position at 3.0%. On a country level, the Fund Manager increased exposure to Morocco and Saudi. The least preferred countries remained Kuwait, Lebanon and Bahrain.
DJ / DIFC 50 TITANS Index- S&P GCC Index
Regional Performance
Performance % MTD YTD
DJ Arabia Titans -0.7 1.4
S&P GCC 2.2 3.2
S&P Composite 1.9 3.2
Other MENA Indices MTD% YTD%
Egypt 15.8 53.3
Morocco -3.5 -15.6
Tunisia -2.6 -8.8
Jordan 1.7 -5.3
Lebanon 8.1 -1.4
S&P GCC Indices MTD% YTD%
Saudi Arabia 4.9 -0.4
UAE -0.5 18.1
Kuwait -1.9 -1.6
Qatar -1.3 -2.7
Oman 3.0 -5.6
Bahrain 4.6 -4.1
MTD performance is measured between 29th November 2012 to 27th December 2012
20%
25%
30%
35%
40%
45%
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12
100%
105%
110%
115%
120%
125%
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12
MARKETS REVIEW
December 2012
The MENA Equity Markets Egypt banking sector has been witnessing interest from some of the well capitalised regional banks who are looking to exploit the strong long term potentail of the Egyptian market. During the month, Emirates NBD (ENBD) inked a deal with BNP Paribas buy its 95.2% stake in BNP Paribas Egypt. ENBD will offer US$ 500 million for the 100% of BNP Paribas Egypt, as ENBD will also offer to acquire the remaining 4.8% shares from minority shareholders. The offer implies a target PB of 1.6x based on September 2012 book value. QNB also proposed to launch a tender offer for buying 100% stake in NSGB. The offer values NSGB at US$ 2.6 billion and implies a target PB of 2.0x based on September 2012 book value.
The central bank of the UAE postponed introducing restrictions on commercial banks' exposure to state-linked debt and requirements for them to hold liquid assets. The Central Bank board of directors reviewed banks' feedback on the amendments to the large exposures regulation and decided to postpone implementation of the regulation until all items of the regulation are reviewed with banks.
The central bank has also issued a new regulation capping what banks can lend to investors in residential property. The regulation restricted mortgages for expatriates to 50% of the value of the property for a first home and to 40% for the second property. For UAE nationals, financial institutions may lend up to 70% of value for a first home and up to 60% for a second property. Previously, there were no loan-to-value limits and some banks lent as much as 90% of the value.
Qatar banking sector’s lending grew 3.8% mom and 28% yoy, well above average lending growth in the MENA region. Customer deposits were up 2.3% mom and 30.4% yoy driven by strong growth of 65% yoy in the public sector deposits. End-November loan to deposit ratio was 112%.
Chart 1: Qatar banking sector yoy credit growth
Chart 2: Qatar banking sector loan to deposit ratio
Source: Qatar Central Bank
Source: Qatar Central Bank
TOPIC OF THE MONTH December 2012
Regional outlook in 2013 2012 was a year of high volatility for the global markets driven by uncertainties tied to politics, economic growth and policy reforms. In the mid of the year, investors were confronted with renewed fears of Eurozone debt crisis (sovereign issues spreading to Spain and Italy), a sharp slowdown in the US economy and concerns of hard-landing in China. However, the reversal of these concerns in the second half drove a rally in the riskier assets.
Essentially, some of the developments during second half of the year augur well for the global equities outlook in 2013. The most important one was Mario Draghi, president of European Central Bank, pledging to do whatever it takes to protect Eurozone from collapse and conditionally backstopping Eurozone government debt. Also a bottoming housing market, rising bank credit to the private sector, a resilient consumer spending and improving job market helped to stabilise US economic growth. The newly leadership in China also gave the signals towards the year end that it intends to shore up the weakening economy.
Recent deal passed by the US congress to avoid the fiscal cliff of tax hikes on all Americans and massive spending cuts bodes well for the business sentiment and capital investment. However, risk to the US economic recovery remains in the form of any gridlock between Democrats and Republicans in agreeing on debt ceiling. The gradual re-acceleration of economic activity in US and China would be positive for the oil demand and oil exporting Middle Eastern countries will be able to maintain their fiscal surpluses and keep up with increasing infrastructure spending.
While most of the emerging markets witnessed a strong rally in the second half of 2012, Saudi market remained flat and ended the year up only 6%, underperforming the MSCI emerging market index by 9%. This underperformance was mainly linked to negative sentiment created by the financial difficulties at the Mohammad Al-Mojil Group and Saudi Oger in the construction sector, and loan refinancing talks at Zain Saudi, the telecom operator, and up to some extent to geo-political risks emerging from Israel-Palestine conflict. As a result of significant increase in loan impairment charges in 3Q12, banking stocks came under pressure and Saudi banking and financial sector index ended the year almost flat. Given the strong economic growth, overall healthy corporate profitability barring a few, and expansionary 2013 budget (budgeted spending up 19% yoy) we expect the banking, cement and retail sectors to be the key beneficiaries.
After a strong performance in 2012 with DFM index up 20%, we expect the Dubai market to continue to perform well tied to strong up move in its key sectors such as trade, commerce, tourism and hospitality, recovery in the real estate sector and smoother than expected restructuring of government and government related entities debt. Foreign trade increased by 13% during first ten months of 2012 to a record AED 1 trillion. Hotel and serviced apartments recorded AED 9.8 billion in revenue in 1H2012, up 22% yoy and number of tourists increased to 5 million, up 10% yoy. Average residential real estate prices increased 14% yoy as of August 2012.
Kuwait maket wintessed high volatility in 4Q2012 due to the ploitical uncertainities linked to parliamentary elections and ended the year up only 2%. The economy suffered from the lack of investment during the last year when hardly any of the projects included in US$ 107 billion investment program materialised. Finally, a more pro-government parliament was elected after opposition boycotted the election over the decree passed by the Emir, which reduced the number of votes per citizen to one from four. A more pro-government parliament would be beneficial for Kuwait’s economy as it will reduce political gridlock over implementing policy, projects and reforms. We expect the banking and cement sectors to be the key beneficiaries of any increase in the investment spending. However, risk remain in the form of continued protests from the opposition which may propel investors to play a wait and watch game.
The Egyptian stock market saw a sharp rally during the July-August 2012 period due to improvements in the political landscape and increased foreign financial aid post presidential elections, which revived investor interest. However, during 4Q2012, the market suffered from high volatility as political tensions escalated after President Morsi issued a decree that placed him above any oversight and also put the controversially drafted constitution for the public referendum. In the near term, the outcome of the parliamentary elections which are due in February 2013 will govern the political scene in the country. A strong Muslim Brotherhood majority in the parliament would be favourable in swift passing and implementation of policy and reforms. Post elections, we believe investors focus will shift towards seriousness of the government in pushing reforms such as addressing issues of high subsidies, creating jobs, gradually cutting budget deficit which stood at 11% of the GDP for FY 2011/12, and progressing towards putting Egypt economy back on to the 6-7% annual GDP growth track.
Monthly Performance
%
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
YTD
2005 - - - - 2.7 6.9 -11.2 6.0 5.9 4.3 1.3 -4.1 12.2
2006 -5.4 -4.7 -3.4 -8.5 -5.7 -2.9 -2.4 5.2 2.2 -3.4 -8.4 0.3 -32.9
2007 -0.8 2.5 -5.1 3.7 18.8 -1.7 0.0 -3.8 1.6 18.9 4.4 9.1 54.9
2008 -3.7 7.2 -6.1 9.8 -0.5 -1.8 0.8 -15.0 -15.7 -22.4 -23.2 -12.1 -60.7
2009 -9.7 4.9 8.7 5.8 9.3 -1.8 5.0 4.2 13.2 -2.9 -4.8 -13.1 16.2
2010 -8.3 -3.4 16.7 -1.7 -9.1 -2.9 -1.8 -1.9 10.5 5.0 -4.0 -1.4 -5.1
2011 -0.9 -7.9 6.4 7.0 -5.1 0.5 -1.2 -2.3 -4.9 -2.4 -3.0 -0.8 -14.5
2012 1.6 9.7 3.1 -0.3 -5.7 -0.6 2.2 4.2 1.7 2.8 -0.5 -0.6 18.2
6.4%
8.4%
9.1%
10.0%
10.0%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
ADCB
FGB
NBAD
Emaar
Etisalat
`
0%
20%
40%
60%
80%
100%
120%
140%
160%
Apr-05 May-06 Jun-07 Jul-08 Aug-09 Sep-10 Oct-11 Nov-12
TNI BCF
MSCI UAE Index
S&P UAE Dom Capped Index
54.2%
33.7%
6.8%5.4%
-0.1%
Abu Dhabi
Dubai
Nasdaq DubaiGCC
Cash
TNI UAE BLUE CHIP FUND Fact Sheet as of December 27, 2012
Fund Profile
Focus: Although the fund may participate in markets throughout the Gulf Cooperative Countries (‘GCC’), its investments will be primarily focused on publicly traded equities of UAE firms with large capitalization, which present a steady and recurrent track record of earnings growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths, competitiveness, profitability, growth prospects and quality of management. The allocation will be based on fundamental research and will incorporate a blend of top-down and a bottom-up analytical approach.
Objective: The fund aims to provide long-term capital appreciation through investing in equity securities publicly traded, primarily in the UAE, and, to a lesser extent, in other GCC markets.
Suitability: Units of the Fund are speculative and involve a high degree of risk. The Fund is therefore designed for sophisticated investors who are able to understand the risks involved in emerging markets’ equity investments, particularly in the GCC equities.
Asset Allocation Top Holdings
Fund Performance (%)
Fund Performance since Inception
WTD 0.3
MTD -0.5
YTD 18.0
Since Inception -60.7
Value Blend Growth Large
Medium
Small
Fund Profile
WTD 0.1
MTD -0.6
YTD 18.2
Since Inception -48.9
Fund Facts
Index comparison is used for illustrative purposes only.
Since Inception %
TNI UAE Blue Chip Fund -48.9
S&P UAE Dom Capped -60.7
MSCI UAE Index -68.2
S&P UAE Dom Capped Index (%)
The National Investor
Headquarters TNI Tower | Zayed 1st Street Khalidia| P.O. Box 47435 | Abu Dhabi | UAE
Phone: +971 2 619 2300 Fax: +971 2 619 2331 Email: [email protected] www.tni.ae
Inception Date May 01, 2005
Base Currency AED
Dealing Currencies AED - USD
Minimum Inv. AED 350,000
NAV / Unit AED 5.11
Net Assets AED 96.88 M
Initial Fee 3% (max.)
Management Fee 1.5% Custody/Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Hurdle Rate EIBOR (3M)
Redemption Fee 1% after 1 Year
NAV Weekly (No Lock-up)
Custodian Deutsche Bank
Administrator Deutsche Bank
Auditors KPMG
Lawyers Tamimi & Co
Fund Manager TNI
Domicile UAE
Listing Dubai Financial Market –TNIUAEBCF
Reuters Lp65037579
Bloomberg TNIUAEF UH
Monthly Performance
%
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
YTD
2005 - - - - 2.7 6.9 -11.2 6.0 5.9 4.3 1.3 -4.1 12.2
2006 -5.4 -4.7 -3.4 -8.5 -5.7 -2.9 -2.4 5.2 2.2 -3.4 -8.4 0.3 -32.9
2007 -0.8 2.5 -5.1 3.7 18.8 -1.7 0.0 -3.8 1.6 18.9 4.4 9.1 54.9
2008 -3.7 7.2 -6.1 9.8 -0.5 -1.8 0.8 -15.0 -15.7 -22.4 -23.2 -12.1 -60.7
2009 -9.7 4.9 8.7 5.8 9.3 -1.8 5.0 4.2 13.2 -2.9 -4.8 -13.1 16.2
2010 -8.3 -3.4 16.7 -1.7 -9.1 -2.9 -1.8 -1.9 10.5 5.0 -4.0 -1.4 -5.1
2011 -0.9 -7.9 6.4 7.0 -5.1 0.5 -1.2 -2.3 -4.9 -2.4 -3.0 -0.8 -14.5
2012 1.6 9.7 3.1 -0.3 -5.7 -0.6 2.2 4.2 1.7 2.8 -0.5 -0.6 18.2
6.4%
8.4%
9.1%
10.0%
10.0%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%
ADCB
FGB
NBAD
Emaar
Etisalat
`
0%
20%
40%
60%
80%
100%
120%
140%
160%
Apr-05 May-06 Jun-07 Jul-08 Aug-09 Sep-10 Oct-11 Nov-12
TNI BCF
MSCI UAE Index
S&P UAE Dom Capped Index
54.2%
33.7%
6.8%5.4%
-0.1%
Abu Dhabi
Dubai
Nasdaq DubaiGCC
Cash
TNI UAE BLUE CHIP FUND Fact Sheet as of December 27, 2012
Fund Profile
Focus: Although the fund may participate in markets throughout the Gulf Cooperative Countries (‘GCC’), its investments will be primarily focused on publicly traded equities of UAE firms with large capitalization, which present a steady and recurrent track record of earnings growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths, competitiveness, profitability, growth prospects and quality of management. The allocation will be based on fundamental research and will incorporate a blend of top-down and a bottom-up analytical approach.
Objective: The fund aims to provide long-term capital appreciation through investing in equity securities publicly traded, primarily in the UAE, and, to a lesser extent, in other GCC markets.
Suitability: Units of the Fund are speculative and involve a high degree of risk. The Fund is therefore designed for sophisticated investors who are able to understand the risks involved in emerging markets’ equity investments, particularly in the GCC equities.
Asset Allocation Top Holdings
Fund Performance (%)
Fund Performance since Inception
WTD 0.3
MTD -0.5
YTD 18.0
Since Inception -60.7
Value Blend Growth Large
Medium
Small
Fund Profile
WTD 0.1
MTD -0.6
YTD 18.2
Since Inception -48.9
Fund Facts
Index comparison is used for illustrative purposes only.
Since Inception %
TNI UAE Blue Chip Fund -48.9
S&P UAE Dom Capped -60.7
MSCI UAE Index -68.2
S&P UAE Dom Capped Index (%)
The National Investor
Headquarters TNI Tower | Zayed 1st Street Khalidia| P.O. Box 47435 | Abu Dhabi | UAE
Phone: +971 2 619 2300 Fax: +971 2 619 2331 Email: [email protected] www.tni.ae
Inception Date May 01, 2005
Base Currency AED
Dealing Currencies AED - USD
Minimum Inv. AED 350,000
NAV / Unit AED 5.11
Net Assets AED 96.88 M
Initial Fee 3% (max.)
Management Fee 1.5% Custody/Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Hurdle Rate EIBOR (3M)
Redemption Fee 1% after 1 Year
NAV Weekly (No Lock-up)
Custodian Deutsche Bank
Administrator Deutsche Bank
Auditors KPMG
Lawyers Tamimi & Co
Fund Manager TNI
Domicile UAE
Listing Dubai Financial Market –TNIUAEBCF
Reuters Lp65037579
Bloomberg TNIUAEF UH
8.1%
8.8%
8.9%
8.9%
9.5%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
ENBD
NBAD
Emaar
FGB
Etisalat
`
48.2%
33.5%
7.8%
10.5%
Abu Dhabi
Dubai
DIFX
Cash
TNI UAE BLUE CHIP FUNDFact Sheet as of June 30, 2011
Fund Profile
Focus: Although the fund may participate in markets throughout the Gulf Cooperative
Countries (‘GCC’), its investments will be primarily focused on publicly traded equities of UAE
firms with large capitalization, which present a steady and recurrent track record of earnings
growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths,
competitiveness, profitability, growth prospects and quality of management. The allocation
will be based on fundamental research and will incorporate a blend of top-down and a
bottom-up analytical approach.
Objective: The fund aims to provide long-term capital appreciation through investing in
equity securities publicly traded, primarily in the UAE, and, to a lesser extent, in other GCC
markets.
Suitability: Units of the Fund are speculative and involve a high degree of risk. The Fund is
therefore designed for sophisticated investors who are able to understand the risks involved
in emerging markets’ equity investments, particularly in the GCC equities.
Asset Allocation Top Holdings
Fund Performance since Inception
Fund Performance (%)
Monthly PerformanceWTD -0.9
MTD 0.9
YTD -1.3
Since Inception -61.3
Value Blend GrowthLarge
Medium
Small
Fund Profile
WTD -0.9
MTD 0.5
YTD -0.8
Since Inception -49.8
Fund Facts
Index comparison is used for illustrative purposes only.
% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD
2005 - - - - 2.7 6.9 -11.2 6.0 5.9 4.3 1.3 -4.1 12.2
2006 -5.4 -4.7 -3.4 -8.5 -5.7 -2.9 -2.4 5.2 2.2 -3.4 -8.4 0.3 -32.9
2007 -0.8 2.5 -5.1 3.7 18.8 -1.7 0.0 -3.8 1.6 18.9 4.4 9.1 54.9
2008 -3.7 7.2 -6.1 9.8 -0.5 -1.8 0.8 -15.0 -15.7 -22.4 -23.2 -12.1 -60.7
2009 -9.7 4.9 8.7 5.8 9.3 -1.8 5.0 4.2 13.2 -2.9 -4.8 -13.1 16.2
2010 -8.3 -3.4 16.7 -1.7 -9.1 -2.9 -1.8 -1.9 10.5 5.0 -4.0 -1.4 -5.1
2011 -0.9 -7.9 6.4 7.0 -5.1 0.5 -0.8
Inception Date May 01, 2005
Base Currency AED
Dealing Currencies AED - USD
Minimum Inv. AED 350,000
NAV / Unit AED 5.02
Net Assets AED 127.40m
Initial Fee 3% (max.)
Management Fee 1.5%
Custody/Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Hurdle Rate EIBOR (3M)
Redemption Fee 1% after 1 Year
NAV Weekly (No Lock-up)
Custodian Deutsche Bank
Administrator Deutsche Bank
Auditors KPMG
Lawyers Tamimi & Co
Fund Manager TNI
Domicile UAE
ListingDubai Financial Market –TNIUAEBCF
Reuters Lp65037579
Bloomberg TNIUAEF UH Since Inception %
TNI UAE Blue Chip Fund -49.8
S&P UAE Dom Capped -61.3
MSCI UAE Index -69.3
S&P UAE Dom Capped Index (%)
The National Investor
Headquarters
TNI Tower | Zayed 1st Street Khalidiya|
P.O. Box 47435 | Abu Dhabi | UAE
Phone: +971 2 619 2300
Fax: +971 2 619 2400
Email: [email protected]
www.tni.ae
0%
20%
40%
60%
80%
100%
120%
140%
160%
Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11
TNI BCF
MSCI UAE Index
S&P UAE Dom Capped Index
Fund
Ret
urn
(%)
Benchmark Return (%)
TNI UAE BLUE CHIP FUND Fund Analytics as of December 27, 2012
Regression Analysis
TNI UAE Blue Chip Fund Vs MSCI UAE Index
Asset allocation by Sector (%) Deviation by Sector (%)
Asset allocation by Exchange (%) Deviation by Exchange (%)
Returns
(%)
TNI
BCF
S&P
Cap
MSCI UAE
1M -0.2 -0.4 0.2
3M 3.9 5.4 7.4
6M 10.0 11.9 14.3
1Y 17.7 17.0 21.4
3Y -16.3 -16.6 -19.8
Inc -48.9 -60.7 -69.2
PE PB ROE
%
MCap
(AED B)
TNI BCF 10.2 0.9 13.9 15.2
S&P UAE
Capped 11.1 1.0 13.5 13.5
MSCI
UAE 11.6 1.3 13.8 14.3
1Y 2Y 3Y Since Inception
Relative Alpha 0.2 0.3 0.9 3.1 Ann. Return 18.1 0.5 -1.4 -8.4
Volatility 12.4 14.2 18.4 26.0
Tracking Error 3.9 3.4 4.5 10.8
Info. Ratio 0.0 0.1 0.2 0.3
Annualised based on monthly data
Evolution of Yearly Tracking Error
Total Bull Bear
Beta 0.7 0.7 0.7
Info Ratio 0.2 -2.0 1.7
Sortino 0.1 -1.6 0.8
Correl 0.9 0.8 0.8
- 0.1
2.9
3.0
4.8
5.3
5.5
6.1
12.4
20.0
40.1
-20 -10 0 10 20 30 40 50
Cash
Materials
Investments
Services
Transportation
Marine
Utilities
Telecoms
Real Estate
Banking
-0.1
2.2
-0.3
0.3
1.0
-0.6
1.6
0.5
0.6
-5.3
-10 -5 0 5 10
- 0.1
5.4
6.8
33.7
54.2
-20 0 20 40 60
Cash
GCC
Nasdaq Dubai
Dubai
Abu Dhabi
-0.1
5.4
0.7
-2.0
-4.0
-10 -5 0 5 10
Fund
Ret
urn
(%)
Benchmark Return (%)
TNI UAE BLUE CHIP FUND Fund Analytics as of December 27, 2012
Regression Analysis
TNI UAE Blue Chip Fund Vs MSCI UAE Index
Asset allocation by Sector (%) Deviation by Sector (%)
Asset allocation by Exchange (%) Deviation by Exchange (%)
Returns
(%)
TNI
BCF
S&P
Cap
MSCI UAE
1M -0.2 -0.4 0.2
3M 3.9 5.4 7.4
6M 10.0 11.9 14.3
1Y 17.7 17.0 21.4
3Y -16.3 -16.6 -19.8
Inc -48.9 -60.7 -69.2
PE PB ROE
%
MCap
(AED B)
TNI BCF 10.2 0.9 13.9 15.2
S&P UAE
Capped 11.1 1.0 13.5 13.5
MSCI
UAE 11.6 1.3 13.8 14.3
1Y 2Y 3Y Since Inception
Relative Alpha 0.2 0.3 0.9 3.1 Ann. Return 18.1 0.5 -1.4 -8.4
Volatility 12.4 14.2 18.4 26.0
Tracking Error 3.9 3.4 4.5 10.8
Info. Ratio 0.0 0.1 0.2 0.3
Annualised based on monthly data
Evolution of Yearly Tracking Error
Total Bull Bear
Beta 0.7 0.7 0.7
Info Ratio 0.2 -2.0 1.7
Sortino 0.1 -1.6 0.8
Correl 0.9 0.8 0.8
- 0.1
2.9
3.0
4.8
5.3
5.5
6.1
12.4
20.0
40.1
-20 -10 0 10 20 30 40 50
Cash
Materials
Investments
Services
Transportation
Marine
Utilities
Telecoms
Real Estate
Banking
-0.1
2.2
-0.3
0.3
1.0
-0.6
1.6
0.5
0.6
-5.3
-10 -5 0 5 10
- 0.1
5.4
6.8
33.7
54.2
-20 0 20 40 60
Cash
GCC
Nasdaq Dubai
Dubai
Abu Dhabi
-0.1
5.4
0.7
-2.0
-4.0
-10 -5 0 5 10
Fund Performance since inception
Asset Allocation
85%
90%
95%
100%
105%
110%
115%
120%
Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12
MENA UCITS S&P Pan Arab 5/10/40 Capped S&P Pan Arab
TNI MENA UCITS FUND Fact Sheet as of December 27, 2012
Fund Profile
Focus: Fund investments will be primarily focused on publicly traded equities in the Middle East and North Africa (MENA) region with large capitalization, which present a steady and recurrent track record of earnings growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths, competitiveness, profitability, growth prospects and quality of management. The allocation will be based on fundamental research and will incorporate a blend of top-down and a bottom-up analytical approach. Allocation of the fund will follow UCITS-3 guidelines.
Fund Objective: The Fund shall provide long-term capital appreciation through investing in equity securities publicly traded, in the Middle East and North Africa (MENA) region. The fund aims to outperform the S&P Pan Arab Large-Mid 5/10/40 Index on a risk-adjusted return basis.
Suitability: Shares of in the sub-Fund are speculative and involve a high degree of risk. The Fund is therefore designed for sophisticated investors who are able to understand the risks involved in emerging markets’ equity investments, particularly in the MENA equities.
Since Inception %
TNI MENA UCITS Fund 3.3
S&P Pan Arab Large-Mid 5/10/40 Index -0.4
S&P Pan Arab 0.2
%
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
YTD
2010 - - - - - 0.4 1.6 -0.8 5.8 0.4 0.3 3.7 9.9
2011 -1.6 -6.5 2.2 3.2 -2.6 -2.4 -1.3 -4.4 -1.6 0.8 -3.2 1.2 -15.5
2012 0.9 7.4 7.2 -1.7 -5.7 -2.8 1.5 4.3 0.3 -0.1 -2.4 2.8 11.3
Value Blend Growth Large
Medium
Small
Fund Profile
WTD -0.4
MTD 2.8
YTD 11.3
Since Inception 3.3
Fund Facts
Inception Date June 17, 2010
Base Currency USD
Minimum Inv. USD 100,000
NAV / Unit USD 1,033.05
Net Assets USD 27.7 M
Initial Fee 3% (max.)
Management Fee 1.4%
Custody / Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Redemption fee 0% after 1 year
NAV Weekly (No lock-up)
Custodian Citibank (Dublin)
Administrator Apex Fund Services
Auditors Deloitte
Lawyers Mason, Hayes & Curran
Fund manager TNI(Dubai) LTD
Domicile Dublin
Listing Irish Stock Exchange
ISIN IE00B5TKJM01
Reuters LP68056061
Bloomberg TNIMENA
S&P Pan Arab 5/10/40 Index (%)
WTD -0.7
MTD 1.9
YTD 3.7
Since Inception -0.4
The National Investor
Headquarters TNI Tower | Zayed 1st Street Khalidiya| P.O. Box 47435 | Abu Dhabi | UAE Phone: +971 2 619 2300
Fax: +971 2 619 2331 Email: [email protected] www.tni.ae
Top Holdings
Fund Performance (%)
Monthly Performance (%)
Index comparison is used for illustrative purposes only.
3.2%
4.4%
4.4%
4.9%
6.5%
QNB
NBK
Mobily P Note
Industries Qatar
Al Rajhi P Note
44.6%
11.5%
11.2%
9.8%
8.4%
6.2%3.0%
2.3%
2.2%
0.7%
0.0%
KSA
KUWAIT
QATAR
Egypt
UAE
MOROCCOCash
JORDAN
OMAN
BAHRAIN
LEBANON
Fund Performance since inception
Asset Allocation
85%
90%
95%
100%
105%
110%
115%
120%
Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12
MENA UCITS S&P Pan Arab 5/10/40 Capped S&P Pan Arab
TNI MENA UCITS FUND Fact Sheet as of December 27, 2012
Fund Profile
Focus: Fund investments will be primarily focused on publicly traded equities in the Middle East and North Africa (MENA) region with large capitalization, which present a steady and recurrent track record of earnings growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths, competitiveness, profitability, growth prospects and quality of management. The allocation will be based on fundamental research and will incorporate a blend of top-down and a bottom-up analytical approach. Allocation of the fund will follow UCITS-3 guidelines.
Fund Objective: The Fund shall provide long-term capital appreciation through investing in equity securities publicly traded, in the Middle East and North Africa (MENA) region. The fund aims to outperform the S&P Pan Arab Large-Mid 5/10/40 Index on a risk-adjusted return basis.
Suitability: Shares of in the sub-Fund are speculative and involve a high degree of risk. The Fund is therefore designed for sophisticated investors who are able to understand the risks involved in emerging markets’ equity investments, particularly in the MENA equities.
Since Inception %
TNI MENA UCITS Fund 3.3
S&P Pan Arab Large-Mid 5/10/40 Index -0.4
S&P Pan Arab 0.2
%
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
YTD
2010 - - - - - 0.4 1.6 -0.8 5.8 0.4 0.3 3.7 9.9
2011 -1.6 -6.5 2.2 3.2 -2.6 -2.4 -1.3 -4.4 -1.6 0.8 -3.2 1.2 -15.5
2012 0.9 7.4 7.2 -1.7 -5.7 -2.8 1.5 4.3 0.3 -0.1 -2.4 2.8 11.3
Value Blend Growth Large
Medium
Small
Fund Profile
WTD -0.4
MTD 2.8
YTD 11.3
Since Inception 3.3
Fund Facts
Inception Date June 17, 2010
Base Currency USD
Minimum Inv. USD 100,000
NAV / Unit USD 1,033.05
Net Assets USD 27.7 M
Initial Fee 3% (max.)
Management Fee 1.4%
Custody / Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Redemption fee 0% after 1 year
NAV Weekly (No lock-up)
Custodian Citibank (Dublin)
Administrator Apex Fund Services
Auditors Deloitte
Lawyers Mason, Hayes & Curran
Fund manager TNI(Dubai) LTD
Domicile Dublin
Listing Irish Stock Exchange
ISIN IE00B5TKJM01
Reuters LP68056061
Bloomberg TNIMENA
S&P Pan Arab 5/10/40 Index (%)
WTD -0.7
MTD 1.9
YTD 3.7
Since Inception -0.4
The National Investor
Headquarters TNI Tower | Zayed 1st Street Khalidiya| P.O. Box 47435 | Abu Dhabi | UAE Phone: +971 2 619 2300
Fax: +971 2 619 2331 Email: [email protected] www.tni.ae
Top Holdings
Fund Performance (%)
Monthly Performance (%)
Index comparison is used for illustrative purposes only.
3.2%
4.4%
4.4%
4.9%
6.5%
QNB
NBK
Mobily P Note
Industries Qatar
Al Rajhi P Note
44.6%
11.5%
11.2%
9.8%
8.4%
6.2%3.0%
2.3%
2.2%
0.7%
0.0%
KSA
KUWAIT
QATAR
Egypt
UAE
MOROCCOCash
JORDAN
OMAN
BAHRAIN
LEBANON
8.1%
8.8%
8.9%
8.9%
9.5%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
ENBD
NBAD
Emaar
FGB
Etisalat
`
48.2%
33.5%
7.8%
10.5%
Abu Dhabi
Dubai
DIFX
Cash
TNI UAE BLUE CHIP FUNDFact Sheet as of June 30, 2011
Fund Profile
Focus: Although the fund may participate in markets throughout the Gulf Cooperative
Countries (‘GCC’), its investments will be primarily focused on publicly traded equities of UAE
firms with large capitalization, which present a steady and recurrent track record of earnings
growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths,
competitiveness, profitability, growth prospects and quality of management. The allocation
will be based on fundamental research and will incorporate a blend of top-down and a
bottom-up analytical approach.
Objective: The fund aims to provide long-term capital appreciation through investing in
equity securities publicly traded, primarily in the UAE, and, to a lesser extent, in other GCC
markets.
Suitability: Units of the Fund are speculative and involve a high degree of risk. The Fund is
therefore designed for sophisticated investors who are able to understand the risks involved
in emerging markets’ equity investments, particularly in the GCC equities.
Asset Allocation Top Holdings
Fund Performance since Inception
Fund Performance (%)
Monthly PerformanceWTD -0.9
MTD 0.9
YTD -1.3
Since Inception -61.3
Value Blend GrowthLarge
Medium
Small
Fund Profile
WTD -0.9
MTD 0.5
YTD -0.8
Since Inception -49.8
Fund Facts
Index comparison is used for illustrative purposes only.
% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD
2005 - - - - 2.7 6.9 -11.2 6.0 5.9 4.3 1.3 -4.1 12.2
2006 -5.4 -4.7 -3.4 -8.5 -5.7 -2.9 -2.4 5.2 2.2 -3.4 -8.4 0.3 -32.9
2007 -0.8 2.5 -5.1 3.7 18.8 -1.7 0.0 -3.8 1.6 18.9 4.4 9.1 54.9
2008 -3.7 7.2 -6.1 9.8 -0.5 -1.8 0.8 -15.0 -15.7 -22.4 -23.2 -12.1 -60.7
2009 -9.7 4.9 8.7 5.8 9.3 -1.8 5.0 4.2 13.2 -2.9 -4.8 -13.1 16.2
2010 -8.3 -3.4 16.7 -1.7 -9.1 -2.9 -1.8 -1.9 10.5 5.0 -4.0 -1.4 -5.1
2011 -0.9 -7.9 6.4 7.0 -5.1 0.5 -0.8
Inception Date May 01, 2005
Base Currency AED
Dealing Currencies AED - USD
Minimum Inv. AED 350,000
NAV / Unit AED 5.02
Net Assets AED 127.40m
Initial Fee 3% (max.)
Management Fee 1.5%
Custody/Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Hurdle Rate EIBOR (3M)
Redemption Fee 1% after 1 Year
NAV Weekly (No Lock-up)
Custodian Deutsche Bank
Administrator Deutsche Bank
Auditors KPMG
Lawyers Tamimi & Co
Fund Manager TNI
Domicile UAE
ListingDubai Financial Market –TNIUAEBCF
Reuters Lp65037579
Bloomberg TNIUAEF UH Since Inception %
TNI UAE Blue Chip Fund -49.8
S&P UAE Dom Capped -61.3
MSCI UAE Index -69.3
S&P UAE Dom Capped Index (%)
The National Investor
Headquarters
TNI Tower | Zayed 1st Street Khalidiya|
P.O. Box 47435 | Abu Dhabi | UAE
Phone: +971 2 619 2300
Fax: +971 2 619 2400
Email: [email protected]
www.tni.ae
0%
20%
40%
60%
80%
100%
120%
140%
160%
Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11
TNI BCF
MSCI UAE Index
S&P UAE Dom Capped Index
-4
-3
-2
-1
0
1
2
3
4
-4 -3 -2 -1 0 1 2 3 4 5
Benchmark Return (%)
TNI MENA UCITS FUND Fund Analytics as of December 27, 2012
Regression Analysis TNI MENA UCITS Fund Vs S&P Pan Arab Large Mid Cap Index
Asset allocation by Geography (%) Deviation by Geography (%)
Asset allocation by Sector (%) Deviation by Sector (%)
Fund
Ret
urn
(%) Returns
(%)
MENA
UCITS
S&P Pan
Arab
Capped
S&P
Pan
Arab
1W -0.4 -0.7 -0.7
1M 2.8 1.9 2.6
3M 0.2 -0.1 0.0
YTD 11.3 3.7 3.7
Inc 3.3 -0.4 0.2
W.Avg. PE
W.Avg. P/B
W. Avg.
ROE%
Mkt Cap
(US$B) MENA UCITS 12.1 1.9 15.2 10.8
S&P PAN Arab
Capped 11.7 1.7 12.3 11.4
S&P Pan Arab 13.7 1.6 16.9 12.4
W.Avg. PE
W.Avg. P/B
W. Avg. ROE%
Banking 12.6 1.8 13.8
Real Estate 10.5 1.7 11.8
Industry 14.9 2.0 16.7
Telecoms 12.0 2.5 24.9
Services 12.7 3.4 17.1
Total Bull Bear
Beta 0.9 1.1 0.9
Info Ratio -0.6 -1.1 0.6
Sortino -0.4 -1.1 0.4
Correl 0.8 0.7 1.0
Evolution of Yearly Tracking Error
3.0
-2.0
-0.7
0.5
0.6
- 1.4
-5 -3 -1 1 3 5
3.0
5.0
12.5
14.3
19.1
46.1
-15 -5 5 15 25 35 45 55
Cash
Services
Real Estate
Telecoms
Industry
Banking & Financials
0.0
0.0
0.7
2.2
2.3
3.0
6.2
8.4
9.8
11.2
11.5
44.6
-20 -10 0 10 20 30 40 50
Lebanon
Tunisia
Bahrain
Oman
Jordan
Cash
Morocco
UAE
Egypt
Qatar
Kuwait
Saudi Arabia
- 2.3
- 0.9
-1.1 -0.7
- 1.3 3.0
1.0 - 0.8
1.6 1.4
-8.4
8.7
-12 -7 -2 3 8 13
-4
-3
-2
-1
0
1
2
3
4
-4 -3 -2 -1 0 1 2 3 4 5
Benchmark Return (%)
TNI MENA UCITS FUND Fund Analytics as of December 27, 2012
Regression Analysis TNI MENA UCITS Fund Vs S&P Pan Arab Large Mid Cap Index
Asset allocation by Geography (%) Deviation by Geography (%)
Asset allocation by Sector (%) Deviation by Sector (%)
Fund
Ret
urn
(%) Returns
(%)
MENA
UCITS
S&P Pan
Arab
Capped
S&P
Pan
Arab
1W -0.4 -0.7 -0.7
1M 2.8 1.9 2.6
3M 0.2 -0.1 0.0
YTD 11.3 3.7 3.7
Inc 3.3 -0.4 0.2
W.Avg. PE
W.Avg. P/B
W. Avg.
ROE%
Mkt Cap
(US$B) MENA UCITS 12.1 1.9 15.2 10.8
S&P PAN Arab
Capped 11.7 1.7 12.3 11.4
S&P Pan Arab 13.7 1.6 16.9 12.4
W.Avg. PE
W.Avg. P/B
W. Avg. ROE%
Banking 12.6 1.8 13.8
Real Estate 10.5 1.7 11.8
Industry 14.9 2.0 16.7
Telecoms 12.0 2.5 24.9
Services 12.7 3.4 17.1
Total Bull Bear
Beta 0.9 1.1 0.9
Info Ratio -0.6 -1.1 0.6
Sortino -0.4 -1.1 0.4
Correl 0.8 0.7 1.0
Evolution of Yearly Tracking Error
3.0
-2.0
-0.7
0.5
0.6
- 1.4
-5 -3 -1 1 3 5
3.0
5.0
12.5
14.3
19.1
46.1
-15 -5 5 15 25 35 45 55
Cash
Services
Real Estate
Telecoms
Industry
Banking & Financials
0.0
0.0
0.7
2.2
2.3
3.0
6.2
8.4
9.8
11.2
11.5
44.6
-20 -10 0 10 20 30 40 50
Lebanon
Tunisia
Bahrain
Oman
Jordan
Cash
Morocco
UAE
Egypt
Qatar
Kuwait
Saudi Arabia
- 2.3
- 0.9
-1.1 -0.7
- 1.3 3.0
1.0 - 0.8
1.6 1.4
-8.4
8.7
-12 -7 -2 3 8 13
40%
50%
60%
70%
80%
90%
100%
110%
120%
130%
Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12
TNI SSF S&P Composite
Cash 39.8 %
Lebanon 9.6%
KSA 12.3%
Others 9.7 %
Kuwait 9.6 %
UAE 19.4 %
4.4%
4.4%
9.6%
9.9%
9.9%
Dar Al Arkan Sukuk
Emaar Conv.
KIPCO 10/16
Lebanese Bond01/13
Tamweel Conv.
TNI MENA SPECIAL SITUATIONS FUND Fact Sheet as of December 31, 2012
Fund Profile
Focus: Achieve absolute return by investing in special situations in the Middle East and North Africa (MENA) region, primarily focusing on corporate securities and instruments issued by regional firms.
Management Style: The allocation will be based on fundamental research and will incorporate a blend of top-down and a bottom-up analytical approach, with a focus on bottom-up approach. Portfolio construction will be diversified amongst asymmetric risk/reward investment ideas, with a major focus on capital preservation.
Objective: The Fund aims to generate long-term capital growth by investing primarily in special opportunities and situations in the Middle East and North Africa (MENA) region. Special situations/opportunities include investments in securities such as equities, convertibles, derivatives and debt instruments.
Suitability: Shares of the Fund are speculative and involve a high degree of risk. The Fund is therefore designed for sophisticated investors who are able to understand the risks involved in emerging markets’ securities investments, particularly in the MENA region.
Asset Allocation by Geography Top Holdings (ex. Money Market)
MTD -0.2
YTD 4.7
Since Inception 3.4
Fund Performance (%)
Fund Facts
S&P Composite Large Mid Cap (%)
%
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
YTD
2008 - - - - - - - - -0.2 -4.0 1.3 0.0 -2.9
2009 -1.0 -0.5 1.9 2.8 3.0 -0.3 3.7 1.8 5.0 1.5 -7.5 0.8 11.2
2010 1.1 1.6 3.7 1.7 -5.9 -1.1 2.1 -0.4 2.7 -1.5 -0.1 2.5 6.3
2011 -4.8 -2.4 -2.6 0.8 -1.9 -0.5 0.3 -0.7 -1.0 -0.9 -1.9 0.8 -14.0
2012 0.4 2.5 -0.0 0.1 -1.7 -0.6 2.9 1.3 0.4 0.5 -1.0 -0.2 4.7
Inception date Sept 01, 2008
Base Currency USD
Minimum Inv. USD 100,000
NAV / Unit USD 1033.51
Net Assets USD 7.6 M
Initial Fee 3% (max.)
Management Fee 1.75%
Custody/Admin Fee 0.5% (max.)
Performance Fee 15% subject to High
Watermark
Hurdle Rate LIBOR (1M)
Redemption Fee 0% after 18 months
NAV Monthly (No lock-up)
Custodian HSBC
Administrator Apex fund services
Auditors Deloitte
Lawyers Appleby
Fund Manager TNI(Dubai)LTD
Domicile Bermuda
Reuters LP65135780
Bloomberg NIMESS BH
The National Investor
Headquarters TNI Tower | Zayed 1st Street Khalidiya| P.O. Box 47435 | Abu Dhabi | UAE Phone: +971 2 619 2300
Fax: +971 2 619 2331 [email protected] www.tni.ae
Since Inception %
TNI MENA SSF 3.4
S&P Composite * -37.3
MTD 2.0
YTD 3.1
Since Inception -37.3
*S&P Composite Large Mid-Caps comparison is used for illustrative purposes only as the MENA market is the Universe of the Fund.
RISK
RETU
RNH
IGH
MID
LOW
LOW MID HIGH
TNI SSFMSCI ARABIA
Fund Performance since Inception
Monthly Performance (%)
Fund Profile
40%
50%
60%
70%
80%
90%
100%
110%
120%
130%
Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12
TNI SSF S&P Composite
Cash 39.8 %
Lebanon 9.6%
KSA 12.3%
Others 9.7 %
Kuwait 9.6 %
UAE 19.4 %
4.4%
4.4%
9.6%
9.9%
9.9%
Dar Al Arkan Sukuk
Emaar Conv.
KIPCO 10/16
Lebanese Bond01/13
Tamweel Conv.
TNI MENA SPECIAL SITUATIONS FUND Fact Sheet as of December 31, 2012
Fund Profile
Focus: Achieve absolute return by investing in special situations in the Middle East and North Africa (MENA) region, primarily focusing on corporate securities and instruments issued by regional firms.
Management Style: The allocation will be based on fundamental research and will incorporate a blend of top-down and a bottom-up analytical approach, with a focus on bottom-up approach. Portfolio construction will be diversified amongst asymmetric risk/reward investment ideas, with a major focus on capital preservation.
Objective: The Fund aims to generate long-term capital growth by investing primarily in special opportunities and situations in the Middle East and North Africa (MENA) region. Special situations/opportunities include investments in securities such as equities, convertibles, derivatives and debt instruments.
Suitability: Shares of the Fund are speculative and involve a high degree of risk. The Fund is therefore designed for sophisticated investors who are able to understand the risks involved in emerging markets’ securities investments, particularly in the MENA region.
Asset Allocation by Geography Top Holdings (ex. Money Market)
MTD -0.2
YTD 4.7
Since Inception 3.4
Fund Performance (%)
Fund Facts
S&P Composite Large Mid Cap (%)
%
Jan
Feb
Mar
Apr
May
June
July
Aug
Sept
Oct
Nov
Dec
YTD
2008 - - - - - - - - -0.2 -4.0 1.3 0.0 -2.9
2009 -1.0 -0.5 1.9 2.8 3.0 -0.3 3.7 1.8 5.0 1.5 -7.5 0.8 11.2
2010 1.1 1.6 3.7 1.7 -5.9 -1.1 2.1 -0.4 2.7 -1.5 -0.1 2.5 6.3
2011 -4.8 -2.4 -2.6 0.8 -1.9 -0.5 0.3 -0.7 -1.0 -0.9 -1.9 0.8 -14.0
2012 0.4 2.5 -0.0 0.1 -1.7 -0.6 2.9 1.3 0.4 0.5 -1.0 -0.2 4.7
Inception date Sept 01, 2008
Base Currency USD
Minimum Inv. USD 100,000
NAV / Unit USD 1033.51
Net Assets USD 7.6 M
Initial Fee 3% (max.)
Management Fee 1.75%
Custody/Admin Fee 0.5% (max.)
Performance Fee 15% subject to High
Watermark
Hurdle Rate LIBOR (1M)
Redemption Fee 0% after 18 months
NAV Monthly (No lock-up)
Custodian HSBC
Administrator Apex fund services
Auditors Deloitte
Lawyers Appleby
Fund Manager TNI(Dubai)LTD
Domicile Bermuda
Reuters LP65135780
Bloomberg NIMESS BH
The National Investor
Headquarters TNI Tower | Zayed 1st Street Khalidiya| P.O. Box 47435 | Abu Dhabi | UAE Phone: +971 2 619 2300
Fax: +971 2 619 2331 [email protected] www.tni.ae
Since Inception %
TNI MENA SSF 3.4
S&P Composite * -37.3
MTD 2.0
YTD 3.1
Since Inception -37.3
*S&P Composite Large Mid-Caps comparison is used for illustrative purposes only as the MENA market is the Universe of the Fund.
RISK
RETU
RNH
IGH
MID
LOW
LOW MID HIGH
TNI SSFMSCI ARABIA
Fund Performance since Inception
Monthly Performance (%)
Fund Profile
8.1%
8.8%
8.9%
8.9%
9.5%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
ENBD
NBAD
Emaar
FGB
Etisalat
`
48.2%
33.5%
7.8%
10.5%
Abu Dhabi
Dubai
DIFX
Cash
TNI UAE BLUE CHIP FUNDFact Sheet as of June 30, 2011
Fund Profile
Focus: Although the fund may participate in markets throughout the Gulf Cooperative
Countries (‘GCC’), its investments will be primarily focused on publicly traded equities of UAE
firms with large capitalization, which present a steady and recurrent track record of earnings
growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths,
competitiveness, profitability, growth prospects and quality of management. The allocation
will be based on fundamental research and will incorporate a blend of top-down and a
bottom-up analytical approach.
Objective: The fund aims to provide long-term capital appreciation through investing in
equity securities publicly traded, primarily in the UAE, and, to a lesser extent, in other GCC
markets.
Suitability: Units of the Fund are speculative and involve a high degree of risk. The Fund is
therefore designed for sophisticated investors who are able to understand the risks involved
in emerging markets’ equity investments, particularly in the GCC equities.
Asset Allocation Top Holdings
Fund Performance since Inception
Fund Performance (%)
Monthly PerformanceWTD -0.9
MTD 0.9
YTD -1.3
Since Inception -61.3
Value Blend GrowthLarge
Medium
Small
Fund Profile
WTD -0.9
MTD 0.5
YTD -0.8
Since Inception -49.8
Fund Facts
Index comparison is used for illustrative purposes only.
% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD
2005 - - - - 2.7 6.9 -11.2 6.0 5.9 4.3 1.3 -4.1 12.2
2006 -5.4 -4.7 -3.4 -8.5 -5.7 -2.9 -2.4 5.2 2.2 -3.4 -8.4 0.3 -32.9
2007 -0.8 2.5 -5.1 3.7 18.8 -1.7 0.0 -3.8 1.6 18.9 4.4 9.1 54.9
2008 -3.7 7.2 -6.1 9.8 -0.5 -1.8 0.8 -15.0 -15.7 -22.4 -23.2 -12.1 -60.7
2009 -9.7 4.9 8.7 5.8 9.3 -1.8 5.0 4.2 13.2 -2.9 -4.8 -13.1 16.2
2010 -8.3 -3.4 16.7 -1.7 -9.1 -2.9 -1.8 -1.9 10.5 5.0 -4.0 -1.4 -5.1
2011 -0.9 -7.9 6.4 7.0 -5.1 0.5 -0.8
Inception Date May 01, 2005
Base Currency AED
Dealing Currencies AED - USD
Minimum Inv. AED 350,000
NAV / Unit AED 5.02
Net Assets AED 127.40m
Initial Fee 3% (max.)
Management Fee 1.5%
Custody/Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Hurdle Rate EIBOR (3M)
Redemption Fee 1% after 1 Year
NAV Weekly (No Lock-up)
Custodian Deutsche Bank
Administrator Deutsche Bank
Auditors KPMG
Lawyers Tamimi & Co
Fund Manager TNI
Domicile UAE
ListingDubai Financial Market –TNIUAEBCF
Reuters Lp65037579
Bloomberg TNIUAEF UH Since Inception %
TNI UAE Blue Chip Fund -49.8
S&P UAE Dom Capped -61.3
MSCI UAE Index -69.3
S&P UAE Dom Capped Index (%)
The National Investor
Headquarters
TNI Tower | Zayed 1st Street Khalidiya|
P.O. Box 47435 | Abu Dhabi | UAE
Phone: +971 2 619 2300
Fax: +971 2 619 2400
Email: [email protected]
www.tni.ae
0%
20%
40%
60%
80%
100%
120%
140%
160%
Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11
TNI BCF
MSCI UAE Index
S&P UAE Dom Capped Index
-15 0 15 30 45
Short Trading
Convertibles
Sukuks
Bonds
Equities
Cash
-15 0 15 30 45
Holding
Sovereign
Others
Real Estate
Financials
Cash
TNI MENA SPECIAL SITUATIONS FUND Fact Analytics as of December 31, 2012
Asset allocation by Strategy Asset allocation by Sector
Statistics since Fund inception
TNI SSF S&P Composite LIBOR (1M)
Monthly. Return -0.21% 1.98% 0.02%
YTD 2012 4.74% 3.11% 0.23%
Since Inception 3.35% -37.33% 2.60%
Ann. Return Inception 0.78% -10.22% 0.59%
Volatility 8.19% 20.86% 0.21%
Sharpe Ratio 0.07 NA NA
Correl. (vs. TNI SSF) 1 0.28 0.19
Maximum Drawdown -7.52% -22.95% NA
# of Months 52 52 52
% Positive Month 51.92% 50.00% 100%
Best Month 5.00% 50.00% 0.34%
Worst Month -7.52% -22.95% 0.02%
Returns % TNI SSF S&P Composite
1M -0.21 1.98
3M -0.71 -0.29
6M 3.96 2.83
1Y 4.74 3.11
Since Inception 3.35 -37.33
Returns % TNI SSF LIBOR (1M)
1M -0.21 0.02
3M -0.71 0.05
6M 3.96 0.11
1Y 4.74 0.23
Since Inception 3.35 2.60
-15 0 15 30 45
Short Trading
Convertibles
Sukuks
Bonds
Equities
Cash
-15 0 15 30 45
Holding
Sovereign
Others
Real Estate
Financials
Cash
TNI MENA SPECIAL SITUATIONS FUND Fact Analytics as of December 31, 2012
Asset allocation by Strategy Asset allocation by Sector
Statistics since Fund inception
TNI SSF S&P Composite LIBOR (1M)
Monthly. Return -0.21% 1.98% 0.02%
YTD 2012 4.74% 3.11% 0.23%
Since Inception 3.35% -37.33% 2.60%
Ann. Return Inception 0.78% -10.22% 0.59%
Volatility 8.19% 20.86% 0.21%
Sharpe Ratio 0.07 NA NA
Correl. (vs. TNI SSF) 1 0.28 0.19
Maximum Drawdown -7.52% -22.95% NA
# of Months 52 52 52
% Positive Month 51.92% 50.00% 100%
Best Month 5.00% 50.00% 0.34%
Worst Month -7.52% -22.95% 0.02%
Returns % TNI SSF S&P Composite
1M -0.21 1.98
3M -0.71 -0.29
6M 3.96 2.83
1Y 4.74 3.11
Since Inception 3.35 -37.33
Returns % TNI SSF LIBOR (1M)
1M -0.21 0.02
3M -0.71 0.05
6M 3.96 0.11
1Y 4.74 0.23
Since Inception 3.35 2.60
The National Investor
For More Information
+97126192300
www.tni.ae
8.1%
8.8%
8.9%
8.9%
9.5%
0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
ENBD
NBAD
Emaar
FGB
Etisalat
`
48.2%
33.5%
7.8%
10.5%
Abu Dhabi
Dubai
DIFX
Cash
TNI UAE BLUE CHIP FUNDFact Sheet as of June 30, 2011
Fund Profile
Focus: Although the fund may participate in markets throughout the Gulf Cooperative
Countries (‘GCC’), its investments will be primarily focused on publicly traded equities of UAE
firms with large capitalization, which present a steady and recurrent track record of earnings
growth and have a potential for capital appreciation.
Management Style: The key investment criteria are the company’s financial strengths,
competitiveness, profitability, growth prospects and quality of management. The allocation
will be based on fundamental research and will incorporate a blend of top-down and a
bottom-up analytical approach.
Objective: The fund aims to provide long-term capital appreciation through investing in
equity securities publicly traded, primarily in the UAE, and, to a lesser extent, in other GCC
markets.
Suitability: Units of the Fund are speculative and involve a high degree of risk. The Fund is
therefore designed for sophisticated investors who are able to understand the risks involved
in emerging markets’ equity investments, particularly in the GCC equities.
Asset Allocation Top Holdings
Fund Performance since Inception
Fund Performance (%)
Monthly PerformanceWTD -0.9
MTD 0.9
YTD -1.3
Since Inception -61.3
Value Blend GrowthLarge
Medium
Small
Fund Profile
WTD -0.9
MTD 0.5
YTD -0.8
Since Inception -49.8
Fund Facts
Index comparison is used for illustrative purposes only.
% Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec YTD
2005 - - - - 2.7 6.9 -11.2 6.0 5.9 4.3 1.3 -4.1 12.2
2006 -5.4 -4.7 -3.4 -8.5 -5.7 -2.9 -2.4 5.2 2.2 -3.4 -8.4 0.3 -32.9
2007 -0.8 2.5 -5.1 3.7 18.8 -1.7 0.0 -3.8 1.6 18.9 4.4 9.1 54.9
2008 -3.7 7.2 -6.1 9.8 -0.5 -1.8 0.8 -15.0 -15.7 -22.4 -23.2 -12.1 -60.7
2009 -9.7 4.9 8.7 5.8 9.3 -1.8 5.0 4.2 13.2 -2.9 -4.8 -13.1 16.2
2010 -8.3 -3.4 16.7 -1.7 -9.1 -2.9 -1.8 -1.9 10.5 5.0 -4.0 -1.4 -5.1
2011 -0.9 -7.9 6.4 7.0 -5.1 0.5 -0.8
Inception Date May 01, 2005
Base Currency AED
Dealing Currencies AED - USD
Minimum Inv. AED 350,000
NAV / Unit AED 5.02
Net Assets AED 127.40m
Initial Fee 3% (max.)
Management Fee 1.5%
Custody/Admin Fee 0.45% (max.)
Performance Fee 10% subject to High Watermark
Hurdle Rate EIBOR (3M)
Redemption Fee 1% after 1 Year
NAV Weekly (No Lock-up)
Custodian Deutsche Bank
Administrator Deutsche Bank
Auditors KPMG
Lawyers Tamimi & Co
Fund Manager TNI
Domicile UAE
ListingDubai Financial Market –TNIUAEBCF
Reuters Lp65037579
Bloomberg TNIUAEF UH Since Inception %
TNI UAE Blue Chip Fund -49.8
S&P UAE Dom Capped -61.3
MSCI UAE Index -69.3
S&P UAE Dom Capped Index (%)
The National Investor
Headquarters
TNI Tower | Zayed 1st Street Khalidiya|
P.O. Box 47435 | Abu Dhabi | UAE
Phone: +971 2 619 2300
Fax: +971 2 619 2400
Email: [email protected]
www.tni.ae
0%
20%
40%
60%
80%
100%
120%
140%
160%
Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11
TNI BCF
MSCI UAE Index
S&P UAE Dom Capped Index