AAIB Fixed Income Fund (Gozoor)

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Fact Sheet

October 2013

Investment Objective The fund seeks to maximize returns, and to outperform the short-term interest rates by investing in a broadly diversified portfolio of fixed income securities. Fund Managers Commentary

Fund Details Fund Type Fund Manager Launch Date Structure Domicile Fund Currency Administrator Custodian Fixed Income Fund AAIM 28/03/2012 Open ended Egypt EGP Nuun Blom Bank KPMG Hazem Hassan EGP 11.86 Daily/Monthly 0.25% 0.25% None None 100 certificates

The yield curve resumed its downward trend during October 2013 across all tenures. In the T-bill market, the fall was more pronounced for longer maturities compared to short-term tenures. Bonds, on the other hand, fell at a slower pace compared to t-bills. On the economic front, Q4FY2013 GDP growth was marked at 1.5%, bringing the annualized growth rate for the fiscal year to 2.1% compared to 2.2% growth reported in FY2012. In terms of inflation, the headline index increased by 1.57% m-o-m in September taking the annual rate to 10.15%. The core CPI inched up 1.70% m-o-m in September, pushing the annual rate to 11.5% compared to 8.97% recorded in August. Both underlying factors drove the Monetary Policy Committee (MPC) to keep key overnight deposit and lending rates unchanged at 8.75% and 9.75%, respectively. The discount rate was also unchanged at 9.25%. On the liquidity spectrum, foreign reserves remained relatively unchanged at USD18.7 billion. During October, the UAE approved a USD4.9 billion grant to Egypt to be slated towards upcoming investment programs. Out of the total amount, USD2.9 billion will be in the form of fresh funds, while the remaining balance was granted previously. Over the coming period, we expect interest rates to cautiously increase due to inflationary pressures coupled with the CBEs decision to maintain key interest rates after two consecutive cuts. We remain well positioned to capitalize on any market movements over the coming period.
T-bills Movement
16.0 15.0

Auditors NAV per Certificate* Subscription/Redemption** Management Fee Administration Fee Subscription Fee Redemption Fee Min. Initial Investment

*As of 31/10/2013 st ** Daily subscription until 2:00 pm and monthly redemption-the 1 Sunday of every monthuntil 12:00 pm throughout AAIB Branches NAV is published weekly in AlMasry Alyoum Newspaper

Duration Distribution

More than 360 days 45% 181-360 days 1%

0-7 Days 22%

8-90 days 23%

91-180 days 9%

Fund Performance (net of fees)

14.0 13.0 12.0 11.0 10.0

Return Annualized Return

*Since 28/03/2012

October 2013 1.13% 14.19%

2013 YTD 8.05% 9.74%

2012 N/A N/A

Since Inception* 18.57% 11.27%

91 Days

182 Days

273 Days

364 Days

About Arab African Investment Management Arab African Investment Management (AAIM), a subsidiary of the Arab African International Bank (AAIB), was established in 2006 200 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 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 Call Center: 19555