AAIB Mutual Fund (Shield)

Fact Sheet November 2013

Investment Objective The fund seeks long-term capital appreciation by investing in publicly traded Egyptian stocks. Fund Managers Commentary The local bourse ended November flat as political instability concealed gains reported earlier in the month. Shield preformed relatively better during November and increased a mere 0.4%, bringing its YTD gains to almost 15.0%. Noise surrounding the new protest law coupled with a series of fierce demonstrations held across the country spiraled market anxiety and led to heavy selling pressure, particularly from foreign investors. This came despite the governments decision to end the state of emergency and lift the curfew, which was viewed as a solid move to reinstate stability. In terms of political transition roadmap, the adviser of the interim President confirmed commitment to the plan outlined previously with a final draft of the constitution expected to be issued early December. A referendum is scheduled to be held by the end of December/early January 2014. On the economic spectrum, a number of positive catalysts were announced including an additional USD9.0 billion worth of aid said to be promised by UAE and Saudi Arabia, with a portion of the funds being in the form of grants. Kuwait also plans to extent an additional USD1.0 billion grant, awaiting the Parliaments approval. We believe the funds being in the form of grants will likely ease pressure on FCY payments over the medium-term. Additional foreign currency injected impelled the government to repay the three largest foreign oil and gas producers in Egypt (BP, BG, and ENI) in a move aimed to maintain a solid relationship with foreign oil & gas companies to increase local supply and solve the underlying energy crisis. The three aforementioned oil and gas producers account for roughly 50.0% of the Egyptian General Petroleum Corporations (EGPC) outstanding USD6.4 billion of overdue payables. Continuous support from oil-rich countries prompted Standard & Poor's (S&P) to raise Egypt's long and short-term foreign and local currency sovereign credit ratings to B-/B from CCC+/C, with a 'stable' outlook. The upgrade reflects the agencys confidence in the governments ability to secure sufficient foreign currency funding to manage short-term fiscal and external financing requirements. Following Egypts sovereign credit rating upgrade, S&P raised the long-term ratings of four local banks, namely National Bank of Egypt (NBE), Banque Misr (BM), Commercial International Bank (CIB), and National Societe Generale Bank (NSGB) to B- from CCC+. On a related note, CIB Q3-2013 earnings surpassed market expectations on lower provisions coupled with strong growth in non-interest income accentuated by fees and commission income relating to trade finance activities.

Fund Details Fund Type 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 Equity Fund AAIM February 26,1998 Open Ended Egypt EGP AAIB AAIB KPMG Hazem Hassan EGP 114.2 Daily 0.9% 12% above excess return over CB discount rate 1.0% 0.25% None 0.75% 1 certificate

*As of 28/11/2013 ** Daily subscription and redemption until 12 pm throughout AAIB branches NAV is published weekly in Al Masry Al Yom Newspaper

Fund Performance

November 2013 Shield EGX30 0.4% 0.0%

2013 YTD 14.9% 13.2%

2012

2011

28.3% 50.8%

-27.1% -49.3%

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

Top Holdings Company Sector Banks Telecoms Real Estate Petrochemicals Building Materials Weight 9.3% 9.0% 8.6% 7.2% 6.1%

Real Estate Telecoms Banks Consumer Oil & Petrochemicals Building Materials Non-Banking Financials Cash & Others Construction Others 0% 4.7% 4.1% 5% 10% 15% 8.4% 8.3% 7.7% 8.7% 11.8% 10.3%

18.0% 17.9%

CIB GTH TMG Holding Sidi Kerir Ezzsteel

20%

Key Statistics* Shield Standard Deviation 16.3% -0.25 0.34 -9.7% 60.3% EGX 30 29.2%

Return vs. Volatility *

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

N/A -20.9% 55.2%

Return

Investment Approach Sharpe Ratio**

-0.37

8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 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-Saraya Al Koubra, Garden City 11516, Cairo, Egypt Tel. +202 27926825(7)(9) - Fax +202 27961879 Website: www.aaim.com.eg AAIB Call Center: 19555