AAIB Fixed Income Fund (Gozoor)

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Fact Sheet

January 2014

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 The yield curve witnessed downward pressure on T-bills recording an average decline of 0.25% across all tenures. On the other hand, interest rates stabilized on medium-term maturities and rose by roughly 0.4% on long-term debt instruments. On the economic spectrum, positive figures were revealed on the budget deficit front with the shortfall narrowing to EGP89.4 billion in 1H2014, representing 4.4% down from 5.1% (EGP91.47 billion) reported in the same period a year earlier. This falls in line with the governments target to lower the budget deficit to c.10.0% of GDP in FY2014 as opposed to 13.7% reported in FY2013. Meanwhile, the government announced that the economy grew by 1.04% in 1QFY2014 compared to 2.1% reported in the same period a year earlier. The decline is mainly attributed to the state of emergency and curfew imposed across the nation which led to a slowdown in key sectors such as manufacturing construction, tourism and petroleum. It is worth mentioning that the government is targeting a real GDP growth of 3.00%-3.50% for FY2014. The Monetary Policy Committee (MPC) decided on its first meeting in 2014 to keep key policy rates unchanged as it deems current overnight lending and deposit rates appropriate given the current outlook on inflation and GDP over the coming period. The headline CPI declined by 1.02% (m-o-m) in December 2013 after recording an increase of 0.95% (m-o-m) in November 2013, bringing the annual inflation rate to 11.66% in December down from 12.97% in November 2013. We believe interest rates will be under downward pressure over the coming period given the governments continuous efforts to boost economic growth, achieve price stability, and narrow the budget deficit in FY2014. We remain well positioned to capitalize on any market movements over the coming period.

Fund Details Fund Type Fund Manager Launch Date Structure Domicile Fund Currency Administrator Custodian Auditors NAV per Certificate* Subscription/Redemption** Management Fee Administration Fee Subscription Fee Redemption Fee Min. Initial Investment Fixed Income Fund AAIM 28/03/2012 Open ended Egypt EGP Nuun Blom Bank KPMG Hazem Hassan EGP 12.28 Daily/Monthly 0.25% 0.25% None None 100 certificates

*As of 31/01/2014 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 39%

0-7 Days 12% 8-90 days 8% 91-180 days 12%

181-360 days 29%

T-bills Movement
16.0 15.0 14.0 13.0 12.0 11.0 10.0

Fund Performance (net of fees)

January 2014 0.83% 10.24% 2014 YTD 0.83% 10.24% 2013 11.03% 11.03% Since Inception* 22.81% 11.77%

Return Annualized Return

*Since 28/03/2012
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 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 Call Center: 19555