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    AAIB Mutual Fund (Shield) : Fact Sheet June 2014

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    The fund is an Egyptian equity fund that was launched in February 1998. It has an open-ended structure and is domiciled in Egypt with the fund currency being the Egyptian pound. The fund aims to generate returns through long-term stock selection of undervalued quality companies. In June 2014, the fund returned -0.2% compared to the -1.0% return of the EGX30 index.

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    AAIB Mutual Fund (Shield) : Fact Sheet June 2014

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    The fund is an Egyptian equity fund that was launched in February 1998. It has an open-ended structure and is domiciled in Egypt with the fund currency being the Egyptian pound. The fund aims to generate returns through long-term stock selection of undervalued quality companies. In June 2014, the fund returned -0.2% compared to the -1.0% return of the EGX30 index.

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    The fund is an Egyptian equity fund that was launched in February 1998. It has an open-ended structure and is domiciled in Egypt with the fund currency being the Egyptian pound. The fund aims to generate returns through long-term stock selection of undervalued quality companies. In June 2014, the fund returned -0.2% compared to the -1.0% return of the EGX30 index.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    39 views2 pages

    AAIB Mutual Fund (Shield) : Fact Sheet June 2014

    Uploaded by

    api-237717884
    The fund is an Egyptian equity fund that was launched in February 1998. It has an open-ended structure and is domiciled in Egypt with the fund currency being the Egyptian pound. The fund aims to generate returns through long-term stock selection of undervalued quality companies. In June 2014, the fund returned -0.2% compared to the -1.0% return of the EGX30 index.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    FundDetails

    FundType EquityFund
    FundManager AAIM
    LaunchDate February26,1998
    Structure OpenEnded
    Domicile Egypt
    FundCurrency EGP
    Administrator AAIB
    Custodian AAIB
    Auditors KPMGHazemHassan
    NAVperCertificate* EGP129.79
    Subscription/Redemption** Daily
    ManagementFee 0.9%
    PerformanceFee
    12%aboveexcessreturnover
    CBdiscountrate
    AdministrationFee 1.0%
    CustodianFee 0.25%
    SubscriptionFee None
    RedemptionFee 0.75%
    Min.InitialInvestment 1certificate
    *Asof30/06/2014
    **Dailysubscriptionandredemptionuntil12pmthroughoutAAIBbranches
    NAVispublishedweeklyinAlMasryAlYomNewspaper

    The local bourse ended the month on a negative note owing to
    governments flow of austerity measures in attempt to narrow the
    budget deficit. Volatility marked the markets performance during
    the month in speculation of the likely impact on listed companies
    fromsuchstringentdecisions,leadingtheEGX30toshed1.0%ofits
    value. The President did not ratify the budget initially proposed for
    FY2015asitwasestimatedtoraisedomesticdebttoEGP2.0trillion,
    callingformoredecisivemeasurestobetakentonarrowthebudget
    deficit.ThePresidentalsoissuedadecreetoapplythe10.0%taxon
    capital gains/stock dividends and also to impose income taxes on
    both resident and nonresident commercial, industrial, and
    professionalactivitiesabroadbutnotremittances.
    Consequently, the government announced several immediate
    stringentmeasuresmainlytargetingtoraisetaxrevenuesandlower
    the energy subsidy bill. The structural reforms included 1) raising
    natural gas to USD7.00 per mmBtu for steel, copper, ceramics, and
    glass players and USD8.00 per mmBtu for cement players, 2)
    doubling electricity prices for industrial use over the course of five
    years, 3) raising electricity prices for higherconsuming segments of
    thepopulationby15.0%20.0%,4)raisinggasolineanddieselprices,
    5) raising taxes on the corporate segment and individuals, and 6)
    raising sales tax imposed on local and imported cigarettes by up to
    120%anddoubledthesalestaxrateonalcoholicbeverages.
    The Ministry of Finance stated that the government is targeting to
    narrow the deficit to 10.0%down froma 12.0% deficit presented in
    the current budget in addition to reducing domestic debt to 80%
    85.0% of GDP down from 93.7% expected for FY2014 over the
    coming three years. The government expects economic growth of
    3.2% in FY2015 and to reach 4.0% 5.8% over the coming three
    years.
    In terms of political, parliamentary elections are scheduled to take
    place before 18 July, marking the final milestone to complete the
    transitional roadmap. Meanwhile on the corporate front, EFG
    Hermes was confronted with a voluntarily tender offer by a
    consortium between New Egypt Investment Fund B.V. (17.82%),
    Beltone Capital (1.09%), Beltone Financial (1.09%) to acquire 20.0%
    of the company, at an acquisition price of EGP16.0 per share. HC
    Securitieswashiredastheindependentfinancialadvisorandvalued
    the company at EGP22.93 per share, a c.43.0% premium to the
    offeredacquisitionprice.Thetenderoffertookplaceover5working
    daysandended6July2014,withlessthanhalfoftotaltargetshares
    to be acquired being offered. Consequently, the consortium stated
    thatitwillnotbuythesharesoffered.


    Shieldvs.EGX30*
    *Performance since15/10/2008 dateatwhichAAIMstartedmanagingthefund
    FundPerformance

    AAIBMutualFund(Shield)
    FactSheetJune2014
    June 2014 2013
    2014 YTD
    Shield -0.2% 17.5% 21.2% 28.3% -27.1%
    EGX30 -1.0% 20.3% 24.2% 50.8% -49.3%
    2012 2011

    20
    40
    60
    80
    100
    120
    140
    160
    Shield EGX30

    InvestmentApproach
    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
    upsidepotential,wetypicallyseekoutcompaniesthathavestrongcompetitivepositions,solidfinancials,andcapablemanagementteams.Ourgoalisto
    generatereturnthroughstockselection.Weseekinefficienciesinthevaluationofcompaniesweaimtoinvestin.Ourinvestmentdecisionsareprimarily
    longtermandresearchdriven.

    AboutArabAfricanInvestmentManagement
    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 (EquityFund), Juman (Money Market Fund), and Gozoor (Fixed Income Fund). We also manage tailored portfolios for institutions
    andhighnetworthindividuals.

    ContactDetails

    ArabAfricanInvestmentManagement
    5MidanAlSarayaAlKoubra,GardenCity11516,Cairo,Egypt
    Tel.+20227926825(7)(9)Fax+20227961879
    Website:www.aaim.com.eg
    AAIBCallCenter:19555

    Shield
    EGX30
    *Annualizeddatasince15/10/2008dateatwhichAAIMstarted
    managingthefund
    Shield EGX30
    StandardDeviation 16.6% 28.4%
    SharpeRatio** 0.18 -0.08
    InformationRatio*** 0.27 N/A
    Max.MonthlyLoss -9.7% -20.9%
    %OfPositiveMonths 61.5% 55.4%
    *Datasince15/10/2008dateatwhichAAIMstartedmanagingthefund
    **Measuresriskadjustedreturncomparedtoriskfreerate
    ***MeasuresriskadjustedreturncomparedtoEGX30
    KeyStatistics*
    0.0%
    2.0%
    4.0%
    6.0%
    8.0%
    10.0%
    12.0%
    14.0%
    0% 5% 10% 15% 20% 25% 30%
    R
    e
    t
    u
    r
    n
    StandardDeviation

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