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Investor Monthly Newsletter

For the Month Ending 30th September 2012

Inside this issue: The UAE’s SCA approved market making and short selling

Topic of the month - Are the UAE fixed income real yields still attractive?

The Egyptian market was the top performer for the second month in a row

TNI MENA UCITS increased exposure to Saudi and Kuwait

TNI MENA Special Sits appreciated by 0.4% during the month

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


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]

Divya 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 Sep-06 May-07 Jan-08 Sep-08 May-09 Jan-10 Sep-10 May-11 Jan-12 Sep-12

DJ / DIFC Arabia 50

S&P Pan Arab CompositeLarge/MidCap Index

S&P GCC CompositePrice Index

PERFORMANCE REVIEW September 2012

Market Performance

September witnessed a market increase, the S&P Pan Arab Capped rose 0.5%. The Egyptian market was the best performer for the second month in a row, the index jumped 19.0%. The market reached new year highs during the month. Saudi Arabia, the biggest and most liquid market within the region lost 3.3%. Oil prices were steady after their strong summer rally, the Brent quality price lost 1.9% and closed the month at US$ 112.4 per bbl.

Manager’s Comments

The positive developments in the UAE economy continued to draw the attention of both regional and international investors. For a second month in a row, UAE outperformed other MENA markets as the S&P UAE Domestic Capped Index ended the month up 2.3%. The Fund Manager reduced the cash position to 2.7% and increased other GCC exposure to 3.0%.

TNI UAE Blue Chip Fund

The Fund rose 0.4% in the month of September. We slightly increased our Egyptian equity exposure, targeting low volatility names. We have reshuffled our short trading allocation; we have a single short position with Morocco Telecom. The major proportion of our fixed income portfolio has been invested in corporates and short maturities.

TNI MENA Special Situations Fund

The MENA markets ended the month on a negative note with the UAE outperforming the rest of the markets, up 2.3%. TNI MENA UCITS Fund underperformed its benchmark - the S&P Pan Arab Capped Index - by 0.4% driven mainly by services and telecommunications. The Fund Manager reduced the cash position to 2.0%. On a country level, the Fund Manager increased exposure in Saudi and Kuwait. The main country underweights remained Lebanon, Jordan and Morocco.

MENA UCITS Fund

DJ / DIFC 50 TITANS Index- S&P GCC Index

Regional Performance

Performance % MTD YTD

DJ Arabia Titans 1.6 3.5

S&P GCC -1.3 3.3

S&P Composite -1.1 3.5

Other MENA Indices MTD% YTD%

Egypt 19.0 74.8

Morocco -3.4 -13.3

Tunisia -4.7 1.4

Jordan -4.3 -6.6

Lebanon -0.1 -7.4

S&P GCC Indices MTD% YTD%

Saudi Arabia -3.3 6.1

UAE 2.3 15.1

Kuwait 6.2 -2.4

Qatar 0.2 -1.0

Oman 0.3 -7.9

Bahrain -0.4 -6.4

Performance is measured between 30th August 2012 to 27th September 2012

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

Apr-06 Nov-06 Jun-07 Jan-08 Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12

MARKETS REVIEW September 2012

The MENA Equity Markets The UAE’s Securities and Commodities Authority (SCA) approved market making and short selling of listed securities in a long-awaited move which may help revive UAE's equity markets. The rules are expected to be implemented by the end of the year.

Market maintained its uptrend in Dubai on account of strong tourism, airtraffic, trade and real estate data. Emaar Properties hit 52 week high of AED 3.63 in September and was up 35% year-to-date (ytd). The company launched The Address The BLVD, a five-star premium hotel and serviced residences, in Dowmtown Dubai, two major projects in Egypt and a mixed-use development in turkey. Dubai hotel revenue rose 22% yoy in 1H2012 to AED 9.8 billion (US$ 2.7 billion) based on the Dubai department of tourism and commerce data.

Loan growth momentum continued in Saudi. Total credit grew 15.6% yoy in August and private sector credit growth accelerated to 14.4% yoy. Private sector credit growth was broad-based and robust. Saudi Arabia Purchasing Managers' Index (PMI), which reflects growth in non-oil activity, saw a strong rise in September. The headline PMI rose to 60.3 in September, up from 58.3 in August, to reach a four-month high.

QNB reported 3Q2012 net profit of QAR 2,111 million, flat qoq (+11% yoy), 4% below Bloomberg consensus estimate of QAR 2,190 million. Overall a mixed set of results with lending witnessing a strong growth of 42% yoy (+2% qoq) but net interest spread declining by 12bps qoq to 2.59%. The bank saw a strong deposit growth of 37% yoy (+9% qoq). Fee income declined 6% yoy (-4% qoq).

Chart 1: Relative PE MENA to MSCI World

Chart 2: Saudi banking sector yoy credit growth

Source: Saudi Arabian Monetary Agency

Source: Bloomberg

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12

ADGB 2014 DUGB 2015

TOPIC OF THE MONTH September 2012

Are the UAE fixed income real yields still attractive? With Brent crude prices averaging about US$ 112 per bbl year-to-date (ytd), most of the oil based GCC economies have been running a fiscal surplus which has led to an abundance of local liquidity. This combined with relatively stable political situation compared to other non-oil economies has led to inflow of money in to the conventional bonds and Sukuk issuances in these countries.

GCC countries face an enormous economic diversification challenge linked to the on-going efforts to employ their growing population and to create a basis for sustainable long term economic growth. This has led the governments in these countries to increasingly focus on social spending which in turn has given rise to project based Sukuk issuances. Abundant global liquidity, arising from central banks expansionary monetary policies and US 1-5 years Treasury Bonds yielding less than 1%, has also found its way in to the fixed income markets of these fundamentally stronger and politically stable GCC economies.

As a result of ample liquidity flowing in to the GCC fixed income markets which lacks depth (number of issues is not significant) and improving fundamentals, the yields have compressed significantly. While yields for Abu Dhabi government bonds have declined by an average 100 bps ytd, decline in Dubai government bonds yields is much more prominent at 220 bps. This is also evident in Dubai’s five year Credit Default Swap spread which has contracted by 177 bps. The emirate has been the beneficiary of strong up move in its key sectors such as trade, commerce, tourism and hospitality, and smoother than expected restructuring of government and government related entities debt. Foreign trade set a new record exceeding AED 600 billion in 1H2012, an increase of 12% yoy. 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.

Chart 3: Abu Dhabi and Dubai government bond yields trending downwards

Due to the compression in yields, real yields for the UAE government and government related entities bonds have become unattractive for the domestic investors. Abu Dhabi government bond maturing in 2014 has an expected 2012 real yield of -0.7% and Dubai government bond maturing in 2014 has an expected 2012 real yield of 1.7%. According to the National Bureau of Statistics, expected 2012 inflation (CPI) for the UAE is about 1.1%. The inflation has significantly trended downwards from a peak of 12.3% in 2008 to 0.9% in 2011 mainly due to decline in house rentals by an average 55% and 40% from the peak in Dubai and Abu Dhabi, respectively. However, with house rentals in Dubai being up by an average 18% ytd and commodity prices expected to trend upwards on QE3, there is an upside risk to inflation.

Although the average expected 2012 real yield on investment grade corporate bonds maturing in 2014 is still positive at 0.4%, the yield has compressed by 1.3% ytd due to the decline in credit risk and improvement in earnings outlook. Expected 2012 real yield on Abu Dhabi National Energy Company’s bond maturing in 2014 has come down to 0.5% from 1.8% in beginning of the year. Similarly, the real yield on Abu Dhabi Commercial Bank’s bond maturing in 2014 has declined 114 bps to 0.7%.

With Abu Dhabi government’s fiscal position expected to remain strong on Brent prices sustaining above US$ 100 per bbl, Dubai shrugging off weak global macroeconomic outlook by witnessing strong growth in its service sector and overall decline in the credit risk, outlook for equities has started to look more appealing than fixed income. Equity valuations are trading at discount to emerging and regional markets. The average forward PE of the UAE is 9.6x compared to 11.5x and 12.3x for MSCI emerging and regional markets, respectively. Currently, the average dividend yield, for the UAE listed companies, stands at 4.3%. When adjusting for inflation the dividend yield will be 3.1% compared to the investment grade corporate fixed income real yield of 0.4%.

Source: Bloomberg

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 14.3

7.5%

8.7%

8.8%

9.0%

9.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

ENBD

NBAD

Emaar

FGB

Etisalat

`

51.9%

36.3%

6.5%3.3%

2.0%

Abu Dhabi

Dubai

Nasdaq DubaiCash

GCC

0%

20%

40%

60%

80%

100%

120%

140%

160%

Apr-05 Nov-05 Jun-06 Jan-07 Aug-07 Mar-08 Oct-08 May-09 Dec-09 Jul-10 Feb-11 Sep-11 Apr-12

TNI BCF

MSCI UAE Index


TNI UAE BLUE CHIP FUND Fact Sheet as of August 30, 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.




WTD -2.1

MTD 4.1

YTD 12.5


Value Blend Growth Large

Medium

Small

Fund Profile

WTD -1.9

MTD 4.2

YTD 14.3


Fund Facts


Since Inception %






Headquarters

TNI Tower | Zayed 1st Street Khalidia|


Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae


Base Currency AED



NAV / Unit AED 4.94

Net Assets AED 131.48 M


Management Fee 1.5% Custody/Admin Fee 0.45% (max.)







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 16.3

0%

20%

40%

60%

80%

100%

120%

140%

160%

Apr-05 Dec-05 Aug-06 Apr-07 Dec-07 Aug-08 Apr-09 Dec-09 Aug-10 Apr-11 Dec-11 Aug-12

TNI BCF

MSCI UAE Index


7.2%

8.9%

9.2%

9.7%

9.9%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

ENBD

Etisalat

NBAD

FGB

Emaar

`

52.8%

35.1%

6.4%3.0%

2.7%

Abu Dhabi

Dubai

Nasdaq DubaiGCC

Cash

TNI UAE BLUE CHIP FUND Fact Sheet as of September 27, 2012

Fund Profile








WTD -1.3

MTD 2.3

YTD 15.1



Medium

Small

Fund Profile

WTD -1.1

MTD 1.7

YTD 16.3


Fund Facts


Since Inception %






Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae


Base Currency AED



NAV / Unit AED 5.02










Auditors KPMG

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579


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 16.3

0%

20%

40%

60%

80%

100%

120%

140%

160%


TNI BCF

MSCI UAE Index


7.2%

8.9%

9.2%

9.7%

9.9%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

ENBD

Etisalat

NBAD

FGB

Emaar

`

52.8%

35.1%

6.4%3.0%

2.7%

Abu Dhabi

Dubai

Nasdaq DubaiGCC

Cash


Fund Profile








WTD -1.3

MTD 2.3

YTD 15.1



Medium

Small

Fund Profile

WTD -1.1

MTD 1.7

YTD 16.3


Fund Facts


Since Inception %






Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae


Base Currency AED



NAV / Unit AED 5.02










Auditors KPMG

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579


Benchmark Return (%)

0%

5%

10%

15%

20%

25%


``

TNI UAE BLUE CHIP FUND Fund Analytics as of September 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 (%)

Fund

Ret

urn

(%)

Returns

(%)

TNI

BCF

S&P

Cap

MSCI UAE

1M 1.7 2.3 3.4

3M 8.3 9.0 10.7

6M 1.2 -0.7 2.0

1Y 9.2 7.1 10.0

3Y -24.4 -24.2 -27.0

Inc -49.8 -61.7 -69.1

PE PB ROE

%

MCap

(AED B)

TNI BCF 10.0 0.9 14.0 14.8

S&P UAE

Capped 10.8 1.0 13.6 13.1

MSCI

UAE 11.2 1.2 13.9 13.8

1Y 2Y 3Y Since Inception

Relative Alpha 2.1 0.4 -0.1 3.3

Ann. Return 9.2 -0.6 -8.9 -8.9

Volatility 13.7 14.7 20.1 26.5

Tracking Error 3.8 3.4 4.7 11.0

Info. Ratio 0.5 0.1 0.0 0.3

Annualised based on monthly data

Evolution of Yearly Tracking Error

Total Bull Bear

Beta 0.7 0.7 0.7

Info Ratio 0.3 -1.8 1.6

Sortino 0.2 -1.6 0.8

Correl 0.9 0.8 0.8

- 28.14

18.14

- 8.14

1.86

11.86

21.86

31.86

- 28.14 - 18.14 - 8.14 1.86 11.86 21.86 31.86

TNI UAE BCF vs. MSCI UAE

-

0.0

1.5

2.7

3.0

4.2

5.5

6.2

12.0

21.8

43.1

-25 -5 15 35 55

Materials

Investments

Cash

Utilities

Transportation

Marine

Services

Telecoms

Real Estate

Banking

( 0.8 )

1.5

2.7

3.0

0.2

(0.3)

2.0

(0.0)

0.5

( 1.4 )

-10 -5 0 5 10

2.7

3.0

6.4

35.1

52.8

-40 -20 0 20 40 60

Cash

GCC

Nasdaq Dubai

Dubai

Abu Dhabi

2.7

3.0

0.7

(2.7)

(3.7)

-15 -5 5 15

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


Fund Profile











markets.








MTD 0.9

YTD -1.3



Medium

Small

Fund Profile

WTD -0.9

MTD 0.5

YTD -0.8


Fund Facts



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


Base Currency AED



NAV / Unit AED 5.02



Management Fee 1.5%








Auditors KPMG

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579







Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2400


www.tni.ae

0%

20%

40%

60%

80%

100%

120%

140%

160%


TNI BCF

MSCI UAE Index


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 16.3

0%

20%

40%

60%

80%

100%

120%

140%

160%


TNI BCF

MSCI UAE Index


7.2%

8.9%

9.2%

9.7%

9.9%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

ENBD

Etisalat

NBAD

FGB

Emaar

`

52.8%

35.1%

6.4%3.0%

2.7%

Abu Dhabi

Dubai

Nasdaq DubaiGCC

Cash


Fund Profile








WTD -1.3

MTD 2.3

YTD 15.1



Medium

Small

Fund Profile

WTD -1.1

MTD 1.7

YTD 16.3


Fund Facts


Since Inception %






Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae


Base Currency AED



NAV / Unit AED 5.02










Auditors KPMG

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579



0%

5%

10%

15%

20%

25%


``


Regression Analysis




Fund

Ret

urn

(%)

Returns

(%)

TNI

BCF

S&P

Cap

MSCI UAE

1M 1.7 2.3 3.4

3M 8.3 9.0 10.7

6M 1.2 -0.7 2.0

1Y 9.2 7.1 10.0

3Y -24.4 -24.2 -27.0

Inc -49.8 -61.7 -69.1

PE PB ROE

%

MCap

(AED B)

TNI BCF 10.0 0.9 14.0 14.8

S&P UAE

Capped 10.8 1.0 13.6 13.1

MSCI

UAE 11.2 1.2 13.9 13.8



Ann. Return 9.2 -0.6 -8.9 -8.9

Volatility 13.7 14.7 20.1 26.5


Info. Ratio 0.5 0.1 0.0 0.3



Total Bull Bear

Beta 0.7 0.7 0.7

Info Ratio 0.3 -1.8 1.6

Sortino 0.2 -1.6 0.8

Correl 0.9 0.8 0.8

- 28.14

18.14

- 8.14

1.86

11.86

21.86

31.86

- 28.14 - 18.14 - 8.14 1.86 11.86 21.86 31.86


-

0.0

1.5

2.7

3.0

4.2

5.5

6.2

12.0

21.8

43.1

-25 -5 15 35 55

Materials

Investments

Cash

Utilities

Transportation

Marine

Services

Telecoms

Real Estate

Banking

( 0.8 )

1.5

2.7

3.0

0.2

(0.3)

2.0

(0.0)

0.5

( 1.4 )

-10 -5 0 5 10

2.7

3.0

6.4

35.1

52.8

-40 -20 0 20 40 60

Cash

GCC

Nasdaq Dubai

Dubai

Abu Dhabi

2.7

3.0

0.7

(2.7)

(3.7)

-15 -5 5 15


0%

5%

10%

15%

20%

25%


``


Regression Analysis




Fund

Ret

urn

(%)

Returns

(%)

TNI

BCF

S&P

Cap

MSCI UAE

1M 1.7 2.3 3.4

3M 8.3 9.0 10.7

6M 1.2 -0.7 2.0

1Y 9.2 7.1 10.0

3Y -24.4 -24.2 -27.0

Inc -49.8 -61.7 -69.1

PE PB ROE

%

MCap

(AED B)

TNI BCF 10.0 0.9 14.0 14.8

S&P UAE

Capped 10.8 1.0 13.6 13.1

MSCI

UAE 11.2 1.2 13.9 13.8



Ann. Return 9.2 -0.6 -8.9 -8.9

Volatility 13.7 14.7 20.1 26.5


Info. Ratio 0.5 0.1 0.0 0.3



Total Bull Bear

Beta 0.7 0.7 0.7

Info Ratio 0.3 -1.8 1.6

Sortino 0.2 -1.6 0.8

Correl 0.9 0.8 0.8

- 28.14

18.14

- 8.14

1.86

11.86

21.86

31.86

- 28.14 - 18.14 - 8.14 1.86 11.86 21.86 31.86


-

0.0

1.5

2.7

3.0

4.2

5.5

6.2

12.0

21.8

43.1

-25 -5 15 35 55

Materials

Investments

Cash

Utilities

Transportation

Marine

Services

Telecoms

Real Estate

Banking

( 0.8 )

1.5

2.7

3.0

0.2

(0.3)

2.0

(0.0)

0.5

( 1.4 )

-10 -5 0 5 10

2.7

3.0

6.4

35.1

52.8

-40 -20 0 20 40 60

Cash

GCC

Nasdaq Dubai

Dubai

Abu Dhabi

2.7

3.0

0.7

(2.7)

(3.7)

-15 -5 5 15

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

MENA UCITS S&P Pan Arab 5/10/40 Capped S&P Pan Arab

3.9%

4.5%

4.5%

4.9%

5.7%

SABIC P Note

Industries Qatar

QNB

NBK

Al Rajhi P Note

43.0%

13.9%

12.7%

12.5%

9.0%

2.2%2.1%

2.0%

1.9%

0.7%

0.0%

KSA

QATAR

EGYPT

KUWAIT

UAE

OMANJORDAN

Cash

MOROCCO

BAHRAIN

LEBANON

TNI MENA UCITS FUND Fact Sheet as of September 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 3.1

S&P Pan Arab Large-Mid 5/10/40 Index -0.3

S&P Pan Arab 0.1

%

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 11.1


Medium

Small

Fund Profile

WTD -0.9

MTD 0.3

YTD 11.1

Since Inception 3.1

Fund Facts

Inception Date June 17, 2010

Base Currency USD

Minimum Inv. USD 100,000

NAV / Unit USD 1,031.22

Net Assets USD 27.6 M


Management Fee 1.4%

Custody / Admin Fee 0.45% (max.)


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 - 0.5

MTD 0.5

YTD 3.7



Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae

Top Holdings


Monthly Performance (%)


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

MENA UCITS S&P Pan Arab 5/10/40 Capped S&P Pan Arab

3.9%

4.5%

4.5%

4.9%

5.7%

SABIC P Note

Industries Qatar

QNB

NBK

Al Rajhi P Note

43.0%

13.9%

12.7%

12.5%

9.0%

2.2%2.1%

2.0%

1.9%

0.7%

0.0%

KSA

QATAR

EGYPT

KUWAIT

UAE

OMANJORDAN

Cash

MOROCCO

BAHRAIN

LEBANON

TNI MENA UCITS FUND Fact Sheet as of September 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 3.1

S&P Pan Arab Large-Mid 5/10/40 Index -0.3

S&P Pan Arab 0.1

%

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 11.1


Medium

Small

Fund Profile

WTD -0.9

MTD 0.3

YTD 11.1

Since Inception 3.1

Fund Facts

Inception Date June 17, 2010

Base Currency USD





Management Fee 1.4%

Custody / Admin Fee 0.45% (max.)


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 - 0.5

MTD 0.5

YTD 3.7



Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae

Top Holdings




-4

-3

-2

-1

0

1

2

3

4

-4 -3 -2 -1 0 1 2 3 4 5


2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%

Oct-11 Dec-11 Feb-12 Apr-12 Jun-12 Aug-12

TNI MENA UCITS FUND

Fund Analytics as of September 27, 2012 Regression Analysis TNI MENA UCITS Fund Vs S&P Pan Arab Large Mid Cap Index Asset allocation by Geography (%) Deviation by Geography (%)


Fund

Ret

urn

(%)

Returns

(%)

MENA

UCITS

S&P Pan

Arab

Capped

S&P

Pan

Arab

1W -0.9 -0.5 -1.0

1M 0.3 0.5 -0.7

3M 6.2 4.1 3.4

YTD 11.1 3.7 3.7

Inc 3.1 -0.3 0.1

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Mkt Cap

(US$B) MENA UCITS 11.6 1.8 15.5 10.3

S&P PAN Arab

Capped 11.5 1.6 12.2 10.9

S&P Pan Arab 12.9 1.6 17.0 11.8

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Banking 13.1 1.7 13.9

Real Estate 10.0 1.6 13.5

Industry 12.7 1.8 16.7

Telecoms 9.9 2.3 24.9

Services 12.9 3.2 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


2.0

6.3

11.5

12.2

20.3

47.7

-15 -5 5 15 25 35 45 55

Cash

Services

Real Estate

Telecoms

Industry

Banking

1.97

0.13

- 0.70

- 0.68

0.45

- 1.17

-5 -3 -1 1 3 5

0.0

0.0

0.7

1.9

2.0

2.1

2.2

9.0

12.5

12.7

13.9

43.0

-20 -10 0 10 20 30 40 50

Tunisia

Lebanon

Bahrain

Morocco

Cash

Jordan

Oman

UAE

Kuwait

Egypt

Qatar

Saudi Arabia

- 0.8

- 2.1

- 1.1

- 3.0

2.0

- 1.2

- 0.7

1.1

- 6.3

4.2

0.4

7.5

-12 -7 -2 3 8 13

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


Fund Profile











markets.








MTD 0.9

YTD -1.3



Medium

Small

Fund Profile

WTD -0.9

MTD 0.5

YTD -0.8


Fund Facts



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


Base Currency AED



NAV / Unit AED 5.02



Management Fee 1.5%








Auditors KPMG

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579







Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2400


www.tni.ae

0%

20%

40%

60%

80%

100%

120%

140%

160%


TNI BCF

MSCI UAE Index


-4

-3

-2

-1

0

1

2

3

4

-4 -3 -2 -1 0 1 2 3 4 5


2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%


TNI MENA UCITS FUND



Fund

Ret

urn

(%)

Returns

(%)

MENA

UCITS

S&P Pan

Arab

Capped

S&P

Pan

Arab

1W -0.9 -0.5 -1.0

1M 0.3 0.5 -0.7

3M 6.2 4.1 3.4

YTD 11.1 3.7 3.7

Inc 3.1 -0.3 0.1

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Mkt Cap

(US$B) MENA UCITS 11.6 1.8 15.5 10.3

S&P PAN Arab

Capped 11.5 1.6 12.2 10.9

S&P Pan Arab 12.9 1.6 17.0 11.8

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Banking 13.1 1.7 13.9


Industry 12.7 1.8 16.7

Telecoms 9.9 2.3 24.9

Services 12.9 3.2 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


2.0

6.3

11.5

12.2

20.3

47.7

-15 -5 5 15 25 35 45 55

Cash

Services

Real Estate

Telecoms

Industry

Banking

1.97

0.13

- 0.70

- 0.68

0.45

- 1.17

-5 -3 -1 1 3 5

0.0

0.0

0.7

1.9

2.0

2.1

2.2

9.0

12.5

12.7

13.9

43.0

-20 -10 0 10 20 30 40 50

Tunisia

Lebanon

Bahrain

Morocco

Cash

Jordan

Oman

UAE

Kuwait

Egypt

Qatar

Saudi Arabia

- 0.8

- 2.1

- 1.1

- 3.0

2.0

- 1.2

- 0.7

1.1

- 6.3

4.2

0.4

7.5

-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


2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

3.2%

3.4%


TNI MENA UCITS FUND



Fund

Ret

urn

(%)

Returns

(%)

MENA

UCITS

S&P Pan

Arab

Capped

S&P

Pan

Arab

1W -0.9 -0.5 -1.0

1M 0.3 0.5 -0.7

3M 6.2 4.1 3.4

YTD 11.1 3.7 3.7

Inc 3.1 -0.3 0.1

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Mkt Cap

(US$B) MENA UCITS 11.6 1.8 15.5 10.3

S&P PAN Arab

Capped 11.5 1.6 12.2 10.9

S&P Pan Arab 12.9 1.6 17.0 11.8

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Banking 13.1 1.7 13.9


Industry 12.7 1.8 16.7

Telecoms 9.9 2.3 24.9

Services 12.9 3.2 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


2.0

6.3

11.5

12.2

20.3

47.7

-15 -5 5 15 25 35 45 55

Cash

Services

Real Estate

Telecoms

Industry

Banking

1.97

0.13

- 0.70

- 0.68

0.45

- 1.17

-5 -3 -1 1 3 5

0.0

0.0

0.7

1.9

2.0

2.1

2.2

9.0

12.5

12.7

13.9

43.0

-20 -10 0 10 20 30 40 50

Tunisia

Lebanon

Bahrain

Morocco

Cash

Jordan

Oman

UAE

Kuwait

Egypt

Qatar

Saudi Arabia

- 0.8

- 2.1

- 1.1

- 3.0

2.0

- 1.2

- 0.7

1.1

- 6.3

4.2

0.4

7.5

-12 -7 -2 3 8 13

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

Aug-08 May-09 Feb-10 Nov-10 Aug-11 May-12

TNI SSF S&P Composite

Cash 14.4 %

KSA 18.2 %

Lebanon 15.3 %

Others 3.2 %

Kuwait 22.2 %

UAE 26.7 %

9.3%

9.8%

9.8%

9.9%

10.1%

KIPCO 10/16

Lebanese Bond01/13

Dar Al Arkan Sukuk15

Tamweel Conv.

NMTC

TNI MENA SPECIAL SITUATIONS FUND Fact Sheet as of August 30, 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 1.3

YTD 5.0

Since Inception 3.6


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 5.0

Inception date Sept 01, 2008

Base Currency USD





Management Fee 1.75%


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


Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331

[email protected]

www.tni.ae

Since Inception %

TNI MENA SSF 3.6

S&P Composite * -36.5

MTD 2.6

YTD 4.5


*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 Profile

Cash 30.5 %

KSA 12 %

Lebanon 9.5 %

Others 15.6 %

Egypt 9.4 %

UAE 23 %

6.7%

8.6%

9.4%

9.5%

9.8%

Eastern Tobacco

Emaar Conv.

KIPCO 10/16

Lebanese Bond01/13

Tamweel Conv.

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

Aug-08 Apr-09 Dec-09 Aug-10 Apr-11 Dec-11 Aug-12


TNI MENA SPECIAL SITUATIONS FUND Fact Sheet as of September 30, 2012

Fund Profile






MTD 0.4

YTD 5.5

Since Inception 4.1


Fund Facts


%

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 5.5


Base Currency USD








Watermark




Custodian HSBC


Auditors Deloitte

Lawyers Appleby


Domicile Bermuda

Reuters LP65135780

Bloomberg NIMESS BH


Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331

[email protected]

www.tni.ae

Since Inception %

TNI MENA SSF 4.1


MTD -1.0

YTD 3.4



RISK

RETU

RNH

IGH

MID

LOW

LOW MID HIGH

TNI SSFMSCI ARABIA



Fund Profile

Cash 30.5 %

KSA 12 %

Lebanon 9.5 %

Others 15.6 %

Egypt 9.4 %

UAE 23 %

6.7%

8.6%

9.4%

9.5%

9.8%

Eastern Tobacco

Emaar Conv.

KIPCO 10/16

Lebanese Bond01/13

Tamweel Conv.

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

Aug-08 Apr-09 Dec-09 Aug-10 Apr-11 Dec-11 Aug-12


TNI MENA SPECIAL SITUATIONS FUND Fact Sheet as of September 30, 2012

Fund Profile






MTD 0.4

YTD 5.5

Since Inception 4.1


Fund Facts


%

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 5.5


Base Currency USD








Watermark




Custodian HSBC


Auditors Deloitte

Lawyers Appleby


Domicile Bermuda

Reuters LP65135780

Bloomberg NIMESS BH


Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331

[email protected]

www.tni.ae

Since Inception %

TNI MENA SSF 4.1


MTD -1.0

YTD 3.4



RISK

RETU

RNH

IGH

MID

LOW

LOW MID HIGH

TNI SSFMSCI ARABIA



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


Fund Profile











markets.








MTD 0.9

YTD -1.3



Medium

Small

Fund Profile

WTD -0.9

MTD 0.5

YTD -0.8


Fund Facts



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


Base Currency AED



NAV / Unit AED 5.02



Management Fee 1.5%








Auditors KPMG

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579







Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2400


www.tni.ae

0%

20%

40%

60%

80%

100%

120%

140%

160%


TNI BCF

MSCI UAE Index


-10 0 10 20 30 40

Shorts

Convertibles

Sukuks

Bonds

Equities

Cash

-10 0 10 20 30 40

Telecom / IT

Sovereign

Real Estate

Financials

Others

Cash

TNI MENA SPECIAL SITUATIONS FUND Fact Analytics as of September 30, 2012

Asset allocation by Strategy Asset allocation by Sector

Statistics since Fund inception

TNI SSF S&P Composite LIBOR (1M)

Monthly. Return 0.43% -1.00% 0.02%

YTD 2011 5.48% 3.41% 0.18%

Since Inception 4.08% -37.15% 2.54%

Ann. Return Inception 0.99% -10.96% 0.63%

Volatility 8.42% 22.30% 0.22%

Sharpe Ratio 0.15 NA NA

Correl. (vs. TNI SSF) 1 0.28 0.21

Maximum Drawdown -7.52% -22.95% NA

# of Months 49 49 49

% Positive Month 53.10% 51.02% 100%

Best Month 5.00% 15.21% 0.34%

Worst Month -7.52% -22.95% 0.02%

Returns % TNI SSF S&P Composite

1M 0.43 -1.00

3M 4.70 3.13

6M 2.46 -8.91

1Y 3.43 3.99

Since Inception 4.08 -37.15

Returns % TNI SSF LIBOR (1M)

1M 0.43 0.02

3M 4.70 0.06

6M 2.46 0.12

1Y 3.43 0.25

Since Inception 4.08 2.54

-10 0 10 20 30 40

Shorts

Convertibles

Sukuks

Bonds

Equities

Cash

-10 0 10 20 30 40

Telecom / IT

Sovereign

Real Estate

Financials

Others

Cash

TNI MENA SPECIAL SITUATIONS FUND Fact Analytics as of September 30, 2012

Asset allocation by Strategy Asset allocation by Sector

Statistics since Fund inception

TNI SSF S&P Composite LIBOR (1M)

Monthly. Return 0.43% -1.00% 0.02%

YTD 2011 5.48% 3.41% 0.18%

Since Inception 4.08% -37.15% 2.54%

Ann. Return Inception 0.99% -10.96% 0.63%

Volatility 8.42% 22.30% 0.22%

Sharpe Ratio 0.15 NA NA

Correl. (vs. TNI SSF) 1 0.28 0.21

Maximum Drawdown -7.52% -22.95% NA

# of Months 49 49 49

% Positive Month 53.10% 51.02% 100%

Best Month 5.00% 15.21% 0.34%

Worst Month -7.52% -22.95% 0.02%

Returns % TNI SSF S&P Composite

1M 0.43 -1.00

3M 4.70 3.13

6M 2.46 -8.91

1Y 3.43 3.99

Since Inception 4.08 -37.15

Returns % TNI SSF LIBOR (1M)

1M 0.43 0.02

3M 4.70 0.06

6M 2.46 0.12

1Y 3.43 0.25

Since Inception 4.08 2.54


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


Fund Profile











markets.








MTD 0.9

YTD -1.3



Medium

Small

Fund Profile

WTD -0.9

MTD 0.5

YTD -0.8


Fund Facts



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


Base Currency AED



NAV / Unit AED 5.02



Management Fee 1.5%








Auditors KPMG

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579







Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2400


www.tni.ae

0%

20%

40%

60%

80%

100%

120%

140%

160%


TNI BCF

MSCI UAE Index


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