investor monthly newsletter€¦ · value ratio of 75% for expatriates and 80% for citizens for...

Investor Monthly Newsletter

For the Month Ending 31st March 2013

Inside this issue: UAE Central Bank agreed on mortgage caps

Topic of the month – GCC Banking Sector Outlook

The UAE markets took a breather after a strong start to the year

TNI MENA UCITS increased by 1.1% in March

TNI MENA Special Sits increased its fixed income duration

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]

Analyst +971 2 619 2322

Divye Arora

[email protected]

Business Development Kashif Zia Managing 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]

Peter Hughes +144 1 292 2793

Apex Fund Services

[email protected] HSBC Fund Services Glyn D Gibbs +971 4 4236138 [email protected] Citibank John Dwyer +9714 604 4450 [email protected] Auditors Deloitte & Touche Gunshyam Kripa +971 2 408 2448 [email protected] Deloitte & Touche Alan Cuddihy +353 21 420 7824 [email protected]

0%

20%

40%

60%

80%

100%

120%

Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13

S&P Pan Arab CompositeLarge/MidCap Index

S&P GCC CompositePrice Index

PERFORMANCE REVIEW March 2013

Market Performance

March witnessed a quiet month in terms of volatility and liquidity. The S&P Pan Arab Composite remained flat during the period. The Saudi market, the biggest and most liquid one in the region slightly outperformed the index; the market gained 2.2%. The Egyptian market has been penalized amid the recent political events; the market lost 4.1% during the period. UAE markets took a breather after a very strong rally during the first two months of 2013. Year-to-date UAE is up 17.1%. Price of oil has lost some ground; the Brent quality closed the period at US$ 110.02 per bbl, down 1.2% over the period.

Manager’s Comments

TNI UAE Blue Chip Fund

The UAE markets took a breather in March as retail investors booked profits after a very strong start to the year. Valuations overall are still attractive backed by very strong economic macro picture, which makes the UAE one of the most attractive markets in the region. During March, the Fund Manager increased the cash allocation to 5.1% and maintained exposure to other GCC markets to 2.6%. TNI UAE Blue Chip Fund is up 19.4% year-to-date.

TNI MENA Special Situations Fund

The Fund increased by 1.1% in March. On the fixed income side we increased the portfolio’s duration and we added two names, the new DIB perpetual issue and the Iraqi Eurobond 28. We made some arbitrages on the equity side. We booked our profits in the UAE and we took some positions in Saudi Arabia.

S&P Pan Arab Composite- S&P GCC Composite Index

MENA UCITS Fund

TNI MENA UCITS Fund was up 1.1% in March, outperforming its benchmark S&P Pan Arab 5/10/40 Capped Index by 1.2%. The outperformance was driven by Industrial and Banking sectors. During the month of March, the Fund Manager reduced the cash position to 3.5%. On a country level, Saudi continued to be the most prefered country. The least preferred counties remained Kuwait and Bahrain.

Regional Performance

Other MENA Indices MTD% YTD%

Egypt -4.1 -6.2

Morocco 2.4 -2.2

Tunisia 2.8 4.2

Jordan -2.1 2.1

Lebanon -1.7 1.2

S&P GCC Indices MTD% YTD%

Saudi Arabia 2.2 0.9

UAE -1.2 17.1

Kuwait -1.3 1.1

Qatar 1.3 3.4

Oman 1.9 5.2

Bahrain -1.9 8.8

MTD performance is measured from 28th February 2013 to 28th March 2013

0.6

0.7

0.8

0.9

1.0

1.1

1.2

1.3

Apr-0

6

Dec-

06

Aug-

07

Apr-0

8

Dec-

08

Aug-

09

Apr-1

0

Dec-

10

Aug-

11

Apr-1

2

Dec-

12

200

250

300

350

400

450

Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13

MARKETS REVIEW

March 2013

The MENA Equity Markets The UAE Central Bank gave its initial approval to a proposal by banks to allow a loan-to-value ratio of 75% for expatriates and 80% for citizens for their first property. Loan-to-value ratio for second properties would be 60% for expatriates and 65% for citizens. Passenger traffic at Dubai's main airport surpassed 5 million in February, rising 11.4% YoY. Year-to-date traffic was up 13.0% to 10.6 million passengers.

Qatar is pressing ahead with its massive transport infrastructure programmes, with US$ 17billion worth of projects still to be offered. Qatar's Public Works Authority has lined up 30 highway projects in 2013. As of February, a total of US$ 1.88billion worth of projects have already been awarded.

The Kuwait government is taking necessary steps to reduce the number of expatriates in Kuwait by 100,000 every year. The country is looking to bring down the number of expatriates in Kuwait to 1 million in 10 years from about 2.6 million. Currently expats cosntitutes about 68% of the total population. Kuwait is taking these steps as part of effort to regulate the labor market.

Egypt's foreign currency reserves did not decline significantly in March from US$ 13.5billion at end of February. However, the current reserves are not enough to cover even three months of imports. The country is plagued by repeated power cuts as it does not have money to buy enough fuel. Egypt is also seeking payment facilities from American and European wheat suppliers.

UAE banks are taking advantage of falling CDS spreads and increasing liquidity to raise money through Sukuks and bonds for repaying the government debt which they received to enhance balance sheet liquidity in the aftermath of financial crisis. Emirates NBD priced a US$ 750million subordinated bond at 4.88%, tighter than initial guidance. Dubai Islamic Bank issued US$ 1billion Tier 1 hybrid perpeptual Sukuk at a profit rate of 6.25% which was substantially tighter than the initial price talk of 7%.

Chart 1: Dubai government 5 Year CDS spread

Chart 2: Relative MENA PE to MSCI World

Source: Bloomberg

Source: Bloomberg

0.0%

9.0%

18.0%

27.0%

36.0%

45.0%

Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12

Saudi UAE Qatar Kuwait Oman

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Mar-13

Saudi UAE Qatar Kuwait Oman Bahrain

13.8%

16.3% 17.3%18.8%

21.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

Oman Kuwait Saudi Qatar UAE

1.4%

2.2%

3.1%

6.5%

5.7%

1.4%1.8%

2.9%

5.5%

6.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Qatar Saudi Oman Kuwait UAE

TOPIC OF THE MONTH March 2013

GCC Banking Sector Outlook The gradual re-acceleration of economic activity in US, China and other emerging markets is positive for the oil demand and would help oil exporting GCC countries to maintain their fiscal surpluses and strong GDP growth, and keep up with increasing infrastructure spending. Based on IMF data we estimate region’s GDP to grow annually at average 4% during 2013-2015 compared to global GDP growth of 3.4% during the same period. Infrastructure and construction project pipeline across GCC stands at US$ 581billion, up 18% over the last six months, based on Meed projects database, with Saudi being the top project market accounting for 39.6% of the total pipeline. This growing project pipeline will create increasing credit and project financing demand from both corporate and government entities. In 2013, while banks in Qatar, Saudi and Oman would continue to benefit from strong government spending, Kuwait and UAE banks would witness decreasing incremental non-performing loan (NPL) formation after facing significant asset quality issues and managing their balance sheets over the last four years.

Saudi banking index year-to-date is up only 2.9% and has underperformed Tadawul index by 2.4% as investor sentiment turned cautious on the banks post spike in provisioning costs during 3Q2012 tied to financial difficulties at a few major corporate houses. Increasing competition also caused sector net interest margins (NIMs) to contract by 16bps in 2012. Although we expect NIMs to remain under pressure, earning would still witness a moderate growth as provisioning costs should normalize on account of overall corporate profitability remaining healthy, and loan growth momentum would continue owing to accelerating corporate loan growth and retail lending remaining strong. Asset quality indicators continue to improve with incremental NPL formation slowing after a spike in 2009, and average NPL coverage reaching to a comfortable level of 145% for the sector. Valuations are at undemanding level after a strong de-rating as Saudi banks currently trade at lowest trailing PB of 1.8x over the last eight years. Saudi banks valuation premium to GCC banks has also contracted significantly to 12% compared to last eight-year median of 30%

Most of the UAE banks distributed solid cash dividends during 2012 with average payout ratio of about 50%, and dividend yield of above 6%. A greater willingness to distribute profits signals towards declining asset quality concerns and banks reaching closer to the desired provisioning levels. UAE banks are the best capitalised in the region with average capital adequacy ratio (CAR) of 21.5%. Loan growth in UAE would remain well below most of the other GCC countries. However, we expect Dubai banks to witness a better loan growth than Abu Dhabi banks in 2013 owing to a strong recovery in Dubai economy and real estate sector. Dubai banks would also benefit from normalisation in provisioning costs. Although Abu Dhabi has earmarked US$ 90billion to be spent on development projects over the next five years, we expect Abu Dhabi banks to benefit from this spending mainly from next year.

Qatar banking sector is witnessing the highest loan growth (26% YoY in 2012) in the region mainly driven by significant public sector spending on infrastructure, but persistent pressure on NIMs and fees poses a challenge. We expect QNB to continue to benefit from this strong loan growth as its loan book is highly levered to the public sector and it has the excess capital (expected CAR of 16.5% post NSGB acquisition) and adequate capital generation capacity to sustain such a lending growth. Doha Bank and CBQ are looking to raise further capital which would be ROE and EPS dilutive in the near term. They will benefit from pickup in private sector loan demand linked mainly to FIFA World Cup projects. However, we expect this project activity to gain momentum only in 2014.

Kuwait banking sector loan growth remained subdued in 2012, up 5% YoY mainly driven by retail loan growth of 12%, due to a lack of investment activity as hardly any of the projects included in US$ 107billion investment program materialised. The newly elected more pro-government parliament might expedite government spending, however, it will be overly optimistic to expect a double digit lending growth in 2013 due to the poor project implementation track record and bureaucracy issues. Blue chip names such as NBK could benefit from some pickup in the corporate demand, decline in NPL formation and stimulation of the market from government equity funds. Burgan Bank offers the strongest loan growth momentum supported by its Turkish subsidiary, expanding domestic market share and liquidity inflow from its captive client base (KIPCO Group subsidiaries)

Loan growth outlook for Oman banking sector remains optimistic driven by corporate demand and government infrastructure spending. However, loan growth would be lower than 2012 (14.4% YoY) as some of the banks will see constrained growth due to new retail regulations capping personal lending to 50% of total loans and reducing interest rate ceiling to 7% per annum. Bank Muscat is relatively comfortable in this respect, with 56% of its loan book being geared to the corporate sector. Conventional banks also run a risk of market share erosion and margin compression due to the expected competition from two newly launched Islamic banks.

Chart 1: YoY loan growth

Source: Respective central bank data

Chart 2: Trailing PB

Source: Bloomberg

Chart 3: Capital adequacy ratio

Source: Respective bank’s financials

Chart 4: NPL ratio (2011-12)


0.0%

9.0%

18.0%

27.0%

36.0%

45.0%



0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0



13.8%

16.3% 17.3%18.8%

21.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%


1.4%

2.2%

3.1%

6.5%

5.7%

1.4%1.8%

2.9%

5.5%

6.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%












Source: Bloomberg





0.0%

9.0%

18.0%

27.0%

36.0%

45.0%



0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0



13.8%

16.3% 17.3%18.8%

21.6%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%


1.4%

2.2%

3.1%

6.5%

5.7%

1.4%1.8%

2.9%

5.5%

6.7%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%












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 2.8 -0.5 -0.6 18.2

2013 13.4 3.4 1.9 19.4

0%

20%

40%

60%

80%

100%

120%

140%

160%

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

TNI BCF

MSCI UAE Index


7.5%

7.6%

7.7%

8.1%

8.7%

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

ENBD

Emaar

ADCB

Etisalat

NBAD

`

52.9%

32.0%

7.4%2.6%

5.1%

Abu Dhabi

Dubai

Nasdaq DubaiGCC

Cash

TNI UAE BLUE CHIP FUND Fact Sheet as of March 28, 2013

Fund Profile








WTD -1.4

MTD -1.2

YTD 17.1



Medium

Small

Fund Profile

WTD -0.3

MTD 1.9

YTD 19.4


Fund Facts


Since Inception %






Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae


Base Currency AED



NAV / Unit AED 6.14










Auditors Deloitte

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 2.8 -0.5 -0.6 18.2

2013 13.4 3.4 1.9 19.4

0%

20%

40%

60%

80%

100%

120%

140%

160%


TNI BCF

MSCI UAE Index


7.5%

7.6%

7.7%

8.1%

8.7%

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

ENBD

Emaar

ADCB

Etisalat

NBAD

`

52.9%

32.0%

7.4%2.6%

5.1%

Abu Dhabi

Dubai

Nasdaq DubaiGCC

Cash


Fund Profile








WTD -1.4

MTD -1.2

YTD 17.1



Medium

Small

Fund Profile

WTD -0.3

MTD 1.9

YTD 19.4


Fund Facts


Since Inception %






Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae


Base Currency AED



NAV / Unit AED 6.14










Auditors Deloitte

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579


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 2.8 -0.5 -0.6 18.2

2013 13.4 3.4 1.9 19.4

0%

20%

40%

60%

80%

100%

120%

140%

160%


TNI BCF

MSCI UAE Index


7.5%

7.6%

7.7%

8.1%

8.7%

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

ENBD

Emaar

ADCB

Etisalat

NBAD

`

52.9%

32.0%

7.4%2.6%

5.1%

Abu Dhabi

Dubai

Nasdaq DubaiGCC

Cash


Fund Profile








WTD -1.4

MTD -1.2

YTD 17.1



Medium

Small

Fund Profile

WTD -0.3

MTD 1.9

YTD 19.4


Fund Facts


Since Inception %






Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae


Base Currency AED



NAV / Unit AED 6.14










Auditors Deloitte

Lawyers Tamimi & Co

Fund Manager TNI

Domicile UAE


Reuters Lp65037579


Fund

Ret

urn

(%)

Benchmark Return (%)

0%

5%

10%

15%

20%

25%

Apr-06 Jul-07 Oct-08 Jan-10 Apr-11 Jul-12

``

TNI UAE BLUE CHIP FUND Fund Analytics as of March 28, 2013

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 (%)

Returns

(%)

TNI

BCF

S&P

Cap

MSCI UAE

1M 1.9 -1.2 -0.5

3M 19.4 17.1 23.1

6M 22.2 20.8 27.4

1Y 23.7 20.1 29.9

3Y 11.4 6.6 7.1

Inc -38.6 -53.6 -61.9

PE PB ROE

%

MCap

(AED B)

TNI BCF 10.9 1.1 10.4 23.3

S&P UAE

Capped 12.1 1.2 11.3 24.5

MSCI

UAE 12.1 1.3 10.8 24.0

1Y 2Y 3Y Since Inception

Relative Alpha 3.5 1.0 1.5 3.3 Ann. Return 23.7 11.8 3.7 -6.0

Volatility 15.2 15.4 16.7 26.1

Tracking Error 4.1 3.7 3.9 10.7

Info. Ratio 0.9 0.3 0.4 0.3

Annualised based on monthly data

Evolution of Yearly Tracking Error

Total Bull Bear

Beta 0.7 0.7 0.7

Info Ratio 0.2 -2.0 1.7

Sortino 0.1 -1.6 0.8

Correl 0.9 0.8 0.8

0.0

1.8

3.6

3.9

4.3

5.1

6.2

10.8

16.1

48.2

-20 0 20 40 60

Materials

Investments

Transport

Services

Utilities

Cash

Marine

Telecoms

Real Estate

Banking

- 0.7

- 1.5

- 0.3

0.0

0.3

5.1

- 0.2

- 1.4

- 2.3

0.8

-8 -6 -4 -2 0 2 4 6 8

2.6

5.1

7.4

32.0

52.8

-20 0 20 40 60

GCC

Cash

Nasdaq

Dubai

Abu Dhabi

2.6

5.1

1.1

- 2.7

- 6.1

-10 -5 0 5 10

Fund

Ret

urn

(%)


0%

5%

10%

15%

20%

25%

Apr-06 Jul-07 Oct-08 Jan-10 Apr-11 Jul-12

``

TNI UAE BLUE CHIP FUND Fund Analytics as of March 28, 2013

Regression Analysis

TNI UAE Blue Chip Fund Vs MSCI UAE Index


Asset allocation by Exchange (%) Deviation by Exchange (%)

Returns

(%)

TNI

BCF

S&P

Cap

MSCI UAE

1M 1.9 -1.2 -0.5

3M 19.4 17.1 23.1

6M 22.2 20.8 27.4

1Y 23.7 20.1 29.9

3Y 11.4 6.6 7.1

Inc -38.6 -53.6 -61.9

PE PB ROE

%

MCap

(AED B)

TNI BCF 10.9 1.1 10.4 23.3

S&P UAE

Capped 12.1 1.2 11.3 24.5

MSCI

UAE 12.1 1.3 10.8 24.0

1Y 2Y 3Y Since Inception

Relative Alpha 3.5 1.0 1.5 3.3 Ann. Return 23.7 11.8 3.7 -6.0

Volatility 15.2 15.4 16.7 26.1

Tracking Error 4.1 3.7 3.9 10.7

Info. Ratio 0.9 0.3 0.4 0.3

Annualised based on monthly data


Total Bull Bear

Beta 0.7 0.7 0.7

Info Ratio 0.2 -2.0 1.7

Sortino 0.1 -1.6 0.8

Correl 0.9 0.8 0.8

0.0

1.8

3.6

3.9

4.3

5.1

6.2

10.8

16.1

48.2

-20 0 20 40 60

Materials

Investments

Transport

Services

Utilities

Cash

Marine

Telecoms

Real Estate

Banking

- 0.7

- 1.5

- 0.3

0.0

0.3

5.1

- 0.2

- 1.4

- 2.3

0.8

-8 -6 -4 -2 0 2 4 6 8

2.6

5.1

7.4

32.0

52.8

-20 0 20 40 60

GCC

Cash

Nasdaq

Dubai

Abu Dhabi

2.6

5.1

1.1

- 2.7

- 6.1

-10 -5 0 5 10

Fund Performance since inception

Asset Allocation

3.3%

3.6%

3.9%

4.3%

6.4%

SABIC P Note

QNB

Zain

NBK

Al Rajhi P Note

TNI MENA UCITS FUND Fact Sheet as of January 31, 2013

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 7.5

S&P Pan Arab Large-Mid 5/10/40 Index 3.2

S&P Pan Arab 3.5

%

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 -0.1 -2.4 2.8 11.3

2013 4.1 4.1


Medium

Small

Fund Profile

WTD 1.2

MTD 4.1

YTD 4.1

Since Inception 7.5

Fund Facts

Inception Date June 17, 2010

Base Currency USD

Minimum Inv. USD 100,000

NAV / Unit USD 1,075.16

Net Assets USD 28.8 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 0.7

MTD 3.6

YTD 3.6

Since Inception 3.2


Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae

Top Holdings


Monthly Performance (%)


39.8%

15.6%

10.7%

8.7%

8.1%

5.8%5.5%

2.7%

2.4%

0.7%

0.0%

KSA

Kuwait

UAE

Egypt

Qatar

CashMorocco

Oman

Jordan

Bahrain

Lebanon

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 Oct-12 Dec-12

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


Asset Allocation

TNI MENA UCITS FUND Fact Sheet as of March 28, 2013

Fund Profile





Since Inception %



S&P Pan Arab 3.1

%

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 -0.1 -2.4 2.8 11.3

2013 4.1 -0.7 1.1 4.5


Medium

Small

Fund Profile

WTD 0.6

MTD 1.1

YTD 4.5

Since Inception 7.9

Fund Facts


Base Currency USD



Net Assets USD 28.9M


Management Fee 1.4%







Auditors Deloitte



Domicile Dublin


ISIN IE00B5TKJM01

Reuters LP68056061

Bloomberg TNIMENA

S&P Pan Arab 5/10/40 Index (%) WTD 0.1

MTD -0.1

YTD 2.7

Since Inception 2.3


Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae

Top Holdings




46.5%

14.2%

10.4%

8.0%

5.9%

3.6%3.5%

2.9%

2.5%

1.8%

0.7%

KSA

Kuwait

UAE

Qatar

Egypt

MoroccoCash

Jordan

Lebanon

Oman

Bahrain

2.9%

3.0%

3.7%

4.7%

4.7%

DAAR P Note

NIC P Note

UNB

NBK

Al Rajhi P Note

85%

90%

95%

100%

105%

110%

115%

120%

Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13



Asset Allocation

TNI MENA UCITS FUND Fact Sheet as of March 28, 2013

Fund Profile





Since Inception %



S&P Pan Arab 3.1

%

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 -0.1 -2.4 2.8 11.3

2013 4.1 -0.7 1.1 4.5


Medium

Small

Fund Profile

WTD 0.6

MTD 1.1

YTD 4.5

Since Inception 7.9

Fund Facts


Base Currency USD



Net Assets USD 28.9M


Management Fee 1.4%







Auditors Deloitte



Domicile Dublin


ISIN IE00B5TKJM01

Reuters LP68056061

Bloomberg TNIMENA

S&P Pan Arab 5/10/40 Index (%) WTD 0.1

MTD -0.1

YTD 2.7

Since Inception 2.3


Headquarters



Phone: +971 2 619 2300

Fax: +971 2 619 2331


www.tni.ae

Top Holdings




46.5%

14.2%

10.4%

8.0%

5.9%

3.6%3.5%

2.9%

2.5%

1.8%

0.7%

KSA

Kuwait

UAE

Qatar

Egypt

MoroccoCash

Jordan

Lebanon

Oman

Bahrain

2.9%

3.0%

3.7%

4.7%

4.7%

DAAR P Note

NIC P Note

UNB

NBK

Al Rajhi P Note

85%

90%

95%

100%

105%

110%

115%

120%

Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-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


2.2%

2.4%

2.6%

2.8%

3.0%

Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13

TNI MENA UCITS FUND Fund Analytics as of March 28, 2013

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 0.6 0.1 0.3

1M 1.1 -0.1 0.5

3M 4.5 2.7 3.0

YTD 4.5 2.7 3.0

Inc 7.9 2.3 3.1

W.Avg. PE

W.Avg. P/B

W. Avg.

ROE%

Mkt Cap

(US$B) MENA UCITS 12.4 1.8 13.2 10.1

S&P PAN Arab

Capped 10.5 1.6 10.9 10.7

S&P Pan Arab 13.7 1.6 16.1 9.9

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Banking 13.6 1.8 13.8

Real Estate 12.3 1.6 12.6

Industry 12.0 1.8 14.8

Telecoms 13.9 2.7 18.9

Services 12.8 3.6 6.9

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


3.5

8.1

12.5

12.7

18.9

44.2

-15 -5 5 15 25 35 45 55

Cash

Services

Real Estate

Telecoms

Industry

Banking

3.5

0.4

- 0.5

- 1.1

0.0

- 2.4

-10 -5 0 5 10

0.0 0.7 1.8 2.5 2.9 3.6 3.6

5.9 8.0

10.4 14.2

46.5

-20 -10 0 10 20 30 40 50 60 Tunisia

Bahrain Oman

Lebanon Jordan

Cash Morocco

Egypt Qatar

UAE Kuwait

Saudi Arabia

- 0.9 - 1.2 - 1.3

0.2 - 0.7

3.6 - 1.3 - 0.8

- 2.1 - 0.7

- 4.8 10.1

-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


2.2%

2.4%

2.6%

2.8%

3.0%

Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13

TNI MENA UCITS FUND Fund Analytics as of March 28, 2013

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 0.6 0.1 0.3

1M 1.1 -0.1 0.5

3M 4.5 2.7 3.0

YTD 4.5 2.7 3.0

Inc 7.9 2.3 3.1

W.Avg. PE

W.Avg. P/B

W. Avg.

ROE%

Mkt Cap

(US$B) MENA UCITS 12.4 1.8 13.2 10.1

S&P PAN Arab

Capped 10.5 1.6 10.9 10.7

S&P Pan Arab 13.7 1.6 16.1 9.9

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Banking 13.6 1.8 13.8

Real Estate 12.3 1.6 12.6

Industry 12.0 1.8 14.8

Telecoms 13.9 2.7 18.9

Services 12.8 3.6 6.9

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


3.5

8.1

12.5

12.7

18.9

44.2

-15 -5 5 15 25 35 45 55

Cash

Services

Real Estate

Telecoms

Industry

Banking

3.5

0.4

- 0.5

- 1.1

0.0

- 2.4

-10 -5 0 5 10

0.0 0.7 1.8 2.5 2.9 3.6 3.6

5.9 8.0

10.4 14.2

46.5

-20 -10 0 10 20 30 40 50 60 Tunisia

Bahrain Oman

Lebanon Jordan

Cash Morocco

Egypt Qatar

UAE Kuwait

Saudi Arabia

- 0.9 - 1.2 - 1.3

0.2 - 0.7

3.6 - 1.3 - 0.8

- 2.1 - 0.7

- 4.8 10.1

-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 Feb-13

TNI SSF S&P Composite

Cash 24 %

Iraq 12.7 %

KSA 21.9 %

Others 9.1 %

Kuwait 9.3 %

UAE 23 %

6.0%

6.7%

6.8%

9.3%

9.3%

ASTRA

Asiacell

SAMBA

DIB Sukuk 03/49

KIPCO Bond 10/16

TNI MENA SPECIAL SITUATIONS FUND Fact Sheet as of March 31, 2013

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 1.1

YTD 3.4

Since Inception 6.9


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 0.4 0.5 -1.0 -0.2 4.7

2013 3.2 -0.8 1.1 3.4

Inception date Sept 01, 2008

Base Currency USD


NAV / Unit USD 1068.84

Net Assets USD 7.9M


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

6.9

MTD 0.0

YTD 3.1


*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

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%



Cash 24 %

Iraq 12.7 %

KSA 21.9 %

Others 9.1 %

Kuwait 9.3 %

UAE 23 %

6.0%

6.7%

6.8%

9.3%

9.3%

ASTRA

Asiacell

SAMBA

DIB Sukuk 03/49

KIPCO Bond 10/16


Fund Profile






MTD 1.1

YTD 3.4

Since Inception 6.9


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 0.5 -1.0 -0.2 4.7

2013 3.2 -0.8 1.1 3.4


Base Currency USD



Net Assets USD 7.9M





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

6.9

MTD 0.0

YTD 3.1



RISK

RETU

RNH

IGH

MID

LOW

LOW MID HIGH

TNI SSFMSCI ARABIA



Fund Profile

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%



Cash 24 %

Iraq 12.7 %

KSA 21.9 %

Others 9.1 %

Kuwait 9.3 %

UAE 23 %

6.0%

6.7%

6.8%

9.3%

9.3%

ASTRA

Asiacell

SAMBA

DIB Sukuk 03/49

KIPCO Bond 10/16


Fund Profile






MTD 1.1

YTD 3.4

Since Inception 6.9


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 0.5 -1.0 -0.2 4.7

2013 3.2 -0.8 1.1 3.4


Base Currency USD



Net Assets USD 7.9M





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

6.9

MTD 0.0

YTD 3.1



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 50

Shorts

Sukuks

Bonds

Cash

Equities

-5 0 5 10 15 20 25

Telecoms

Others

Financials

Holding

Cash

TNI MENA SPECIAL SITUATIONS FUND Fact Analytics as of March 31, 2013

Asset allocation by Strategy Asset allocation by Sector

Statistics since Fund inception

TNI SSF S&P Composite LIBOR (1M)

Monthly. Return 1.05% -0.04% 0.02%

YTD 2013 3.42% 3.06% 0.05%

Since Inception 6.88% -35.41% 2.65%

Ann. Return Inception 1.46% -9.10% 0.57%

Volatility 8.11% 21.19% 0.22%

Sharpe Ratio 0.08 NA NA

Correl. (vs. TNI SSF) 1 0.28 0.21

Maximum Drawdown -7.52% -22.95% NA

# of Months 55 55 55

% Positive Month 52.73% 49.09% 100%

Best Month 5.00% 13.84% 0.34%

Worst Month -7.52% -22.95% 0.02%

Returns % TNI SSF S&P Composite

1M 1.05 -0.04

3M 3.42 3.06

6M 2.69 2.76

1Y 5.22 -6.40

Since Inception 6.88 -35.41

Returns % TNI SSF LIBOR (1M)

1M 1.05 0.02

3M 3.42 0.05

6M 2.69 0.10

1Y 5.22 0.22

Since Inception 6.88 2.65

-10 0 10 20 30 40 50

Shorts

Sukuks

Bonds

Cash

Equities

-5 0 5 10 15 20 25

Telecoms

Others

Financials

Holding

Cash

TNI MENA SPECIAL SITUATIONS FUND Fact Analytics as of March 31, 2013

Asset allocation by Strategy Asset allocation by Sector

Statistics since Fund inception

TNI SSF S&P Composite LIBOR (1M)

Monthly. Return 1.05% -0.04% 0.02%

YTD 2013 3.42% 3.06% 0.05%

Since Inception 6.88% -35.41% 2.65%

Ann. Return Inception 1.46% -9.10% 0.57%

Volatility 8.11% 21.19% 0.22%

Sharpe Ratio 0.08 NA NA

Correl. (vs. TNI SSF) 1 0.28 0.21

Maximum Drawdown -7.52% -22.95% NA

# of Months 55 55 55

% Positive Month 52.73% 49.09% 100%

Best Month 5.00% 13.84% 0.34%

Worst Month -7.52% -22.95% 0.02%

Returns % TNI SSF S&P Composite

1M 1.05 -0.04

3M 3.42 3.06

6M 2.69 2.76

1Y 5.22 -6.40

Since Inception 6.88 -35.41

Returns % TNI SSF LIBOR (1M)

1M 1.05 0.02

3M 3.42 0.05

6M 2.69 0.10

1Y 5.22 0.22

Since Inception 6.88 2.65


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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