AAIB Fixed Income Fund (Gozoor)

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Fact Sheet

September 2013

Investment Objective The fund seeks to maximize returns, and to outperform the short-term interest rates by investing in a broadly diversified portfolio of fixed income securities. Fund Managers Commentary As expected, the yield curve resumed its downward trend during September 2013, decreasing by an average of 1.00% across all tenures, as the economic scene is still witnessing improvements. During the first week of September 2013, the Egyptian government announced that Egypts net international reserves (NIR) remained stable at USD18.9 billion during August 2013. Later in September 2013, The Egyptian government received USD 2 bio from Kuwait as part of the USD 4 bio aid package promised to Egypt. On the other hand, the Central Bank of Egypt announced that Egypt has returned the USD 2 bio sent from Qatar earlier this year after talks between the Egyptian government and the Qatari government regarding converting the Qatari aid into 3 years bond broke down. On the inflation front, the Central Agency for Public Mobilization and Statistics announced that headline inflation fell to 9.8% during August 2013, compared to 10.3% a month earlier while monthly inflation eased to 0.7% compared to 0.9%. This slowdown in inflation is mainly attributed to lower consumption due to the end of Ramadan and curfew hours. The improvement of the Egyptian Pound that improved by an average of 0.3% versus the USD, in addition to lower international food prices contributed also to the decrease in Y-O-Y inflation to 12.9% in August compared to 13.9% a month earlier. The Monetary Policy Committee (MPC) decided in its meeting held on September 19th, 2013, to cut the overnight deposit rate, overnight lending rate, and the rate of the CBE's main operation by 50 basis points to 8.75%, 9.75%, and 9.25% respectively, in addition to decreasing the discount rate also by 50 basis points to 9.25%. The MPC attributed this decrease to the improvement in headline and core inflation in addition to the fast that real GDP grew by 2.3% in the first nine months of 2012/2013 compared to 2.2% in 2011/2012. The MPC also announced that: The pronounced downside risks to domestic GDP combined with the persistently negative output gap since 2011 will limit upside risks to the inflation outlook going forward. Given that the downside risks to the GDP outlook still outweigh the upside risks to the inflation outlook, the MPC decided to further cut the key CBE rates. Although we believe that interest rates will resume its downward trend as the economic scene is expected to witness improvement, we remain well positioned and ready for such downward trend while eyeing available opportunities in the market. T-bills Movement

Fund Details Fund Type Fund Manager Launch Date Structure Domicile Fund Currency Administrator Custodian Auditors NAV per Certificate* Subscription/Redemption** Management Fee Administration Fee Subscription Fee Redemption Fee Min. Initial Investment Fixed Income Fund AAIM 28/03/2012 Open ended Egypt EGP Nuun Blom Bank KPMG Hazem Hassan EGP 11.73 Daily/Monthly 0.25% 0.25% None None 100 certificates

*As of 30/09/2013 st ** Daily subscription until 2:00 pm and monthly redemption-the 1 Sunday of every monthuntil 12:00 pm throughout AAIB Branches NAV is published weekly in AlMasry Alyoum Newspaper

Duration Distribution

More than 360 days 52%

0-7 Days 13% 8-90 days 24%

181-360 days 0%

91-180 days 11%

Fund Performance (net of fees)

September 2013 1.57% 20.11% 2013 YTD 6.86% 9.28% 2012 N/A N/A Since Inception* 17.27% 11.13%

Return Annualized Return

*Since 28/03/2012

About Arab African Investment Management Arab African Investment Management (AAIM), a subsidiary of the Arab African International Bank (AAIB), was established in 2006 200 with investment management as our area of expertise. AAIM covers different asset classes in effort to enhance investors diversification and investment opportunities opp through Shield (Equity Fund), Juman (Money Market Fund), and Gozoor (Fixed Income Fund). We also manage tailored p portfolios for institutions and high-net-worth individuals. Contact Details Arab African Investment Management 5 Midan Al- Saraya Al Koubra, Garden City 11516, Cairo,Egypt Tel. (202) 27926825/7/9 - Fax (202) 27961879 Website: www.aaim.com.eg Call Center: 19555