This document provides fund details for a fixed income fund managed by AAIM and launched in March 2012. The fund seeks to maximize returns and outperform short-term interest rates by investing in diversified fixed income securities. In April 2014, the fund returned 0.84% and its annualized return since inception is 11.59%. The fund manager commentary discusses economic conditions in Egypt and interest rate movements in April.
This document provides fund details for a fixed income fund managed by AAIM and launched in March 2012. The fund seeks to maximize returns and outperform short-term interest rates by investing in diversified fixed income securities. In April 2014, the fund returned 0.84% and its annualized return since inception is 11.59%. The fund manager commentary discusses economic conditions in Egypt and interest rate movements in April.
This document provides fund details for a fixed income fund managed by AAIM and launched in March 2012. The fund seeks to maximize returns and outperform short-term interest rates by investing in diversified fixed income securities. In April 2014, the fund returned 0.84% and its annualized return since inception is 11.59%. The fund manager commentary discusses economic conditions in Egypt and interest rate movements in April.
This document provides fund details for a fixed income fund managed by AAIM and launched in March 2012. The fund seeks to maximize returns and outperform short-term interest rates by investing in diversified fixed income securities. In April 2014, the fund returned 0.84% and its annualized return since inception is 11.59%. The fund manager commentary discusses economic conditions in Egypt and interest rate movements in April.
Fund Manager AAIM Launch Date 28/03/2012 Structure Open ended Domicile Egypt Fund Currency EGP Administrator Nuun Custodian Blom Bank Auditors KPMG Hazem Hassan NAV per Certificate* EGP 12.58 Subscription/Redemption** Daily/Monthly Management Fee 0.25% Administration Fee 0.25% Subscription Fee None Redemption Fee None Min. Initial Investment 100 certificates *As of 30/04/2014 ** Daily subscription until 2:00 pm and monthly redemption-the 1 st Sunday of every month- until 12:00 pm throughout AAIB Branches NAV is published weekly in AlMasry Alyoum Newspaper
0-7 Days 9% 8-90 days 8% 91-180 days 16% 181-360 days 25% More than 360 days 36% 10.0 11.0 12.0 13.0 14.0 15.0 16.0 91 Days 182 Days 273 Days 364 Days 00
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 During During April, the T-bills yield curve rose slightly by an average 0.10% across all tenures. Yields on long-term debt instruments, on the other hand, ascended by roughly 0.17% during the month. On the economic front, headline CPI increased by 0.68% (m-o-m) in March 2014, compared to a m-o-m decline of 1.03% reported a month earlier, escorting the annual rate to 9.82% up from 9.76% in February 2014. Core CPI increased by 0.7% (m-o-m) in March following an increase of 1.02% in February on the back of higher food prices, taking the adjusted annual rate to 9.90% up from 9.70% reported a month earlier. Net International Reserves (NIR) expanded for the fourth consecutive month to reach USD17.9 billion in March, marking a monthly increase of USD0.5 billion. In its meeting held on April 28th, the Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) announced its decision to keep its policy rates unchanged for the third time since the beginning of 2014, at 8.25% for overnight deposit rate and 9.25% for overnight lending rate. The discount rate also remained unchanged at 8.75%. The MPC mentioned that the rationale behind its decision spurs from limited upside risks to inflation over the coming period due a general economic weakness coupled with negative output gap since 2011. Meanwhile, despite sluggish activity in the manufacturing, construction, tourism and petroleum sectors, the economy showed signs of improvement during the second quarter of FY2014, marking a 1.4% increase and bringing 1HY2014 growth to 1.2%. The figures compare to a 1.04% growth rate recorded in 1QFY2013 and a 2.1% increase for 1HFY2013. Following the MPC decision to keep policy rates unchanged, the yield curve surged aggressively in the first auction held after the decision with T-bills and bonds rates climbing by an average 30 bps across all tenures. The upsurge witnessed was the highest level reached since December 2013 and comes mainly as a consequence of temporary shortage of liquidity as financial institutions have been accumulating aggressively in T-bills and bonds over the past couple of months. We expect this trend to be short-lived and yields will likely decline to previous levels. T-bills Movement
AAIB Fixed Income Fund (Gozoor) Fact Sheet April 2014
Duration Distribution April 2014 2014 YTD 2013 Since Inception* Return 0.84% 3.25% 11.03% 25.76% Annualized Return 10.68% 10.22% 11.03% 11.59% *Since 28/03/2012 Fund Performance (net of fees)
About Arab African Investment Management Arab African Investment Management (AAIM), a subsidiary of the Arab African International Bank (AAIB), was established in 2006 with investment management as our area of expertise. AAIM covers different asset classes in effort to enhance investors diversification and investment opportunities through Shield (Equity Fund), Juman (Money Market Fund), and Gozoor (Fixed Income Fund). We also manage tailored portfolios for institutions and high-net-worth individuals. Contact Details Arab African Investment Management 5 Midan Al- Saraya Al Koubra, Garden City 11516, Cairo,Egypt Tel. (202) 27926825/7/9 - Fax (202) 27961879 Website: www.aaim.com.eg Call Center: 19555