Fund Details

Fund Type Fixed Income Fund

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 12.66
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 31/05/2014
** 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
20%
181-360 days
19%
More than 360
days
38%
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
May 2014 witnessed a deceleration in interest rates after the sudden hike in yields
following last months MPC decision to keep Egypts policy rates unchanged. Yields
fell during May 2014 by an average of 0.35% across all tenures. On the economic
front, headline CPI increased by 0.60% (m-o-m) in April compared to an increase of
0.68% (m-o-m) in March, while the annual rate decreased by 8.87% in April down
from 9.82% in the previous month. On the other hand, Core CPI increased by 0.25%
(m-o-m) in April following the increase of 0.70% (m-o-m) in March 2014, while the
annual rate decreased by 9.11% in April, down from 9.90% reported a month earlier.
The ministry of finance announced that Egypts budget deficit reached 8.0% of GDP in
2013/2014 from the period since July 2013 to April 2014 compared to 10.50% in the
same period last year.
The CBE announced that Egypts Net International Reserves (NIR) expanded for the
fourth consecutive month by USD 75 million, to reach USD 17.489 billion during April
2014, compared to USD 17.414 billion in March 2014, versus USD 14.426 in April
2013.International rating agency Standard and Poors (S&P) announced that it
confirmed Egypts long-term and short-term foreign and local currency sovereign
credit rating at B/B-, in addition to putting Egypts outlook at stable.
S&P announced also that this reflects the view that official donors will continue to
provide the Egyptian government with sufficient foreign currency funds to manage
the countrys short-term fiscal and external financing needs.
The Monetary Policy Committee (MPC) of the Central Bank of Egypt (CBE) announced
on its meeting held on May 29th its decision to keep its policy rates unchanged for
the fourth 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 stated in its announcement that this decision was due to the
downside risks to domestic GDP combined with the negative output gap since 2011,
will limit the upside risks to inflation going forward. The MPC stated also that current
CBE rates are appropriate given the mixed balanced risks surrounding the inflation
and the GDP outlooks.
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. We expect this trend to be short-lived
and yields will likely decline to previous levels. Nevertheless, we remain well
positioned to capitalize on any market movements over the coming period.

T-bills Movement


AAIB Fixed Income Fund (Gozoor)
Fact Sheet May 2014

Duration Distribution
May
2014
2014
YTD
2013 Since
Inception*
Return 0.70% 3.97% 11.03% 26.64%
Annualized Return 9.48% 9.87% 11.03% 11.47%
*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