asset management updates from adcb may 2011€¦ · the uae travel and tourism industry is already...

Asset Management Updates from ADCBMAY 2011

GLOBAL MARKETPERFORMANCE

WELCOME MACRO ECONOMIC

TRENDS

PRODUCTSPOTLIGHT

PERFORMANCE REVIEW

Asset Management Updates from ADCB

PAGE 1

MAY 2011

Global Market Performancefor the Month

Macro Economic Trends

A look at global markets performance over the month of April 2011, which have reacted positively to events in the Eurozone.

We discuss the improving economic growth outlook and successful restructuring of Dubai World debt on investor sentiment despite regional political tension.

Product Spotlight

For this Month of May 2011, we increase our global coverage within the WealthDesign platform, by introducing Blackrock’s Emerging Europe Fund.

Hot topics for the month



TRENDS

PRODUCTSPOTLIGHT

PERFORMANCE REVIEW

In April 2011, most global equity markets ended positively following the Federal Reserve report stating that the US economy can withstand President Obama’s plans to reduce spending and raise taxes on high net worth individuals. Global markets have reacted positively to events in the Euro zone led by increased German industrial production and sharply higher retail sales in Italy, the UK and Switzerland. US markets ended the month bullish with stronger than expected earnings from various companies including Apple and Johnson & Johnson while robust job data boosted optimism concerning the economic recovery. As a result, the Dow Jones, NASDAQ, and S&P 500 jumped 3.98%, 3.32%, and 2.85%, respectively. The FTSE closed up 2.73% after the UK economy rebounded in Q1 2011 with growth

of 0.5%. Similarly, the Nikkei advanced 0.97% led by better than expected corporate earnings, and improved US consumer confidence. The Hang Seng firmed 0.82% after the Chinese economy expanded by more than expected in Q1 2011 and following growth in China’s manufacturing sector. However, the Sensex slumped 1.59% after Indian food inflation data accelerated to 8.76% for the week ended April 16, signalling concerns that the RBI needs to increase interest rates further to dampen current inflationary pressures. Moreover, slower industrial production also hurt investor sentiment.

Six out of seven GCC markets ended the month higher. The DFM increased 5.02% led by a robust performance from the Utilities and Investment

& Financial Services sectors. The KSE advanced 3.59% on markedly more optimist Banking and Industrial sectors. The ADX moved ahead 3.39% due to stronger Banks & Financial Services and Industrial sectors. However, the BSE ended off 1.39% following a lacklustre performance by the Hotel & Tourism and Insurance sectors.

Gold prices surged 8.14% in April after the Federal Reserve pledged to keep interest rates near zero to bolster the recovery, stimulating demand for precious metals. However, sugar prices slumped 17.93% on prospects of abundant crops in Brazil and India, the world’s largest and second largest producers of sugar, respectively. The USD weakened against both the GBP and EUR on lower than expected Q1 GDP growth and as investors

continued to invest in higher risk assets exposed to the global recovery.

Dubai’s 5-year USD-denominated government bond spread decreased by 33 bps m-o-m in April as political tension within the GCC region eased and the IMF raised their regional growth forecast.

Global Market Performance


PAGE 2

CONTINUE

MAY 2011



TRENDS

PRODUCTSPOTLIGHT

PERFORMANCE REVIEW

Global Market PerformanceAs of April 2011


PAGE 3

MAY 2011

Index Snapshot (World Indices) Commodities, Yields and Currencies

Commodity

Yields and Currencies

Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD

Index Latest 1M Change 1Yr Change YTD

Source: Reuters

Source: IMF WEO Database, April 2011

Source: US Department of Treasury

S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96

Amundi International SICAV MSCI World (ND) Libor 3M USD

100

150

200

250

300

350

400

450

500

50

Amundi International SICAV vs MSCI World Since Inception

7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11

UAE Real GDP growth rate

3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E

Dubai 5 Year CDS in bps

497

423445

460

398

365

300

350

400

450

500

550

Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11

Source: Reuters

Source: Source: CIA, www.cbo.gov Note: *Actual �gure for the US

Budget De�cit as a % of GDP (2010E)

0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

10 Year US Treasury Yield

3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1

BGF Emerging Europe Vs. MSCI Emerging Markets Europe

0

100

200

300

400

500

600

700

BGF EM Europe Fund MSCI EM Europe Index

Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%

Russian Federation53%

Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%

TelecommunicationServices

9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%

Cash &Cash Equivalents

3%

United Kingdom0%

Cash & Cash Equivalents3%

Country Allocation

Sector Allocation



TRENDS

PRODUCTSPOTLIGHT

PERFORMANCE REVIEW

UAE – Restoring confidence among investorsInvestor confidence in the UAE economy has recovered in recent months as a result of the improving economic growth outlook and successful restructuring of Dubai World debt. This is reflected in an improved Investor Attitudes Index score of 13 in April compared with 11 in January 2011, according to the latest Friends Provident International (FPI) report.

This improvement in investor confidence comes despite ongoing political tension throughout the MENA region. While social unrest undoubtedly affected the GCC economies such as Saudi Arabia and Bahrain, the UAE remained almost immune to such issues, establishing itself as a safe haven for both international and regional investments. The UAE has demonstrated its stability under adverse conditions. This together with the fact that it

serves as a regional financial hub and premier tourist destination, should enable it to gain business at the expense of regional economies such as Bahrain and Egypt which are affected by social unrest.

The UAE travel and tourism industry is already benefiting according to recent tourism data. Hotel guests in Abu Dhabi increased by around 10% in Q1 2011 over the same period last year. Also, passenger traffic at Dubai airport rose by 7% in the same period over Q1 2010. While this improvement is partly the result of improved global economic conditions, tourism is expected to benefit from business switching out of major tourist destinations such as Egypt, Tunisia and Jordan.

While political tensions have become a long term problem for oil importing countries, oil exporters

(other than Libya) such as the UAE and Saudi Arabia are clear beneficiaries of rising oil prices. The crude oil price has increased above USD 120/bbl and is expected to remain between USD

90-100/bbl throughout 2011-13 according to Bloomberg estimates which assume a balanced demand-supply situation.



PAGE 4

CONTINUE

MAY 2011


Commodity


Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD


Source: Reuters



S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96


100

150

200

250

300

350

400

450

500

50


7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11


3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E


497

423445

460

398

365

300

350

400

450

500

550


Source: Reuters



0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1


0

100

200

300

400

500

600

700


Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%


Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%


9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%


3%

United Kingdom0%


Country Allocation

Sector Allocation



TRENDS

PRODUCTSPOTLIGHT

PERFORMANCE REVIEW



PAGE 5

CONTINUE

MAY 2011

Probable high revenue from oil exports will increase the UAE’s cash reserves and expand its current account surplus leading to improved economic growth. A stronger economy is expected to be driven mainly by public sector infrastructure expansion plans. The IMF has already upgraded its UAE real GDP growth estimates for 2011 to 3.30% in its April 2011 outlook from 3.18% last October. In addition to its improving fiscal position, previous problems connected with Dubai debt issues are receding. Dubai World has already announced successful signing of the debt restructuring agreement with its creditors. This has reduced overall market risk as shown by declining Credit Default Swaps (CDS) spreads during April. Although CDS rates are still high at around 360 bps, they have fallen back from highs of 650 bps in November 2009.

Along with declining spreads, the risk perception concerning UAE stock markets has improved with MSCI considering the upgrade of the Abu Dhabi and Dubai stock exchanges to Emerging Market status from previously Frontier Market. as a token of their new expected status and to satisfy necessary requirements, both the exchanges are taking steps to implement Delivery Versus Payment (DPV) systems which will not only improve market liquidity but also enhance efficiency and reduce risk.

News concerning the introduction of the DPV system resulted in aggressive buying of both markets during the past month. The Dubai Financial Market (DFM) and Abu Dhabi Stock Exchange (ADX) gained 5.0% and 3.4%, respectively during April. However, UAE stock markets still trade cheaply on a peer-relative basis. For example, DFM and ADX currently trade at one year forward P/E multiples

of 7.35x and 7.63x, respectively, compared to 10.28x and 10.85x for the Doha Securities Market and Saudi Stock Exchange respectively, based on Bloomberg data.

These discounts are attributable to concerns regarding further restructuring of Dubai GRE’s debt and a still fragile real estate market suffering from oversupply. Although these worries remain,


PRODUCTSPOTLIGHT


TRENDS


Commodity


Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD


Source: Reuters



S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96


100

150

200

250

300

350

400

450

500

50


7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11


3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E


497

423445

460

398

365

300

350

400

450

500

550


Source: Reuters



0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1


0

100

200

300

400

500

600

700


Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%


Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%


9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%


3%

United Kingdom0%


Country Allocation

Sector Allocation

PERFORMANCE REVIEW

UAE markets are still likely to perform well going forward given improving economic conditions, a successful debt restructuring exercise, the country’s expected upgrade to MSCI emerging market status, and its reputation as a regional safe haven.

Infamous US credit outlook downgradeOn April 18, 2011, Standard and Poor’s (S&P) downgraded its outlook on the safety of US long-term debt to “Negative” from “Stable” on concerns of a rising budget deficit and mounting debts. There is a likely scenario that the rating of perceived risk-free US government bonds may be downgraded from their current AAA rating (highest) at any point in the next two years if the budget deficit remains high and substantial efforts are not forthcoming from policy makers to contain it. Amidst efforts of reviving economic growth over the past two years, the US budget deficit increased to 9–10% of GDP compared to 2–5% between

2003 and 2008. This is very high compared to its ‘AAA’ rated peers such as France, Denmark, Germany, and Canada.

This change in outlook was reflected in markets with all three major indices in the US, i.e. the Dow Jones, S&P 500, and NASDAQ, falling by over 1% on the day the rating release was published. However, markets quickly retreated from lows on the following day suggesting that the downgrade by the rating agency underestimates the ability of the US to address the difficult fiscal challenges facing it.

The major reason for the revision in outlook, according to S&P, is the risk that the government may not be able to reach an agreement on addressing mounting budgetary challenges in good time. Significantly, the US government has already announced plans to cut nearly USD 4tn from the deficit over the next 10-12 years.

However, Republicans and Democrats differ on how to reduce it. While Democrats are in favour of spending cuts (Medicare and Medicaid costs and discretionary domestic spending) and increasing taxes on rich Americans, Republicans are pushing for deeper reductions and oppose tax hikes.

Moreover, it is important that the parties agree to increase the current debt ceiling limit of USD 14.3tn which is likely to be hit by this May. If the limit is hit and the government defaults, the economy may face adverse consequences including shutdowns in federal offices (as in 1995),



PAGE 6

MAY 2011


PRODUCTSPOTLIGHT


TRENDS


Commodity


Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD


Source: Reuters



S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96


100

150

200

250

300

350

400

450

500

50


7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11


3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E


497

423445

460

398

365

300

350

400

450

500

550


Source: Reuters



0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1


0

100

200

300

400

500

600

700


Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%


Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%


9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%


3%

United Kingdom0%


Country Allocation

Sector Allocation

PERFORMANCE REVIEW

CONTINUE

disrupted payments of Social Security and other federal benefits. In the current situation, given the negative consequences of any rating downgrade and in order to protect the future of the economy, both parties are likely to reach an amicable

agreement over the deficit plan and debt limit in the near future.

Similar to the current situation, in May 2009, the UK’s outlook was lowered to Negative.

However, this was removed in October 2010 as a result of the austerity measures adopted by the government and an improved GDP growth outlook. The same view currently prevails in the market which has absorbed the historical event and not reacted as adversely as expected. For example,

any downgrade in bond rating is likely to result in increased bond yields as risks increase. However, the 10-year US treasury yield remained almost flat at nearly 3.4% after the announcement of S&P’s revised outlook, demonstrating the market’s confidence in US government securities.



PAGE 7

MAY 2011


PRODUCTSPOTLIGHT


TRENDS


Commodity


Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD


Source: Reuters



S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96


100

150

200

250

300

350

400

450

500

50


7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11


3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E


497

423445

460

398

365

300

350

400

450

500

550


Source: Reuters



0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1


0

100

200

300

400

500

600

700


Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%


Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%


9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%


3%

United Kingdom0%


Country Allocation

Sector Allocation


Commodity


Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD


Source: Reuters



S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96


100

150

200

250

300

350

400

450

500

50


7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11


3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E


497

423445

460

398

365

300

350

400

450

500

550


Source: Reuters



0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1


0

100

200

300

400

500

600

700


Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%


Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%


9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%


3%

United Kingdom0%


Country Allocation

Sector Allocation

PERFORMANCE REVIEW

For this month of May 2011, we increase our global coverage within the WealthDesign platform by introducing the Blackrock Global Funds Emerging Europe Fund.

Fund Objective:The Fund seeks to maximize total return. The Fund invests at least 70% of its total assets in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, developing European countries. It may also invest in companies domiciled in and around, or exercising the predominant part of their economic activity in and around, the Mediterranean region.

Management Style:The management team identifies stocks, which offer the prospect of long-term, above average price appreciation through a rigorous research process. This approach is flexible

and pragmatic. The Fund does not have any particular investment biases that result from the team’s investment philosophy and process. The investment team adapts its stance as economic circumstances unfold.

Why this Fund:• The Fund has been awarded a Standard

rating by Morningstar and an A rating by Standard & Poor’s. In their August 2010 report, Standard and Poor’s comment that “Vecht- the fund manager - impresses as a promising fund manager and team leader, which, together with solid performance under his management allows the Fund to attain an S&P A (New) rating.”

• Strong Performer – the Fund has delivered significant outperformance over both the long and short term. On a cumulative basis over one year , ten years and since launch the Fund

has returned 28.9%, 378.5% and 1124.9% compared to benchmark returns of 27.9%, 263.9% and 540.5% respectively*. The Fund’s outperformance has been achieved with relatively low levels of active risk compared to the benchmark.

• Experienced fund management team – combining a dynamic and flexible stock-selection process with the perspective gained through top-down macroeconomic analysis, the team of experienced country specialists are able to uncover opportunities throughout the market cycle. BlackRock’s scale and reputation ensures the team gains extensive access to senior management of the companies in which the fund invests. In the last 12 months, the team has conducted over 600 face-to-face company meetings.

• Robustinvestmentprocesses–aflexibleapproach, based on detailed fundamental

research uncovers high conviction investment opportunities in all market conditions, while Blackrock’s risk systems ensure that every position in the portfolio is deliberate, diversified and appropriately scaled.

• Diversification–theteam’scountryspecialistsare able to look beyond the obvious to identify potentially attractive opportunities across the Emerging European investment universe. This process extends to faster growing, smaller markets and also allows investment in non-regionally listed companies with significant revenue derived from Emerging Europe.

Did you know?Emerging Europe is home to the world’s largest producer of natural gas, one of the most profitable companies in the world.


PAGE 8

Product Spotlight

MAY 2011



TRENDS

PRODUCTSPOTLIGHT

CONTINUE

PERFORMANCE REVIEW


PAGE 9

Product Spotlight

MAY 2011


MACRO ECONOMIC

TRENDS

WELCOME PRODUCTSPOTLIGHT

Performance BGF EM Europe MSCI EM Europe

YTD 2.51% 3.54%1 Month -0.87% -0.72%3 Months 2.72% 3.98%6 Months 10.36% 10.01%1 Year 12.17% 12.29%3 Years -1.62% 0.63%5 Years 2.52% 7.47%

• As well as staging the FIFA World Cup in 2018, Russia will also play host to the APEC Summit in 2012 and the Winter Olympics in 2014. It is estimated that $170bn of infrastructure spending is planned in preparation for these events, upgrading road, rail and airport links.

• In addition to the advantages of its huge commodity endowment, the largest listed hydro-electric company also operates in the region.

Source: BlackRock, Bloomberg, Gazprom

For more information on subscribing to this fund, please contact your relationship manager.


Commodity


Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD


Source: Reuters



S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96


100

150

200

250

300

350

400

450

500

50


7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11


3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E


497

423445

460

398

365

300

350

400

450

500

550


Source: Reuters



0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1


0

100

200

300

400

500

600

700


Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%


Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%


9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%


3%

United Kingdom0%


Country Allocation

Sector Allocation

PERFORMANCE REVIEW

As of April 2011

CONTINUE


PAGE 10

Product Spotlight

MAY 2011


MACRO ECONOMIC

TRENDS

WELCOME PRODUCTSPOTLIGHT


Commodity


Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD


Source: Reuters



S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96


100

150

200

250

300

350

400

450

500

50


7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11


3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E


497

423445

460

398

365

300

350

400

450

500

550


Source: Reuters



0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1


0

100

200

300

400

500

600

700


Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%


Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%


9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%


3%

United Kingdom0%


Country Allocation

Sector Allocation


Commodity


Latest

Latest

1M Change

1M Change

1Yr Change

1Yr Change

YTD

YTD


Source: Reuters



S&P 500

Dow Jones

NASDAQ

Hang Seng

Nikkei

FTSE-100

Sensex 30

MSCI World

MSCI EM

TASI

DFM

ADX

KSE

BSE

MSM 30

DSM

1,363.61

12,810.54

2,873.54

23,720.81

9,849.74

6,069.90

19,135.96

1,388.62

1,204.03

6,710.56

1,634.13

2,695.50

6,521.70

1,404.90

6,335.49

8,548.30

2.85%

3.98%

3.32%

0.82%

0.97%

2.73%

(1.59%)

4.02%

2.83%

2.25%

5.02%

3.39%

3.59%

(1.39%)

2.73%

1.09%

14.91%

16.37%

16.75%

12.38%

(10.92%)

9.30%

8.98%

15.86%

18.04%

(2.29%)

(6.08%)

(2.94%)

(10.65%)

(11.75%)

(7.25%)

13.26%

8.43%

10.65%

8.32%

2.98%

(3.71%)

2.88%

(6.70%)

8.48%

4.57%

1.36%

0.22%

(0.90%)

(6.24%)

(1.91%)

(6.21%)

(1.54%)

NYMEX Crude

OPEC

Natural Gas

Gold

Platinum

Copper

Sugar

Soybean

Corn

Wheat

Rice

113.93

120.90

4.70

1,556.00

1,871.50

9,370.50

22.25

1,392.60

754.00

769.20

14.81

6.76%

9.73%

7.04%

8.14%

5.18%

(0.31%)

(17.93%)

(1.25%)

8.77%

0.79%

5.86%

32.25%

44.63%

19.85%

31.85%

7.24%

27.23%

46.86%

40.75%

105.90%

56.47%

19.78%

24.68%

34.01%

6.65%

9.49%

5.54%

(3.79%)

(30.73%)

(0.07%)

19.87%

(3.15%)

5.79%

2Y US Treasury

10Y US Treasury

EUR

GBP

JPY

0.61

3.32

1.4817

1.6687

81.31

(0.19)

(0.15)

4.45%

3.94%

(1.82%)

(0.36)

(0.37)

11.40%

9.02%

(13.73%)

(0.05)

(0.06)

10.56%

6.90%

0.25%

Brent Crude Oil

Aug

-10

Aug

-09

Aug

-08

Aug

-07

Aug

-06

Aug

-05

Aug

-04

Aug

-03

Aug

-02

Aug

-01

Aug

-00

Aug

-99

Aug

-98

Aug

-97

Aug

-96


100

150

200

250

300

350

400

450

500

50


7681 83

8794

99

113118

128

70

80

90

100

110

120

130

USD

/ b

bl

Aug

-10

Sep-

10

Oct

-10

Nov

-10

Dec

-10

Jan-

11

Feb-

11

Mar

-11

Apr

-11


3.23% 3.30%

3.76%

4.04%

4.29%4.42%

3.0%

3.5%

4.0%

4.5%

2010 2011E 2012E 2013E 2014E 2015E


497

423445

460

398

365

300

350

400

450

500

550


Source: Reuters



0.9%1.8%

2.5%

4.3% 4.6% 5.0%

7.8%8.9%

3.6%

Swit

erla

nd

Sing

apor

e

Aus

tral

ia

Ger

man

y

Cana

da

Den

mar

k

Fran

ce

US*

New

Zeal

and

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%


3.40%3.43%

3.34%

3.39%

3.34% 3.32%

3.39%3.39%3.42%

3.24%

3.28%

3.32%

3.36%3.40%

3.44%

3.48%

4/1

8/2

01

1

4/1

9/2

01

1

4/2

0/2

01

1

4/2

1/2

01

1

4/2

5/2

01

1

4/2

6/2

01

1

4/2

7/2

01

1

4/2

8/2

01

1

4/2

9/2

01

1


0

100

200

300

400

500

600

700


Feb-

11

Sep-

10

Apr

-10

Nov

-09

Jun-

09

Jan-

09

Aug

-08

Mar

-08

Oct

-07

May

-07

Dec

-06

Jul-0

6

Feb-

06

Sep-

05

Apr

-05

Nov

-04

Jun-

04

Jan-

04

Aug

-03

Mar

-03

Oct

-02

May

-02

Dec

-01

Jul-0

1

Feb-

01

Sep-

00

Apr

-00

Nov

-99

Jul-9

9

Jan-

99

Poland11%

Turkey11%


Hungary7%

Czech Republic5%

Kazakhstan4%

Denmark2%

Ukraine2%

Austria1%

Energy30%

Financials36%


9%

Materials7%

Utilities6%

ConsumerStaples

5%

Industrials4%


3%

United Kingdom0%


Country Allocation

Sector Allocation

PERFORMANCE REVIEW


PAGE 11

Performance ReviewAs of April 2011

Shari’ah Compliant

CONTINUE

MAY 2011



TRENDS

PRODUCTSPOTLIGHT

Fund House Performances

Funds Currency ISIN NAV 1M 3M 6M 12M 36M 12M VolatilityEquity Funds M&G GLOBAL LEADERS-$-A-ACC USD GB00B1RXYW84 9.11 1.48% 3.40% 10.55% 13.44% (11.53%) 20.69% SCHRODER INTL EMERG MKTS-$-A-ACC USD LU0106252389 14.47 3.28% 8.72% 10.88% 16.98% 4.40% 20.48% M&G AMERICAN FUND-$-A-ACC USD GB00B1RXYR32 10.25 1.40% 5.41% 13.28% 13.25% 4.17% 19.72% SCHRODER INTL EURO EQT-A ACC EUR LU0106235293 21.89 3.01% 3.74% 9.78% 13.13% (9.43%) 15.55% JPMORGAN F-JF PAC EQ-A-A$ USD LU0210528096 14.72 3.74% 3.30% 10.34% 15.18% 0.14% 17.05% SCHRODER INTL BRIC-$-A-ACC USD LU0228659784 219.04 0.46% 6.67% 5.12% 11.27% (7.86%) 18.15% CAAM ISLAMIC BRIC QUANT FUND-$-C-ACC USD LU0399639573 224.01 (1.15%) 7.98% 8.40% 13.60% N/A 18.96% AL-NOKHITHA FUND-ACC AED N/A 4.21 8.42% 13.18% (4.75%) (5.03%) (69.85%) 28.70% ADCB-MSCI UAE INDEX FUND-ACC AED N/A 4.48 9.26% 11.93% (2.63%) (4.52%) (64.00%) 29.49% ADCB-MSCI ARABIAN MKT $-ID-ACC USD N/A 5.65 3.19% 2.67% 2.13% (2.20%) N/A 17.61% FRANKLIN INDIA FUND-$-A-ACC USD LU0231203728 27.41 (0.04%) 8.77% (2.39%) 12.84% 20.22% 24.75% FIDELITY LATIN AMERICA FUND-$-A USD LU0050427557 49.68 1.80% 6.27% 2.96% 17.11% 17.98% 19.84% TEMPLETON EM MARKETS SMALLER CO-$-A-ACC USD LU0300738514 9.35 5.53% 5.06% 2.75% 17.46% 6.13% 20.93% TEMPLETON FRONTIER MARKETS FUND-$-A-ACC USD LU0390136736 17.58 3.11% 0.51% 6.87% 6.35% N/A 15.04% GLOBAL THEMATIC REASEARCH PORTFOLIO-$-A-ACC USD LU0069063385 18.23 2.30% 5.38% 12.53% 20.89% 14.22% 20.00% BGF WORLD TECHNOLOGY-$-A2 USD LU0056508442 14.18 3.65% 7.51% 17.77% 16.90% 20.99% 20.39% CRESCENT GLOBAL EQUITY FUND USD IE0032587655 22.24 4.12% 6.43% 12.08% 14.74% -4.92% 19.19%JPM JF ASEAN EQUITY-AA$ USD LU0441851309 16.98 5.27% 10.19% 10.98% 34.34% N/A 17.98%SIIF ISLAMIC EMERGING MARKETS EQUITY FUND USD IE00B2N6GB10 11.13 3.73% 9.12% N/A N/A N/A N/AIOF DRAGON PEACOCK USD LU0259732245 22.20 3.18% 9.28% 1.32% 16.05% 15.47% 19.46%AMUNDI INTERNATIONAL-AU-C USD LU0068578508 5,063.40 2.56% 5.08% 10.73% 13.95% 10.56% 10.83% Fixed Income BNY MELLON GL-GLOBAL BOND-$A USD IE0003924739 2.20 3.19% 4.23% 0.96% 11.83% 15.48% 7.37% ING (L) RENTA-EM MK DB LC-XC USD LU0118288173 61.34 3.88% 6.64% 5.30% 10.09% 9.44% 10.26% SCHRODER INTL GL CORP BD-AAC USD LU0106258311 8.71 0.93% 1.40% 0.35% 4.06% 24.96% 3.07% TEMPLETON GLOBAL BOND FUND-$-A-ACC USD LU0252652382 26.35 2.77% 5.48% 6.25% 8.57% 41.59% 7.33% Commodities DB PLATINUM-COMMODITY $-I1C USD LU0216466952 22,737.52 1.21% 3.89% 14.04% 13.31% (9.95%) 16.43% JPMORGAN F-GLB NAT RE-$-A-ACC USD LU0266512127 21.85 1.96% 5.15% 15.79% 31.63% 3.85% 24.14% BLACKROCK WORLD GOLD FUND-$-A USD LU0055631609 67.38 4.17% 13.45% 8.17% 28.07% 33.85% 21.51% SCHRODERS INTL GLOBAL ENERGY FUND-$-A-ACC USD LU0256331488 44.48 0.25% 8.54% 27.78% 26.29% (6.26%) 23.17% BGF WORLD MINING FUND-$-A2 USD LU0075056555 87.67 2.44% 6.58% 14.71% 28.68% (12.19%) 27.33% DWS NOOR PRECIOUS METALS FUND USD IE00B1FQCN68 1.45 1.96% 8.13% 5.48% 18.49% 22.76% 20.49%DWS GLOBAL AGRIBUSINESS FUND USD LU0273164847 140.63 3.49% 7.34% 12.14% 23.89% 0.18% 21.21%AMUNDI ISLAMIC GLOBAL RESOURCES FUND USD LU0399640407 121.29 2.10% 6.93% 19.83% 22.86% N/A 21.82%

PERFORMANCE REVIEW


PAGE 12

MAY 2011



TRENDS

PRODUCTSPOTLIGHT

Fund House Performances

Funds Currency ISIN NAV 1M 3M 6M 12M 36M 12M VolatilityReal Estate HENDERSON HOR-G PROP EQTY $-A2 USD LU0209137388 14.83 4.73% 5.78% 7.31% 17.23% (3.26%) 18.75%

Hedge JPM INV-HIGH STAT MAR N-A$H USD LU0323455575 155.39 0.14% 0.75% 1.27% (0.37%) N/A 2.62% NATIXIS GATEWAY US EQTYS-RA$ USD LU0411265316 114.45 1.31% 2.65% 5.11% 4.87% -6.37% 7.53% Balanced Fidelity Multi-Asset Navigator Fund $-A-ACC USD LU0286670517 11.53 3.87% 6.56% 8.16% 11.94% 9.29% 11.80% Index MSCI WORLD USD 1,388.62 4.02% 6.16% 13.61% 15.86% (7.98%) 19.70% MSCI EM USD 1,204.03 2.83% 7.59% 8.89% 18.04% 1.05% 19.74% S&P Global REIT Index USD 147.87 5.64% 8.73% 12.29% 20.43% (15.65%) 18.21% S&P GSCI Official Close Index USD 5,758.37 4.41% 13.04% 28.82% 24.68% (35.01%) 21.32% US Cash Indices LIBOR Total Return USD 175.86 0.03% 0.08% 0.15% 0.37% 3.43% 0.04% MSCI UAE USD 328.16 8.26% 11.30% (4.07%) (3.80%) (57.76%) 29.72%

PERFORMANCE REVIEW

Performance ReviewAs of April 2011

Disclosures:

This document is for information and illustrative purposes only; it is in no way an offer or solicitation to buy or sell any investment products, but only information being provided. ADCB will not be held liable for any information provided in this document which is stated to have been obtained from third party sources. This information may be based on assumptions or market conditions and may change without notice.

The information in this report was prepared by employees of ADCB and is current as of the date of the report. The information contained herein has been obtained from sources that they believe to be reliable, but ADCB does not guarantee its accuracy, adequacy, completeness, reliability, or timeliness, and will not be held liable for any investment decisions made based on this information. Moreover, ADCB is not responsible for any errors or omissions or for the results obtained from the use of such information. All information and estimates included in this report are subject to change without notice. ADCB will furnish, upon request, available

investment information supporting this recommendation. This report is intended for qualified customers of ADCB.

The information provided in this document should be read in conjunction with the Fund Prospectus, Term Sheet and Subscription Agreement, potential investors must ensure that they read and understand the terms, conditions and information contained in the same. Past performance does not guarantee future results. Investment products are not bank deposits and are not guaranteed by ADCB. They are subject to investment risks, including possible loss of principal amount invested. Please refer to ADCB Terms and Conditions for Investment Services.

You may not redistribute this report without explicit permission from ADCB.

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