investor monthly newsletter...investor monthly newsletter markets. suitabi for the month ending 31st...

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Investor Monthly Newsletter

For the Month Ending 31st December 2012

Inside this issue: Egypt banking sector continued to witness interest from major regionl banks

Topic of the month – Regional Outlook in 2013

The UAE markets stood out and outperformed all other GCC markets

TNI MENA UCITS outperformed its benchmark by 7.6% for the year

TNI MENA Special Sits slightly reduced its net equity exposure, mainly in Morocco

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]

Divye Arora Analyst +971 2 619 2322 [email protected]

Business Development Kashif Zia 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] Apex Fund Services Peter Hughes +144 1 292 2793 [email protected] HSBC Fund Services Glyn D Gibbs +971 4 4236138 [email protected] Citibank John Dwyer +9714 604 4450 [email protected]

Auditors KPMG Munther Dajjani +971 2 634 3318 [email protected]

Deloitte & Touche Wissam Moukahal +971 2 676 0606 [email protected]

0%

20%

40%

60%

80%

100%

120%

140%

160%

Jan-06 Oct-06 Jul-07 Apr-08 Jan-09 Oct-09 Jul-10 Apr-11 Jan-12 Oct-12

DJ / DIFC Arabia 50

S&P Pan Arab CompositeLarge/MidCap Index

S&P GCC CompositePrice Index

PERFORMANCE REVIEW December 2012

Market Performance

December witnessed a strong rally across MENA markets. The S&P Pan Arab Composite jumped 2.6% during the period. The Saudi market, the biggest and most liquid one in the region outperformed the regional index; the market gained 4.9%. The Egyptian market has been the best performer, gaining 15.8%. The Lebanese market recorded a strong rebound, the market went up 8.1% and reached its highest level since May. Oil price was flat, the Brent quality closed the period at US$ 111.11 per bbl.

Manager’s Comments

TNI UAE Blue Chip Fund

The UAE markets stood out and outperformed all other GCC markets. The S&P UAE Domestic Capped index ended the year up 18%. The outperformance came on the back of an improvement in the overall macro environment. TNI UAE Blue Chip Fund ended the year up 18.2%. During December the Fund Manager was fully invested and maintained the exposure to other GCC markets at 5.4%.

TNI MENA Special Situations Fund

The Fund decreased by 0.2% in December. We maintained our bets on the fixed income side. We reduced slightly our net equity exposure, mainly in Morocco where we sold a trading bet.

MENA UCITS Fund

TNI MENA UCITS Fund ended the year up 11.3%, outperforming its benchmark S&P Pan Arab 5/10/40 Capped Index by 7.6%. The outperformance was driven by all sectors in particular Telecommunications and Banking. During the month of December, the Fund Manager maintanied the cash position at 3.0%. On a country level, the Fund Manager increased exposure to Morocco and Saudi. The least preferred countries remained Kuwait, Lebanon and Bahrain.

DJ / DIFC 50 TITANS Index- S&P GCC Index

Regional Performance

Performance % MTD YTD

DJ Arabia Titans -0.7 1.4

S&P GCC 2.2 3.2

S&P Composite 1.9 3.2

Other MENA Indices MTD% YTD%

Egypt 15.8 53.3

Morocco -3.5 -15.6

Tunisia -2.6 -8.8

Jordan 1.7 -5.3

Lebanon 8.1 -1.4

S&P GCC Indices MTD% YTD%

Saudi Arabia 4.9 -0.4

UAE -0.5 18.1

Kuwait -1.9 -1.6

Qatar -1.3 -2.7

Oman 3.0 -5.6

Bahrain 4.6 -4.1

MTD performance is measured between 29th November 2012 to 27th December 2012

20%

25%

30%

35%

40%

45%

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12

100%

105%

110%

115%

120%

125%

Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12

MARKETS REVIEW

December 2012

The MENA Equity Markets Egypt banking sector has been witnessing interest from some of the well capitalised regional banks who are looking to exploit the strong long term potentail of the Egyptian market. During the month, Emirates NBD (ENBD) inked a deal with BNP Paribas buy its 95.2% stake in BNP Paribas Egypt. ENBD will offer US$ 500 million for the 100% of BNP Paribas Egypt, as ENBD will also offer to acquire the remaining 4.8% shares from minority shareholders. The offer implies a target PB of 1.6x based on September 2012 book value. QNB also proposed to launch a tender offer for buying 100% stake in NSGB. The offer values NSGB at US$ 2.6 billion and implies a target PB of 2.0x based on September 2012 book value.

The central bank of the UAE postponed introducing restrictions on commercial banks' exposure to state-linked debt and requirements for them to hold liquid assets. The Central Bank board of directors reviewed banks' feedback on the amendments to the large exposures regulation and decided to postpone implementation of the regulation until all items of the regulation are reviewed with banks.

The central bank has also issued a new regulation capping what banks can lend to investors in residential property. The regulation restricted mortgages for expatriates to 50% of the value of the property for a first home and to 40% for the second property. For UAE nationals, financial institutions may lend up to 70% of value for a first home and up to 60% for a second property. Previously, there were no loan-to-value limits and some banks lent as much as 90% of the value.

Qatar banking sector’s lending grew 3.8% mom and 28% yoy, well above average lending growth in the MENA region. Customer deposits were up 2.3% mom and 30.4% yoy driven by strong growth of 65% yoy in the public sector deposits. End-November loan to deposit ratio was 112%.

Chart 1: Qatar banking sector yoy credit growth

Chart 2: Qatar banking sector loan to deposit ratio

Source: Qatar Central Bank

Source: Qatar Central Bank

TOPIC OF THE MONTH December 2012

Regional outlook in 2013 2012 was a year of high volatility for the global markets driven by uncertainties tied to politics, economic growth and policy reforms. In the mid of the year, investors were confronted with renewed fears of Eurozone debt crisis (sovereign issues spreading to Spain and Italy), a sharp slowdown in the US economy and concerns of hard-landing in China. However, the reversal of these concerns in the second half drove a rally in the riskier assets.

Essentially, some of the developments during second half of the year augur well for the global equities outlook in 2013. The most important one was Mario Draghi, president of European Central Bank, pledging to do whatever it takes to protect Eurozone from collapse and conditionally backstopping Eurozone government debt. Also a bottoming housing market, rising bank credit to the private sector, a resilient consumer spending and improving job market helped to stabilise US economic growth. The newly leadership in China also gave the signals towards the year end that it intends to shore up the weakening economy.

Recent deal passed by the US congress to avoid the fiscal cliff of tax hikes on all Americans and massive spending cuts bodes well for the business sentiment and capital investment. However, risk to the US economic recovery remains in the form of any gridlock between Democrats and Republicans in agreeing on debt ceiling. The gradual re-acceleration of economic activity in US and China would be positive for the oil demand and oil exporting Middle Eastern countries will be able to maintain their fiscal surpluses and keep up with increasing infrastructure spending.

While most of the emerging markets witnessed a strong rally in the second half of 2012, Saudi market remained flat and ended the year up only 6%, underperforming the MSCI emerging market index by 9%. This underperformance was mainly linked to negative sentiment created by the financial difficulties at the Mohammad Al-Mojil Group and Saudi Oger in the construction sector, and loan refinancing talks at Zain Saudi, the telecom operator, and up to some extent to geo-political risks emerging from Israel-Palestine conflict. As a result of significant increase in loan impairment charges in 3Q12, banking stocks came under pressure and Saudi banking and financial sector index ended the year almost flat. Given the strong economic growth, overall healthy corporate profitability barring a few, and expansionary 2013 budget (budgeted spending up 19% yoy) we expect the banking, cement and retail sectors to be the key beneficiaries.

After a strong performance in 2012 with DFM index up 20%, we expect the Dubai market to continue to perform well tied to strong up move in its key sectors such as trade, commerce, tourism and hospitality, recovery in the real estate sector and smoother than expected restructuring of government and government related entities debt. Foreign trade increased by 13% during first ten months of 2012 to a record AED 1 trillion. Hotel and serviced apartments recorded AED 9.8 billion in revenue in 1H2012, up 22% yoy and number of tourists increased to 5 million, up 10% yoy. Average residential real estate prices increased 14% yoy as of August 2012.

Kuwait maket wintessed high volatility in 4Q2012 due to the ploitical uncertainities linked to parliamentary elections and ended the year up only 2%. The economy suffered from the lack of investment during the last year when hardly any of the projects included in US$ 107 billion investment program materialised. Finally, a more pro-government parliament was elected after opposition boycotted the election over the decree passed by the Emir, which reduced the number of votes per citizen to one from four. A more pro-government parliament would be beneficial for Kuwait’s economy as it will reduce political gridlock over implementing policy, projects and reforms. We expect the banking and cement sectors to be the key beneficiaries of any increase in the investment spending. However, risk remain in the form of continued protests from the opposition which may propel investors to play a wait and watch game.

The Egyptian stock market saw a sharp rally during the July-August 2012 period due to improvements in the political landscape and increased foreign financial aid post presidential elections, which revived investor interest. However, during 4Q2012, the market suffered from high volatility as political tensions escalated after President Morsi issued a decree that placed him above any oversight and also put the controversially drafted constitution for the public referendum. In the near term, the outcome of the parliamentary elections which are due in February 2013 will govern the political scene in the country. A strong Muslim Brotherhood majority in the parliament would be favourable in swift passing and implementation of policy and reforms. Post elections, we believe investors focus will shift towards seriousness of the government in pushing reforms such as addressing issues of high subsidies, creating jobs, gradually cutting budget deficit which stood at 11% of the GDP for FY 2011/12, and progressing towards putting Egypt economy back on to the 6-7% annual GDP growth track.

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

6.4%

8.4%

9.1%

10.0%

10.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

ADCB

FGB

NBAD

Emaar

Etisalat

`

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


54.2%

33.7%

6.8%5.4%

-0.1%

Abu Dhabi

Dubai

Nasdaq DubaiGCC

Cash

TNI UAE BLUE CHIP FUND Fact Sheet as of December 27, 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 0.3

MTD -0.5

YTD 18.0


Value Blend Growth Large

Medium

Small

Fund Profile

WTD 0.1

MTD -0.6

YTD 18.2


Fund Facts


Since Inception %






Headquarters TNI Tower | Zayed 1st Street Khalidia| P.O. Box 47435 | Abu Dhabi | UAE

Phone: +971 2 619 2300 Fax: +971 2 619 2331 Email: [email protected] www.tni.ae


Base Currency AED



NAV / Unit AED 5.11

Net Assets AED 96.88 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

6.4%

8.4%

9.1%

10.0%

10.0%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0%

ADCB

FGB

NBAD

Emaar

Etisalat

`

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


54.2%

33.7%

6.8%5.4%

-0.1%

Abu Dhabi

Dubai

Nasdaq DubaiGCC

Cash

TNI UAE BLUE CHIP FUND Fact Sheet as of December 27, 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 0.3

MTD -0.5

YTD 18.0



Medium

Small

Fund Profile

WTD 0.1

MTD -0.6

YTD 18.2


Fund Facts


Since Inception %






Headquarters TNI Tower | Zayed 1st Street Khalidia| P.O. Box 47435 | Abu Dhabi | UAE

Phone: +971 2 619 2300 Fax: +971 2 619 2331 Email: [email protected] www.tni.ae


Base Currency AED



NAV / Unit AED 5.11

Net Assets AED 96.88 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

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


Fund

Ret

urn

(%)

Benchmark Return (%)

TNI UAE BLUE CHIP FUND Fund Analytics as of December 27, 2012

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 -0.2 -0.4 0.2

3M 3.9 5.4 7.4

6M 10.0 11.9 14.3

1Y 17.7 17.0 21.4

3Y -16.3 -16.6 -19.8

Inc -48.9 -60.7 -69.2

PE PB ROE

%

MCap

(AED B)

TNI BCF 10.2 0.9 13.9 15.2

S&P UAE

Capped 11.1 1.0 13.5 13.5

MSCI

UAE 11.6 1.3 13.8 14.3

1Y 2Y 3Y Since Inception

Relative Alpha 0.2 0.3 0.9 3.1 Ann. Return 18.1 0.5 -1.4 -8.4

Volatility 12.4 14.2 18.4 26.0

Tracking Error 3.9 3.4 4.5 10.8

Info. Ratio 0.0 0.1 0.2 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

- 0.1

2.9

3.0

4.8

5.3

5.5

6.1

12.4

20.0

40.1

-20 -10 0 10 20 30 40 50

Cash

Materials

Investments

Services

Transportation

Marine

Utilities

Telecoms

Real Estate

Banking

-0.1

2.2

-0.3

0.3

1.0

-0.6

1.6

0.5

0.6

-5.3

-10 -5 0 5 10

- 0.1

5.4

6.8

33.7

54.2

-20 0 20 40 60

Cash

GCC

Nasdaq Dubai

Dubai

Abu Dhabi

-0.1

5.4

0.7

-2.0

-4.0

-10 -5 0 5 10

Fund

Ret

urn

(%)


TNI UAE BLUE CHIP FUND Fund Analytics as of December 27, 2012

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 -0.2 -0.4 0.2

3M 3.9 5.4 7.4

6M 10.0 11.9 14.3

1Y 17.7 17.0 21.4

3Y -16.3 -16.6 -19.8

Inc -48.9 -60.7 -69.2

PE PB ROE

%

MCap

(AED B)

TNI BCF 10.2 0.9 13.9 15.2

S&P UAE

Capped 11.1 1.0 13.5 13.5

MSCI

UAE 11.6 1.3 13.8 14.3

1Y 2Y 3Y Since Inception

Relative Alpha 0.2 0.3 0.9 3.1 Ann. Return 18.1 0.5 -1.4 -8.4

Volatility 12.4 14.2 18.4 26.0

Tracking Error 3.9 3.4 4.5 10.8

Info. Ratio 0.0 0.1 0.2 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

- 0.1

2.9

3.0

4.8

5.3

5.5

6.1

12.4

20.0

40.1

-20 -10 0 10 20 30 40 50

Cash

Materials

Investments

Services

Transportation

Marine

Utilities

Telecoms

Real Estate

Banking

-0.1

2.2

-0.3

0.3

1.0

-0.6

1.6

0.5

0.6

-5.3

-10 -5 0 5 10

- 0.1

5.4

6.8

33.7

54.2

-20 0 20 40 60

Cash

GCC

Nasdaq Dubai

Dubai

Abu Dhabi

-0.1

5.4

0.7

-2.0

-4.0

-10 -5 0 5 10

Fund Performance since inception

Asset Allocation

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

TNI MENA UCITS FUND Fact Sheet as of December 27, 2012

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 3.3

S&P Pan Arab Large-Mid 5/10/40 Index -0.4

S&P Pan Arab 0.2

%

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


Medium

Small

Fund Profile

WTD -0.4

MTD 2.8

YTD 11.3

Since Inception 3.3

Fund Facts

Inception Date June 17, 2010

Base Currency USD

Minimum Inv. USD 100,000

NAV / Unit USD 1,033.05

Net Assets USD 27.7 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 1.9

YTD 3.7



Headquarters TNI Tower | Zayed 1st Street Khalidiya| P.O. Box 47435 | Abu Dhabi | UAE Phone: +971 2 619 2300

Fax: +971 2 619 2331 Email: [email protected] www.tni.ae

Top Holdings


Monthly Performance (%)


3.2%

4.4%

4.4%

4.9%

6.5%

QNB

NBK

Mobily P Note

Industries Qatar

Al Rajhi P Note

44.6%

11.5%

11.2%

9.8%

8.4%

6.2%3.0%

2.3%

2.2%

0.7%

0.0%

KSA

KUWAIT

QATAR

Egypt

UAE

MOROCCOCash

JORDAN

OMAN

BAHRAIN

LEBANON

Fund Performance since inception

Asset Allocation

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

TNI MENA UCITS FUND Fact Sheet as of December 27, 2012

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 3.3

S&P Pan Arab Large-Mid 5/10/40 Index -0.4

S&P Pan Arab 0.2

%

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


Medium

Small

Fund Profile

WTD -0.4

MTD 2.8

YTD 11.3

Since Inception 3.3

Fund Facts

Inception Date June 17, 2010

Base Currency USD


NAV / Unit USD 1,033.05



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 1.9

YTD 3.7




Fax: +971 2 619 2331 Email: [email protected] www.tni.ae

Top Holdings




3.2%

4.4%

4.4%

4.9%

6.5%

QNB

NBK

Mobily P Note

Industries Qatar

Al Rajhi P Note

44.6%

11.5%

11.2%

9.8%

8.4%

6.2%3.0%

2.3%

2.2%

0.7%

0.0%

KSA

KUWAIT

QATAR

Egypt

UAE

MOROCCOCash

JORDAN

OMAN

BAHRAIN

LEBANON

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


TNI MENA UCITS FUND Fund Analytics as of December 27, 2012

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 -0.4 -0.7 -0.7

1M 2.8 1.9 2.6

3M 0.2 -0.1 0.0

YTD 11.3 3.7 3.7

Inc 3.3 -0.4 0.2

W.Avg. PE

W.Avg. P/B

W. Avg.

ROE%

Mkt Cap

(US$B) MENA UCITS 12.1 1.9 15.2 10.8

S&P PAN Arab

Capped 11.7 1.7 12.3 11.4

S&P Pan Arab 13.7 1.6 16.9 12.4

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Banking 12.6 1.8 13.8

Real Estate 10.5 1.7 11.8

Industry 14.9 2.0 16.7

Telecoms 12.0 2.5 24.9

Services 12.7 3.4 17.1

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


3.0

-2.0

-0.7

0.5

0.6

- 1.4

-5 -3 -1 1 3 5

3.0

5.0

12.5

14.3

19.1

46.1

-15 -5 5 15 25 35 45 55

Cash

Services

Real Estate

Telecoms

Industry

Banking & Financials

0.0

0.0

0.7

2.2

2.3

3.0

6.2

8.4

9.8

11.2

11.5

44.6

-20 -10 0 10 20 30 40 50

Lebanon

Tunisia

Bahrain

Oman

Jordan

Cash

Morocco

UAE

Egypt

Qatar

Kuwait

Saudi Arabia

- 2.3

- 0.9

-1.1 -0.7

- 1.3 3.0

1.0 - 0.8

1.6 1.4

-8.4

8.7

-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


TNI MENA UCITS FUND Fund Analytics as of December 27, 2012

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 -0.4 -0.7 -0.7

1M 2.8 1.9 2.6

3M 0.2 -0.1 0.0

YTD 11.3 3.7 3.7

Inc 3.3 -0.4 0.2

W.Avg. PE

W.Avg. P/B

W. Avg.

ROE%

Mkt Cap

(US$B) MENA UCITS 12.1 1.9 15.2 10.8

S&P PAN Arab

Capped 11.7 1.7 12.3 11.4

S&P Pan Arab 13.7 1.6 16.9 12.4

W.Avg. PE

W.Avg. P/B

W. Avg. ROE%

Banking 12.6 1.8 13.8

Real Estate 10.5 1.7 11.8

Industry 14.9 2.0 16.7

Telecoms 12.0 2.5 24.9

Services 12.7 3.4 17.1

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


3.0

-2.0

-0.7

0.5

0.6

- 1.4

-5 -3 -1 1 3 5

3.0

5.0

12.5

14.3

19.1

46.1

-15 -5 5 15 25 35 45 55

Cash

Services

Real Estate

Telecoms

Industry

Banking & Financials

0.0

0.0

0.7

2.2

2.3

3.0

6.2

8.4

9.8

11.2

11.5

44.6

-20 -10 0 10 20 30 40 50

Lebanon

Tunisia

Bahrain

Oman

Jordan

Cash

Morocco

UAE

Egypt

Qatar

Kuwait

Saudi Arabia

- 2.3

- 0.9

-1.1 -0.7

- 1.3 3.0

1.0 - 0.8

1.6 1.4

-8.4

8.7

-12 -7 -2 3 8 13

40%

50%

60%

70%

80%

90%

100%

110%

120%

130%

Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12

TNI SSF S&P Composite

Cash 39.8 %

Lebanon 9.6%

KSA 12.3%

Others 9.7 %

Kuwait 9.6 %

UAE 19.4 %

4.4%

4.4%

9.6%

9.9%

9.9%

Dar Al Arkan Sukuk

Emaar Conv.

KIPCO 10/16

Lebanese Bond01/13

Tamweel Conv.

TNI MENA SPECIAL SITUATIONS FUND Fact Sheet as of December 31, 2012

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 -0.2

YTD 4.7

Since Inception 3.4


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

Inception date Sept 01, 2008

Base Currency USD


NAV / Unit USD 1033.51



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



Fax: +971 2 619 2331 [email protected] www.tni.ae

Since Inception %

TNI MENA SSF 3.4

S&P Composite * -37.3

MTD 2.0

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%

Aug-08 Mar-09 Oct-09 May-10 Dec-10 Jul-11 Feb-12 Sep-12

TNI SSF S&P Composite

Cash 39.8 %

Lebanon 9.6%

KSA 12.3%

Others 9.7 %

Kuwait 9.6 %

UAE 19.4 %

4.4%

4.4%

9.6%

9.9%

9.9%

Dar Al Arkan Sukuk

Emaar Conv.

KIPCO 10/16

Lebanese Bond01/13

Tamweel Conv.

TNI MENA SPECIAL SITUATIONS FUND Fact Sheet as of December 31, 2012

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 -0.2

YTD 4.7

Since Inception 3.4


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

Inception date Sept 01, 2008

Base Currency USD


NAV / Unit USD 1033.51



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



Fax: +971 2 619 2331 [email protected] www.tni.ae

Since Inception %

TNI MENA SSF 3.4

S&P Composite * -37.3

MTD 2.0

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

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


-15 0 15 30 45

Short Trading

Convertibles

Sukuks

Bonds

Equities

Cash

-15 0 15 30 45

Holding

Sovereign

Others

Real Estate

Financials

Cash

TNI MENA SPECIAL SITUATIONS FUND Fact Analytics as of December 31, 2012

Asset allocation by Strategy Asset allocation by Sector

Statistics since Fund inception

TNI SSF S&P Composite LIBOR (1M)

Monthly. Return -0.21% 1.98% 0.02%

YTD 2012 4.74% 3.11% 0.23%

Since Inception 3.35% -37.33% 2.60%

Ann. Return Inception 0.78% -10.22% 0.59%

Volatility 8.19% 20.86% 0.21%

Sharpe Ratio 0.07 NA NA

Correl. (vs. TNI SSF) 1 0.28 0.19

Maximum Drawdown -7.52% -22.95% NA

# of Months 52 52 52

% Positive Month 51.92% 50.00% 100%

Best Month 5.00% 50.00% 0.34%

Worst Month -7.52% -22.95% 0.02%

Returns % TNI SSF S&P Composite

1M -0.21 1.98

3M -0.71 -0.29

6M 3.96 2.83

1Y 4.74 3.11

Since Inception 3.35 -37.33

Returns % TNI SSF LIBOR (1M)

1M -0.21 0.02

3M -0.71 0.05

6M 3.96 0.11

1Y 4.74 0.23

Since Inception 3.35 2.60

-15 0 15 30 45

Short Trading

Convertibles

Sukuks

Bonds

Equities

Cash

-15 0 15 30 45

Holding

Sovereign

Others

Real Estate

Financials

Cash

TNI MENA SPECIAL SITUATIONS FUND Fact Analytics as of December 31, 2012

Asset allocation by Strategy Asset allocation by Sector

Statistics since Fund inception

TNI SSF S&P Composite LIBOR (1M)

Monthly. Return -0.21% 1.98% 0.02%

YTD 2012 4.74% 3.11% 0.23%

Since Inception 3.35% -37.33% 2.60%

Ann. Return Inception 0.78% -10.22% 0.59%

Volatility 8.19% 20.86% 0.21%

Sharpe Ratio 0.07 NA NA

Correl. (vs. TNI SSF) 1 0.28 0.19

Maximum Drawdown -7.52% -22.95% NA

# of Months 52 52 52

% Positive Month 51.92% 50.00% 100%

Best Month 5.00% 50.00% 0.34%

Worst Month -7.52% -22.95% 0.02%

Returns % TNI SSF S&P Composite

1M -0.21 1.98

3M -0.71 -0.29

6M 3.96 2.83

1Y 4.74 3.11

Since Inception 3.35 -37.33

Returns % TNI SSF LIBOR (1M)

1M -0.21 0.02

3M -0.71 0.05

6M 3.96 0.11

1Y 4.74 0.23

Since Inception 3.35 2.60


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

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100%

120%

140%

160%


TNI BCF

MSCI UAE Index


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