Rasmala Trade Finance Fund An Alternative Income Generating Investment Solution Shari’a Compliant

www.rasmala.com

www.rasmala.comTradeRasmala Finance Fund

RETURNS TARGETED AT3 MONTH LIBOR +5.00%

Our Objective

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Key Fund Facts

Rasmala Invetsment Bank Ltd*.

Inception Date:

Asset Type:

Structure:

: Fund Currency:

20%

Management Fee:

:

:USD

Alternative

Target Return**:3 Month USD LIBOR +5.00%

1.00%

:

Rasmala Trade Finance Fund (the "Fund") specializes in providing short-term, structured, private financing to companies trading real assets in the real economy within the trade finance sector.

Our financing provides a vital component for producers, manufacturers, traders, importers, exporters and end users, by bridging the gap between countries that produce goods/commodities and the geographies where they are in demand.

The financing is backed by real assets such as goods including but not limited to hard and soft commodities, equipment, machinery or receivables and enhanced through risk mitigating techniques including over-collateralization and credit insurance, as opposed to the traditional trade finance business of assessement and unsecured lending.

The Fund targets a stable return of 3 month USD LIBOR + 5.00% (net of fees and expenses) with a focus on capital preservation.

We endeavor to distribute cash dividends to investors on record as of end of June and December (Paid to investors around July and January).

*Rasmala Investment Bank Ltd. a subsidiary of Rasmala plc, is a regional investment banking and asset management company, based in the Dubai International Financial Centre (DIFC) and regulated by the Dubai Financial Services Authority (DFSA). **Target Return increased from 3 Month USD LIBOR +3.50% to 3 Month USD LIBOR +5.00% effective October 2016.

“The Fund seeks to generate stable anduncorrelated returns through investment in a diversified portfolio of Shari'a compliant

structured trade finance transactions”

USD135,000

For investors, we provide a regulated Shari’a compliant investment vehicle to enhance and diversify their international asset allocation, through an asset class that has limited correlation to the underlying volatility in traditional asset classes such as equities and fixed income markets.

1.00%

Performance Fee:

3 Month USD LIBOR + 3.50% Performance Hurdle:

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Trade Finance is an essential part of the real economy and is used when short term financing is required by sellers and buyers to assist them with the sale and purchase of goods.

Trade Finance Overview

Global Trade totaled $16.5 trillion in 2015, where an estimated 80% was facilitated by trade finance.

Emerging and transition economies accounted for an estimated 44% of global trade in 2015.

46% of businesses report that a doubling of trade finance availability would fuel an increase in production and exports.

The most fundamental aspect in trade finance is the method of payment agreed between the buyer and the seller; the seller wants to accelerate payment from the buyer, but the buyer wants to delay and mitigate the supply risk from the seller. This is where banks and alternate financiers provide short-term trade finance solutions using various financial products/structures to support global trade both domestically and internationally.However, due to significant regulatory changes within the banking sector, banks have been forced to reduce their trade finance operations creating an estimated $1.6 trillion financing gap which continues to grow each year.

This has created a unique opportunity for alternate financiers like the Rasmala Trade Finanace Fund to offer this new attractive alternate asset class, which historically has largely been inaccessible to non banking investors.In a low interest rate environment, investors have an opportunity to invest in this new asset class which offers attractive risk adjusted returns with low correlation to traditional asset classes.

2016

Fund

RelativePerformance 3.87%

2015

Fund

RelativePerformance 4.30%

2014

Fund

RelativePerformance -0.10% 0.13% 0.39% 0.42%

0.41% 4.62%

0.75%

0.34%

Source: Rasmala's internal performance measurement.Performance is net of fees based on Rasmala Trade Finance Fund share class. Performance measurement from inception period 14th September 2014.*Estimated return for December 2016.

45% of banks terminated correspondent banking relationships due to evolving costs as a result of regulatory changes.

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec* Total

Sources: The Challenges of Trade Financing, World Trade Organisation. www.adb.org/publications/2015-trade-finance-gaps-growth-and-jobs-survey www.adb.org/news/global-trade-finance-gap-reaches-16-trillion-smes-hardest-hit-adb

0.43%

0.08%

0.43%

0.08%

0.35% 0.35%

A shortfall of trade finance globally has become evident with an increase in rejection of trade finance applications.

Rasmala Trade Finance Fund Performance

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Investment Overview

Identify transactions and reputable mid-market counterparties that offer the most attractive risk adjusted exposures.

Rigorous credit and commercial due diligence procedures applied by the Fund's Investment Committee.

Credit limit is agreed on a non-committed basis with financing assessed on a transaction by transaction basis.

Typically secured, asset backed and/or credit insured to mitigate the risk of capital loss.

A preference for self-liquidating transactions with an identifiable source of repayment, which serves to diversify the risk of non-payment.

Typically have a short-term physical trading cycle ensuring strong liquidity of principal investment and trading margin.

Fungible assets are preferred so as to facilitate the seamless liquidation of the asset under normal market conditions.

Financings based on clearly defined profit margins which are not reliant on the price of the underlying assets moving in the right direction.

Over-collateralization, the Fund typically finances up to 80% of the cost price with 20% contributed by the counterparty or a first lost investor.

Payment risk in certain transactions are credit insured against the counterparty becoming insolvent or failing to pay within agreed terms and conditions

Independent monitoring of collateral managers, management accounts, debtors book and audited financials of the counterparties.

The Fund is audited by PricewaterhouseCoopers.

The Fund maximizes risk-adjusted investment returns through strictly applied investment principles:

No direct price risk to underliying assets.

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Fund Transaction Investment Approval Process

TRADE CYCLE

EXAMPLE

Legal documentationn and security sign-off by all parties.

Counterparty submits transaction drawdown request.

Pre-investment approval process completed.

PRE-INVESTMENT PHASE POST INVESTMENT PHASE

Portfolio Manager

compliance checks Complete .

Compliance

Diligence.

within the regulated Fund Mandate.

transaction complies within Shari'a principals.

Final transaction investment sign-off.

Investment Committee/

Shari’a Advisor

INVESTMENT APPROVAL PROCESSEach transaction that is considered by the Fund must

go through a three tiered approval process:

POST INVESTMENT PHASE

Investment Guidelines

Rasmala at a Glance

Rasmala plc is a leading independent investment management group, providing a wide range of investment solutions to institutional and individual investors around the world.

Headquartered in London, we are authorized and regulated by the FCA. We operate regulated entities in Dubai and Cairo.

We manage USD 1 billion entrusted to us by Banks, Insurance Companies, Public Pension Funds, Corporates and Family Offices.

We serve our clients through three main business lines:

- Asset Management - Investment Banking - Real Estate

No more than 15% of the targeted Fund size may be invested in assets which either individually or collectively originate from any single investment grade rated counterparty.

No more than 10% of the targeted Fund size may be invested in assets which either individually or collectively originate from any single unrated or sub-investment grade related counterparty.

The Fund may, from time to time, purchase Shari'a compliant assets for liquidity or cash management purposes, subject to compliance with the investment guidelines and restrictions, and subject to such activities being in compliance with the Shari'a and being approved by the Advisor.

The Fund may borrow up to 25% of the Fund NAV without interest provided the terms of any such borrowings are approved by a simple majority of the Directors, are Shari'a compliant and approved by the Shari'a Advisor (Cordoba Capital).

Transaction review and risk mitigants undertaken.

Fund disburses investment and pays supplier.

Fund owns or is granted a security overs the goods. Sales proceeds assigned to the Fund from the end buyer.

To find out more about Rasmala, please visit: www.rasmala.com

End buyer makes payment. Fund investment repaid (Principal plus profit).Counterparty paidnet profit.

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Reasons to invest in the Rasmala Trade Finance Fund

Access to an asset class that has historically been the domain of banks.Semi-annual cash distribution target of 3 Month USD LIBOR +5.00% per annum net of fees and expenses.

Finance real assets in the real economy.

Low volatility and limited exposure in a rising interest rate environment as transactions are floating rate based set at a profit over LIBOR.

Low or negative correlation with equity and fixed income asset classes providing an uncorrelated return to traditional assets.

Monthly liquidity with no long dated lock-ups or other liquidity constraints.

Well structured, self-liquidating, asset backed and/or credit insured Shari'a compliant transactions

Diversified investment portfolio (goods/commodi-ties, geography, industry groups and individual counterparties).

Short term maturities, typically 90-180 days, leading to more accurate financial forecasting when evaluating performance.

Highly skilled and experienced investment team with strong capabilities covering all aspects of trade finance.

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"Investing in Real Assets in the Real

Economy"

Subscription information on the Rasmala Trade Finance Fund is available on:

Key Partners/Service Providers for the Rasmala Trade Finance Fund:

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TradeRasmala Finance Fund www.rasmala.com 07

Rasmala Investment Bank Ltd.Rasmala Investment Bank Ltd. is regulated by the DFSA Dubai International Financial CentreThe Gate Village, Building 10, Level 1P.O. Box 31145 Dubai, United Arab Emirates

Tel: +971 4 363 5600 Email: info@rasmala.com

Discover more at: rasmala.com

Follow us: @RasmalaGroup /Rasmala

Danny JonesPortfolio Manager

+971 4 424 2782 danny.jones@rasmala.com

Disclaimer: This flyer is prepared by Rasmala Investment Bank Limited («Rasmala» or «RIBL»). RIBL is regulated by the Dubai Financial Services Authority («DFSA»). RIBL products or services are only made available to customers who RIBL is satisfied meet the regulatory criteria to be a « Professional Client», as defined under the Rules and Regulations of the Dubai International Financial Centre («DIFC»).Investment recommendations take into account both risk and expected return. We base our long-term fair value estimates on a fundamental analysis, after having taken perceived risks into consideration. We have conducted reasonable research to arrive at our investment recommendations and fair value estimates for a product mentioned in this flyer. Although the information in this flyer has been obtained from sources that RIBL believes to be reliable, we have not independently verified such information thus it may not be accurate or complete. RIBL does not represent or warrant, either expressly or impliedly, the accuracy or completeness of the information or opinions contained within this flyer and no liability whatsoever is accepted by RIBL or any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. Matters of past performance in this document should not be taken as an indication or guarantee of future performance and RIBL makes no representation or warranty, express, implied or otherwise, regarding future performance. The market value of any security and estimated income may be affected by changes in economic, financial, (including, but not limited to, spot and forward interest), and political factors time to maturity, market conditions, and volatility and the credit quality of any issuer or reference issuer. Readers should understand that financial projections, fair value estimates and statements regarding future prospects may not be realized. All opinions and estimates included in this flyer constitute our judgment as of this date and are subject to change without notice. This flyer is prepared for general circulation and is intended for general information purposes only. It is not intended as an offer or solicitation or advice with respect to the purchase or sale of any securities referred to in the flyer. It is not tailored to the specific investment objectives, financial situation or needs of any specific person that may receive this flyer. We strongly advise potential investors to seek financial guidance when determining whether an investment is appropriate to their needs.RIBL and its group entities (together and separately, «Rasmala») does and may seek to do business in securities covered in its reports. As a result, users should be aware that the firm may have a conflict of interest that could affect the objectivity of this flyer. Investors should consider this flyer as only a single factor in making their investment decision. Rasmala and its re-spective employees, directors and officers shall not be responsible or liable for any liabilities, damages, losses, claims, causes of action, or proceedings (including without limitation indirect, consequential, special, incidental, or punitive damages) arising out of or in connection with the use of this flyer or any errors or omissions in its content. The research analyst or analysts responsible for the content of this flyer certify that: (1) the views expressed and attributed to the research analyst or analysts in the flyer accurately reflect their personal opinion(s) about the subject securities and issuers and/or other subject matter as appropriate; and, (2) no part of his or her compensation was, is or will be directly or indirectly related to the specific recommendations or views contained in this flyer. Certain information contained in this flyer constitutes “forward-looking statements”, which can be identified by the use of forward-looking terminology such as “projected” or “estimated” or comparable terminology. Due to various risks and uncertainties, actual events or results or the actual performance of the Market may differ materially from those reflected or contemplated in such forward-looking statements.

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