Fund Man

The MEDA registering Manager’s dbenefited tcame from with the Sawtih an 18with Dubai In North Aregistering among thethis rally. MJordanian a In the GCperformancbanking anopening thegradual resmarket highto capitalize In the UAEThe Fund wpositive vievaluations a

The Investmgoing into earnings gshould be tchanges wiinterest frothe markets

The MEDAthe year. Tthe persistrampant feKuwait werespective Over the ltheir econlimited. Efsome caseeconomic are in solidconditionsliquidity wover the p In the GCCcompoundOmani mamonth, buannouncemarket. Th0.1%. The Egyptcontinues lower consexit the mInvestmenprovided sclosely. In the facea defensivmore cyclicredit marsignificantManager’sand have

Hashem M Karim Neh

Mohamed ATel: 9714-e-mail : AM

-60%

-40%

-20%

0%

20%

40%

60%

ager’s Strategy

Fund added 5.1its sixth consec

decision to overwhe Fund as the the GCC. The M

audi market lead8% return for De

and Abu Dhabi a

Africa, the Egypan 8% return

e standout perfoMoreover, the Fuand Moroccan ma

CC markets, thce throughout thnd petrochemicae market to forestoration of rether. The Investme on the strong t

E, the real estatewas well positionew on the Dubaand compelling e

ment Manager m2008. Increasedrowth rates, cothe supporting dth respect to corm foreign institus higher in 2007

Fund M

A Fund declined 9The majority of thtent negative sentfear amongst inveere the worst perfely.

ast few months, tomies in order to fforts by various ges increase investgrowth. The Inved shape to suppors; this is largely a which has resulted past few years.

C, a wave of profided by weaker thaarket experienced ut subsequently rement that the Omhe Saudi market w

tian market sufferto discount the psumption and wea

market on the backnt Manager believsome attractive op

e of difficult markve view. We do noical plays, howeverkets should expet policy measures s focus will remainrelatively high ma

ontasser – Head of

ma – Fund Manage

Abdel Halim – Seni-363 4047 / Fax: 9Msales@efg-hermes

Year to Date

MEDA Fund vs

MEDA Fu

y & Outlook

1% in Decembercutive year of pweight the GCC majority of the

MENA markets clding the way foecember. The UAadvancing 11% a

ptian market main December. T

ormers, and the und continues toarkets.

he Saudi Arabiahe month. The al sectors leadineign investors in tail investor conment Manager hatwo-month rally.

e sector was amned to benefit frai and Abu Dhaearnings growth

maintains a positi IPO and M&A a

oupled with the drivers for 2008. rporate governan

utional investors w.

Manager’s Strat

.8% in January onhe MENA markets timent stemming stors, and depresforming markets, d

the GCC countriesensure that the i

governments in thment expenditure

estment Manager rt themselves undresult of the prudin regional gover

it-taking hit the Qan expected Q4 eaa pronounced de

ecovered part of itman Stabilization Fwas essentially fla

red another doublerospects of a sharaker FDIs. Foreignk of weaker than eves that the acute pportunities, and w

ket conditions, theot believe there wer in the coming mrience a measuredalready announce

n on companies thargin stability.

f Asset Managemen

er

ior Vice President 9714-362 1171 s.com

2008

s. MSCI Arabian Index

(net of fee

und MSCI Arab

r to close 2007 positive returns.

markets at the attribution for t

losed the year or the second coAE markets alsoand 9.5%, respe

aintained its strhe financial servFund’s holdings

o retain a minor

an market disprally was broadng the way. Spthe near future nfidence has heas reshuffled the

mong the top perrom this rally anabi markets giveoutlook.

ve outlook on thactivity, attractiv

currency revaluFurthermore, on

nce should resultwho were instru

tegy & Outlook

n the back of a chexperienced declfrom global marksed oil prices. Qatdeclining 23%, 16

s have been injectmpact of the globe MENA region to

e were designed tobelieves that the

der the current ecdent managementrnments amassing

Qatari market. Thearnings announcecline during the fits losses followingFund would start iat for the month r

e digit decline as rp economic slowdn and local investoexpected Q4 resuweakness in the will continue to m

e Investment Manaill be an immediat

months the currend recovery on theed. Furthermore, that provide good e

nt

8

Markets Gross T

s)

bian Markets (MGCU67

at 50.4%, whileThe Investmentstart of the yearthe 2007 returnson a strong note,nsecutive month

o performed welctively.

rong momentumvices sector wass benefited fromexposure to the

played a strong based with thepeculation aboutcoupled with theelped drive that Fund’s positions

rforming sectorsd we maintain a

en the attractive

he MENA marketsve valuations anduation possibilityngoing structurat in an increasedmental in driving

k

hallenging start toines as a result of

ket turmoil, tar, Egypt and 6%, and 13%,

ting liquidity into bal deleveraging iso maintain, or in o maintain GCC economies onomic t of hydrocarbon g significant wealt

e losses were ements .The irst half of the g the nvesting in the ising a modest

the market down driven by ors continued to lts. The market has

monitor that marke

ager will maintainte recovery in thently dysfunctional e back of the the Investment earnings visibility

2007

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NAVNo. LauListiStruManInceExpMiniSub

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HolQataTeleJarirBanSau

G-Hermes Midy 31st, 2009

term capital appan equities and equ

turns M

nth to Date r to Date 8 7 6 5 Arabian Markets TR Gross

V per Shareof Share Certificatench Dateingucturenagement Feeentive Feeense Ratioimum Subscription

bscription / Redemp

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uters Codeomberg Ticker

of Equity Holdingsd. Market Cap (mmRatio 09

aormation Ratio*ndard Deviation*ated vs. MSCI Arabian Mar

ityed Incomeh

dingar Gas Transportecom Egyptr Marketingk Muscatdi Telecom

A

Saudi Arabia, 13%

Cash, 31%

Telecom12%

Utilities, 2%

Government, 3%

Cash, 31%

ddle East & De

Object

reciation through uity-related securitie

Fund Perfo

MEDA Fund MS TR

-9.8% -9.8% -42.1% 50.5% 6.2% 60.9% USD Index launch date Ja

Fund Infor

es

ption

Fund Iden

Fund Charac

s)

rkets Gross TR USD since i

Asset Allo

Top 5 Equity

CoQatEgySauOmSau

Allocation By

Allocation By Eco

Qatar, 13%

Basic Materials,4%

m,

eveloping Afric

tive

investing in Middes.

rmance

SCI Arabian MarR Gross USD

-9.4% -9.4% -53.8% 52.2% -42.6%* NA

anuary 2006

rmation

USD 17,90

JulyDubai Fin

Ope1

15% 2

USDM

ntifiers

BMG2 BMG2

0-6LP65EFGM

cteristics

USD

1ndex inception in January

ocation

423

Holdings

ountry tar ypt udi Arabia

man udi Arabia

y Country

onomic Sector

UAE, 17%

KOman,

5%

Consumer Goods,2%

ConstrucEstate

ca (MEDA) Fun

dle East and Nort

kets Differen

-0.4% -0.4% 11.7% -1.7% 48.8% NA

18.9004,007 y 2, 1999nancial Marketen Ended1.4%over 10%2.2%D 10,000onthly

294041030294042020675-9705037105MEAF BH

23D 4,9765.6x0.71.0

18.3%2006

49%20%31%

% of NAV4.7%3.6%3.4%3.2%2.9%

Egypt, 17%

Jordan, 2%

Kuwait, 2%

, Financials,15%

Logistics,7%Other,

3%Petrochem/

Fertilizers, 5%

ction/Real e, 16%

nd

th

nce

%%%%%