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Microsoft PowerPoint - MENA Income Fund FINAL [Compatibility Mode]

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  • 1. Al Mal MENA Income Fund January 2009 Asset Management
  • 2. AL MAL MENA INCOME FUND Al Mal Capital: Background 2 Asset Management Product Range 3 Fund Terms 4 Investment Case 5 MENA’s Growing Economies and Wealth 5 Proforma Portfolio Allocation 6 Fixed Income & Sukuk 7 Sample Investment 1: Aldar 2011 8 Sample Investment 2: Qatar 2030 9 Equities 10 Appendix: Asset Management Team Profile 11 This presentation has been prepared solely for informational purposes and does not constitute an offer or an invitation to sell or to invest in the Al Mal MENA Income Fund or any other securities, to or from any person. The Fund Manager of the Al Mal MENA Income Fund reserves the right, in the future, to make any offer or invitation to offer pursuant to the relevant Terms as may be amended from time to time. These materials are confidential and may not be reproduced or provided to others without the express written permission of Al Mal Capital PSC. Investment in the Al Mal MENA Income Fund may involve a degree of risk. There can be no assurance that the Al Mal MENA Income Fund will be able to achieve its stated investment objectives. Potential investors should carefully evaluate the risks, which are set forth in greater detail in the Terms, in considering whether to invest in the Al Mal MENA Income Fund. The information contained in this presentation is not intended to be an investment recommendation and should not be relied upon in making an investment decision. The information is of a general nature and does not take into account the objectives and circumstances of any individual investor. Investors should seek professional financial, legal, investment and if required taxation advice specific to their investment objectives, financial situation and particular needs before making an investment decision. The information made available through this presentation, including any expression of opinion or forecast, has been obtained from or based on sources believed to be generally reliable. No representation is given with respect to the accuracy, completeness or currency of the opinion, forecast and information included the presentation and they may change without notice. Al Mal Capital PSC and its related companies will not be liable for any inaccuracies, omissions or errors in the content nor for any loss or damage arising from action taken in reliance on the information. Al Mal Capital does not guarantee the repayment of capital, the performance of, or any particular rate of return or income from an investment. Investment in any investment portfolio may be subject to market and other risks, resulting in a loss of the principal invested. Any information on the attached presentation relating to the distribution history or performance history of any investment, should not be taken as an indication of the future performance of the relevant investment. No guarantee of future returns is implied or given. Al Mal Capital - Asset Management 1
  • 3. AL MAL CAPITAL: BACKGROUND • Founded by a team of three MENA-based investment bankers, led by Naser Nabulsi, Al Mal Capital: Background the founding CEO of DIFC Asset Management Product Range • Licensed by the Central Bank of the UAE in November 2005, the first investment company license issued in 17 years Fund Summary of Terms • Over 80 founder shareholders comprised of prominent business families and institutions Investment Case: from the UAE and the Middle East region MENA’s Growing Economies Proforma Portfolio Allocation Fixed Income & Sukuk • Three main business lines – Investment Banking, Brokerage, and Asset Management Sample 1: Aldar 2011 Sample 2: Qatar 2030 • Team of over 70 professionals from international banks and major regional players Equities • Asset Management increased assets under management (AUM) year-on-year by 15% in 2008, Appendix: exceeding AED 1 billion in funds and managed products Asset Management Team Profile Al Mal Capital, -Asset Management 2 Capital Asset Management
  • 4. ASSET MANAGEMENT PRODUCT RANGE Al Mal Capital: Background AL MAL CAPITAL ASSET MANAGEMENT Asset Management Product Range Fund Summary of Terms PRIVATE EQUITY PUBLIC EQUITY & Investment Case: Private Equity Direct Equity REAL ESTATE DEBT MENA’s Growing Economies Fund Program Placements Proforma Portfolio Allocation Fixed Income & Sukuk Al Mal UAE Equity Fund Al Fares Al Mal Direct Equity I (Manazel) Al Mal Real Estate Fund Sample 1: Aldar 2011 AED 87 million Private AED 20 million AED 151 million Capital Equity Fund Sample 2: Qatar 2030 (Sharia Partners Equities Al Mal Defined Opportunity Fund I Fund L.P. Direct Equity II (Madaares) Al Mal Real Estate Fund II Compliant) USD 80 million USD 37 AED 55 million 2009 AED 107 million Appendix: million Al Mal MENA Equity Fund DEPA Limited Asset Management Team Profile USD 5 million AED 30 million Al Mal Opportunities Fund Emaar MGF AED 13 million USD 15.5 million Al Mal MENA Income Fund January 2009 • Demonstrated success in fund raising in public and private product offerings • Clear ability to execute on strategies and deliver return to investors • Coverage of key asset classes and strategies in MENA Al Mal Capital - Asset Management 3
  • 5. FUND SUMMARY OF TERMS Fund Objective To pursue an income-oriented investment strategy which permits distribution of periodic and consistent payment of dividends to Al Mal Capital: Background Shareholders, while seeking to preserve and grow the capital of the Fund. Asset Management Product Range Legal Structure Cayman Registered Fund Summary of Terms Launch Date 6th January 2009 Investment Case: MENA’s Growing Economies USD 100,000 Minimum Subscription Proforma Portfolio Allocation Fixed Income & Sukuk Sample 1: Aldar 2011 Fund Manager Al Mal Capital PSC Sample 2: Qatar 2030 Equities Management Fees 1.50% per annum Appendix: Liquidity Weekly Asset Management Team Profile Expected Quarterly Dividend 20 US cents / share Expected Initial Yield 8% p.a. (based on initial USD 10.00 NAV) Administrator & Custodian Al Mal Capital PSC Auditors KPMG Legal Advisors Al Tamimi & Company / Maples & Calder Al Mal Capital - Asset Management 4
  • 6. INVESTMENT CASE : MENA’s Growing Economies and Wealth • Growth in the GCC countries is expected to moderate to 4.7% in 2009 and will remain above growth anticipated in mature markets. Al Mal Capital: Background • MENA governments are determined to carry out their on-going infrastructure development projects. Asset Management Product Range Fund Summary of Terms • Although oil prices dropped from its peak of $147/barrel, Gulf countries are expected to earn a cumulative USD 4.7 trillion by 2020 with an assumption of $50/barrel. Aside from oil, gas is becoming an important constituent of Investment Case: revenues to countries in the Middle East, especially Qatar and Egypt. MENA countries control 36% of oil reserves MENA’s Growing Economies and 23% of oil production, as well as 22% of gas reserves and 9% of gas production. Proforma Portfolio Allocation Fixed Income & Sukuk • The recent correction in the MENA securities markets (equities and fixed income) present interesting value Sample 1: Aldar 2011 opportunities, along with competitive dividend and bond yields. Sample 2: Qatar 2030 Equities • GCC demographics are among the youngest and fastest growing globally. GCC population growth during 2007 reached 3% compared to BRIC 0.68%, G7 0.36%, and 1.2% globally. Appendix: Asset Management Team Profile Real GDP Growth- Estimates Country 2007 A 2008 F 2009 F Country 2007 A 2008 F 2009 F Saudi Arabia 3.4 4.1 2.3 World 3.4 2.2 0.5 UAE 6.1 5.8 3.1 Advanced Economies 2.3 1.0 -0.6 Qatar 12.5 13.5 10.2 US 2.0 1.3 -0.8 Kuwait 4.8 4.5 2.4 Japan 2.0 0.3 -0.3 Bahrain 6.6 5.3 4.7 Euro Area 2.6 1.0 -0.5 Oman 6.9 6.9 5.5 GCC Average 6.7 6.6 4.7 Developed Average 2.4 1.1 -0.3 MENA Average 6.8 7.2 6.4 Source: IMF and Institute of International Finance, December 2008 Al Mal Capital, -Asset Management 5 Capital Asset Management
  • 7. INVESTMENT CASE : Proforma Portfolio Allocation* Asset Allocation Rating Quality (Moody's) Al Mal Capital: Background Asset Management Product Range Short Not Rated Term/ 24% Money Fund Summary of Terms Market Fixed 47% Aa Investment Case: Income 53% MENA’s Growing Economies Proforma Portfolio Allocation 53% Fixed Income & Sukuk ≤ Baa A Sample 1: Aldar 2011 6% 17% Sample 2: Qatar 2030 Equities Appendix: Maturity Asset Management Team Profile 10+ years 12% 0-2 years 2-10 years 55% 33% * This proforma allocation is for illustrative purposes only, and may not represent intended or actual holdings in the Fund Al Mal Capital, -Asset Management 6 Capital Asset Management
  • 8. INVESTMENT CASE : Fixed Income & Sukuk Al Mal Capital: Background A selection of sample regional sukuk and bond offerings (indicative only) Asset Management Product Range Rating Yield to Name Guarantor Country Currency Coupon Maturity Date S&P Maturity (*) Fund Summary of Terms Dubai Global Sukuk Inc Dubai Government UAE USD 3.57 9.6 Nov-09 Investment Case: Nakheel Development Dubai World UAE USD 3.17 32.56 Dec-09 MENA’s Growing Economies Arab Republic Of Egypt Arab Republic Of Egypt Egypt USD BB+ 8.75 Jul-11 Proforma Portfolio Allocation Jebel Ali Free Zone Dubai Government UAE USD A+ 5.68 13.50 Oct-11 Fixed Income & Sukuk Aldar Funding Ltd Aldar Properties UAE USD 5.77 10.12 Nov-11 Sample 1: Aldar 2011 Sample 2: Qatar 2030 EIB Sukuk Ltd Emirates Bank International UAE USD A+ 2.3 9.94 Jun-12 Equities Dana Gas Sukuk Ltd Dana Gas UAE USD 7.5 32.44 Oct-12 Tamweel Funding Ltd Tamweel UAE USD 4.31 19.58 Jan-13 Appendix: Dewa Funding Ltd Dubai Electricity & Water UAE AED 5.63 Jun-13 Asset Management Team Profile Bank Muscat SAOG Bank Muscat Oman OMR BBB+ 6.25 Jun-14 DP World Sukuk Ltd DP World UAE USD A+ 6.25 15.25 Jul-17 Ras Laffan LNG 3 Ras Laffan LNG II Qatar USD A+ 6.33 6.85 Sep-27 State Of Qatar Qatar Government Qatar USD AA- 9.75 6.62 Jun-30 TAQA TAQA UAE USD AA- 7.25 9.5 Sep-18 SABIC Innovative Plastic SABIC Saudi Arabia USD B+ 9.5 10.45 Aug-15 * As of January 4th 2009 Al Mal Capital - Asset Management 7
  • 9. INVESTMENT CASE : Sukuk – Aldar 2011 Aldar Sukuk – 5.767%, November 2011 maturity (Mudarabah) Al Mal Capital: Background Company Overview: Asset Management Product Range • ALDAR Properties PJSC is the leading Fund Summary of Terms Sukuk Description property developer in Abu Dhabi, and vital Investment Case: to the further development and growth of MENA’s Growing Economies the emirate. Issuer Aldar Funding Limited Proforma Portfolio Allocation • The Government of Abu Dhabi and related Rating Not Rated Fixed Income & Sukuk companies own a controlling stake in Currency USD Sample 1: Aldar 2011 ALDAR Properties PJSC. Issue Date 8 March, 2007 Sample 2: Qatar 2030 • ALDAR Properties is rated A3 by Moody’s Maturity 10 November, 2011 Equities and A- by Standard & Poor’s (as of April 2008) Coupon 5.767% Appendix: • This Sukuk is unique in that when the Coupon Frequency Quarterly Asset Management Team Profile Exchange Price is close to the current Amount Issued $2,530,000,000 market price, investors have the advantage Exchange Ratio 645.61 shares / $1000 of convertibility into the underlying, and Exchange Price AED 5.69 additional upside should the share price rise. Yield-to-maturity based on current quote of approximately 89 is 10%. (as of January 4th 2009) Al Mal Capital - Asset Management 8
  • 10. INVESTMENT CASE : Sovereign Bond– Qatar 2030 Qatar Government Bond Al Mal Capital: Background Overview: Asset Management Product Range • Qatar sits on the third largest gas reserves in the world and is ranked the 25th largest producer of oil. Fund Summary of Terms Bond Description • Qatar to remain one of the fastest growing economies Investment Case: Issuer Qatar in the world, real GDP is expected to grow by 10% in MENA’s Growing Economies Rating AA- (S&P) 2009, according to IIF’s recent forecast. Proforma Portfolio Allocation Currency USD Fixed Income & Sukuk • Qatar has one of the highest GDP per capita in the Issue Date 29 June 2000 Sample 1: Aldar 2011 Sample 2: Qatar 2030 world of approximately USD 62,000, with a small Maturity 15 June 2030 Equities population of approximately 1 million inhabitants. Coupon 9.75 Coupon Frequency Semi-Annually Appendix: • Less reliant on oil revenues as part of the government Amount Issued $1,400,000,000 Asset Management Team Profile intensive efforts to strengthen its gas capability to become the largest LNG producer in the world by 2010. • Trade and current account surpluses to remain strong in 2009 that will secure high government spending on the country’s infrastructure. Yield-to-maturity based on current quote of approximately 135 is 6.62%, or a spread of over 3.5% above the comparable US Treasury. (as of January 4th 2009) Al Mal Capital - Asset Management 9
  • 11. INVESTMENT CASE : Equities A selection of sample high dividend yielding regional offerings Al Mal Capital: Background Asset Management Product Range Mkt. Cap Yield 06 Yield 07 Curr Yield^ P/E P/B ROE Company Country Industry ($ Mn) (%) (%) (%) (X) (X) (%) Fund Summary of Terms SABIC Saudi Arabia Chemicals 42,764 3.8 1.51 6.54 5.6 1.7 32.9 Investment Case: Saudi Electricity Saudi Arabia Utilities 10,279 5.3 4.7 7.5 38.2 0.8 3.2 MENA’s Growing Economies Doha Bank Qatar Banks 1,943.98 50.3 4.67 7.75 6.08 1.48 26.3 Proforma Portfolio Allocation Commercial Fixed Income & Sukuk Qatar Banks 4,643.11 - 2.14 3.83 7.59 1.62 26 Bank of Qatar Sample 1: Aldar 2011 Qatar Shipping Qatar Transport 1,096 7.4 5.3 8.5 6.7 0.8 14.8 Sample 2: Qatar 2030 Equities Agility Kuwait Logistics 2,479 5.3 5.8 11 5 0.9 19.6 Telecom Egypt Egypt Telecom 4,889 4.9 4.7 6.3 9.6 1 9.7 Appendix: Taqa UAE Energy 1,726 NA 2.8 9.6 1.9 0.6 15.4 Asset Management Team Profile Jordan Telecom Jordan Telecom 2,011 8 6 7.8 12.7 2.9 23.2 Oman Tel Oman Telecom 3,093 5.7 5.8 6.3 8.7 3.4 36 Orascom Egypt Construction 5,460 1.9 0.8 7.4 15.9 0.39 161.8 Construction ^ Assuming 2007 Dividend on current price Source Bloomberg Al Mal Capital, -Asset Management 10 Capital Asset Management
  • 12. ASSET MANAGEMENT TEAM PROFILE Blair Look Managing Director Al Mal Capital: Background Mr. Look was a member of the original Founding Committee of Al Mal Capital PSC, and is Managing Director - Asset Management. Prior to this, he enjoyed a distinguished career with Merrill Lynch Asset Management Product Range International, based in Dubai and London over an 11 year career. Mr. Look was responsible for the overall portfolio risk analysis and allocation of assets in client portfolios, managing in excess of US$400 million in Fund Summary of Terms client accounts. Before that, he worked with HSBC, rapidly moving into the Bank's elite International Investment Case: Officer Program within 12 months of joining the Bank. He undertook postings in Hong Kong, India and MENA’s Growing Economies Dubai with HSBC before joining Merrill Lynch’s Dubai office in 1993. Proforma Portfolio Allocation Mr. Look received his Bachelor of Commerce from Queen's School of Business in Kingston, Ontario, Fixed Income & Sukuk Canada. He completed Canadian Investment Finance Parts I and II in 1991, along with having obtained Sample 1: Aldar 2011 several NASD, UK FSA and DIFC regulatory qualifications. He has held several high profile roles in the Sample 2: Qatar 2030 UAE community including Chairman of the Canadian Business Council for Dubai & the Northern Emirates. Equities Appendix: Asset Management Team Profile Tariq Qaqish Fund Manager Mr. Qaqish has an extensive experience of over ten years in local and regional stock markets. Prior to joining Al Mal Capital at the end of 2007, he spent six years with National Bank of Abu Dhabi (NBAD) where he also managed two of NBAD’s most successful funds, the UAE Growth Fund and UAE Distribution Fund, for the past two years. Assets under management for the two funds exceeded AED3 billion. The UAE Distribution Fund was the best performing fund in the UAE for 2006 and the UAE Growth Fund was the top local performer in 2007, both outperforming the benchmarks by double digits. Mr. Qaqish is a holder of a Masters’ Degree in International Banking from the University of Wollongong in Australia. Al Mal Capital - Asset Management 11
  • 13. ASSET MANAGEMENT TEAM PROFILE Al Mal Capital: Background Jalal Faruki Senior Associate Mr. Faruki joined Al Mal Capital in April 2006. He has held various roles including managing the Proprietary Asset Management Product Range Investment desk for Al Mal Capital in 2006 as well as the Institutional Sales and Trading Desk in the brokerage arm of Al Mal Capital in 2007. Prior to joining Al Mal, he worked with ProFunds in the US from Fund Summary of Terms mid-2005, dealing mainly with institutional clients. He also worked as Account Executive at DMG Securities, based in the Washington, D.C. area, and from 2002 until mid-2005 he built a book of client assets of over Investment Case: MENA’s Growing Economies USD 40 million. Mr. Faruki received his Bachelor of Science in Business Information Technology from Proforma Portfolio Allocation Virginia Tech, he has also attained various licenses and certifications including NASD Series 7 and 63. Fixed Income & Sukuk Sample 1: Aldar 2011 Parth Kikani Senior Analyst Sample 2: Qatar 2030 Parth Kikani joined Al Mal Capital in 2007. He works as a Senior Analyst in the Asset Management team and Equities is responsible for financial modeling and investment analysis for MENA public equity activities. Parth Appendix: completed his Chartered Accountancy and completed his post graduate Diploma in Investment Banking Asset Management Team Profile from S.P. Jain Centre of Management, Dubai. Rakan Himadeh Analyst Mr. Himadeh joined Al Mal Capital in 2008. He prepares financial models and investment proposals for consideration. He graduated from McGill University in Montreal, Canada with distinction, attaining his Bachelors of Commerce in Finance. Al Mal Capital - Asset Management 12
  • 14. ASSET MANAGEMENT TEAM PROFILE Al Mal Capital: Background Bree Fraser Administration Officer Asset Management Product Range Ms. Fraser joined Al Mal Capital in 2007 and is responsible for the Middle Office function within the Asset Management team. Prior to joining Al Mal, she spent 4 years as a Senior Consultant with a public practice in Fund Summary of Terms Australia where she was responsible for providing accounting, taxation and business advisory services to public companies, private businesses and high net worth individuals. Ms. Fraser completed her Chartered Investment Case: Accountancy at The Institute of Chartered Accountants in Australia and attained her Bachelor of Commerce MENA’s Growing Economies at The University of Western Australia with majors in Accounting and Corporate Finance and a minor in Proforma Portfolio Allocation Business Law. Fixed Income & Sukuk Sample 1: Aldar 2011 Sample 2: Qatar 2030 Equities Ziad Fouladgar Equity Trader Mr. Fouladgar joined Al Mal Capital in 2008 as an Equity Trader in the Asset Management division where he Appendix: is responsible for trade executions across the MENA markets for Al Mal’s Equity Funds and discretionary Asset Management Team Profile accounts. Prior to joining Al Mal, he spent 3 years with Amwal International Financial Services where he was responsible for trading on the local and regional stock markets as well as Forex markets. Mr. Fouladgar received his BA from the Lebanese American University in Beirut, graduating with honors. Al Mal Capital - Asset Management 13
  • 15. Office 302, Downtown Burj Dubai, Emaar Square 4 Sheikh Zayed Road, P.O. Box 119930, Dubai, UAE Tel: +971 4 360 11 11, Fax: +971 4 360 11 22 www.almalcapital.com