The AFC Iraq Fund (Non-US) is an equity fund that invests in companies located in or doing business with Iraq. In July 2020, the fund returned 11.4%, outperforming its benchmark index which returned 8.2%. The fund's largest holdings are in the financial and communications sectors, with over half of its assets in Iraqi banks. As of July 2020, the fund was 91.1% invested in Iraq, with smaller allocations to Norway and the UK, and held 7.2% in cash.

1. AFC IRAQ FUND (NON-US) July 2020
Fund Category Iraq Public Equities
Country Focus Iraq
Subscriptions
Monthly at NAV (five business
days before month end)
Redemptions
Monthly at NAV
90 days notice for Class D
180 days notice for Class E
Benchmark
Rabee Securities RSISX USD
Index (RSISUSD index)
Fund Manager Thomas Hugger
Chief Investment
Officer
Ahmed Tabaqchali
Investment Manager
Asia Frontier Investments
Limited, Hong Kong
Fund Base Currency USD
Minimum Investment USD 10,000
Subsequent Investments USD 1,000
Management Fee
Class D: 1.8% p.a. of NAV
Class E: 1.5% p.a. of NAV
Performance Fee
Class D: 18% p.a. of NAV
appreciation with high
watermark
Class E: 15% p.a. of NAV
appreciation with high
watermark
Fund Domicile Cayman Islands
Launch Date 26 June 2015
Custodian Iraq Depository Centre (IDC)
Auditor EY, Hong Kong
Administrator
Trident Fund Services,
Hong Kong
Legal Advisor Ogier, Hong Kong
Contact Information
Asia Frontier Capital Ltd.
www.asiafrontiercapital.com
Mr. Thomas Hugger
CEO, Asia Frontier Investments Limited
Tel: +852 3904 1015, Fax: +852 3904 1017
th@asiafrontiercapital.com
Mr. Peter de Vries
Marketing Director,
Asia Frontier Investments Limited
Tel: +852 3904 1079, Fax: +852 3904 1017
pdv@asiafrontiercapital.com
Registered Office:
c/o Intertrust Corporate Services (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005, Cayman Islands
Hong Kong Office:
Asia Frontier Investments Limited
905, 9th
Floor, Loon Kee Building
267-275 Des Voeux Road Central
Hong Kong
Investment Objective
Achieve long-term capital appreciation by investing in a diversified portfolio of
listed Iraqi equities as well as foreign listed companies that derive the majority of
their business from Iraq.
Fund Manager Comment
The AFC Iraq Fund (Non-US) Class D shares returned +11.4% in June with a
NAV of USD 592.27 outperforming its benchmark, the Rabee Securities RSISX
USD Index (RSISUSD index), which returned +8.2% for the month. Year to date
the RSISUSD was down 6.4% while the fund lost 5.6%.
The market’s rise was led by a revived banking sector, which in turn was driven
by the Bank of Baghdad (BBOB) and the National Bank of Iraq (BNOI). Both
reported very strong first half 2020 results (H1/2020), which were discussed over
Zoom conference calls – a first for listred companies on the Iraq Stock Exchange.
The unaudited results of the two banks highlight different aspects of the recovery
in the banking sector. For BBOB, the gradual recovery continues from the
hangover following the heady expansion during the boom years up to 2014.
Customer deposits for H1/2020 were up 4.1%, following the recoveries of 2.4%
and 5.2% in 2019 and 2018 respectively. Its loan book continues to decline, as it
was down 4.5% in H1/2020, on the back of declines of 7.6% and 4.5% in 2019
and 2018 respectively. The results are consistent with the new management’s
focus over the last few years on addressing the company specific issues and
structural weaknesses that were exposed by the crisis of 2014-2017.
Management’s success can be seen from H1/2020 pre-tax earnings being 6.6%
higher than the full year 2019 pre-tax earnings.
For BNOI, growth continues to accelerate with customer deposits continuing to
increase – up 66.2% in H1/2020, on the back of increases of 32.0% and 2.7% in
2019 and 2018 respectively. The loan book on the other hand was up 26.7% in
H1/2020, following an increase of 119.9% in 2019 versus a contraction of 42.8%
in 2018. Results were driven by management’s focus on growing the bank’s retail
business where BNOI is emerging as a market leader. BNOI’s pre-tax earnings
were 14.6% higher in H1/2020 than those for the whole of 2019. The success of
BNOI’s retail strategy in attracting sticky consumer deposits, and subsequently
growing its retail loan book demonstrates the potential opportunity from banking
adoption in cash dominated Iraq.
As of the end of July 2020, the AFC Iraq Fund was invested in 14 names and held
7.2% in cash. The fund invests in both local and foreign listed companies that have
the majority of their business activities in Iraq. The markets with the largest asset
allocation were Iraq (91.1%), Norway (1.1%), and the UK (0.6%). The sectors
with the largest allocation of assets were financials (51.6%) and communications
(18.1%). The fund's estimated weighted harmonic average trailing 12 months P/E
ratio (only companies with profit) was 14.58x, the estimated weighted harmonic
average P/B ratio was 0.59x and the estimated weighted average portfolio
dividend yield was 5.42%.
592
300
400
500
600
700
800
900
1,000
1,100
Fund Performance (Net)
AFC Iraq Fund USD (Net) Rabee USD Index

2. AFC IRAQ FUND (NON-US) July 2020
NAV as of 31st
July 2020
Class D Class E
NAV 592.27 601.38
Since Inception -40.77% -39.86%
Inception Date 26/06/2015 26/06/2015
Security Numbers for each of the Share Classes (for the “Lead Series”)
Class D Class E
ISIN KYG0133A1756 KYG0133A1830
CUSIP G0133A175 G0133A183
Bloomberg AFIRNUD KY AFIRNUE KY
Valoren 28570227 28881954
91.1%
1.1% 0.6%
7.2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Country Allocation
51.6%
18.1% 16.1%
5.3%
1.7%
7.2%
0%
10%
20%
30%
40%
50%
60%
Sector Allocation
Monthly Performances AFC Iraq Fund (Non-US) Class D
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2015 USD +0.00% -7.92% -5.20% -2.20% -7.00% -3.39% +0.56% -22.86%
2016 USD -9.71% -4.31% -5.85% -2.73% -8.59% +7.29% -1.92% -3.28% +0.55% +1.91% +0.53% +4.83% -20.50%
2017 USD +10.94% -0.14% -10.64% -2.65% -3.14% -5.94% +1.72% +1.17% -1.81% -2.61% +5.23% +1.75% -7.48%
2018 USD +6.33% +18.38% +0.46% -2.89% -2.16% -2.50% +1.04% -5.37% -7.09% -4.82% +5.27% -0.65% +3.60%
2019 USD -0.44% -7.48% -0.90% +3.74% +12.74% -0.85% -2.44% -0.10% +3.95% -2.04% +0.77% +0.78% +6.68%
2020 USD -4.75% -5.72% -7.11% -11.26% +10.17% +3.97% +11.40% -5.55%
Monthly Performances AFC Iraq Fund (Non-US) Class E
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec YTD
2015 USD +0.00% -7.89% -5.17% -2.18% -6.98% -3.37% +0.59% -22.74%
2016 USD -9.69% -4.29% -5.83% -2.71% -8.57% +7.32% -1.89% -3.25% +0.57% +1.94% +0.56% +4.86% -20.26%
2017 USD +10.97% -0.11% -10.61% -2.63% -3.12% -5.92% +1.75% +1.20% -1.79% -2.59% +5.26% +1.77% -7.20%
2018 USD +6.35% +18.41% +0.49% -2.86% -2.14% -2.48% +1.07% -5.35% -7.06% -4.80% +5.30% -0.63% +3.91%
2019 USD -0.42% -7.46% -0.88% +3.77% +12.77% -0.83% -2.42% -0.07% +3.97% -2.01% +0.79% +0.80% +7.00%
2020 USD -4.73% -5.70% -7.08% -11.23% +10.19% +3.99% +11.42% -5.39%
DISCLAIMER
Investments in equities in Iraq are subject to market risk, idiosyncratic risk, liquidity risk, and currency exchange rate risk. The fund may use financial derivative instruments
as a part of the investment process. This document does not constitute an offer to sell, or a solicitation of an offer to buy shares in AFC Iraq Fund. We will not make such
offer or solicitation prior to the delivery of an offering memorandum, the operating agreement or articles of association, a subscription booklet, and other materials relating
to the matters herein. Before making an investment decision, we advise potential investors to read these materials carefully and to consult with their tax, legal, and financial
advisors. The materials have not been reviewed by the regulatory authority of any jurisdiction. Investment is open only to accredited investors as defined by the relevant legal
jurisdiction of residence and/or nationality. We have compiled this information from sources we believe to be reliable, but we cannot guarantee its accuracy. We present our
opinions without warranty. Past performance is no guarantee of future results. © 2020 Asia Frontier Capital Ltd. All rights reserved.
* The representative of the fund in Switzerland is ACOLIN Fund Services AG, succursale Geneve, 6 Cours de Rive, 1204 Geneva. NPB Neue Privat Bank AG, Limmatquai 1 / am
Bellevue, CH – 8024 Zürich, Switzerland is the Swiss Paying Agent. In Switzerland, shares shall be distributed exclusively to qualified investors. The fund offering documents,
articles of association and audited financial statements can be obtained free of charge from the Representative. The place of performance with respect to shares distributed in or
from Switzerland is the registered office of the Representative.
* AFC Iraq Fund (Non-US) is registered for sale to investors in Switzerland (qualified investors), Hong Kong & UK (professional investors), and Singapore (accredited investors).
* Asia Frontier Capital manages funds for both US investors and non-US investors. This fund is for non-US investors only. If you are a US investor, please refer to the fact sheet
for the fund called “AFC Iraq Fund”. By accessing information contained herein, users are deemed to be representing and warranting that they are either a Hong Kong Professional
Investor or are observing the applicable laws and regulations of their relevant jurisdictions.