¬Fund Manager's Strategy & Outlook - EFG Hermes
The EFG-Hermes Saudi Arabia Equity Fund August 2016
Fund Manager’s Strategy & Outlook
Objective
The Saudi market resumed its drop in August with the Tadawul All Share
The principal objective of the Fund is medium and long term capital appreciation through investing in Saudi Arabian equity and equity related securities.
.Fund Manager’s Strategy & Outlook
Index losing 3.5% for a YTD loss of 12%. The Fund lost 3.8% during
The December close 2007fell at further 50.4%, MoM while with the MEDA monthFund and added is now5.1% downin13.3% YTD.to Turnover registering its sixth consecutive year of positive returns. The Investment Manager’s decision overweightSAR the GCC marketsas at the the summer start of the year has daily traded valuetoaveraging 2.9 billion, period benefited the Fund as the majority of the attribution for the 2007 returns historically seen slower activity. came from the GCC. The MENA markets closed the year on a strong note, with the Saudi market leading the way for the second consecutive month wtih an 18% return regulator for December. UAE markets also performed well with and The market has The approved guidelines on book building Dubai and Abu Dhabi advancing 11% and 9.5%, respectively.
allocation for IPOs which will become effective at the start of 2017. The
In North Africa, the Egyptian market maintained its strong momentum new regulation also gives foreign The investor’s IPOs. registering an 8% return in December. financial access services to sector was The among the standout performers, and the Fund’s holdings benefited from this EM regulator also stated that the market is on course to join the MSCI rally. Moreover, the Fund continues to retain a minor exposure to the Index in and 2018. This ismarkets. a positive, but we still remain cautious on sectors Jordanian Moroccan
with to the government and government spending. In theexposure GCC markets, the Saudi Arabian market displayed a strong performance throughout the month. The rally was broad based with the banking petrochemical sectors way. for Speculation about All TASIand sectors were down in leading August,the except multi-investment, opening the market to foreign investors in the near future coupled with the petrochemicals energy / utilities which gaineddrive 1.0%, 1.2% and gradual restorationand of retail investor confidence has helped that market higher. The Investment Manager has reshuffled the Fund’s positions to 2.5%, respectively. Media, Insurance, and cement were among the capitalize on the strong two-month rally.
Fund Performance Month to Date** YTD 2015 2014 2013 2012 2011 Inception to Date*
companies and decreased cash to 10.8% at the month-end.
The Investment Manager maintains a positive outlook on the MENA markets going into 2008. Increased IPO and M&A activity, attractive valuations and Brent gained Augustwith to end the month at USD 47.04/barrel. earnings growth10.8% rates, in coupled the currency revaluation possibility should be the supporting drivers for 2008. Furthermore, ongoing structural Saudi Arabia and Russia agreed to cooperate in the oil markets. There changes with respect to corporate governance should result in an increased interest foreign investors who were in driving was nofrom action planinstitutional or decision on output cuts,instrumental but the fact that these the markets higher in 2007.
two countries are willing to negotiate / cooperate, provides a floor to oil
Fund Characteristics No. of Holdings Weighted Market Cap Dividend Yield* P/E Ratio 16
27 SAR 44.3 billion 4.9% 11.8
*Figure reflects the weighted average yield of a dividend-bearing security in the fund
Fund Metrics Saudi Fund 22.9% 1.0
Volatility Beta *
TASI 22.6% -
**Calculated vs. the Tadawul All Share Index (TASI) since the Fund’s inception
Top Three Equity Holdings Holding Al Rajhi Bank Saudi Basic Industries Saudi Telecom Co
Sector Banks & Financial Services Petrochemical Industries Telecom & IT
% of NAV 6.8% 6.3% 4.9%
Fund Data NAV per Share Management Fee Minimum Subscription Subscription / Redemption Inception Date
SAR 11.0336 2% SAR 50,000 Twice Weekly June 17, 2008
prices in the short term.
Fund Identifiers
With weak third-quarter results expected, oil prices volatility, the implementation of the NTP 2020 and upcoming budget, the Investment
ISIN Code Bloomberg Ticker Reuters Code
XC000A1W4DX3 EFGSAUD AB LP65122906
Allocation by Economic Sector
Manager maintains his cautious view on the market in the short term. EFG-Hermes Saudi Arabia Equity Fund
Difference -0.3% -1.3% 13.7% 19.6% 23.3% 5.2% 4.9% 48.4%
*Fund’s inception date was June 17th, 2008 ** MTD figures reflect performance between July 31, 2016 and August 31, 2016 1 TASI is a price return index
worst performing sectors losing 17.4%, 9.4%, and 8%, respectively.
In the UAE, the real estate sector was among the top performing sectors. Banks outperformed, losingto3.4%. increased The Fund was well positioned benefit The fromInvestment this rally andManager we maintain a positive view on the Dubai and Abu Dhabi markets given the attractive exposureand to compelling banks, Insurance, select consumers and petrochemical valuations earnings growth outlook.
TASI1 -3.5% -12.0% -17.1% -2.4% 25.5% 6.0% -3.1% -38.1%
Saudi Fund -3.8% -13.3% -3.4% 17.2% 48.8% 11.2% 1.8% 10.3%
Tadawul All Share Index
100% 50%
Cash 10.8%
Transport 2.6%
Agriculture & Food Industries 6.1% Banks & Financial Services 31.4%
Telecom & IT 4.9%
0%
Retail 17.3%
-50% -100%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
Cement 2.6%
EFG-Hermes Asset Management
Petrochemical Industries 10.8%
Energy & Utilities 1.6% Hotel & Tourism 5.2%
Insurance 6.8%
Tel: 966 11 293 8048/9 Fax: 966 11 293 8032 e-mail : [email protected]
This update does not constitute an offer of shares and should not be relied upon by any person acquiring or otherwise dealing in shares of the company. Subscription of shares in the company may only currently be made on the terms of the Information Memorandum of the company. It should be noted that investment in the fund is only suitable for sophisticated investors who are aware of the risks of investing in the EFG-Hermes Saudi Arabia Equity Fund and should be regarded0 0 as long term. Please remember that past performance is not necessarily a guide to the future. Market and currency movements may cause the value of shares and the income from them to fluctuate and you may get back less than you invested when you decide to sell your share.
0
0
0
0
Fund Manager’s Strategy & Outlook
Objective
The Saudi market resumed its drop in August with the Tadawul All Share
The principal objective of the Fund is medium and long term capital appreciation through investing in Saudi Arabian equity and equity related securities.
.Fund Manager’s Strategy & Outlook
Index losing 3.5% for a YTD loss of 12%. The Fund lost 3.8% during
The December close 2007fell at further 50.4%, MoM while with the MEDA monthFund and added is now5.1% downin13.3% YTD.to Turnover registering its sixth consecutive year of positive returns. The Investment Manager’s decision overweightSAR the GCC marketsas at the the summer start of the year has daily traded valuetoaveraging 2.9 billion, period benefited the Fund as the majority of the attribution for the 2007 returns historically seen slower activity. came from the GCC. The MENA markets closed the year on a strong note, with the Saudi market leading the way for the second consecutive month wtih an 18% return regulator for December. UAE markets also performed well with and The market has The approved guidelines on book building Dubai and Abu Dhabi advancing 11% and 9.5%, respectively.
allocation for IPOs which will become effective at the start of 2017. The
In North Africa, the Egyptian market maintained its strong momentum new regulation also gives foreign The investor’s IPOs. registering an 8% return in December. financial access services to sector was The among the standout performers, and the Fund’s holdings benefited from this EM regulator also stated that the market is on course to join the MSCI rally. Moreover, the Fund continues to retain a minor exposure to the Index in and 2018. This ismarkets. a positive, but we still remain cautious on sectors Jordanian Moroccan
with to the government and government spending. In theexposure GCC markets, the Saudi Arabian market displayed a strong performance throughout the month. The rally was broad based with the banking petrochemical sectors way. for Speculation about All TASIand sectors were down in leading August,the except multi-investment, opening the market to foreign investors in the near future coupled with the petrochemicals energy / utilities which gaineddrive 1.0%, 1.2% and gradual restorationand of retail investor confidence has helped that market higher. The Investment Manager has reshuffled the Fund’s positions to 2.5%, respectively. Media, Insurance, and cement were among the capitalize on the strong two-month rally.
Fund Performance Month to Date** YTD 2015 2014 2013 2012 2011 Inception to Date*
companies and decreased cash to 10.8% at the month-end.
The Investment Manager maintains a positive outlook on the MENA markets going into 2008. Increased IPO and M&A activity, attractive valuations and Brent gained Augustwith to end the month at USD 47.04/barrel. earnings growth10.8% rates, in coupled the currency revaluation possibility should be the supporting drivers for 2008. Furthermore, ongoing structural Saudi Arabia and Russia agreed to cooperate in the oil markets. There changes with respect to corporate governance should result in an increased interest foreign investors who were in driving was nofrom action planinstitutional or decision on output cuts,instrumental but the fact that these the markets higher in 2007.
two countries are willing to negotiate / cooperate, provides a floor to oil
Fund Characteristics No. of Holdings Weighted Market Cap Dividend Yield* P/E Ratio 16
27 SAR 44.3 billion 4.9% 11.8
*Figure reflects the weighted average yield of a dividend-bearing security in the fund
Fund Metrics Saudi Fund 22.9% 1.0
Volatility Beta *
TASI 22.6% -
**Calculated vs. the Tadawul All Share Index (TASI) since the Fund’s inception
Top Three Equity Holdings Holding Al Rajhi Bank Saudi Basic Industries Saudi Telecom Co
Sector Banks & Financial Services Petrochemical Industries Telecom & IT
% of NAV 6.8% 6.3% 4.9%
Fund Data NAV per Share Management Fee Minimum Subscription Subscription / Redemption Inception Date
SAR 11.0336 2% SAR 50,000 Twice Weekly June 17, 2008
prices in the short term.
Fund Identifiers
With weak third-quarter results expected, oil prices volatility, the implementation of the NTP 2020 and upcoming budget, the Investment
ISIN Code Bloomberg Ticker Reuters Code
XC000A1W4DX3 EFGSAUD AB LP65122906
Allocation by Economic Sector
Manager maintains his cautious view on the market in the short term. EFG-Hermes Saudi Arabia Equity Fund
Difference -0.3% -1.3% 13.7% 19.6% 23.3% 5.2% 4.9% 48.4%
*Fund’s inception date was June 17th, 2008 ** MTD figures reflect performance between July 31, 2016 and August 31, 2016 1 TASI is a price return index
worst performing sectors losing 17.4%, 9.4%, and 8%, respectively.
In the UAE, the real estate sector was among the top performing sectors. Banks outperformed, losingto3.4%. increased The Fund was well positioned benefit The fromInvestment this rally andManager we maintain a positive view on the Dubai and Abu Dhabi markets given the attractive exposureand to compelling banks, Insurance, select consumers and petrochemical valuations earnings growth outlook.
TASI1 -3.5% -12.0% -17.1% -2.4% 25.5% 6.0% -3.1% -38.1%
Saudi Fund -3.8% -13.3% -3.4% 17.2% 48.8% 11.2% 1.8% 10.3%
Tadawul All Share Index
100% 50%
Cash 10.8%
Transport 2.6%
Agriculture & Food Industries 6.1% Banks & Financial Services 31.4%
Telecom & IT 4.9%
0%
Retail 17.3%
-50% -100%
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16
Cement 2.6%
EFG-Hermes Asset Management
Petrochemical Industries 10.8%
Energy & Utilities 1.6% Hotel & Tourism 5.2%
Insurance 6.8%
Tel: 966 11 293 8048/9 Fax: 966 11 293 8032 e-mail : [email protected]
This update does not constitute an offer of shares and should not be relied upon by any person acquiring or otherwise dealing in shares of the company. Subscription of shares in the company may only currently be made on the terms of the Information Memorandum of the company. It should be noted that investment in the fund is only suitable for sophisticated investors who are aware of the risks of investing in the EFG-Hermes Saudi Arabia Equity Fund and should be regarded0 0 as long term. Please remember that past performance is not necessarily a guide to the future. Market and currency movements may cause the value of shares and the income from them to fluctuate and you may get back less than you invested when you decide to sell your share.
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0
0
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