Fund Details

Fund Type Fixed Income Fund

Fund Manager AAIM
Launch Date 28/03/2012
Structure Open ended
Domicile Egypt
Fund Currency EGP
Administrator Nuun
Custodian Blom Bank
Auditors KPMG Hazem Hassan
NAV per Certificate* EGP 12.58
Subscription/Redemption** Daily/Monthly
Management Fee 0.25%
Administration Fee 0.25%
Subscription Fee None
Redemption Fee None
Min. Initial Investment 100 certificates
*As of 30/04/2014
** Daily subscription until 2:00 pm and monthly redemption-the 1
st
Sunday of every month-
until 12:00 pm throughout AAIB Branches
NAV is published weekly in AlMasry Alyoum Newspaper


0-7 Days
9%
8-90 days
8%
91-180 days
16%
181-360 days
25%
More than 360
days
36%
10.0
11.0
12.0
13.0
14.0
15.0
16.0
91 Days 182 Days 273 Days 364 Days
00

























Investment Objective

The fund seeks to maximize returns, and to outperform the short-term interest
rates by investing in a broadly diversified portfolio of fixed income securities.

Fund Managers Commentary
During During April, the T-bills yield curve rose slightly by an average 0.10% across all
tenures. Yields on long-term debt instruments, on the other hand, ascended by
roughly 0.17% during the month. On the economic front, headline CPI increased by
0.68% (m-o-m) in March 2014, compared to a m-o-m decline of 1.03% reported a
month earlier, escorting the annual rate to 9.82% up from 9.76% in February 2014.
Core CPI increased by 0.7% (m-o-m) in March following an increase of 1.02% in
February on the back of higher food prices, taking the adjusted annual rate to 9.90%
up from 9.70% reported a month earlier. Net International Reserves (NIR) expanded
for the fourth consecutive month to reach USD17.9 billion in March, marking a
monthly increase of USD0.5 billion.
In its meeting held on April 28th, the Monetary Policy Committee (MPC) of the
Central Bank of Egypt (CBE) announced its decision to keep its policy rates unchanged
for the third time since the beginning of 2014, at 8.25% for overnight deposit rate and
9.25% for overnight lending rate. The discount rate also remained unchanged at
8.75%. The MPC mentioned that the rationale behind its decision spurs from limited
upside risks to inflation over the coming period due a general economic weakness
coupled with negative output gap since 2011. Meanwhile, despite sluggish activity in
the manufacturing, construction, tourism and petroleum sectors, the economy
showed signs of improvement during the second quarter of FY2014, marking a 1.4%
increase and bringing 1HY2014 growth to 1.2%. The figures compare to a 1.04%
growth rate recorded in 1QFY2013 and a 2.1% increase for 1HFY2013.
Following the MPC decision to keep policy rates unchanged, the yield curve surged
aggressively in the first auction held after the decision with T-bills and bonds rates
climbing by an average 30 bps across all tenures. The upsurge witnessed was the
highest level reached since December 2013 and comes mainly as a consequence of
temporary shortage of liquidity as financial institutions have been accumulating
aggressively in T-bills and bonds over the past couple of months. We expect this trend
to be short-lived and yields will likely decline to previous levels.
T-bills Movement


AAIB Fixed Income Fund (Gozoor)
Fact Sheet April 2014

Duration Distribution
April
2014
2014
YTD
2013 Since
Inception*
Return 0.84% 3.25% 11.03% 25.76%
Annualized Return 10.68% 10.22% 11.03% 11.59%
*Since 28/03/2012
Fund Performance (net of fees)









About Arab African Investment Management
Arab African Investment Management (AAIM), a subsidiary of the Arab African International Bank (AAIB), was established in 2006 with investment
management as our area of expertise. AAIM covers different asset classes in effort to enhance investors diversification and investment opportunities
through Shield (Equity Fund), Juman (Money Market Fund), and Gozoor (Fixed Income Fund). We also manage tailored portfolios for institutions and
high-net-worth individuals.
Contact Details
Arab African Investment Management
5 Midan Al- Saraya Al Koubra, Garden City 11516, Cairo,Egypt
Tel. (202) 27926825/7/9 - Fax (202) 27961879
Website: www.aaim.com.eg
Call Center: 19555