Investment Overview (Salama Strategies & Funds)

INVESTMENT OVERVIEW (SALAMA STRATEGIES & FUNDS)

September 2020

1 Strong foundation for a better future

SALAMA - Islamic Arab Insurance Company is the world’s largest and oldest Sharia’h compliant Takaful solutions provider listed in Dubai Financial Market with a paid up capital of AED 1.2 billion. SALAMA has been a pioneer in the Takaful Industry right from its incorporation in 1979 to its present day distinction as preferred Takaful provider.

SALAMA serves both individual and institutional customers through its extensive global network. At present, with its subsidiaries and associates companies, SALAMA is providing solutions to customers in the UAE, Saudi Arabia, Egypt, Senegal, Algeria and Jordan with plans to further expand its geographical reach to all the GCC states, South East Asia, Far East and eventually Europe.

SALAMA’s stability and success can be attributed to the strategy of keeping customers and partners at the heart of business and staying true to its values and principles. SALAMA has always designed and developed solutions that meet the ever changing demand of customers. This has given SALAMA the solid reputation of providing the most competitive and diverse Takaful solutions.

As the UAE’s specialized Takaful Company, SALAMA offers a comprehensive range of Family, General and Health Takaful solutions to Individuals and Corporates. Our High credibility, reputation for quality, high standards of services and access to Takaful’s best practices has won SALAMA - “FAMILY TAKAFUL COMPANY OF THE YEAR” Award at Middle East Insurance Award 2015, taking us one step further in our endeavor to remain Takaful Operator of choice.

1 Sharia’h Supervisory Committee

SALAMA has a Sharia’h Supervisory Committee, which is an independent board of qualified scholars of international repute. The members of this Committee are: Dr. Mohamad Daud Bakar: He received his first degree in Shari’ah from University of Kuwait and a Ph.D. from University of St. Andrews, United Kingdom. Dr. Amin Fateh: He has Masters in honorable Hadith from the University of Jordan, and a Ph.D. in Islamic studies from the University of Birmingham in Britain. Dr. M. A. Qattan: He has a Ph.D. in Islamic Banking from Birmingham University, UK and a BA in Islamic Economics from Al-Imam University in Riyadh, Saudi Arabia.

2 September 2020 Market Commentary

Global markets ended the month on a positive note with the S&P 500 crossing the February peak and Nasdaq composite index printing yet another record high just five months after the coronavirus pandemic took hold. Flash U.S. Purchasing Managers Index (“PMI”) numbers showed activity across both the manufacturing and services sectors accelerated in July with the U.S. Composite PMI rising to 54.7, the highest level since early last year, from 50.3 in July. U.S. consumer spending also painted a picture of robust recovery, rising 1.9% in July after jumping 6.2% in June. July’s increase left consumer spending about 4.6% below its February level. That said, going forward any upside to macroeconomic data will likely relate to a declining rate of deterioration rather than any meaningful return to expansion.

The number of Americans filing new claims for unemployment benefits remains stubbornly high suggesting that the labor market recovery is stalling as the pandemic drags on and financial aid from the government dries up. Although new coronavirus cases have subsided after a broad resurgence following the reopening of businesses in May, the path of the pandemic remains unclear with periodic spikes in some countries along with many hot spots remaining.

The Emerging Market primary market remined robust with USD29bn priced. This marks a new record for the month, surpassing the previous peak of USD18bn in 2018 and significantly higher than the historical USD13bn average. This brings the year to date issuance to a record USD331bn. Primary issuance from the GCC has picked up again with Abu Dhabi returning to the Eurobond market with the longest bond ever offered by any Gulf Arab country after issuing $10bn earlier this year. The sovereign issued a 3 year, long 10 year and 50 year bond tightening 30bps across the curve from an initial price guidance of T+95bps, T+135bps and 3% area respectively.

Credit markets continue to edge higher on the back of progress made with respect to the coronavirus vaccine and the implicit central bank backstop. This will remain the case in the foreseeable future especially if global macroeconomic data remains supportive and as interest rates remain anchored around the zero bound. However, there are a number of risks looming in the horizon such as the rising risk of an escalation in tensions between the U.S. and China as we near the U.S. elections and the potential but low risk of a global second wave of the pandemic that could derail the recovery we have witnessed so far and challenge the current lofty valuations.

Oil price increased by 5% on better than expected seasonal demand. Oil price remain in a tug of war between short term improvement in demand and uncertainty over medium term economic recovery.

since since 5.42% 4.29% 4.66% 3.63% 2.75% 5.63% 6.66% 5.89% 3.30% 4.37% 0.41% 1.79% 3.02% 6.51% 0.57% 3.37% 2.42% 3.61% -1.31% 11.27% inception Annualized Annualized Since Since 6.29% 8.30% 63.26% 83.28% 58.51% 94.26% 82.05% 35.24% 41.50% 25.50% 35.60% -16.43% 114.92% 117.19% 199.31% 498.62% 338.92% 986.48% 172.13% 249.60% inception 8.44% 8.63% 5.80% 5 years September 2020 September 45.95% 17.80% 45.95% 32.92% 21.81% 48.09% 85.01% 58.20% 76.03% 70.99% 15.35% 33.23% 23.70% 15.50% 13.20% -14.30% 165.64% Cummulative 6.01% 6.19% 7.20% 2.00% 3 years -0.30% 18.47% 13.44% 26.18% 19.71% 13.29% 29.53% 44.52% 29.53% 31.26% 21.98% 19.46% 29.24% 67.91% 10.60% -21.10% 2017 2.48% 9.98% 6.37% 1.35% 1.32% 9.37% 4.08% 5.61% 9.27% -4.31% -2.23% 22.81% 14.38% 14.64% 20.51% 22.97% 29.20% 35.95% 10.87% 11.07% Fund Performance in Percentage % in Percentage Performance Fund 2018 0.54% 6.25% 7.35% 1.90% 2.00% -0.83% -3.22% -1.54% -0.54% -4.58% -6.26% -0.55% -7.83% -7.51% -11.97% -10.65% -11.35% -14.21% -10.92% -16.31% Year wise 2019 9.29% 2.47% 2.60% 7.76% 24.36% 20.20% 14.49% 10.33% 21.56% 28.49% 31.60% 24.43% 20.86% 16.01% 14.70% 34.26% 19.82% 14.43% 10.76% 12.09% Date 0.43% 4.40% 5.50% 4.06% 0.77% 8.90% 9.47% 0.42% 6.63% 1.16% 1.12% 2.96% Year to to Year -3.96% -5.22% -4.40% 10.60% 11.57% 10.37% 29.01% -20.47% to Date 0.00% 2.49% 4.23% 3.96% 0.05% 0.04% Month Month -1.13% -1.75% -1.21% -1.12% -0.57% -2.94% -0.58% -1.01% -6.69% -3.68% -4.66% -0.20% -2.58% -2.86% Date Fund Fund Jan-09 Jun-98 Sep-06 Feb-07 Feb-12 Apr-06 Oct-03 Oct-03 Oct-03 Oct-00 Oct-06 Oct-05 Oct-03 Apr-10 Apr-11 Dec-92 Dec-00 Mar-87 Nov-94 May-00 Inception Inception 4 Sukuk Sukuk Equities Equities Equities Equities Equities Equities Equities Equities Equities Real Estate Asset Class Money Market Money Money Market Money Multi AssetMulti Class Multi AssetMulti Class Multi AssetMulti Class Multi AssetMulti Class AssetMulti Class Commodity Equities Commodity SAR SAR USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD Fund Fund Currency 57.22 14.73 79.49 65.82 86.04 58.33 56.17 79.25 49.20 23.72 19.32 146.82 180.41 216.31 256.48 942.35 390.35 180.53 101.27 228.95 millions Fund size in size Fund (All Share Class) (All Share (2) Fund Name Fund BNP Paribas Islamic Equity Optimiser "C" ACC Islamic BNP Paribas BNP Paribas Islamic Fund Hilal Income "C" Income Hilal Fund Islamic BNP Paribas ACC (USD) (Managed by BNP PARIBAS Asset Management) PARIBAS BNP by (Managed (Managed by NCB Capital) NCB by (Managed AlAhli Growth Fund Multi-Asset AlAhli Multi-Asset Moderate Fund AlAhli Moderate Multi-Asset AlAhli Multi-Asset Conservative Fund AlAhli Conservative Multi-Asset AlAhli Healthcare Trading Equity Fund Trading AlAhli Healthcare AlAhli Fund America North Index Fund Index AlAhli Europe Fund Index AlAhli Asia Pacific AlAhli Emerging Markets Index (USD) ACC (USD) Index AlAhli Markets Emerging Equity Fund AlAhli Trading GCC AlAhli Saudi Trading Equity Fund AlAhli Trading Saudi (Managed by NCB Capital) NCB by (Managed AlAhli Diversified US Dollar Fund AlAhliDollar US Diversified AlAhli International Trade Fund Trade AlAhli International Deutsche Noor Precious Metals Securities "A" Securities "A" Metals Precious Noor Deutsche ACC (Managed by Deutsche Noor Islamic Funds PLC ) PLC Funds Islamic Noor Deutsche by (Managed Oasis Crescent Global Equity "A" ACC Equity "A" Global Crescent Oasis ACC Equity Property "A" Global Crescent Oasis Oasis Crescent Global Income "A" ACC "A" Income Global Crescent Oasis (Managed by OASIS Global Management) OASIS Global by (Managed Oasis Crescent Global Low Equity Balanced "A" "A" Equity Low Balanced Global Crescent Oasis ACC (USD) Equity Balanced Medium Global Crescent Oasis ACC (USD) "A" ISIN Code / Code ISIN Bloomberg Ticker Bloomberg LU0245286777 LU1150255971 ALHIGRP:AB ALMEDGP:AB ALCONGP:AB ALHCTRE:AB AHNRAMI:AB AHEURIN:AB AHASPCI:AB AHEMINF:AB ALGCCTE:AB ALSATRE:AB ALDIUSD:AB ALINTRA:AB IE00B1FQCN68 IE00BCV7MP24 IE00BCV7MS54 IE00BCV7MT61 IE00BCV7MR48 IE00B78MZJ00

(1) B B B B B A A A A A A A A A A A A C C C Profile Risk Funds Performance Sheet : Performance Funds 4

since since 1.06% 9.56% 3.51% 0.04% 1.53% 4.01% 1.81% 9.23% 2.12% 5.37% 1.97% 4.75% 3.13% 2.21% 3.03% 2.60% 2.58% -2.45% -0.15% inception Annualized Annualized Since Since 0.11% 4.65% 8.00% -1.30% 11.68% 33.70% 50.89% 29.73% 95.40% 35.33% 22.58% 24.70% 40.00% 28.20% 19.30% 22.60% 29.27% -19.00% 145.05% inception September 2020 September 7.10% 5 years 58.46% 17.49% 21.32% 51.15% 12.36% 14.62% 48.94% 14.36% Cummulative 9.81% 6.53% 5.37% 1.45% 8.00% 9.67% 5.01% 8.22% 3 years -7.42% -8.61% -6.72% 35.00% 11.17% 20.96% 18.64% 12.75% 2017 3.38% 2.21% 1.48% 1.07% 3.03% 3.36% 3.58% 7.71% 4.47% 0.05% 11.02% 22.32% 25.89% 13.12% 16.21% 20.59% 19.54% 18.53% 41.23% Fund Performance in Percentage % in Percentage Performance Fund 2018 1.88% 3.18% 0.69% -0.25% -6.60% -3.99% -9.53% -0.50% -0.81% -7.41% -7.99% -2.53% Year wise -0.02% -10.04% -20.65% -14.63% -11.93% -13.92% -12.77% 2019 8.93% 2.35% 9.95% 9.30% 5.24% 8.34% 8.29% 0.78% 15.11% 13.63% 15.42% 33.37% 10.93% 18.93% 23.90% 12.38% 13.71% 14.37% 23.81.% Date 1.25% 1.03% 1.11% 9.51% 7.69% 3.22% 1.32% 3.68% Year to to Year -8.23% -5.10% -0.40% -8.11% -4.62% -0.16% -5.38% -7.81% -1.25% 10.17% -11.40% to Date 0.21% 0.07% 0.00% 2.96% 0.46% 0.08% 0.21% 0.38% 2.74% Month Month -0.30% -0.12% -2.41% -1.38% -4.69% -0.26% -3.22% -0.71% -3.33% -1.97% Date Fund Fund Jul-13 Jun-09 Sep-12 Sep-12 Oct-17 Oct-17 Apr-12 Apr-06 Apr-10 Apr-10 Apr-06 Apr-12 Apr-12 Dec-10 Sep-17 Mar-13 Oct-10 Nov-16 Dec-13 Inception Inception 5 Sukuk Sukuk Sukuk Sukuk Sukuk Sukuk Equities Equities Equities Equities Equities Equities Equities Equities Equities Asset Class Money Market Money Multi AssetMulti Class Multi AssetMulti Class Multi AssetMulti Class USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD Fund Fund Currency 16.06 40.26 41.80 37.06 88.21 40.78 19.47 24.74 96.00 41.16 69.70 24.96 366.35 159.59 151.07 192.92 243.60 453.00 165.00 millions Fund size in size Fund (All Share Class) (All Share (7) (6) (4) (3) Fund Name Fund C = Conservative ( 1) Rasmala Nujoom Aggressive "A" (USD) ACC (USD) "A" Aggressive Rasmala Nujoom Rasmala Nujoom Balanced "A" (USD) ACC (USD) "A" Balanced Rasmala Nujoom Emirates Mena Opportunities "A" ACC Opportunities "A" Mena Emirates Emirates Islamic Global Balanced "A" ACC "A" Balanced Global Islamic Emirates Emirates Islamic Money Market "A" ACC "A" Market Money Islamic Emirates (Managed by Emirates NBD Asset NBD Management) Emirates by (Managed ACC S (USD) Growth Europe Comgest International) Asset Management Comgest by (Managed ACC (USD) Rasmala Sukuk Global (Managed by Rasmala Investment Bank Limited) Bank Rasmala by Investment (Managed ACC "D" (USD) Fund Income Al Islami Mashreq Emirates Emerging Market Equity "A" ACC Equity "A" Market Emerging Emirates Equity Fund India Islamic Emirates Group) Investment Old Mutual by (Managed (USD) Fund Global Sukuk Azimut Emirates Global Sukuk "A" ACC "A" Sukuk Global Emirates (Managed by Azimut Group) Azimut by (Managed ACC (USD) Equity "A" Global Islamic Standard Aberdeen (Managed by Mashreq Asset(Managed Management) "B" (USD) Equity Sharia Indian Tata Capital) Arqaam by (Managed ACC "A" (USD) Income Islamic Arqaam (Managed by Tata Asset Management (Mauritius) Private Ltd) Private (Mauritius) Management Asset Tata by (Managed A ACC Asean Equity USD Islamic (Managed by Aberdeen Standard Investments) Standard Aberdeen by (Managed (Managed by CIMB - Principal Islamic Asset Management (Ireland) (PLC)) (Ireland) Asset Management CIMB Islamic by - Principal (Managed ACC (USD) Equity "A" Global Shariah Templeton Franklin Global Sukuk Fund "A" (USD)ACC "A" Fund Sukuk Global Franklin (Managed by Franklin Templeton Investments) Templeton Franklin by (Managed "D" (USD) Equity Fund Islamic Global Old Mutual B = Balanced, ( 1) ISIN Code / Code ISIN Bloomberg Ticker Bloomberg A = Aggressive, A = Aggressive, performace figures contained herein therefore reflect those of the Cayman Fund prior to 1st October 2014. The inception date of the Cayman Fund is 3rd June 2013. The appended Since inception performance is of "Dis" Share class is of "Dis" performance appended Since June 2013. The inception 3rd Fund is of the date Cayman 2014. The inception 1st to October prior reflect Fund Cayman of the those therefore herein contained figures performace LU1645514073 LU1645513182 GB00B1436X66 GB00B1436W59 JE00B5T1J560 IE00B3ZL9H82 LU1039522393 AEDFXA1W2ZD7 JE00B244B530 LU1484867434 LU1435409286 GB00B1224310 LU0371570317 MU0316S00010 AEDFXA3ON005 IE00B56MXK54 LU0792757196 LU0792756115 IE00BYMM2054 The Fund house manages Accumulation Share Class which is offered by SALAMA. The 3yrs, 5yrs and SI performance of above funds are of Distribution Share Class. Distribution of are funds ofabove by SALAMA. ClassShare offered which TheAccumulation is SI 3yrs,performance and 5yrs Fund house manages The The fund has launched “A” share class on Nov 15, 2010 which is offered by SALAMA. The 5yrs and Since inception performance is of “P” Share Class. “P” of is by SALAMA. 15, 2010 Nov performance offered Sincewhich Theinception is and 5yrs on class share “A” The fund has launched of I is Class. SIperformance and Years 2016, 2015, 2014, 3 MTD, class. Theshare A YTD, 1, 2012. SALAMA offers April from new of management Inception The strategy. followed domiciledinvestment Fund was and similar a Islands 2014, this to 9thCayman in the September Prior the fund is by SALAMA. based 5, 2013 August Currently Luxembourg. offered which in is on class ACCshare The fund has launched class share “B” of is on by SALAMA.Dec class performance since 6, 2012 share and offered inception 5 years, which The is “D” The fund has launched March 2013. commenced Strategies which of in are February funds above ofon by SALAMA. Share Class, launched 2017, offered which The is SI 3yrs, performance “D” and 5yrs Fund house manages The 2) ( 1) ( (3) (4) (5) (6) (7)

(1) B B B B B B B B A A A A A A A A A C C

Funds Performance Sheet : Performance Funds 5 Profile Risk Salama Investment Aggressive September 2020

ShariahStrategy Compliant As of 30/09/2020

NAV: 115,1

Salama Aggressive Strategy places a higher percentage of their assets in equities rather than safer debt securities because they are willing to accept market swings, and seeks a higher potential return on their investments. The strategy builds a portfolio that bear a fairly high amount of risk however the strategy has a maximum exposure to equities to limit the downside risk. The breakdown of the index is MSCI World Islamic NR $ Index 45%, MSCI EM Islamic NR $ Index 15%, S&P GCC Composite Shariah Index 10%, Citi Sukuk Index 25%, Islamic Money Market 5%

Cumulative Performance Since Inception Monthly Rolling Performance - 3 Years

180 20,0 160 0,0 140

120 -20,0

100 -40,0 80 03 09 03 09 03 09

2012 2014 2016 2018 2020 Return 2019 2020

Salama Investment Aggressive Strategy BENCH (Aggresive) Salama Investment Aggressive Strategy BENCH (Aggresive)

Risk

Std Dev Sharpe

Salama Investment Aggressive Strategy 18,65 0,03 BENCH (Aggresive) 11,73 0,47 Salama Investment Aggressive Strategy - Monthly Returns Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2020 -1,26 -6,51 -22,21 4,55 1,18 15,10 1,63 3,52 -0,51 -8,47 2019 5,40 3,07 1,80 2,18 -6,24 5,15 0,71 -2,58 -0,14 1,03 1,82 2,60 15,20 2018 3,32 -4,10 -0,52 0,90 0,32 -1,04 3,22 -0,97 0,30 -3,97 0,92 -4,87 -6,67 2017 1,52 2,01 0,87 1,25 0,98 -0,52 1,27 -0,43 0,76 0,56 0,29 0,66 9,58 2016 -5,00 0,37 4,83 1,41 0,00 -0,60 3,19 -0,67 -0,20 -3,21 0,34 1,57 1,67 2015 -0,35 2,81 -1,73 2,11 -0,14 -2,02 0,93 -4,75 -1,68 2,71 -0,44 -0,30 -3,06 2014 -0,15 3,79 0,47 0,50 1,67 0,80 1,17 0,61 -2,39 -1,37 0,32 -1,48 3,87 2013 1,60 -0,23 0,86 1,14 0,84 -4,14 4,15 -0,67 3,52 2,57 0,32 0,46 10,67 2012 1,53 1,28 -0,13 -0,13 -3,32 0,68 1,67 1,53 1,60 -0,32 -0,18 1,04 5,25 2011 — — — — — — -0,39 -9,26 -1,19 1,48 -1,46 0,20 — Asset Type Breakdown Strategy Breakdown % % US & Canada 26,9 Equity 44,8 MENA 26,0 Cash 34,2 Europe 1,5 United Kingdom 0,2 Sukuk 21,0 Cash 34,2 Total 100,0 Asia ex-China 5,6 Russia 0,1 China 4,0 Other EM 1,0 Other DM 0,6 Total 100,0 Monthly Commentary

US equity markets continued to its strong performance stretching the monthly gains to five consecutive months. The rally continues to be led by the technology sector, behavioral biases and strong retail participation. The stock market remains in disconnect with economic situation on the ground and many companies. Furthermore, the rate of improvement both in the economy and labor market have moderated amid significant doubt over longer term damage to supply and demand dynamics. The S&P and Nasdaq advanced by 7.1%/9.6% respectively.

Source: Morningstar Direct

6 September 2020 Salama Investment Balanced

ShariahStrategy Compliant As of 30/09/2020 NAV: 118,6 Salama Balanced Strategy is suitable for those investors with a longer time horizon and have some risk tolerance due to its moderate risk- reward profile. It analyzes all asset classes and decides the best allocation among a wide range of funds. The key to a balanced investment strategy is in the diversification and managemtent of the portfolio The breakdown of the index is MSCI World Islamic NR $ Index 30%, MSCI EM Islamic NR $ Index 10%, S&P GCC Composite Shariah Index 5%, Citi Sukuk Index 50%, Islamic Money Market 5%

Cumulative Performance Since Inception Monthly Rolling Performance - 3 Years

160 15,0 150 7,5 140 0,0 130 120 -7,5 110 -15,0 100 -22,5 90 03 09 03 09 03 09

2012 2014 2016 2018 2020 Return 2019 2020

Salama Investment Balanced Strategy BENCH (Balanced) Salama Investment Balanced Strategy BENCH (Balanced)

Risk

Std Dev Sharpe

Salama Investment Balanced Strategy 15,66 0,09 BENCH (Balanced) 8,62 0,58

Salama Investment Balanced Strategy - Monthly Returns Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2020 -0,23 -4,28 -19,57 2,73 1,57 14,17 1,68 2,17 -0,17 -5,09 2019 3,91 2,06 1,67 1,64 -3,89 3,90 0,45 -0,75 -0,08 0,89 1,29 2,00 13,64 2018 2,11 -3,03 -0,41 0,44 -0,04 -0,58 2,50 -0,75 0,43 -2,50 0,56 -2,69 -4,06 2017 0,87 1,23 0,52 0,75 0,44 -0,39 0,81 -0,20 0,46 0,46 0,08 0,54 5,70 2016 -3,18 0,40 2,50 0,77 0,05 -0,15 1,73 -0,15 0,17 -1,73 -0,12 0,70 0,88 2015 -0,13 1,99 -1,22 1,55 -0,10 -1,41 0,77 -2,84 -1,00 1,87 -0,46 -0,13 -1,22 2014 0,11 2,87 0,41 0,39 1,37 0,41 0,95 0,59 -1,63 -0,94 0,09 -1,13 3,46 2013 1,22 -0,16 0,61 0,84 0,48 -3,10 3,19 -0,47 2,41 1,83 0,32 0,44 7,74 2012 1,15 1,01 -0,15 -0,01 -2,09 0,50 1,22 1,10 1,15 -0,17 -0,02 0,70 4,40 2011 — — — — — — -0,23 -5,02 -1,47 0,93 -0,93 0,20 — Asset Type Breakdown Strategy Breakdown % % US & Canada 15,7 Equity 28,3 MENA 38,6 Cash 29,3 Europe 1,5 Sukuk 42,4 United Kingdom 0,5 Cash 29,3 Total 100,0 Asia ex-China 9,6 Russia 0,1 China 2,7 Other EM 1,3 Other DM Other DM 0,6 Total 100,0 Monthly Commentary

The Sukuk performance was entirely driven by credit spread tightening as interest rates rose over the month. Geographically, almost all exposures broadly contributed to the positive performance. In the current risk on environment, underallocation to supranationals was once again the largest contributor towards performance relative to the benchmark. Allocation to Oman performed well retuning c. 1.9% over the month as oil continued to march higher. Allocation to the real estate segment within the UAE, specifically exposure to the Majid Al Futtaim and Damac sukuk, also boosted the performance of the funds gaining between 3-5%. Exposure to Dar Al-Arkan, a Saudi-based real estate developer also added to the positive performance of the fund. Underallocation to the Indonesian government curve detracted from performance as the belly of the curve performed well returning in excess of 1% over the month. Although a small holding in the portfolio (c.2.7%), overallocation to Turkey was a slight drag on performance. In terms of duration, overallocation to ‘0-1 year’ bucket and underallocation to the ‘10+ years’ bucket were the major detractors from performance. Selection within the ‘1-3 years’ bucket was a notable drag on performance driven by exposure to the Emirates Reit sukuk which returned -12.2% over the month.

Source: Morningstar Direct

7 Salama Investment Conservative September 2020

ShariahStrategy Compliant As of 30/09/2020

NAV: 113,3

Salama Conservative Strategy focuses on capital preservation and moderate growth. It analyzes all asset classes, decides the best allocation and places a high percentage of investable assets into lower risk securities among a wide range of funds. The main purpose of this strategy is capital preservation offering the client a very limited exposure to other assets that can enhance the performance without adding volatility. The breakdown of the index is Dow Jones Islamic Market World 25%, JP Morgan cash Index USD 1 month 75%.

Cumulative Performance Since Inception Monthly Rolling Performance - 3 Years

140 10,0

130 5,0 120 0,0 110 -5,0 100 -10,0 90 03 09 03 09 03 09

2012 2014 2016 2018 2020 Return 2019 2020

Salama Investment Conservative Strategy BENCH (Conservative) Salama Investment Conservative Strategy BENCH (Conservative)

Risk

Std Dev Sharpe

Salama Investment Conservative Strategy 7,18 0,10 BENCH (Conservative) 4,02 0,91

Salama Investment Conservative Strategy - Monthly Returns Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year 2020 0,49 -0,12 -9,48 0,31 2,37 7,33 0,49 0,38 0,06 1,06 2019 0,37 0,37 0,35 0,29 0,32 0,48 0,49 0,58 0,02 0,13 0,18 0,16 3,81 2018 0,05 -0,09 0,08 -0,01 0,04 0,06 0,36 0,05 0,22 0,17 0,17 0,19 1,30 2017 0,26 0,25 0,17 0,25 0,18 -0,11 0,27 0,18 0,07 0,06 -0,05 0,12 1,66 2016 -0,80 0,32 0,36 0,21 0,07 0,30 0,18 0,21 -0,02 0,06 -0,25 0,14 0,77 2015 0,39 0,48 -0,32 0,52 -0,07 -0,50 0,38 -0,72 -0,21 0,44 -0,39 -0,02 -0,03 2014 0,10 1,35 0,15 0,15 0,65 0,11 0,25 0,26 -0,45 -0,07 0,23 -0,46 2,29 2013 0,39 0,01 0,13 0,43 0,02 -1,82 1,51 -0,34 1,00 0,73 0,04 0,13 2,21 2012 0,89 0,70 0,01 0,07 -0,88 0,38 0,68 0,50 0,46 0,08 0,12 0,31 3,36 2011 — — — — — — -0,10 -2,89 -0,78 0,56 -0,66 0,20 — Asset Type Breakdown Strategy Breakdown % % Cash 83,0 Cash 83,0 Sukuk 17,0 Sukuk 17,0 Total 100,0 Total 100,0

Monthly Commentary

In a landmark shift, The Federal Reserve rolled out a new monetary policy framework designed to allow periods of inflation overshoots to compensate for years of inflation persistently running well below the targeted 2 percent level. Following the announcement, yields on the long end of U.S. treasury curve, the most sensitive to inflation expectations, shot up with the US 10 year treasury yield ending the month almost 20bps higher at 0.71%.

Source: Morningstar Direct

8 September 2020 SALAMA Secure Strategy

FixedSeptember Income 2020 Portfolio October 2020

Fund Manager Commentary In September, we saw yield widening across board; EM index by 7 bps, GCC index by 9 bps. and US IG corp by 6 bps to 2.01%. Divulging deeper, Egypt (hard currency) was the top performer with a +0.7% return in September, while worst performing markets were Oman (-3.4%) and Bahrain (-2.3%). We believe EM Credits are in cross road. A large sell- off in global risk – perhaps driven by a second global lockdown – could trigger an EM FX sell-off and higher inflation. Equally THEORITCAL RISK & REWARD INDICATOR possible is the combination of ample liquidity and near-zero DM rates could prompt significant capital inflows into EM, driving Lower Risk Higher Risk EM FX higher and resulting in rates being kept low for longer. As far as this region is concerned, weaker USD would mean GCC Lower Rewards Higher Rewards will underperform the EM space, everything else being equal. And of course, volatility in Oil will not help either. Given the lower rate environment, we continue to see opportunities in some of the higher beta segments, but we take a more selective approach as spread levels have overall compressed. And accordingly, our top picks are in High yield space are Short dated 1 2 3 4 5 papers on Dar Al ARKAN curve (2022 and 2023), Damac curve (2022 and 2023). During the month, we took position on KT Sukuk, a private bank based out of Turkey with strong capitalization and liquidity metrics, with attractive returns of 17%. We also increased our position in Damac 2022 curve, as the cash flow remains sufficient enough to repay the debt(2022’s) on maturity. We have added new positions in Saudi Electricity (A- rated Sukuk), a monopoly in generation and distribution of electricity in Saudi, with PIF owing 70% of the company. As of end September, Investment grade accounts for 28% of the portfolio; We will continue to diversify the portfolio and target a mix of 50/50 (Investment grade vs Non-investment grade) in the coming months.

Fund Details Portfolio Country Weights Net Assets Value (in units) 103.9 YTM 6.1% Investment Denomination USD/AED Average yearly Coupon 6.0% Turkey 17% Tenure 5 Years Duration (yrs) 5.0 Geographic Restrictions None Avg. Rating B- Saudi Arabia 29% Leverage (Debt/Equity) 0% Benchmark SPGSKHYT Index

Relative Performance UAE 54% 105 104 103 Sector allocation 102 101 100 Real Estate 26% 99 98 97 Banks 31% 3-Sep 6-Sep 9-Sep 12-Sep 15-Sep 18-Sep 21-Sep 24-Sep 27-Sep 30-Sep 10-Aug 13-Aug 16-Aug 19-Aug 22-Aug 25-Aug 28-Aug 31-Aug

S&P Sukuk Index Salama DPM Utilities 43% Returns Statistics (%) Cumulative Weekly MTD QTD Since Inception YTD 1yr Credit Rating Portfolio -0.3% 1.3% 3.9% Benchmark -0.1% -0.1% -0.2% B+ 14% Relative Performance -0.2% 1.4% 4.1% A- 14% Top Holdings Top Yield Tighteners (August) A+* 14% DP World Perp (2025) 29% Dar Al Arkan (2027) 80 bps KT Sukuk (2026) 17% Damac 2022 45 bps B 29% Dar Al Arkan (2027) KT Sukuk (2026) 14% 14 bps BB 29% Saudi Electicity (2030) 14% Noor Bank (2021) 1 bp Damac (2022) 11% Duration

Sectors Breakdown Risk Box Less than 1 14% Sovereign 0% yr

Quasi Sovereign 0% High One to Five 29% > 50% government ownership 15% years Medium < 50% government ownership 14% 57% Privately held Low Greater than 71% Extreme Moderate Low 5 yrs

Credit Quality Risk Interest Rate Risk

9 date 7.69% 8.90% 9.51% 9.47% 6.63% 10.17% 11.57% 10.60% 10.37% 29.01% Year to to Year 0.46% 0.21% 0.21% 0.08% 2.74% 2.49% 2.96% 3.96% 4.23% 0.07% to date Month Month Jul-13 Feb-07 Oct-00 Oct-06 Jun-98 Dec-10 Dec-92 Nov-94 Nov-16 May-00 September 2020 September Jun-98 Sep-12 Apr-12 Oct-10 Apr-06 Oct-05 Dec-13 Apr-10 Nov-16 May-00 Fund Inception Fund Fund Inception Fund Sukuk Sukuk Sukuk Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Equities Asset Class Asset Class Money Market Commodity Equities Commodity SAR USD USD USD USD USD USD USD USD USD Fund Fund SAR SAR USD USD USD USD USD USD USD USD Fund Fund Currency Currency 86.04 58.33 24.74 37.06 65.82 56.17 192.92 101.27 216.31 942.35 88.21 24.74 58.33 24.96 40.78 453.00 243.60 256.48 942.35 366.35 (All Share Class) (All Share (All Share Class) (All Share Fund size in million size Fund Fund size in million size Fund 10 (3) Fund Name Fund Fund Name Fund AlAhli Saudi Trading Equity Fund Equity Trading AlAhli Saudi Aberdeen Standard Islamic Global Equity "A" (USD) (USD) Equity "A" Global Islamic Standard Aberdeen ACC AlAhli Europe Index Fund Index AlAhli Europe AlAhli Asia Pacific Index Fund Index AlAhli Asia Pacific Emirates Islamic India Equity Fund India Islamic Emirates Comgest Growth Europe S (USD) ACC S (USD) Growth Europe Comgest AlAhli Healthcare Trading Equity Fund Trading AlAhli Healthcare AlAhli Emerging Markets Index (USD) ACC (USD) Index AlAhli Markets Emerging AlAhli Fund America North Index Deutsche Noor Precious Metals Securities "A" ACC Securities "A" Metals Precious Noor Deutsche Emirates Islamic Money Market "A" ACC Market Money Islamic Emirates Azimut Global Sukuk Fund (USD) Fund Azimut Sukuk Global ACC (USD) Rasmala Sukuk Global (USD)ACC "A" Fund Sukuk Global Franklin Emirates Islamic India Equity Fund India Islamic Emirates AlAhli Asia Pacific Index Fund Index AlAhli Asia Pacific Tata Indian Sharia Equity "B" (USD) Equity "B" Sharia Indian Tata AlAhli GCC Trading Equity Fund AlAhli Trading GCC Emirates Mena Opportunities "A" ACC Opportunities "A" Mena Emirates AlAhli Saudi Trading Equity Fund AlAhli Trading Saudi C = Conservative ( 1) B = Balanced, ISIN Code / Code ISIN AHASPCI:AB ALSATRE:AB AHEURIN:AB ( 1) AHEMINF:AB ALHCTRE:AB LU0371570317 LU1484867434 AHNRAMI:AB ISIN Code / Code ISIN AHASPCI:AB ALSATRE:AB IE00B3ZL9H82 JE00B5T1J560 ALGCCTE:AB LU1435409286 LU1039522393 LU0792756115 LU1484867434 IE00B1FQCN68 GB00B1436X66 MU0316S00010 Bloomberg Ticker Bloomberg Bloomberg Ticker Bloomberg (1) (1) B A A A A A A A A A B B B C A A A A A A Profile Risk A = Aggressive, A = Aggressive, Profile Risk ( 1) Top Ten Funds Ten Top YTD Performance - 2020 YTD Performance MTD Performance for September 2020 for September MTD Performance

10 date date date 0.77% 1.03% 7.69% 4.40% 4.06% 3.22% 2.96% 1.12% 1.16% -1.25% 10.17% 11.57% 10.60% 10.37% 29.01% Year to to Year to Year to Year Jul-13 Jan-09 Sep-17 Sep-12 Feb-07 Oct-03 Oct-03 Oct-00 Oct-06 Apr-10 Apr-10 Oct-03 Dec-10 Dec-92 Mar-87 September 2020 September Fund Inception Fund Inception Fund Inception Fund Sukuk Sukuk Sukuk Sukuk Equities Equities Equities Equities Equities Asset Class Asset Class Asset Class Money Market Money Money Market Money Money Market Money Multi AssetMulti Class Multi AssetMulti Class Commodity Equities Commodity USD USD USD USD USD USD USD USD USD USD USD USD USD USD USD Fund Fund Fund Fund Currency Currency Currency 37.06 14.73 49.20 65.82 56.17 366.35 165.00 180.41 146.82 243.60 192.92 101.27 216.31 390.35 180.53 (All Share Class) (All Share Class) (All Share Class) (All Share Fund size in million size Fund in million size Fund in million size Fund 11 Fund Name Fund Name Fund Name Fund Comgest Growth Europe S (USD) ACC S (USD) Growth Europe Comgest Emirates Islamic Money Market "A" ACC "A" Market Money Islamic Emirates Arqaam Islamic Income "A" (USD) ACC (USD) "A" Income Islamic Arqaam AlAhli Multi-Asset Conservative Fund AlAhli Conservative Multi-Asset BNP Paribas Islamic Fund Hilal Income "C" (USD) ACC "C" (USD) Income Hilal Fund Islamic BNP Paribas Fund AlAhli Moderate Multi-Asset Oasis Crescent Global Income "A" ACC "A" Income Global Crescent Oasis Franklin Global Sukuk Fund "A" (USD)ACC "A" Fund Sukuk Global Franklin AlAhli Healthcare Trading Equity Fund Trading AlAhli Healthcare AlAhli Emerging Markets Index (USD) ACC (USD) Index AlAhli Markets Emerging Aberdeen Standard Islamic Global Equity "A" (USD) (USD) Equity "A" Global Islamic Standard Aberdeen ACC AlAhli Fund America North Index Deutsche Noor Precious Metals Securities "A" ACC Securities "A" Metals Precious Noor Deutsche AlAhli Diversified US Dollar Fund AlAhliDollar US Diversified AlAhli International Trade Fund Trade AlAhli International C = Conservative ( 1) B = Balanced, ISIN Code / Code ISIN / Code ISIN / Code ISIN ALDIUSD:AB ALINTRA:AB JE00B5T1J560 ( 1) AHEMINF:AB ALHCTRE:AB LU1150255971 LU0792756115 LU0371570317 AHNRAMI:AB ALCONGP:AB ALMEDGP:AB IE00B3ZL9H82 IE00B1FQCN68 IE00BCV7MT61 AEDFXA3ON005 Bloomberg Ticker Bloomberg Ticker Bloomberg Ticker Bloomberg (1) (1) (1) B B B B B C C C C C A A A A A Profile Profile Profile Risk Risk Risk A = Aggressive, A = Aggressive, ( 1) Top Five Funds Five Top Top 5 “A” Funds 5 “A” Top Funds 5 “B” Top Funds 5 “C” Top

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