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September 2018 bank Oryx Fund NAV: OMR 1.803 USD 4.68

Objective The Fund’s main objective to achieve long-term capital appreciation by investing in a diversified basket of equities listed on the MENA region stock exchanges. Fund Highlights Commentary Fund Manager Shirish Raut Inception Date 05/09/94 Regional markets remained volatile during the month of September with the S&P GCC Composite dropping in the first half of the month and then staging Structure Open Ended Mutual Fund a strong recovery during the second half to close +0.2% MoM. This trend was particularly visible in , on the back of higher oil prices. Oil prices Custodian bank muscat SAOG continued to soar, up 6.8% MoM, on the back of upcoming US sanctions on Iran and OPEC announcing that they will not increase supply. The market Domicile Oman led the GCC markets closing 2.8% higher MoM followed by Saudi which was Benchmark S&P GCC Large Cap Index up by 0.6% MoM. Abu Dhabi and Qatar lagged as they closed 1.0% and 0.7% lower MoM. Egypt was the worst performing regional market, down 9.2% in Currency OMR/USD USD, due to low liquidity and weaker currency. , Bahrain and closed flattish. Volumes were subdued during the month under review with Saudi trading Risk Profile High ~USD 700K on average per day, 26.5% lower than full year average volumes. Minimum Initital Purchase OMR 50 The Oryx Fund closed the month 0.4% lower MoM, as compared to the benchmark which was up by 0.2% MoM. Our positions in Saudi banks contributed Min. Additional Purchase OMR 50 positively to the performance while our positions in UAE healthcare and logistics Initial Subscription Fee Up to 3% were a drag on performance.

In a key development, Saudi announced their preliminary 2019 budget revenue Annual Management Fee 1.85% at SAR 978bn, 11% higher compared to 2018. Saudi continues to target a Valuation Daily balanced budget by 2023, remaining committed to the 30% debt/GDP ceiling and is looking to fund future deficits through a combination of increased Subscription & Redemption Daily borrowing and SAMA deposit drawdowns. The UAE Cabinet also approved a budget of DHS 180 bn over the next three years, which is set to be the biggest budget in the history of the union. The budget for 2019 will be AED 60.3 bn, 17.3% higher YoY. In other new the Fed, raises interest US short-term interest Top 3 Holdings rates for a third time this year and signaled it will forge ahead with plans to tighten policy. UAE, Saudi Arabia and Bahrain have raised rates in line with US Federal Reserve while Kuwait has confirmed that they would not raise rates. Company Name Weights (%)

Our outlook for the region remains positive for the remainder of the year. Rising oil AL RAJHI BANK 8.6 prices will boost investor sentiment and allow regional governments to gradually pay down receivables and start spending. We remain overweight on Banks and Petrochemicals with selective exposure across consumers, insurance and NMC HEALTH PLC 5.8 healthcare. The large cap companies will continue to be supported by MSCI and FTSE flows next year and the portfolio is well positioned to benefit from SAMBA FINANCIAL GROUP 5.1 these trends.

Portfolio Performance Name MTD YTD 1 Year* 3 Years* 5 Years* bank muscat Oryx Fund -0.4 4.7 3.9 4.6 8.2 S&P GCC Composite Index 0.2 9.8 8.7 1.8 -0.4 * Annualized

For further information. please contact: bank muscat Asset Management P.O. Box 134. PC 112. Ruwi. Sultanate of Oman. Tel: +968 24768620/7983 E-mail: [email protected]. Website: www.bankmuscat.com/assetmanagement Authorized and regulated by the Capital Market Authority of the Sultanate of Oman, this fact sheet is provided for information purposes only and is not to be construed in any manner as proposal, advice, offer, recommendation or solicitation to purchase or sell or hold the securities or financial products described in this report. The report is based on information generally available but no assurance is given as to its accuracy, reliability or completeness. bank muscat does not guarantee, neither we assume any responsibility or liabilities for any claim, negligence, default, error, omission or inaccuracy of the contents of this report. Please refer to the relevant section on risk factors in the Fund’s prospectus. Mutual funds are subject to market and other risks. There is no assurance that the objectives will be met and past performance does not indicate future performance of the fund. bank muscat (SAOG) is not accountable for any decision based on the contents of this report. Neither the information nor the opinions contained are to be construed as an offer to buy and sell the fund mentioned above. It is important to remember that the NAV of mutual funds and the income generated from them can go down as well as up and it is not guaranteed. The investor may not get back the amount originally invested. Changes in rates of currency exchange, particularly where overseas securities are held, may also affect the value of your investment. bank muscat (SAOG) will not be responsible or liable for any loss or damage of any kind which arises, directly or indirectly, and is caused by the use of any part of the information provided. To serve you better everyday

Sectoral Allocation Geographic Allocation

Cash 0.1 Bahrain 1.9 Communication Cash 0.1 Services 4.7 Egypt 1.2 Consumer Kuwait 11.5 Discretionary 7.0 Qatar 6.9 Consumer Staples 2.8 Saudi Arabia 60.4 Energy 1.0 United Arab Financials 52.2 Emirates 18.1 Health Care 7.4 Industrials 6.3 Materials 18.5

Risk History (3 years)

Volatility 10.2%

Sharpe Ratio 0.2

For further information. please contact: bank muscat Asset Management P.O. Box 134. PC 112. Ruwi. Sultanate of Oman. Tel: +968 24768620/7983 E-mail: [email protected]. Website: www.bankmuscat.com/assetmanagement Authorized and regulated by the Capital Market Authority of the Sultanate of Oman, this fact sheet is provided for information purposes only and is not to be construed in any manner as proposal, advice, offer, recommendation or solicitation to purchase or sell or hold the securities or financial products described in this report. The report is based on information generally available but no assurance is given as to its accuracy, reliability or completeness. bank muscat does not guarantee, neither we assume any responsibility or liabilities for any claim, negligence, default, error, omission or inaccuracy of the contents of this report. Please refer to the relevant section on risk factors in the Fund’s prospectus. Mutual funds are subject to market and other risks. There is no assurance that the objectives will be met and past performance does not indicate future performance of the fund. bank muscat (SAOG) is not accountable for any decision based on the contents of this report. Neither the information nor the opinions contained are to be construed as an offer to buy and sell the fund mentioned above. It is important to remember that the NAV of mutual funds and the income generated from them can go down as well as up and it is not guaranteed. The investor may not get back the amount originally invested. Changes in rates of currency exchange, particularly where overseas securities are held, may also affect the value of your investment. bank muscat (SAOG) will not be responsible or liable for any loss or damage of any kind which arises, directly or indirectly, and is caused by the use of any part of the information provided.