Thabat Fund Monthly Fact Sheet Sep 2020

Fund Objective The fund aims to create a saving and investment vehicle that will invest in medium and long term fixed income instruments.

General Information Asset Manager CI Asset Management

Fund name CIB Thabat Fund Fund type Fixed Income fund Fund Manager Salah Madkour Alternate fund manager Base Currency EGP Key Dates: Fund launch 05 September 2011 Close of financial year 31 Dec Dealing: 08:30 to 12:00 every business day Valuation Day: Every business day Sharpe N/A Important information: This is a financial promotion and is not intended as investment advice. The information provided within is for use by professional investors and/or distributors and should not be relied upon by retail investors. All information prepared within has been prepared by CI Asset Management except where otherwise stated. Any views and opinions are those of CIAM at the time of going to print. CIB and CIAM are not responsible for any subsequent investment advice given based on the information supplied.

Major Asset Types* Treasury Bills

Treasury Bonds

Corporate Bonds

Time Deposits

Other mutual funds

Fund performance

Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Sep-20

NAV (EGP) 160.71 163.56 192.99 231.74 282.19 325.11 Total Return since Inception

225.11%

YTD Annualized Return

20.26%

Monthly Annualized Return

17.472%

Asset Allocation

Egypt sells USD750mn five-year green bond at 5.25%, 5x covered Egypt's most recent international issuance was a Eurobond sale in May that was split into three tranches: i) USD1.25bn four-year bonds at 5.75%, ii) USD1.75bn 12-year at 7.625%, and iii) USD2bn 30-year at 8.875%.

Egypt aims to reach self-sufficiency in diesel, positioning itself to export gasoline, jet fuel by 2023 According to the Minister of Petroleum, Egypt imported c10mn tonnes of petroleum products in 2016, worth USD4.5bn. However, it will only import 3.5mn tonnes in 2020, backed by the state-run petroleum projects, conversion to natural gas, in addition to cutting consumption rates.

Ministry of Finance: New initiative to be launched for immediate settlement of overdue export subsidies until end of September, at 15% discount

Treausry Bills18.98%

Mutual Funds6.53%

Treasury Bonds

77.12%

The initiative came in accordance with the presidential directives, to support exporting companies, and provide liquidity to the industrial and export sectors. It will be implemented in cooperation with the banking sector, whereby the Ministry of Finance will issue a guarantee to the CBE, in exchange for the immediate bullet settlement of exporters' cash dues (until the end of September) by the latter before year-end, at a discount of 15%, instead of disbursing them over four or five years. Meanwhile, the ministry will settle the principal and interest amounts to the participating banks over three years. The programme aims to enhance the provision of cash flow that will enable companies to: i) expand their investment activities, in order to create more jobs, ii) maximise their production capacity, iii) grow the export base, and iv) enhance the competitiveness of Egyptian products in global markets, in a way that helps boost the national economy.

CBE cuts rates by 50bps in its Monetary Policy Committee meeting on 24 September This puts the overnight deposit rate, overnight lending rates, and the rate of the main operation at 8.75%, 9.75%, and 9.25%, respectively. The discount rate is currently at 9.25%. The decision to cut rates, according to the CBE statement, comes on moderation of inflation and to support economic activity.

Worker remittances up 11% y-o-y to USD2.9bn in Jul-20 Remittances by Egyptians working abroad recorded a total of USD17bn during January to end-Jul vs. USD15.7bn during the same period a year earlier.

CBE calls on local banks to revise their expected credit losses The CBE called on local banks to deliver reports from their auditing and risk assessment departments within a month. The aim is to assess and potentially revise their models for calculating losses in light of the pandemic and now that they are compelled to comply with the latest International Financial Reporting Standards (IFRS9) to ensure best practices.

NBE, Banque Misr cancel 15% one-year CDs launched in Mar-20 State banks stopped offering the 15% fixed-rate savings certificates that were introduced in Mar-20, after the CBE made its unprecedented 300bps rate cut. They were launched in bid to help combat the spike in cash withdrawals and any pressure on FX amid heightened uncertainty during the outbreak of COVID-19.

Government reassures stabilisation of tax policies, with no intention of raising taxes The Minister of Finance reiterated the government has no plans to raise taxes this year, reassuring that the ministry’s plans to increase the tax base to 2.5% of GDP over the next five years does not imply a tax increase.

CPI decelerates to 3.4% y-o-y in August vs. 4.2% in July This is the lowest recorded level since Oct-19 (3.1% inflation). The rate falls short of the CBE and IMF’s targets of 9%+/-3% and 9%+/-5%, respectively. However, Cabinet announced in 2019, that it expects inflation to rise to 6% in 4Q20.

The information used to produce this fact sheet is based on sources that CIB and CIAM believe to

be reliable and accurate.

This information has not been independently verified and may be condensed or incomplete. CIB

and CIAM do not make any guarantee, representation or warranty and accepts no responsibility or

liability to the accuracy and completeness of such information. All that is stated herein is of an

indicative and informative nature as forward-looking statements and projections. Accordingly, CIB

and CIAM do not take any responsibility for decisions made on the basis on the content of this fact

sheet. This fact sheet is made for the sole use of CIB and CIAM’s customers and no part or excerpt

of its content may be redistributed, reproduced or conveyed in any form, written or oral, to any

third party without the prior written consent of CIB and CIAM. This fact sheet does not constitute a

solicitation or an offer to buy or sell securities or underlying asset classes.

Contacts

If in Egypt

CIB call center 19666

Email: cibfundsenquiries@cibeg.com

Web: www.cibeg.com

Outside Egypt

Tel: +202-247512666

Fax: +202-24343434

Email: cibfundsenquiries@cibeg.com