Asset Management Updates from ADCB July 2010, Issue 7 · Asset Management Updates from ADCB July...

Asset Management Updates from ADCBJuly 2010, Issue 7

GLOBAL MARKETPERFORMANCE

WELCOME MACRO ECONOMIC

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Dear well informed investor,

“Sometimes I wonder what I’m a gonna doBut there aint no cure for the summertime blues”-Summertime Blues, Eddie Cochran (1958)

As the mercury rises rapidly across the UAE and traffic on the streets of Abu Dhabi eases from mayhem to just plain manic, the realisation hits that it is July and we are in the midst of another sweltering Arabian Gulf summer. Schools are closed, the office is chillingly quiet and flights out of the city are jam-packed with families heading back to the places they call home. But it is not just our individual lifestyle which is being impacted by the rising temperature, UAE financial markets also sing the summertime blues.

The notion of data aberrations at specific recurring points in time is not unique to UAE equities in the summer. In statistics, it is not unusual for an economic time series to exhibit

these periodic fluctuations, a concept commonly known as seasonality. Perhaps the most notable of such seasonality effects outside of the UAE is the increase in retail sales in November and December, the Christmas shopping season, and the subsequent slowdown in January and February. The old stock market adage “Sell in May and go away” is another prime example of seasonality in financial markets where there is a clearly observable negative bias in stock market performance in the months between May and October. A variant, known as the “Halloween effect”, suggests that equities outperform between the months of November and April, a notion supported by academic research from Bouman and Jacobsen (2002) which showed this relationship to be evident between 1970 and 1998 in 36 out of the 37 countries included in their analysis. More significantly, they found this effect to have existed in the UK market since as far back as 1964. Human behavior is the primary cause of these seasonal effects, in the case of

the Halloween effect, it most likely stems from investors closing out positions in anticipation of their summer vacation which ultimately drags equity prices lower. In the UAE the impact is also obvious, perhaps not as much a result of investors squaring off positions ahead of the summer but rather the result of a total dearth of volume traded on the markets which not only pulls the market lower but also exacerbates the volatility. Shrewd investors can use this seasonality effect to their advantage. Late in the summer is perhaps one of the most opportune times to be buying equities. There are, of course, no guarantees that these patterns will hold every year - the efficient market hypothesis tells us it shouldn’t, but on a purely probabilistic basis the odds are firmly stacked in favor of the investor.

In this month’s newsletter we will be looking at what the resumption of growth in GCC markets means to the single country economies of the region as well as exploring the implications of

the Financial Services Reform Bill which was recently approved by US lawmakers. We are also introducing the AllianceBernstein - Global Thematic Research Portfolio, a fund recently added to our WealthDesignTM platform. To learn more about this fund and other ADCB investment products and services please contact your ADCB Relationship Manager or SMS INVEST to 2626.

Kind RegardsMark FriedenthalHead of Asset Management

Welcome to July’s asset management update from ADCB

Asset Management Updates from ADCB

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JULY 2010 ISSUE 7

In June, most global indices fell back on renewed concerns regarding the rate of global economic recovery. US markets suffered heavy losses on reports that employers were hiring fewer staff than expected while US retail sales unexpectedly declined 1.2% in May. Further, US consumer confidence deteriorated sharply in June. As a result, the NASDAQ, S&P 500 and Dow Jones decreased 6.55%, 5.39% and 3.58%, respectively. The FTSE fell 5.23% on profit-taking by Metals on renewed concerns over the strength of the global economic recovery and heavy selling in BP following the oil spill in the Gulf of Mexico. In addition, an unexpected 0.4% m-o-m decline in UK manufacturing activity in April, the first in three months, weighed heavily on investor sentiment. In Asia, the Nikkei 225 closed 3.95% lower in June due to a persistently strong yen, growing fears over deflation and a continued fall in capital expenditure by Japanese companies during the March quarter. Conversely however,

India’s Sensex 30 ignored developments elsewhere, ending up 4.46% on hopes of a good monsoon season and evidence of strong domestic economic growth as shown by a 17.6% increase in industrial production in April. Investor confidence was also buoyed by a thirteenth consecutive month of strong services industry data in May. The Hang Seng closed 1.84% higher in June spurred by stronger than expected growth in loans and Chinese exports during May. All GCC markets (except Qatar’s DSM) were unsettled by lower major global indices. The DFM fell most, down 7.45% in June as pessimism hit both Telecom and Finance & Investment sectors. The MSM 30 and BSE each declined by over 3.7% reflecting large losses in Services & Insurance and Commercial Banks, respectively. However, the DSM rose 1.68% due to a more resilient performance by the Insurance and Service sectors.

The US economy grew 2.7% y-o-y in Q1 2010, much faster than the corresponding 0.2% increase posted by the Eurozone. As a result, the dollar strengthened against the euro, while the yield on US Treasury 10-year notes fell. Gold prices continued to soar, rising 2.75% in June. OPEC and NYMEX crude prices surged 2.93% and 2.24% on hopes of increasing demand as both US and European industrial orders continued to increase.

Dubai’s 5-year government bond (USD denominated) spread decreased by ~10 bps m-o-m in June as investor risk perception continued to improve.

Global Market Performance


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Global Market Performance


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ADCB Wealth Management Group I Research I +97126973525 | [email protected] 1

Commodities, Yields and Currencies

Commodity Latest 1M Change 1Yr Change YTDNYMEX Crude 75.63 2.24% 8.21% (4.70%)

OPEC 72.69 2.93% 4.70% (5.76%)

Natural Gas 4.62 6.33% 20.37% (17.16%)

Gold 1,245.50 2.75% 34.34% 13.72%

Platinum 1,530.90 (1.07%) 30.10% 4.86%

Copper 6,515.00 (5.93%) 27.55% (11.31%)

Sugar 16.06 13.18% (10.03%) (40.41%)

Soybean 948.40 1.15% (22.66%) (8.77%)

Corn 354.20 (1.34%) 1.90% (14.53%)

Wheat 464.60 1.53% (9.12%) (14.19%)

Rice 9.43 (18.95%) (22.89%) (35.26%)

Yields and Currencies Latest 1M Change 1Yr Change YTD

2Y US Treasury 0.61 (0.20) (0.45) (0.46)

10Y US Treasury 2.97 (0.10) (0.16) (0.23)

EUR 1.2190 (0.70%) (13.05%) (14.97%)

GBP 1.5086 3.82% (8.29%) (6.70%)

JPY 88.39 (3.14%) (8.33%) (5.04%)

Index Snapshot (World Indices)

Index Latest 1M Change 1Yr Change YTDS&P 500 1,030.71 (5.39%) 12.12% (7.57%)

Dow Jones 9,774.02 (3.58%) 15.71% (6.27%)

NASDAQ 2,109.24 (6.55%) 14.94% (7.05%)

Hang Seng 20,128.99 1.84% 9.52% (7.97%)

Nikkei 9,382.64 (3.95%) (5.78%) (11.04%)

FTSE-100 4,916.87 (5.23%) 15.71% (9.16%)

Sensex 30 17,700.90 4.46% 22.13% 1.35%

MSCI World 1,041.32 (3.56%) 8.02% (10.88%)

MSCI EM 924.81 (0.17%) 21.48% (6.53%)

TASI 6,093.76 (0.44%) 8.89% (0.46%)

DFM 1,461.80 (7.45%) (18.08%) (18.95%)

ADX 2,514.01 (3.46%) (4.46%) (8.37%)

KSE 6,543.20 (2.34%) (19.02%) (6.60%)

BSE 1,396.29 (3.72%) (11.72%) (4.25%)

MSM 30 6,058.11 (3.75%) 7.95% (4.88%)

DSM 6,899.81 1.68% 6.29% (0.85%)


Commodities, Yields and Currencies

Commodity Latest 1M Change 1Yr Change YTDNYMEX Crude 75.63 2.24% 8.21% (4.70%)

OPEC 72.69 2.93% 4.70% (5.76%)

Natural Gas 4.62 6.33% 20.37% (17.16%)

Gold 1,245.50 2.75% 34.34% 13.72%

Platinum 1,530.90 (1.07%) 30.10% 4.86%

Copper 6,515.00 (5.93%) 27.55% (11.31%)

Sugar 16.06 13.18% (10.03%) (40.41%)

Soybean 948.40 1.15% (22.66%) (8.77%)

Corn 354.20 (1.34%) 1.90% (14.53%)

Wheat 464.60 1.53% (9.12%) (14.19%)

Rice 9.43 (18.95%) (22.89%) (35.26%)

Yields and Currencies Latest 1M Change 1Yr Change YTD

2Y US Treasury 0.61 (0.20) (0.45) (0.46)

10Y US Treasury 2.97 (0.10) (0.16) (0.23)

EUR 1.2190 (0.70%) (13.05%) (14.97%)

GBP 1.5086 3.82% (8.29%) (6.70%)

JPY 88.39 (3.14%) (8.33%) (5.04%)

Index Snapshot (World Indices)

Index Latest 1M Change 1Yr Change YTDS&P 500 1,030.71 (5.39%) 12.12% (7.57%)

Dow Jones 9,774.02 (3.58%) 15.71% (6.27%)

NASDAQ 2,109.24 (6.55%) 14.94% (7.05%)

Hang Seng 20,128.99 1.84% 9.52% (7.97%)

Nikkei 9,382.64 (3.95%) (5.78%) (11.04%)

FTSE-100 4,916.87 (5.23%) 15.71% (9.16%)

Sensex 30 17,700.90 4.46% 22.13% 1.35%

MSCI World 1,041.32 (3.56%) 8.02% (10.88%)

MSCI EM 924.81 (0.17%) 21.48% (6.53%)

TASI 6,093.76 (0.44%) 8.89% (0.46%)

DFM 1,461.80 (7.45%) (18.08%) (18.95%)

ADX 2,514.01 (3.46%) (4.46%) (8.37%)

KSE 6,543.20 (2.34%) (19.02%) (6.60%)

BSE 1,396.29 (3.72%) (11.72%) (4.25%)

MSM 30 6,058.11 (3.75%) 7.95% (4.88%)

DSM 6,899.81 1.68% 6.29% (0.85%)

GCC economies resume growth GCC economic growth slowed substantially during the recent global financial crisis due to tighter external financing conditions, sharply lower crude oil prices, declining private sector domestic demand and OPEC-induced cuts in oil production driven by weak global demand. Subsequently, GCC regional GDP growth fell to 0.3% in 2009 from a robust 7% in 2008 based on Institute of International Finance (IIF) estimates. Further, the GCC fiscal surplus narrowed to 6% of GDP in 2009 from 22% in 2008.

Nevertheless, GCC economies are rapidly returning to growth, mainly due to supportive public spending based on major fiscal surpluses, driven by higher crude oil revenues, helping offset the post-crisis slowdown in both bank lending and private sector investments. GCC countries are therefore expected to recover strongly with GDP growth of 4.4% and 4.7% in 2010 and 2011 respectively.

Robust government spending is mainly being supported by large fiscal surpluses in GCC regional economies. The combined current account surplus for all GCC countries is expected to increase from USD 48bn in 2009 to USD 129bn in 2010 and USD 165bn in 2011 (equivalent to 15% of GDP), providing ample funds to maintain high government spending. Current account surpluses will mainly be driven by stable crude oil prices and expansion in production capacity, resulting in increases in regional hydrocarbon revenues from USD 323bn in 2009 to USD 419bn and USD 457bn in 2010 and 2011, respectively as per IIF.

Unlike robust government spending, private sector investment may remain weak in the near term due to high funding costs as banks maintain a more cautious and discriminatory approach to lending. However, private sector investment will gradually pick up as economies gain further impetus from a steady

demand revival in key sectors such as real estate and construction. Furthermore, restructuring of Dubai World debt will play an important part in restoring the confidence of both domestic and international lenders. Additionally, private sector investments will be supported in the medium term by deeper structural reforms, including rehabilitation of bank balance sheets, restructuring of the non-banking financial sector, and risk management across the GCC region.

Macro Economic Trends


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GDP Growth in the GCC region

7.2%6.1%

6.7% 7.0%

0.3%

4.4% 4.7%

0.0%

2.0%

4.0%

6.0%

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2005 2006 2007 2008 2009e 2010e 2011eSource: IIF

Current Account Surplus in the GCC region

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7.2%6.1%

6.7% 7.0%

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2005 2006 2007 2008 2009e 2010e 2011eSource: IIF


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7.2%6.1%

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2005 2006 2007 2008 2009e 2010e 2011eSource: IIF


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7.2%6.1%

6.7% 7.0%

0.3%

4.4% 4.7%

0.0%

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2005 2006 2007 2008 2009e 2010e 2011eSource: IIF


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7.2%6.1%

6.7% 7.0%

0.3%

4.4% 4.7%

0.0%

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6.0%

8.0%

2005 2006 2007 2008 2009e 2010e 2011eSource: IIF


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7.2%6.1%

6.7% 7.0%

0.3%

4.4% 4.7%

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2005 2006 2007 2008 2009e 2010e 2011eSource: IIF


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Financial Services Reform Bill: prevention better than cure

The Financial Services Reform Bill makes substantial changes to US financial regulations by bringing American banks and financial markets under tighter government control. On the one hand the bill attempts to reduce systemic risk by restricting the activities of major financial institutions in order to limit the possibility of a repetition of the recent financial crisis and subsequent taxpayer bailouts of financial institutions considered “too big to fail”. On the other hand, it protects the interests of both investors and consumers. The bill takes several key steps towards strengthening US financial systems by increasing regulations and providing a framework within which activities of large financial institutions may be restricted.

In a bid to address the causes of the market collapse in 2008, the bill attempts to alter incentives for lenders, investment bankers and credit-rating firms to control risk-taking and to establish greater

transparency in derivative transactions to diminish counterparty risk. We summarize below several key proposals benefiting investors and restricting institutions.

•Limitation on higher risk investments: Investments by financial institutions in hedge and private-equity funds will be limited to a maximum of 3% of capital. Where its proprietary book exceeds prescribed limits, institutions may be required to divest divisions, i.e. proprietary-trading desks. •Sharing of credit risk: Institutions that securitize loans will be required to retain 5% of credit risk on their own balance sheet. •Resolution Authority: The bill empowers federal regulators to seize and dismantle troubled financial firms whose collapse may cause widespread damage.

•Reduced counterparty risk: The bill compels greater derivatives visibility by requiring that they be traded on exchanges and that such trades be

conducted through clearing houses, where the costs of one party default will be widely shared.

•Negligence: Investors are now empowered to sue credit-rating agencies for negligence.

•Say in executive pay: Shareholders will receive a non-binding vote on executive pay and “golden parachutes”.

Like investors, consumers benefit from key protection proposals under the new legislation. The bill proposes the creation of a new consumer-protection agency with power to oversee a broad range of financial products including mortgages, checking accounts and credit cards in order to protect against unfair and deceptive practices. In addition, the bill includes various provisions such as a permanent increase in deposit insurance to USD 250,000, the elimination of prepayment penalties on mortgage loans, and banning of payments to brokers for steering borrowers toward higher risk loans.

In so far as the Financial Services Reform Bill strengthens the US regulatory framework, it could prevent the cascade-effect of a future financial crisis similar to that recently involving US sub-prime debt. In the near future, successfully passing the bill could also encourage other countries to draft similar regulations to avert another large-scale financial crisis.



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JULY 2010 ISSUE 7

For this issue of our Global Markets newsletter, ADCB brings to your attention a unique fund that aims to achieve capital appreciation through investing into securities of innovative companies.

Portfolio Objective and StrategyThe investment objective of the Portfolio is to achieve long-term capital appreciation. The Portfolio pursues opportunistic growth by investing in a global universe of companies in multiple industries that may benefit from innovation. The Investment Manager utilizes top-down research to find those secular themes that are the long-term drivers of the market outlook across industries. The Manager also uses bottom-up research to identify the most attractive candidates—those with compelling earnings growth prospects and valuations that are aligned with the themes identified in top-down research. The result of this philosophy is a reiterative investment process where the top-down thematic outlook is validated

by our bottom up research. It is the combination of the two research views that allow for the conviction to capitalize on compelling investment opportunities that have the potential to add substantial return value.


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Global Thematic Research Portfolio

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ISSUE 7

Index Snap shot (World Indices)

Domicile: Luxembourg

Portfolio Inception Date: 1 August 1996 (Class A)

Assets Under Management: USD 99.96 million

Fiscal Year: 31 August

Subscription/Redemption: Daily

Base Currency: USD

Benchmark: MSCI Al l Country World Index

Profile:

Disclaimer: Prior to 30 November 2009, the Portfolio was named Alliance-Bernstein—Asian Technology Portfolio. Also at this time, the Portfolio’s strategy and benchmark changed. Please see prospectus for details.

CONTINUE

How it’s done:

1. Thematic Investinga. Thematic investing seeks to identify and exploit powerful themes that may drive profits across industries

b. Research helps the fund manager to understand the drivers and consequences of these key themes over time and identify companies that may benefit from these changes

c. Thematic investing may provide an attractive diversification element to an overall portfolio, potentially enhancing returns while reducing overall portfolio risk

2. Uncovering Global Opportunities a. The Portfolio draws on a global research platform that uses thematic, fundamental and quantitative analysis to identify approximately 60–80 “best ideas”

b. Dedicated “top-down” research allows us to uncover secular themes that are long-term drivers of the market outlook across industries

c. Bottom-up research helps us identify the most attractive stocks aligned with those themes

3. The Five Current Themesa. Heightened Cyclicality 33% WeightMassive stimulus efforts to help revive the global economy have led us to a reshaped environment of cyclical opportunities

b. Web 2.0 28% WeightPromising new companies are learning how to exploit the global increase in broadband capacity

c. Abating Climate Change 20% WeightNew expenditures to control climate change have profound investment implications

d. Genomic Age 13% WeightNew genetic therapies will redefine how we practice medicine and open up vast new opportunities

e. (re) Emerging Middle Class 5% WeightThe rapid growth of emerging economies, particularly in China, has given birth to a new and rapidly growing middle class


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Source: BloombergDisclaimer: Prior to 30 November 2009, the Portfolio was named Alliance-Bernstein—Asian Technology Portfolio. Also at this time, the Portfolio’s strategy and benchmark changed. Please see prospectus for details.


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ADCB Gold Linked Account 2

For years Gold has been used as a vehicle for monetary exchange. During the last few decades, Gold has turned into a store for value. As a safe haven, investors convert part of their assets to Gold in times of distress.

For this month of July, ADCB offers its clientele the opportunity to invest in Gold, while protecting their capital at Maturity. Investors will get their full capital back, while enjoying returns equal to those of Gold, however capped at 9% (if positive).

Summary and Payout Scenario of Product Features:

JULY 2010 ISSUE 7

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10 Year Historical Performance

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ADCB Gold Linked Account 2

JULY 2010 ISSUE 7

Index Snap shot (World Indices)

Name ADCB Gold Linked Account 2

Currency AED

Underlying Gold (Bloomberg: GOLDLNPM Index)

Capital Protection 100%

Trade Objective Provide investors with the full upside performance of Gold, capped at 9%, and floored at 0%

Launch Date July 4, 2010

Last Date for Subscription Ju ly 28, 2010

Strike Date August 2 , 2010

Tenor 1 Year

Fee NIL

Minimum Investment AED 30,000

Liquidity None. Investor has to hold to Maturity

Trade Structure:

Benefits to the client:• Short term (one year)• Exposure to Gold with a maximum return of 9%, double that of the deposit• 100% capital guaranteed at Maturity.

Payout Scenario:• If at Maturity, Gold price is lower than its Initial Price, investor will get 100% of its capital, and No coupon.• Otherwise, if at Maturity, Gold price is up 7%for example, investor will receive 100% of his capital + 7% coupon,• Otherwise, if at Maturity, Gold price is up 11% for example, investor will receive 100% of his capital + 9% coupon.

Fact: about Gold: India is the world’s largest consumer of gold, as Indians buy about 25% of the world’s gold, purchasing approximately 800 tonnes of gold every year. India is also the largest importer of the yellow metal; in 2008, India imported around 400 tonnes of gold. (Source: Wikipedia.com)

Subscriptions are open until the 28th of July 2010.


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JULY 2010 ISSUE 7

Shari’ah Compliant

Equity Funds M&G GLOBAL LEADERS-$-A-ACC USD 6.90 (4.83%) (12.88%) (11.99%) 8.83% (38.50%) 17.54% BNP PARIBAS ISLAMIC-EQY OPTIMISER-$-C-ACC USD 1,062.19 (1.48%) (11.43%) (10.33%) 7.09% (20.49%) 14.88% SCHRODER INTL EMERG MKTS-$-A-ACC USD 11.09 0.27% (9.40%) (9.40%) 17.73% (9.76%) 21.22% M&G AMERICAN FUND-$-A-ACC USD 7.65 (6.83%) (13.37%) (8.32%) 12.65% (30.17%) 17.54% SCHRODER INTL EURO EQT-A ACC EUR 17.92 (1.27%) (9.86%) (9.77%) 8.61% (38.80%) 16.63% JPMORGAN F-JF PAC EQ-A-A$ USD 11.45 (1.21%) (10.48%) (5.53%) 9.46% (22.43%) 15.20% SCHRODER INTL BRIC-$-A-ACC USD 179.35 0.44% (8.71%) (10.30%) 14.88% (7.26%) 19.57% CAAM ISLAMIC BRIC QUANT FUND-$-C-ACC USD 179.36 (0.31%) (8.66%) (7.90%) 21.42% N/A 21.52% AL-NOKHITHA FUND-ACC AED 3.82 (7.08%) (17.34%) (9.72%) (0.55%) (63.52%) 32.64% ADCB-MSCI UAE INDEX FUND-ACC AED 3.85 (8.18%) (20.18%) (14.89%) (5.01%) (63.46%) 39.97% ADCB-MSCI ARABIAN MKT $-ID-ACC USD 5.07 (1.66%) (10.51%) (0.50%) 3.56% N/A 17.74% KOTAK INDIAN MID CAP FUND $-C USD 346.10 6.64% 2.84% 9.19% 54.57% (10.45%) 21.13% FRANKLIN INDIA FUND $-AAC USD 23.37 3.91% (2.05%) 5.46% 33.16% 15.01% 17.44% FIDELITY LATIN AMERICA FUND $-A USD 39.15 2.54% (6.56%) (6.50%) 36.51% 5.16% 25.09% TEMPLETON EMERG MKTS SMALLER CO A$-ACC USD 7.17 (0.55%) (7.12%) 1.85% 33.27% N/A 18.28% GLOBAL THEMATIC RESEARCH PORTFOLIO $-A USD 13.22 (3.85%) (11.93%) (10.25%) 16.48% (23.94%) 24.87% Fixed Income BNY MELLON GL-GLOBAL BOND-$A USD 1.99 1.93% 1.35% 0.79% 6.18% 18.74% 7.58% ING (L) RENTA-EM MK DB LC-XC USD 52.70 (0.77%) (5.03%) (2.37%) 3.15% 6.42% 6.64% SCHRODER INTL GL CORP BD-AAC USD 8.38 0.60% 1.21% 3.46% 13.70% 19.54% 3.89% Commodities DB PLATINUM-COMMODITY $-R1C USD 17,886.24 (4.24%) (9.37%) (15.29%) 2.74% 10.66% 17.52% JPMORGAN F-GLB NAT RE-$-A-ACC$ USD 14.50 (2.23%) (10.93%) (6.45%) 26.75% (25.49%) 22.82% BLACKROCK WORLD GOLD FUND $ -A2 USD 53.40 4.75% 10.56% 7.66% 29.80% 38.95% 25.15% Real Estate HENDERSON HOR-G PROP EQTY $-A2 USD 11.24 (1.32%) (6.88%) (3.52%) 26.29% (33.80%) 19.91% Hedge JPM INV-HIGH STAT MAR N-A$H USD 152.65 (1.03%) (3.36%) (2.97%) (4.69%) N/A 2.56% GATEWAY U.S. EQUITY FUND $-RA USD 104.22 (1.65%) (5.13%) (3.84%) 2.35% (12.19%) 6.23% Balanced FIDELITY MULTI-ASSET NAVIGATOR FUND $-A-ACC USD 9.52 (0.53%) (6.44%) (7.35%) 11.50% (4.57%) 13.73% Index MSCI WORLD USD 1,041.32 (3.56%) (13.26%) (10.88%) 8.02% (35.01%) 17.46% MSCI EM USD 917.99 (0.91%) (9.14%) (7.22%) 20.58% (13.37%) 20.23% S&P GLOBAL REIT INDEX USD 109.06 (3.39%) (7.58%) (3.81%) 30.49% (44.92%) 21.26% S&P GSCI OFFICIAL CLOSE INDEX USD 4,025.97 0.42% (10.41%) (11.21%) (5.43%) (32.90%) 18.71% US CASH INDICES LIBOR TOTAL RETURN USD 175.34 0.05% 0.09% 0.15% 0.35% 7.39% 0.05% MSCI UAE USD 277.31 (8.31%) (20.99%) (15.74%) (7.69%) (54.21%) 35.95%

Fund House Performances

Funds Currency NAV 1M 3M 6M 12M 36M 12M Volatility

Disclosures:

This document is for information and illustrative purposes only; it is in no way an offer or solicitation to buy or sell any investment products, but only information being provided. ADCB will not be held liable for any information provided in this document which is stated to have been obtained from third party sources. This information may be based on assumptions or market conditions and may change without notice.

The information in this report was prepared by employees of ADCB and is current as of the date of the report. The information contained herein has been obtained from sources that they believe to be reliable, but ADCB does not guarantee its accuracy, adequacy, completeness, reliability, or timeliness, and will not be held liable for any investment decisions made based on this information. Moreover, ADCB is not responsible for any errors or omissions or for the results obtained from the use of such information. All information and estimates included in this report are subject to change without notice. ADCB will furnish, upon request, available

investment information supporting this recommendation. This report is intended for qualified customersof ADCB.

The information provided in this document should be read in conjunction with the Fund Prospectus, Term Sheet and Subscription Agreement, potential investors must ensure that they read and understand the terms, conditions and information contained in the same. Past performance does not guarantee future results. Investment products are not bank deposits and are not guaranteed by ADCB. They are subject to investment risks, including possible loss of principal amount invested. Please refer to ADCB Terms and Conditions for Investment Services.

You may not redistribute this report without explicit permission from ADCB.

Asset Management Updates from ADCB July 2010, Issue 7 · Asset Management Updates from ADCB July...

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