Fund Man

The MEDA registering Manager’s dbenefited tcame from with the Sawtih an 18with Dubai In North Aregistering among thethis rally. MJordanian a In the GCperformancbanking anopening thegradual resmarket highto capitalize In the UAEThe Fund wpositive vievaluations a

The Investmgoing into earnings gshould be tchanges wiinterest frothe markets

The MEDpersistent the boardregion reghave led tand creditdeclining increased undervalu In Saudi Anot been fwhich in tmost attrasteps whicin the med In the UAwithin thein order toreal estate In Qatar, The core petrochemmonth on a macro sregion. It is impodescribed meltdown correctionmarket dihave comebelieves thtaking a loonce the m

Hashem M Karim Neh Mohamed Tel: 9714e-mail : A

-60%

-40%

-20%

0%

20%

40%

60%

ager’s Strategy

Fund added 5.1its sixth consec

decision to overwhe Fund as the the GCC. The M

audi market lead8% return for De

and Abu Dhabi a

Africa, the Egypan 8% return

e standout perfoMoreover, the Fuand Moroccan ma

CC markets, thce throughout thnd petrochemicae market to forestoration of rether. The Investme on the strong t

E, the real estatewas well positionew on the Dubaand compelling e

ment Manager m2008. Increasedrowth rates, cothe supporting dth respect to corm foreign institus higher in 2007

Fund M

DA Fund declineddecline in the ME, with the sell-ofgardless of fundato a global reprict. The worst perfo16%, 15%, andthe cash positi

ed assets when v

Arabia, volumes hafully engaged witturn exacerbated active markets inch were recently dium term.

AE, the Central Be banks by injectino address a liquide sector continued

the Investment themes continu

micals and logisticthe back of nega

standpoint, the Qa

ortant to note thas one of the mois attributed to

experienced in tslocations. The e down considerahat investors thatong term view in market dislocation

Montasser – Head

hma – Fund Mana

Abdel Halim – Se4-363 4047 / Fax: Msales@efg-herm

Year to Date

MED

y & Outlook

1% in Decembercutive year of pweight the GCC majority of the

MENA markets clding the way foecember. The UAadvancing 11% a

ptian market main December. T

ormers, and the und continues toarkets.

he Saudi Arabiahe month. The al sectors leadineign investors in tail investor conment Manager hatwo-month rally.

e sector was amned to benefit frai and Abu Dhaearnings growth

maintains a positi IPO and M&A a

oupled with the drivers for 2008. rporate governan

utional investors w.

Manager’s Strat

d 13.2% during ENA markets. Marff hitting every mamentals. The uncing of risk whichorming markets wd 14%, respectiveion of the Fund

volatility begins to

ave been light anth the market durthe declines. The

n the region andimplemented by t

Bank has announng AED 50 billion dity shortage. Thed to weigh on the

Manager maintaiue to be centercs. The Qatari mative sentiment anatari economy rem

hat the current cost acute in financ

systemic eventshe MENA marketsGCC macro pictu

ably in the last twot are willing to takthe current circum

ns subside.

of Asset Managem

ger

enior Vice Presiden 9714-362 1171

mes.com

e 20

DA Fund vs. MSC(net of

r to close 2007 positive returns.

markets at the attribution for t

losed the year or the second coAE markets alsoand 9.5%, respe

aintained its strhe financial servFund’s holdings

o retain a minor

an market disprally was broad ng the way. Spthe near future nfidence has heas reshuffled the

mong the top perrom this rally anabi markets giveoutlook.

ve outlook on thactivity, attractiv

currency revaluFurthermore, on

nce should resultwho were instru

tegy & Outlook

September on ket dislocations w

major market and nprecedented eve in turn led to a

were Egypt, Saudiely. The Investmd in order to tasubside.

d several of the loring the traditionae Saudi market re

d we believe thatthe CMA should s

ced measures toin deposits into t

e persistent negatmarkets.

ned the Fund’s wred around sele

market declined bynd foreign investomains one of the

risis in the globacial history. Whiles, we believe thas is largely as a rure remains souno months. The Inke advantage of tomstances will be f

ment

nt

007

CI Arabian Markefees)

MEDA Fund M

at 50.4%, whileThe Investmentstart of the yearthe 2007 returnson a strong note,nsecutive month

o performed welctively.

rong momentumvices sector wass benefited fromexposure to the

played a strong based with thepeculation aboutcoupled with theelped drive that Fund’s positions

rforming sectorsd we maintain a

en the attractive

he MENA marketsve valuations anduation possibilityngoing structurat in an increasedmental in driving

k

the back of thwere evident acros

sector across thents of Septembedry up in liquidit

i Arabia and Dubament Manager haake advantage o

ocal investors haval Ramadan periodemains one of tht the liberalizatiosupport the marke

o enhance liquiditthe banking sectotive outlook on th

weighting at 14%ective real estatey 11% during th

or liquidation. Frommost sound in th

al markets can be the global markeat the pronounceresult of significannd, and valuationvestment Manageoday’s bargains bfavorably rewarde

2006

ets

MSCI Arabian Markets

e t r s , h l

m s

m e

g e t e t s

. a e

s d y l

d g

The EFGSeptem

he ss he er ty ai as of

ve d, he on et

ty or he

%. e, he m he

be et ed nt ns er by ed

Long Africa

RetMonYea200200200200

NAVNo. LauListiStruManInceExpMiniSub

ISINISINSedReuBloo

No. WtdP/E BetaInfoStan

*Calcu

HolQataEmiArabArabMaa

G-Hermes Midmber 30th, 2008

term capital appan equities and eq

turns Mnth to Date r to Date 7 6 5 4

V per Shareof Share Certificatench Dateingucturenagement Feeentive Feeense Ratioimum Subscription

bscription / Redemp

N (Class A shares)N (Class C shares)ol

uters Codeomberg Ticker

of Holdingsd. Market Cap (mmRatio 08

aormation Ratio*ndard Deviation*ulated vs. MSCI Arabia

dingar Gas Transportrates NBDbtecbian Pipesaden

A

Cash42%

Financials10%

ConsumerGoods2%

Other5%

Basic Materials

10%

ddle East & De8

Object

reciation through quity-related secu

Fund Perfo

MEDA Fund MS -13.2% -19.2% 50.5% 6.2% 60.9% 52.7%

Fund Infor

es

ption

Fund Iden

Fund Charac

)

n Markets since index

Top 5 Hol

QatUAUASauSau

Allocation By

Allocation By Eco

Egypt8%

Jordan3%

UAE11%

s

Constr &Real Esta

14%

r

eveloping Afric

tive

investing in Middrities.

rmance

SCI Arabian Mark -16.3% -28.8% 47.4% -40.4% NA NA

rmation

USD34,5July

Dubai FinaOpen

115% o

1USD

Mo

ntifiers

BMG29 BMG29

0-67LP65EFGM

cteristics

22 USD 6,0 9.5 0.5 1.2 15.3

x inception in June 200

ldings

Countrytar

AE AE udi Arabia udi Arabia

y Country

onomic Sector

n Qatar13%

Saudi Arab20%

Industrial17%

& ate

ca (MEDA) Fun

dle East and Nort

kets Differenc 3.1% 9.6% 3.1% 46.5% NA NA

D 29.23554,1792, 1999ancial Marketn Ended.4%

over 10%.9%10,000

onthly

940410309404202075-9705037105MEAF BH

0675x52%

05

% of NAV4.2%4.0%3.8%3.8%3.8%

Oman2%

Morocco1%

bia

Cash42%

nd

th

ce

V