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> Equities MENA

PROMOTIONAL DOCUMENT

FOR PROFESSIONAL INVESTORS ONLY

January 2009

2Société Générale Asset ManagementJanuary 2009

‘’Non Promotional document. This document is intended for professional clients as defined in the European Directive 2004/39/EC”

SGAM Fund Equities MENA

What is MENA (Middle East and North Africa)?……………………………… 3

Why invest in MENA countries?………………………………….……………. 6

MENA & Oil…………………………………..……………………….………….. 13

MENA & real estate ………………………………..……………………….……. 16

Team & Process …………………………….…..……………………….………. 20

Appendix………………………………………………………………………….. 30

Contents






MENA & Oil …………...…………………………………………………………. 13

MENA & Real Estate……...………………………………………….………….. 16

Team & Process …………………………….…..……………………….………. 20

Appendix………………………………………………………………………….. 30



What is MENA?

EgyptReal GDP growth: 19.5%Nominal GDP 2007: USD 127.9bnPopulation: 73.6m

AlgeriaReal GDP growth: 12.1%Nominal GDP: USD 131.6bnPopulation: 34.4m

MoroccoReal GDP growth: 13.0%Nominal GDP: USD 73.4bnPopulation: 30.7m

TunisiaReal GDP growth: 16.6%Nominal GDP: USD 35.0bnPopulation: 10.3m

OmanReal GDP growth: 20.5%Nominal GDP: USD 40.1bnPopulation: 2.6m

QatarReal GDP growth: 37.5%Nominal GDP 2006: USD 67.8bnPopulation: 0.8m

KuwaitReal GDP growth: 23.9%Nominal GDP: USD 111.3bnPopulation: 3.2m

BahrainReal GDP growth: 22.5%Nominal GDP: USD 19.6bnPopulation: 0.8m

UAEReal GDP growth: 27.1%Nominal GDP: USD 192.6bnPopulation: 4.2m

Saudi ArabiaReal GDP growth: 15.2%Nominal GDP: USD 376.0bnPopulation: 23.7m

LebanonReal GDP growth: 8.1%Nominal GDP 2006: USD 24.6bnPopulation: 3.7m

JordanReal GDP growth: 20.3%Nominal GDP: USD 16.0bnPopulation: 5.7m

Sources: Nominal GDP figures & estimates 2007: IMF; Real three year compounded GDP growth as of end of 2007: IMF.



The region is linked by cultural and linguistic ties

The Middle East has a population of 200 million people, of which half are under the age of 20

GCC produces over a third of global oil supply and represents over 60% of global oil reserves

Throughout most of the GCC a zero tax regime exists

The majority of currencies are pegged to the USD

Source: World Bank Report August 2007, “MENA 2007 Economic Developments and Prospects”.

What is MENA?






MENA & Oil ……… …………...………………………………………………… 13

MENA & Real Estate……...………………………………………….………….. 16

Team & Process …………………………….…..……………………….………. 20

Appendix………………………………………………………………………….. 30



Positive Growth Outlook

Attractive Valuations

MENA & Oil

Real Estate

Why invest in MENA countries?



Source: IMF

GDP growth in MENA

0

1

2

3

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7

8

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%

Why invest in MENA countries?Economic growth



Why invest in MENA countries?MENA growing faster than the rest of the world

World Economic Outlook : % Change by Region

2007 2008E 2009E

World Output 5.0 3.7 2.2

Advanced Economies 2.6 1.4 -0.3

Newly Industrialized Asian Economies 5.6 3.9 2.1

Central & Eastern Europe 5.7 4.2 2.5

MENA 6.0 6.1 5.3

World Economic Outlook : % Change by Region

2007 2008E 2009E

World Output 5.0 3.7 2.2

Advanced Economies 2.6 1.4 -0.3

Newly Industrialized Asian Economies 5.6 3.9 2.1

Central & Eastern Europe 5.7 4.2 2.5

MENA 6.0 6.1 5.3

Source: IMF, World Economic Outlook, Nov 2008



The prospective infrastructure spending is the main growth driver.

The table below shows that the GCC countries are currently planning on spending US$1.5 trillion in projects in the five years to come.

Why invest in MENA countries? Government expenditure & structural reforms

Source: HSBC Global Research, Meed, Thomson Financial Datastream, as of August 2007.

Infrastructure spending Annual average infrastructure spend US$ trillion (% of 2006 GDP)

Bahrain 0.03 43.2Kuwait 0.25 49.1Oman 0.05 25.2Qatar 0.14 53.1

Saudia Arabia 0.36 20.2UAE 0.66 80.7

Total GCC 1.49 41.1

GCC countries: Projected infrastructure spend (approximate five-year horizon)

Country



Selected market performance (in US$)

Why invest in MENA countries? Attractive valuations due to stock market boom and bust

Source: Bloomberg. Data as of 13 January 2009. Indices used are MSCI Egypt Index, Dubai Financial Market General Index, Abu Dhabi Securities Market Index, Tadawul All Share Index and Doha Securities Market 20 Index, capital return in US $.

0

100

200

300

Jan 06 Jul 06 Jan 07 Jul 07 Jan 08 Jul 08 Jan 09

Egypt Oman Kuwait Abu Dhabi Saudi Dubai Qatar



P/E P/B Div Yield % *

Doha Bank 6.1 1.4 10.6

Aldar Properties 2.7 0.7 2.4

Eipico 8.2 1.7 6.9

Qatar Electricity 13.7 2.6 4.6

Commercial Bank of Qatar 7.5 1.4 5.6

Arabtech 2.3 1.3 13.6

Qatar Navigation 7.3 0.6 5.7

Emaar Properties 2.2 0.4 8.5

Burgan Bank 6.7 1.6 10.5

National Société Générale Bank 5.5 1.2 1.4

Company Name

Source: ZawyaBased on price as of 13/01/2009 - trailing 12 months earnings – adjusted for corporate actions* 2008 dividend based on current price

Why invest in MENA countries? Attractive valuations






MENA & Oil …………………………………………………….………….. …… 13

MENA & Real Estate…………………………………………………….………….. 16

Team & Process …………………………….…..……………………….………. 20

Appendix………………………………………………………………………….. 30



MENA & Oil

Estimated deficits are small compared to recent surpluses

Cumulative Fiscal Surplus 2003-2008(USD bn)

Cumulative Fiscal Surplus 2003-2008(USD bn)

Bahrain 6.4 -0.9

Kuwait 183.7 13.1

Oman 22.5 -3.1

Qatar 34.1 -1.2

Saudi Arabia 378.1 -26.5

UAE 221.9 12.8

Source: Regional Central Banks



$

exuberance

anxious

net borrowers

distress

Source: Bloomberg

MENA & OilOil Price - impact on MENA region producer countries

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MENA & Oil ……..…………...………………………………………………….. 13

MENA & Real Estate………...………………………………………….………….. 16

Team & Process …………………………….…..……………………….………. 20

Appendix………………………………………………………………………….. 30



UK

USA

Israel

Lebanon

UAE

Morocco

Jordan

Egypt 12.00%

9.73%

6.56%

5.50%

5.13%

5.13%

4.37%

4.12%

Source: www.globalpropertyguide.com

MENA & Real EstateGross rental yields


‘’Non Promotional document. This document is intended for professional clients as defined in the European Directive 2004/39/EC”Source: Citi Investment Research

0 5000 10000 15000 20000 25000 30000

Cairo

Marrakesh

Beijing

Berlin

Dubai

Sydney

Singapore

Paris

New York

London

Cit

y

$ Price per Square Metre

MENA & Real EstateComparable apartment prices (USD per sq. m)



A value orientated investment approach tailored to take advantage of inefficiencies in MENA region

Total return strategy

Emphasis on company meetings and in-depth research to identify high quality stocks at reasonable valuation levels.

Concentrated portfolio 40-60 stocks

High conviction positions

No country/sector constraints

Strategy

The Style:

The Process:

The Product:

The Aim:

The History:

Investing in the region since 1997

Built up regional know-how that is difficult to replicate

SG Arab Board provide further credibility & expertise






MENA & Oil …………...………………………………………………………… 13

MENA & Real Estate…………………………………………………….……… 16

Team & Process …………………………….…..……………………….………. 20

Appendix………………………………………………………………………….. 30



Mark Krombas Fund Manager – SGAM – London(Over 10 years of experience in emerging markets and 8 years in the region)

Mark was educated at Kingston University and graduated with a degree in Business Studies. He began his career at Trans Arabian Investment Bank before moving to Prime Securities in Egypt. He was subsequently involved in institutional equity sales within the EFG - Hermes Group before moving to work for Société Générale Securities within their EMEA sales team specializing in Middle East and African markets. Prior to joining Société Générale Asset Management UK Limited in March 2004, Mark was employed at Equest

Partners specializing in Global Emerging markets. Mark has been instrumental in the running of the MENA strategy since joining SGAM.

Akhilesh Baveja MENA Equities Analyst – SGAM Bahrain(9 years experience)

Akhilesh joined SGAM Bahrain in October 2008 as an analyst specialising in Saudi Arabian equities. Prior to joining SGAM Bahrain, he was a Senior Analyst and Associate Director with Al-Rajhi Financial Services Company in Riyadh for two and a half years, primarily covering the Saudi market. He also spent four years on equity and equity derivative

research at Unit Trust of India Investment Advisory Services. Akhilesh holds a Master of Management Science in Finance.

Waleed Hamdy MENA Equities Analyst(15 years experience)

Waleed, a CFA holder, joined SGAM UK as a Middle East and North Africa (MENA) Equities Analyst in September 2008 from Beltone Financial, one of the fastest growing investment banks in the Middle East, where he spent three years covering regional institutions and high net worth individuals. Being an Egyptian national, Waleed has brought to SGAM UK a strong knowledge of businesses in the region, as well as management skills acquired as CFO of a regional institution prior to Beltone Financial. Waleed is based in National Société Générale Bank’s Cairo office.

Team & Process2 analysts added



Company Fundamental Analysis

Investment universe Listed stocks of MENA countries

Approximately 1400 stocks

Stocks Buy-List

Portfolio Construction

Investable universeApproximately 330 stocks

Criteria of LiquidityStocks open to foreign

ownership

Support of SG Group presence

in the Middle East

Exploiting inefficiencies due

to under researched companies

Strong emphasis on company

Visits (130+ in 2007)

In-depth knowledge of the selected companies driven by open dialog with

management

Bottom-up investment process



20

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Jun-05 Jun-06 Jun-07 Jun-08MENA Composite MSCI ARABIAN MARKETS $- TOT RETURN IND

Track record

Even if SGAM Fund Equities MENA is managed with the same strategy as the composite, the past performance of the composite does not constitute either a commitment or an indication of the future performance of SGAM Fund Equities MENA. Société Générale Asset Management claims compliance with the Global Investment PerformanceStandards (GIPS®). To receive a complete description of the composite and a presentation that adheres to the GIPS standards, contact (UK-SGAM/[email protected]). The figures shown in this graph are those applicable for the years mentioned. Past performances are not a guarantee for future results, they are not constant over time .

annualized returnsPerformance* 1 month 3 months YTD 1 year 3 years

MIDDLE EAST & NORTH AFRICA EQUITIES COMPOSITE (MENA) 1.47% -41.26% -51.75% -51.75% -2.92%

MSCI Arabian Markets Total Return Index -0.73% -38.28% -53.75% -53.75% -24.14%* Net of management fees, in USD, monthly data as of end of January 2008.

cumulative returns



Portfolio detailsCountry weightings

SGAM Data as of end of December 2008.

Country allocation

Qatar

United Arab Emirates

Saudi Arabia

Egypt

Kuwait

Oman

Tunisia

Middle East Area

0% 5% 10% 15% 20% 25% 30%



Sector allocation

Portfolio details Sector weightings

Source: SGAM Data of Ocean Fund Equities MENA Opportunities as of end of December 2008.

Banks

Real Estate

Others

Capital Goods

Transportation

Pharmaceuticals

Utilities

Energy

Materials

Diversified Financials

Telecommunication

0% 5% 10% 15% 20% 25% 30% 35%



Portfolio detailsTop 10 holdings

SGAM Data as of end of December 2008.

Stock % Country

DOHA BANK LTD 7.27 QATARALDAR PROPERTIE PJSC 4.80 ABU DHABIEIPICO 4.65 EGYPTQATAR ELECTRICITY 4.50 QATARCOM. BANK OF QATAR 4.24 QATARARABTECH 4.18 DUBAIQATAR NAVIGATION 4.00 QATAREMAAR PROPERTIES PJS 3.93 DUBAIBURGAN BANK 3.92 KUWAITNATIONAL SOC GEN BANK 3.43 EGYPT



Risks

Geopolitical tensions …could have a negative impact on equity markets and therefore cause a loss in value

Political succession …could have a negative impact on equity markets and therefore cause a loss in value

Decline in oil price …could have a negative impact on equity markets and therefore cause a loss in value

Inflation…could have a negative impact on equity markets and therefore cause a loss in value



Exciting nascent asset class with strong outlook

Experienced team with strong (and long) track record

Flexible/unconstrained product able to capture this potential….

Summary….



Growth still present in the GCC

Valuations pricing in huge slow down

Main risks – Inflation and lower oil price

In our view the rewards outweigh the risks

….Summary






MENA & Oil ……….…………...………………………………………………… 13

MENA & Real Estate.……………………………………………….………….. 16

Team & Process …………………………….…..……………………….………. 20

Appendix………………………………………………………………………….. 30



SGAM Fund Equities MENA Characteristics

1:00 pm, Luxembourg time

D-1 (no cut-off on Thursdays)

Total Return strategy inception

October 2002 Settlement on D+2

Fund inception May 13, 2008 Subscription currencies USD / EUR

NAV Daily (D)

Class A /AH P/ PH B / BHLU0357743359 / LU0357745057 / LU 0357743789 /

LU0357743607 LU0357745214 LU 0357743946

Initial value price USD / EUR 100 USD / EUR 100 USD / EUR 1,000

Minimum subscription 1 share USD / EUR 500,000 USD / EUR 3,000,000

Maximum initial charge 5% 5% 5%

Redemption fees Nil Nil Nil

Max. management fees 2.00% 1.50% 1.00%

Performance fee

Characteristics

- 15 % of outperformance over 10% hurdle (net of fees); - Calculated on a high watermark basis.

ISIN

Base currency USDSubscription / redemption / conversion cut-off time



Important Note

This product is a Luxembourg open-ended investment fund (“SICAV”) compliant with EU Directive 85/611/EEC.

Distribution of this product is restricted to the countries for which it has been approved, pursuant to applicable local legislation and regulations. The product may not be distributed outside these countries. This document has not been approved by any competent authority in any country. It is your responsibility to verify that the regulations applicable to you do not prohibit the purchase or sale and/or distribution of the product. Before investing in this product, it is your responsibility to carry out your own analysis of the legal, tax and financial risks related to this type of investment, without relying exclusively on the information supplied here. Should you find it necessary, you should seek the opinion of your own advisers and experts in these fields. Subject to compliance with the regulatory constraints arising from the Markets in Financial Instruments Directive (MiFID), in particular the requirement to verify that the product is suitable to your needs, experience and financial situation, neither the product, nor SGAM, nor any related companies or their management or employees may be held liable for the financial or other consequences of your investment in or divestment from this product. We recommend that you refer to the section entitled “Risk Profile” in the full prospectus for this product. The information in this document is indicative only. This document may be amended from time to time without prior notice and must be read in connection with the most recent version of the product’s full prospectus and the appropriate simplified prospectuses. These documents, as well as the most recent annual and interim reports of the product, may be obtained upon request from the head office of SGAM. Any offer, invitation or solicitation shall be made only by means of the prospectus.

This document and its contents are the property of SGAM and the companies of the SGAM group. Reproduction or distribution is strictly prohibited without prior written permission from SGAM.

In addition, the most recent prospectus, the relevant simplified prospectuses and the latest annual-/semi-annual reports are available free of charge upon request as well under www.sgamfonds.de or directly from SG Asset Management (Deutschland) GmbH, Neue Mainzer Straße 46-50, D-60311 Frankfurt / Main,[email protected], +49 (0)69 71 04 28 08 0; for Austria: +43 (1)506 95 49.