John A Sandwick Manager Safa Investment Services Islamic

John A. Sandwick Manager, Safa Investment Services - Islamic Wealth & Asset Management S. A. 1

Sharia-compliant global asset allocation Riyadh, Saudi Arabia In technical cooperation with Islamic Wealth & Asset Management S. A. Geneva, Switzerland April 2013

About Safa Investment Services • The Investor for Securities Co. (“The Investor”), founded 2007, licensed by Saudi Capital Market Authority • SAR 7 billion AUM (about CHF 1. 8 billion), mostly local real estate funds • Over 800 domestic Saudi clients • Leading Saudi investment company, over 40 staff, Riyadh based • Just bought position in Islamic Wealth & Asset Management S. A. • IWAMSA owns the Safa brand, franchised to The Investor • The Investor expanding into liquid asset management, Safa Investment Services • Target market is awqaf (Islamic endowments), takaful (Islamic insurance), private clients • Large potential market • Entirely sharia compliant, bottom-up fatwa 3

Islamic asset management • Same professional rules as conventional asset management industry • Strict filtering, sorting and qualification of all assets • Only “best of class” assets allowed • Asset allocations fully optimized using advanced asset allocation software • Superior results from professional asset management 4

The Islamic investment universe There are more than 800 sharia-compliant funds and ETFs in the world today with over $100 billion Assets Under Management (AUM). Must filter & sort these >800 funds and ETFs, then means-variance test to create a proprietary Buy List: • • More than $50 million AUM More than 2 -year track record Less than 30 -day liquidity Acceptable legal jurisdiction Transparent, timely reporting Direct access to managers Fatwa from one or more of the major sharia scholars Qualifying Islamic sub-universe has over $50 billion Assets Under Management. SHARIA-COMPLIANT FUND BUY LIST Asset Class Count AUM Money Market 17 $4. 7 billion Sukuk 60 $2. 4 billion Trade Finance 15 $9. 6 billion 209 $14. 3 billion 12 $18. 2 billion 9 $2. 5 billion 59 $1. 3 billion 381 $53. 1 billion Equities Precious Metals Real Estate Special Strategy Total Construct portfolio allocations among the “best of class” funds on a proprietary Buy List. 5

Asset allocation, hypothetical Balanced strategy ASSET CLASS Murabaha & trade finance Sukuk & trade finance % OF TOTAL 15% 5% 5% Murabaha & Trade Finance Funds Fixed Income (sukuk & trade finance) Funds 45% Global equities Alternative Investments 1. 2. 3. 4. 35% Equity Funds 35% 15% Alternative Investment Funds Above is identical to conventional, but entirely sharia-compliant Balanced allocation Muslims require performance equal or superior to conventional allocations, but with full respect for sharia All investible assets must be from professional Buy List Allocations must meet global professional asset management standards, but also strict sharia standards 6

Historic performance Performance measured 1/1/08 to 31/1/13 Portfolio Performance vs. 50% ML Bonds/50% MSCI Equities Annualized Return Cumulative Return Annualized Excess Return Cumulative Excess Return Balanced Islamic Portfolio USD 4. 39% 24. 42% 0. 81% 4. 82% Julius Baer Strategy Balanced USD B 0. 63% 3. 22% -2. 96% -16. 37% Black. Rock Global Allocation A 2 USD 0. 86% 4. 43% -2. 73% -15. 17% Credit Suisse Portfolio Fund Balanced USD B 0. 49% 2. 54% -3. 09% -17. 06% USD global balanced investing comparables 7

Risk & return Standard Deviation Sharpe Ratio Balanced Islamic Portfolio USD 7. 03% 0. 56 Julius Baer Strategy Balanced USD B 9. 18% 0. 02 Black. Rock Global Allocation A 2 USD 11. 84% 0. 04 Credit Suisse Portfolio Fund Balanced USD B 11. 49% 0. 00 50% Merrill Lynch Global Bonds/50% MSCI Global Equities 12. 18% 0. 26 Risk & return variables measured 1/1/08 to 31/1/13 8

Drawdown Max. Drawdown Begin Max Drawdown Recovery Date Length Drawdown measured 1/1/08 to 31/1/13 Max. Drawdown Pain Index Gain-to-Loss Ratio Balanced Islamic Portfolio USD -16. 29% May-08 16 3. 56% 0. 99 Julius Baer Strategy Balanced USD B -26. 19% Jan-08 26 7. 62% 0. 87 Black. Rock Global Allocation A 2 USD -27. 10% Jun-08 23 8. 46% 0. 77 Credit Suisse Portfolio Fund Balanced USD B -28. 27% Jun-08 24 8. 84% 0. 91 50% Merrill Lynch Global Bonds/50% MSCI Global Equities -29. 04% Jun-08 19 5. 90% 0. 91 9

Return distribution Omega MAR = 0% Upside Omega MAR = 0% Downside Omega MAR = 0% Zephyr-K Ratio Balanced Islamic Portfolio USD 1. 63 0. 98% 0. 60% 13. 4 Julius Baer Strategy Balanced USD B 1. 09 1. 02% 0. 93% 5. 30 Black. Rock Global Allocation A 2 USD 1. 1 1. 39% 1. 26% 5. 08 Credit Suisse Portfolio Fund Balanced USD B 1. 08 1. 33% 1. 23% 4. 27 50% Merrill Lynch Global Bonds/50% MSCI Global Equities 1. 31 1. 52% 1. 16% 8. 59 Measured 1/1/08 to 31/1/13 10

Omega 11

Balanced Islamic Portfolio USD Periodic returns Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total 2013 0. 87% - - - 0. 87% 2012 4. 07% 1. 67% 0. 34% -0. 55% -3. 10% 0. 84% 0. 61% 1. 38% 1. 47% -0. 84% -0. 21% 0. 65% 6. 34% 2011 0. 01% 0. 19% 2. 18% 2. 33% -0. 64% -0. 32% 0. 36% -1. 66% -3. 56% 3. 09% -1. 34% 0. 91% 1. 36% 2010 0. 33% 1. 17% 3. 17% 1. 22% -3. 52% 1. 58% 0. 71% 1. 42% 3. 03% 0. 90% -0. 18% 3. 39% 13. 84% 2009 -1. 12% -1. 21% 1. 54% 2. 71% 3. 33% 0. 67% 0. 88% 0. 70% 2. 05% 1. 84% 1. 52% -0. 32% 13. 24% 2008 -0. 02% 1. 91% -0. 87% 2. 27% -0. 83% -0. 80% -0. 68% -3. 24% -4. 40% -6. 71% -0. 71% 2. 65% -11. 23% 12

Contacts For more information, Saudi Arabia: Safa Investment Services The Investor for Securities Aljomaiah Towers, King Fahd Road P. O. Box 67838 Riyadh 11517, Saudi Arabia Telephone: +966 (1) 200 -7002 x 182 e-mail: info@safainvest. com www. theinvestor. com. sa For more information, Switzerland: Safa Investment Services Islamic Wealth & Asset Management S. A. 1204 Geneva Switzerland Telephone: +41 (79) 642 -2304 e-mail: info@safainvest. com www. safainvest. com 13