Investment Embracing Shariah Principles

JSE September 2006

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Contents

1. What is Islamic Finance?

2. Development of Islamic Fund Management

3. The Oasis Experience in Islamic Fund Management

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What is Islamic Finance?

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Features of Islamic Finance

Partnership - sharing Risk & Reward

discourage debt & situations of credit default

Real Assets back every transaction

discourage financial hybrids and derivatives

Avoids investing in the sins

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e.g. pork, alcohol, tobacco, gambling, etc.

A low risk investment alternative

Speculation avoidance
no derivatives etc.

Debt avoidance
reduced interest rate risk

Asset backed investments

endure bear markets

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Development of Islamic Finance

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Support & growth of Islamic finance

Gordon Brown pledged support for the growth of Islamic finance Sukuk market had grown to $41 billion*
- Expect $9 bil new sukuks in next 6 months*

Western Institutions are getting involved

- 3.3 billion for Dubai Ports project - underwritten by Barclays Capital
* source: Financial Times (July 2006)
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Growth in Islamic financial institutions

Fastest growing global financial sector
300 250 200 150 100 50 0 1997

Institutions

+ 55% growth

2006

In more than 75 countries (Bahrain & Malaysia the largest hubs)

Total assets exceed $250 billion and are growing at 15% a year

Institute for International Research, Institute for Islamic Banking & Finance Please refer to General Council of Bank and Islamic Financial Institutions, IMF (F&D 2005) the Legal Disclaimer

Source:

Reasons for growth in Islamic finance

Strong demand for these products
modern investment products facilitate greater choice

low risk investment alternative avoids:

increased market volatility high-risk speculative activity

greater potential to erode capital

Growth in wealth & education of investors

particularly in oil rich & industrialized countries

increased wealth facilitates improved education

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Fostering growth in Islamic finance

REGULATION CREDIBLE BENCHMARKS SPECIALISATION AND COOPERATION

Promoting accountability and transparency Increased participation of service providers

Foundation for universal application

ENHANCED PRODUCT

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Regulation and transparency

The Islamic Finance Framework provides:
REGULATION TRANSPARENC Y

Highest global standards Increased credibility

Reporting performance, etc. Promotes accountability

Foundation for universal application of GLOBAL FUND MANAGEMENT OPERATION

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Regulatory and institutional standards

1985 Organisation of the Islamic Conference (Islamic Fiqh Academy) 1989
Saudi Arabia Bahrain Saudi Arabia Bahrain Malaysia Bahrain Bahrain Bahrain

Accounting and Auditing Organisation of Islamic Financial Institutions (AAOIFI)

1999 Islamic Corporation for Economic Development 2001 General Council for Islamic Banks and Financial Institutions (GCIBFI)

2002 Islamic Financial Services Board (IFSB) 2002 Islamic International Rating Agency (IIRA) 2002 International Islamic Financial Market (IIFM) 2002 Liquidity Management Centre
Collaboration with regional regulatory bodies
Aligning regulatory standards globally
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Co-operating with world governing institutions (IMF, IOSCO, WB)

Product Innovations in Islamic Finance

Islamic mutual funds (diversified across asset classes) Equity investment products Sukuks (Islamic bonds) Real estate investment products

Islamic hedge funds

Short term investment instruments Takaful (Islamic insurance)

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Growth in Islamic Mutual Funds

Islamic equity fund assets grew 25% between 1997 to 2003
Total of 330 listed Islamic Investment Funds*

Products include:
Equity funds Real estate and property funds Murabaha funds (contract for purchasing asset by bank at cost + profit) Commodity funds Leasing funds

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* source: Eurekahedge.com

Oasis experience in Islamic Fund Management

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At Oasis regulation is KEY

Highest form of European Regulation - (UCITS) Regulatory Oversight
Irish Financial Services Regulatory Authority (IFSRA)
South African Financial Services Board (FSB) Johannesburg Stock Exchange (FTSE/JSE) South African Reserve Bank (SARB)

Institutes & Affiliations

CFA Institute (Global) Dublin Funds Industry Association (Ireland)

Institute of Retirement Funds (South Africa)

Association of Collective Investments (South Africa)
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 as is its Shariah regulation

External regulation
Accounting & Auditing Organization for Islamic Institutions (AAIOFI) International Association for Islamic Economics (IAIE) Islamic Financial Services Board (ISFB) General Council for Islamic Banks & Financial Institutions (GCIBFI)

Internal regulation
Independent Shariah Advisory Board

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 and investment skills are KEY KEY KEY!

Tremendous growth in Islamic finance has resulted in a dearth of Shariah fund management skills Oasis has honed its Shariah investment skills over the last nine years evidence of its success may be gauged from its performance

Developed infrastructure to invest in any geographic

region

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The Crescent product range of Oasis

South African Products Equity Property Balanced

Global Products Equity Property

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Oasis Crescent Equity Fund - Performance

Aug 98 to Dec 98
Oasis Crescent Equity Fund* FTSE / JSE All Share Index

1999

2000

2001

2002

2003

2004

2005

YTD 2006
July

Since Inception Cum Ann

15.5

79.9

12.5

52.6

18.1

20.1

26.9

34.6

15.8

899.1

33.3

(19.9)

70.8

0.4

32.6

(8.3)

16.1

25.5

47.3

17.0

319.1

19.6

Ave General Equity Fund

(21.7)

50.7

(3.5)

21.5

1.6

22.6

38.6

36.9

12.0

262.8

16.6

* # 1 since inception to July 2006

Source: S&P Micropal

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Oasis Crescent Equity Fund - Performance

Sortino Ratio Rank Oasis Crescent Equity Fund FTSE-JSE All Share Index/ Average Competitor (Info)

Sharpe Ratio

Info

Rank Ratio Rank

5.2
0.9

1
5

2.6
0.6

1
14

2.0
0.4

2
9

Source Data: S&P Micropal & Bloomberg; Since inception to July 2006

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Oasis Crescent Equity Fund - Value Add

R100 Investment in the Oasis Cresent Equity Fund (Inception to July 2006)
1,200 1,000 Oasis Crescent Equity Fund 800 FTSE/JSE All Share Average General Equity Fund 600 400 200 Jul-99 Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 R 419.1 R 362.8 R 999.1

Rands

Source: S&P Micropal; August 98 July 2006

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Oasis Crescent Equity - Performance

Oasis FTSE/JSE All Share Index 899.1

900

700

Return (%)

Overall 96 months
500

Bear 41 months
300

Bull 55 months

319.1

100

(0.4)
(100)

4.6 (4.0)

6.0

Source: S&P Micropal; August 98 July 2006

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Crescent Global Equity Fund Ratings

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Crescent Global Equity Fund Ratings

Risk/Reward
Vs Benchmark 1 3 Year 5 Year 10 Year

Miscellaneou s
Stnd Deviation Sharpe Ratio Sortino Ratio

3 year
9.8 1.9 4.3

5 year
12.5 1.0 1.7

Alpha
Beta R-squared (%) Tracking Error Info Ratio Excess Return

5.5
1.0 82.5 4.1 1.6 6.6

10.5
0.8 81.4 5.9 1.8 10.5

6.1

Ratings at of 2006-07-31
Morningstar Rating Risk Return
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Overall 4* 135

3 Year 4* 1.1 15.8 135

5 Year 4* 1.8 11.2 95

10 Years -

Investments Rated

Crescent Global Equity Fund - Performance

Dec 2000

2001

2002

2003

2004

2005

YTD 2006
(Aug)

Since Inception Cum 105.7 Ann 13.4

Crescent Global Equity Fund

0.0

(2.0)

(0.7)

33.4

21.7

11.5

16.8

Dow Jones IM Index

(0.3)

(19.2)

(21.5)

30.2

10.6

10.1

7.6

7.8

1.3

MSCI World Index

1.6

(16.5)

(19.5)

33.8

15.2

10.0

9.9

27.2

4.3

Source: S&P Micropal; Dec 2000 Aug 2006

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Crescent Global Equity Fund - Performance

Sortino

Sharpe

Information Ratio

Ratio

Ranking*

Ratio

Ranking*

Ratio

Ranking*

Crescent Global Equity Fund

1.22

8th

0.98

7th

1.42

10th

Dow Jones IM Index / Average Global Equity Fund (Info ratio) MSCI World Index / Average Global Equity Fund (Info ratio)

(0.15)

269th

0.01

264th

0.46

127th

0.10

137th

0.22

125th

(0.30)

191st

Source: S&P Micropal; Dec 2000 Jul 2006

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Crescent Global Equity Fund - Value added

2.3 Crescent Global Equity Fund 2.0 1.8 MSCI World Index Average Global Equity Fund $2.0m n

$ Millions

1.5 1.3 1.0 0.8 0.5 Jul-01 $1.2m n $1.1m n

Jul-02

Jul-03

Jul-04

Jul-05

Jul-06

Source: S&P Micropal; Dec 2000 Jul 2006

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Crescent Global Equity Fund Performance

105 OASIS 85 65 45 25 5 (1.7) (15) (3.6) Bear 30 months Bull 38 months MSCI Index Overall 68 months

97.7

Return (%)

23.9

3.1

2.8

Source: S&P Micropal; Dec 2000 Aug 2006

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Listing of first Shariah compliant property fund

OASIS CRESCENT PROPERTY FUND Listed on Alt-X in November 2005

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Social contribution - Crescent Fund Trust

A charitable trust uses Non-Permissable Income (NPI) to develop and promote:
Dermatology Unit

Health Care: Red Cross Childrens Hospital

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Social contribution - Crescent Fund Trust

Education: As Salaam
An initiative which aims to help communities accelerate the education and training of the youth through self help

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The future of Islamic Finance

Young rapidly growing sector Opportunities are great

The demand is in place

The regulatory framework is in place Prolific development of product Products are innovative, highly regulated and transparent

The lower risk proposition is attractive Attractive proposition for a global audience

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Legal Disclaimer
Past performances are not necessarily an indication of future performances. No guarantees are provided. Any calculations made are approximations, meant as guidelines only, which you must confirm before relying on them and also at the time of finalising any transaction. Oasis will therefore not be held responsible for any inaccuracies in calculations supplied. All the information appearing on the slides is provided without a representation or warranty whatsoever, whether express or implied. Oasis makes no representation or warranties about the correctness or the suitability of any products or service that appear nor the soundness of any general advice offered. Oasis shall not be responsible and disclaims all liability for any loss, liability, damage (whether direct, indirect, special or consequential) or expense of any nature whatsoever, which may be suffered as a result of or which may be attributable, directly or indirectly, to the use of, or reliance upon any information, links or service provided, or any actions and/or liability for consequential or incidental damages. Oasis Asset Management and Oasis Crescent Capital Management are authorised Financial Services Providers.
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