Fund posts 11th consecutive month of growth; expectations of increased market activity in the coming quarters
Despite lackluster markets in the UAE, Daman UAE Value Fund posted growth during May, 2002, bringing its total growth across 11 months to 29.48%, Mr. Shehab Gargash, Director, announced today. The Fund’s performance from July 1, 2001-May 31, 2002 has outpaced all other UAE focused mutual funds and the benchmark National Bank of Abu Dhabi Index.
The new Daman UAE Value Fund per share Net Asset Value (NAV) for May 31, 2002 is AED 122.98/share. During its first 11 months of activity, the Fund has made three quarterly dividend distributions totaling AED 6.50/share.
Commenting on the UAE market, Mr. Mustafa Farid, Senior Portfolio Manager, said. “Many market analysts expected a correction of up to 10% in the last quarter following the gains in late 2001 and early 2002. However, this correction never materialized, and the market has maintained a stable/neutral bias. We think that this stability bodes well for the summer months, where we expect selected stocks to outperform the market indices.”
Mr. Farid said that he expects the market to perform positively overall in the medium term. “One thing that we realized in the First Quarter of 2002 is that prices in the UAE still provide value to investors compared to the rest of the GCC. This value and relative attractiveness has not been reflected in volume on the capital market because investor confidence remains weak. We think that as the 2002 half-yearly results come in during July, and with interest rates remaining low, investors will gain confidence and this should lead to overall market growth of between 7-10% in the coming quarters.”
About Daman UAE Value Fund:
Daman UAE Value Fund is a closed-ended, offshore mutual fund focused on the UAE stock market. It was launched on July 1, 2001 with shares valued at a par value of AED 100.00. The Fund has released an independently audited Net Asset Value (NAV) at the end of each month since its inception. The Fund recently distributed a dividend of AED 2.25 per share for the First Quarter of 2002, bringing the total distribution over three quarters to AED 6.50/share.
Daman UAE Value Fund is a Mauritius-registered public company. The Fund’s governance structure, which includes a Board of Directors, an Advisory Board, an Investment Committee and a Fund Management Company acting as Fund Manager, is designed to ensure maximum transparency and accountability to shareholders.
For more information, please contact Mohammed Sulaiman, Daman Securities Tel: +971.4.332.4140 Fax:+ 971.4.332.4240 Email: firstname.lastname@example.org