Fund achieves overall 273.84 % returns; Daman to launch more innovative products before year- end
DUBAI – United Arab Emirates: Daman, managers of Daman UAE Value Fund (DUV), a specialized mutual fund which invests in the UAE stock market, announced the successful closure of its flagship fund which has offered investors an impressive 273.84% returns during its 5 year tenure, corresponding to an annualized return to investors of 34.76%
Payment of proceeds to investors will be made upon the successful windup of the Fund before 30 September 2006.
The DUV Fund was launched on 1st of July 2001, with shares at an NAV of AED 100. The Fund closed as of 30 June 2006 at a cum-dividend NAV of AED 373.84, exclusive of dividends paid throughout the life of the fund, where total dividends amount to AED 100 per share since Inception.
The Fund, which was designed for a 3 year life extendable for an additional 2 years, saw its value register a stellar increase that translated to almost three times the growth in investment. The entire initial capital of the original investment was paid back through a series of uninterrupted quarterly dividends throughout the life of the fund.
Following on from the closure of the Fund, Daman has begun preparations to introduce new UAE focused products.
When asked why Daman was optimistic when current market conditions were not generally considered to be encouraging, Mr. Shehab Gargash, Managing Director said: “We are greatly encouraged by the performance of our flagship DUV Fund and optimistic about the future. In review, it is important to point out that the month the Fund was launched in 2001 witnessed one of the lowest points the market ever recorded at that time. Based on our 5 year experience with DUV, we strongly believe that it is unwise to time the market. There is enormous liquidity seeking good opportunities in the domestic marketplace and the market is fundamentally robust. The growing investor maturity now recognizes that peaks and troughs are part of the overall financial landscape.”
He continued: “We firmly believe that we are once again seeing good valuations in the market and have already begun seeding two new funds, which will be UAE-focused products. The exact details of the products will be announced in the 4th quarter.”
Daman UAE Value Fund – Facts
- The Daman UAE Value Fund, a 5 year closed ended fund, was launched on July 1, 2001 with an NAV of AED 100 per share. The Fund officially closed on June 30th 2006 with a closing NAV of AED 273.84.
- A total dividend of AED 100 per share has been paid out to the original investors since the Fund’s Inception.
- The Daman UAE Value Fund has created history with an uninterrupted quarterly dividend payout since Inception. Through these dividends, the entire initial capital of the original investors was paid back through the life of the fund.
- For each operating year in the life of the Fund, the yield on the dividend declared for Daman UAE Value fund has consistently been superior to the UAE benchmark yields.
- During the 60 months of life of the Fund, the Daman UAE Value fund has witnessed 46 months of positive growth as against 39 positive months of growth for the benchmark NBAD Index.
- The highest full year dividend yield the fund recorded was 8.77% in 2005, when the benchmark NBAD Index dividend yield was 0.81% for FY 2005.
- The NAV of DUV peaked at AED 517.47 on June 30, 2005, its highest for any month during its life.
- The highest single-month increase in NAV was 30.15%, recorded in March 2005.
- In 2005, the NAV registered the biggest yearly increase of 92.02%.
Al Daman UAE Value Fund – Yearly Performance Highlights
NAV @ Beginning of year
|NAV @ End of year||
% change in NAV
|NBAD Index||% change in Index|
|2001( 6 months)||100||114.33||18.58%||4.25||3.72%||2,976.46||21.14%|
Meanwhile, the NAV of another Daman product, the Arabian Programmed Trading Fund (APTF) was down 8.67% at $76.90 on July 27, 2006. In comparison, the GIC Composite Index during the period fell by 14.14% to 5,929.79. The fund’s NAV for the previous month of calculation was US$ 84.20.
About Daman UAE Value Fund
Daman UAE Value Fund is a closed-end, offshore mutual fund focused on the UAE stock market. It was launched on 1st July 2001 with shares valued at a par value of AED 100. The Fund commissioned an independent audit of its Net Asset Value (NAV) at the end of each month, and releases monthly NAV statements. The Fund has announced dividends totaling AED 100 per share since inception, the most recent being AED 21.00 per share for the first quarter of 2006.
Daman UAE Value Fund is a Mauritius-registered public company. The Fund’s governance structure is designed to ensure maximum transparency and accountability to shareholders. The Fund, which was originally designed for 3-year life extendable for an extra 2-years, completed its tenure in June 2006.
About Arabian Programmed Trading Fund (Facet Arabia)
Arabian Programmed Trading Fund (APTF) Facet Arabia was launched in February 2005. The first GCC computer model aided stock analysis fund, APTF introduced a systematic, non- emotional approach to risk managed investment.
Launched in conjunction with Facet Funds plc, an offshore funds platform regulated by Cayman Islands Monetary Authority and advised by Commander Asset Management Ltd, authorized and regulated by the UK’s Financial Services Authority (FSA).
APTF is a Cayman Islands-registered Fund which will utilize Commander Asset Management’s proprietary risk analysis programme model in order to effectively advise on the timing of the purchase and sale of individual stocks chosen and managed by Daman. The fund is specifically designed with the ability to hold shares (equity) or cash. Individual positions are sold when conditions dictate and cash is held until a reinvestment opportunity arises in that particular stock. Currently the portfolio consists of 64 stocks from GCC, out of 450+ that have been evaluated. Minimum investment in this Fund is US$1 million. Redemptions are quarterly.
|For further details please contact:|
|Daman Corporate Communications||Or, Arabia PR FZ LLC|
|Tel: +971 4 332 41 40||Tel: + 971 4 391 12 00|
|Fax: +971 4 332 42 40||Fax: + 971 4 390 45 11|