Daman Second Emirates Fund Gains Over 10% In Inaugural Quarter; Pays Aed 1 Dividend

3 Daman regional funds register growth in 2007- Manager sees better times ahead

DUBAI: United Arab Emirates: Daman Investments PSC, a leading UAE-based fund manager today reported positive performance results of three of its regional funds. Daman also sees better times ahead for the UAE equities markets.

The recently launched Daman Second Emirates Fund recorded growth of 10.45% during Q2 2007, its inaugural operating quarter. The Fund was launched on April 1, 2007 at an NAV of AED 100.00 per unit, and achieved an NAV of AED 110.45 on June 30.

Daman also announced a first dividend payout of AED 1.00 per share, which results in an ex-dividend NAV of AED 109.45 for subscribers into the Fund at the July 1 subscription date.  The UAE-focused AED 200 million equity Fund is open for subscriptions at the beginning of every month and allows for quarterly redemptions.

Commenting on the Daman Second Emirates Fund’s early positive performance and dividend announcement, Mr. Shehab Gargash, CEO of Daman Investments said: “This is proof of our much earlier stated belief that the market would begin to tread a recovery path in 2007.  We are confident that this is beginning of a long, steady upward trend, regardless of dips and turns the market takes in the near term.”

The dividend of AED 1.00 per share reflects an annualized dividend yield of 3.65% to the Fund investors, higher than the current average benchmark NBAD Index yield of 2.70%.

When asked about recent valuations, Mr. Gargash replied: “There has been a recent rally in a few securities that have surpassed their fair valuation levels based on available financial information. However, it is our belief that overall valuations have swung back to more realistic levels than in 2006 and that this trend is both inevitable and healthy.”

Daman Islamic Fund – Positive growth in month one

In addition, the group announced the performance of its second UAE product offering also launched in 2007, the Daman Islamic Fund.  The first Shari’ah based fund offered by Daman reported its first month’s performance with a fractional growth of 0.29% and a June 30th closing NAV of AED 100.29.

On the positive performance made by the Daman Islamic Fund in its very first month, when the overall UAE markets declined by more than 1% during June, Mr. Gargash commented: “The Daman Islamic Fund took a cautious note and controlled risk during its first month especially after a short period of market volatility was witnessed pre-ceding to the Fund launch.  Despite largely remaining in cash in its first month, the Fund was able to produce a positive result. This sets a solid foundation for the remainder of 2007.”

The minimum investment for both the Daman Second Emirates Fund and the Daman Islamic Fund is AED 200,000.

Arabian Programmed Trading Fund – YTD growth of 13.70%

The results of a third Daman offering, were also announced for the group’s risk managed Fund, The Arabian Programmed Trading Fund (APTF).

The APTF Fund closed the mid-year mark with a 2007 year to date growth of 13.70%. This growth outperforms its benchmark GIC GCC Index, which for the same period, clocked growth of 9.36%. The Fund’s NAV as of 30 June 2007 stood at US$78.12.

Regarding APTF, Mr. Gargash said: “We are proud to announce the positive performance results achieved by our risk managed Fund which we believe is perfect for sideways market conditions. The Fund was designed for a long or cash strategy; using cash as an effective tool that helps the Fund to stay dynamic and manage the portfolio positions towards building a long term value in the portfolio”.

Overall Market Indicators and Future Trends

When asked about overall market indicators and future trends, Mr. Gargash, stated: “After decent Q1 corporate earnings announced by the premier companies, we are getting early signals of continued good performance for Q2 as well. This sustainability in corporate earnings over a backdrop of strong macro economic fundamentals and growing business confidence will provide the necessary impetus that will translate into a positive outlook for the markets in the immediate future.”

Regarding market sentiment Mr. Gargash said: “Market sentiment has accompanied the rally on a sharp upwards spike and we are witnessing stronger investor confidence.  Selling pressure has been taken as an opportunity to establish fresh entry points and should not be seen as a sign of panic or weakness.  This is a work in progress and an important component of the overall health and future direction of the markets which we see as positive.”

Mr. Gargash added “The UAE markets are currently witnessing a key turning point after a healthy recovery from their lows as more and more foreign and institutional investors are looking into the region as a key new value opportunity”. He further added “We feel that as the markets open for foreign investor participation, the standards of disclosure and transparency would automatically improve, helping investors across the board to take informed investment decisions”

Mr. Gargash continued: “The drive by the markets to attract foreign investment through a series of steps is a positive sign towards the overall development of the market. It will be this category of investor money that will make the difference in the coming investment cycle.

Foreign investors accounted for around 30% of total DFM trading liquidity during the first half of 2007. For Q1 2007, we saw a tripling in net Buying volume from foreign investors in the DFM to over AED 2.5 billion in net investment inflows.”

Commenting further, he concluded: “Several other factors bode well for the markets in the coming period, including the eventual disclosure of details related to several deals in the making, such as the NBD/EBI merger and the Dubai Holdings/Emaar transaction. Finally, the IPO pipeline remains healthy and the coming weeks will see the debut of several new scripts including Air Arabia and Deyaar.”

 

DAMAN FUNDS – PERFORMANCE DETAILS
(As of June 30th 2007)

Daman Second Emirates Fund – Highlights:

  • The Daman Second Emirates Fund closed the month of June 2007 at an ex dividend NAV of AED 109.45.
  • The Fund declared its first dividend payout of AED 1.00 per share, which reflects an annualized dividend yield of 2.74% for Fund investors, marginally higher than average NBAD Index yield of 2.70%.
  • For the month of June 2007, the Fund declined by -0.85% as against benchmark NBAD index drop of -1.07% for the same period.
  • For the first quarter of operation, the Fund had made gross returns of 10.45% reflecting the overall gain since the inception of the Fund (April 2007). For the same period the benchmark NBAD Index returned 17.14%.
  • The Fund’s strategy to adopt a wait and watch strategy paid off for the month as the Fund noted that the previous month (May ’07) rally in a few securities which had surpassed their fair valuation levels based on current financial information.
  • The Fund’s immediate approach is to compare the first half ’07 financial results of listed companies to the expectations of the Fund and accordingly consider investment decisions across the board that will meet the Fund’s objectives.
  • The Fund strategy to remain cautious and at the same time dynamic and manage the portfolio positions using cash as an effective tool to build long term value has worked well so far; for the 1st quarter of operation, the Fund has captured 60% of the Index gains despite maintaining an average cash position of 50%; this will allow us to become more aggressive whenever there is market weakness further strengthening the firm base we have already built.

 

Daman Second Emirates Fund
(As of June 30th 2007)

Year beginning information:

NAV at Inception

AED 100.00

FUND Benchmark NBAD General Index at Inception ( 01 April 2007)

9,637.46

 

PERFORMANCE (June 30th 2007)

Parameters Daman Second Emirates Fund FUND Benchmark NBAD Gen Index
Ex Dividend NAV, July 01, 2007

109.45

11,332.96

NAV, June 30, 2007

110.45

11,299.50

NAV, May 31, 2007

111.40

11,422.02

Percentage Change, June 2007

-0.85%

-1.07%

Year To Date growth, 2007(Since April 2007)

10.45%

17.24%

Fund growth since inception(Since April 2007)

10.45%

17.24%

Dividend distributed during 2007

AED 1.00

NA

Dividends since Inception

AED 1.00

NA

Annulaised Dividend Yield, 2007

2.74%

2.70%

Daman Islamic Fund – Highlights:
(As of June 30th 2007)

  • The Daman Islamic Fund closed its first month of operation with a positive NAV of AED 100.29, reflecting a monthly gain of 0.29%.
  • The Fund performance was positive, in the backdrop of overall negative month for UAE markets where the UAE benchmark ESCA Index was down on month by -1.21%, DFM Index down by -1.51% and the ADSM Index was down by -0.91%.
  • The Fund took a cautious note over its first operation month especially after a short period of market volatility in the month pre-ceding to the Fund launch. The Fund preferred the strategy to maintain a high level of cash during its first month of operation and targeted specific stocks that had residue value. Thus with controlled risk, the Fund achieved a positive performance setting a solid foundation for the Fund in its first month of operation.
  • A significant cash position at this stage of the market cycle is an inherent strength in the Fund and a tool that will be used effectively to manage future risk/return objective of the Fund. This also keeps the Fund vigilant and lean as market movements are closely monitored for opportunities and hidden value.

Arabian Programmed Trading Fund (APTF) – Highlights:

  • For the month, APTF is up by 0.30% as compared to a decline in the GIC GCC Index of -2.23%
  • For the year to date 2007; the APTF has achieved 13.70% returns as compared to 9.36% returns made by the GIC GC Index.

ARABIAN PROGRAMMED TRADING FUND
(As of June 30th 2007)

 Year beginning information:

NAV at Inception ( March 2005) US $ 100.00
GIC GCC INDEX ( March 2005) 5,937.55

 

PERFORMANCE (June 2007)

Parameters APTF  (US $) GIC GCC Index
NAV, June, 2007

78.12

5,666.84

NAV, May, 2007

77.89

5,796.10

Percentage Change, June 2007

0.30%

-2.23%

Year To Date growth, 2007(Since June 2007)

13.70%

9.36%

Fund growth since inception(Since June 2007)

-21.88%

-4.56%

 

 About Daman Investments PSC 

Daman Investments PSC is a private joint stock company based in Dubai, regulated by the United Arab Emirates Central Bank. and capitalized at AED 200 million . Established in 2000, the group was recently re-structured as a PSC.

Through its group companies, and a team of experienced professionals in both Dubai and Abu Dhabi offices, Daman is recognized as a regional specialist operating throughout the GCC and the Middle East.  Known for offering innovative investment products and services to both domestic and international clients, Daman provides investment management and development capital investment opportunities as well as brokerage operations through its subsidiary Daman Securities LLC, one of the leading brokerage houses in the UAE, which is regulated by the Emirates Securities and Commodities Authority (ESCA).

About the Daman Second Emirates Fund

The Daman Second Emirates Fund is a UAE-registered open-ended fund regulated by the United Arab Emirates Central Bank. The fund will have an initial offered unit price of AED100 and a targeted size of AED 200 million. Subscriptions will be monthly and redemptions will be quarterly.  The Net Asset Value will be calculated monthly.

The fund is open to all nationalities as well as non-UAE residents and will seek to achieve a combination of capital growth and regular dividend income.

About the Daman Islamic Fund

The Daman Islamic Fund is a Shari’ah based, Open Ended UAE-registered Mutual Fund regulated by the United Arab Emirates Central Bank. The Fund will invest primarily in Shari’ah Compliant securities listed on the UAE financial exchanges. The Fund will have an initial offered unit price of AED100 and a targeted size of AED 200 million. Subscriptions will be monthly and redemptions will be quarterly. The Net Asset Value will be calculated monthly. The fund is open to all nationalities as well as non-UAE residents and will seek to achieve a combination of capital growth and regular dividend income.

 

About Arabian Programmed Trading Fund (Facet Arabia)

Arabian Programmed Trading Fund (APTF) Facet Arabia was launched in February 2005. This is the first computer model aided stock analysis fund, launched in conjunction with Facet Funds plc, an offshore funds platform regulated by Cayman Islands Monetary Authority and Commander Asset Management Ltd, authorized and regulated by the UK’s Financial Services Authority (FSA).

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 72 stocks from GCC, out of 450+ that have been evaluated. The fund has registered a year-to-date growth of 18.39% so far.

Minimum investment in this Fund is US$1 million. Redemptions will be quarterly.

 

For further details please contact:

Daman Corporate Communications
Tel: 971 4 332 41 43
Fax: 971 4 332 42 40
corpcomm@www.daman.ae.php7-27.phx1-1.websitetestlink.com

Or, Arabia PR FZ LLC
Tel: + 971 4 391 12 00
Fax: + 9714 390 45 11
arabiapr@dubaimediacity.net

 

 

DAMAN FUNDS – PERFORMANCE DETAILS
(As of June 30th 2007)

 Highlights:

  • The Daman Second Emirates Fund closed the month of June 2007 at an ex dividend NAV of AED 109.45.
  • The Fund declared its first dividend payout of AED 1.00 per share, which reflects an annualized dividend yield of 2.74% for Fund investors, marginally higher than average NBAD Index yield of 2.70%.
  • For the month of June 2007, the Fund declined by -0.85% as against benchmark NBAD index drop of -1.07% for the same period.
  • For the first quarter of operation, the Fund had made gross returns of 10.45% reflecting the overall gain since the inception of the Fund (April 2007). For the same period the benchmark NBAD Index returned 17.14%.
  • The Fund’s strategy to adopt a wait and watch strategy paid off for the month as the Fund noted that the previous month (May ’07) rally in few securities had surpassed their fair valuation levels based on current financial information.
  • The Fund’s immediate approach is to compare the first half ’07 financial results of listed companies to the expectations of the Fund and accordingly consider investment decisions across the board that will meet the Fund’s objectives.
  • The Fund strategy to remain cautious and same time remain dynamic and manage the portfolio positions using cash as effective tool to build long term value has worked well so far; for the 1st quarter of operation, the Fund has captured 60% of the Index gains despite maintaining an average cash position of 50%; this will allow us to become more aggressive whenever there is market weakness further strengthening the firm base we have already built.

Daman Second Emirates Fund
(As of June 30th 2007)

Year beginning information:

NAV at Inception

AED 100.00

FUND Benchmark NBAD General Index at Inception ( 01 April 2007)

9,637.46

 

PERFORMANCE (June 30th 2007)

Parameters Daman Second Emirates Fund FUND Benchmark NBAD Gen Index
Ex Dividend NAV, July 01, 2007

109.45

11,332.96

NAV, June 30, 2007

110.45

11,299.50

NAV, May 31, 2007

111.40

11,422.02

Percentage Change, June 2007

-0.85%

-1.07%

Year To Date growth, 2007(Since April 2007)

10.45%

17.24%

Fund growth since inception(Since April 2007)

10.45%

17.24%

Dividend distributed during 2007

AED 1.00

NA

Dividends since Inception

AED 1.00

NA

Annulaised Dividend Yield, 2007

2.74%

2.70%

 

 Daman Islamic Fund
(As of June 30th 2007)

 Highlights:

  • The Daman Islamic Fund closed its first month of operation with a positive NAV of AED 100.29, reflecting a monthly gain of 0.29%.
  • The Fund performance was positive, in the backdrop of overall negative month for UAE markets where the UAE benchmark ESCA Index was down on month by -1.21%, DFM Index down by -1.51% and the ADSM Index was down by -0.91%.
  • The Fund took a cautious note over its first operation month especially after a short period of market volatility in the month pre-ceding to the Fund launch. The Fund preferred the strategy to maintain a high level of cash during its first month of operation and targeted specific stocks that had residue value. Thus with controlled risk, the Fund achieved a positive performance setting a solid foundation for the Fund in its first month of operation.
  • A significant cash position at this stage of the market cycle is an inherent strength in the Fund and a tool that will be used effectively to manage future risk/return objective of the Fund. This also keeps the Fund vigilant and lean as market movements are closely monitored for opportunities and hidden value.

 

ARABIAN PROGRAMMED TRADING FUND: APTF:

 Highlights:

–          For the month, APTF is up by 0.30% as compared to a decline in the GIC GCC Index of -2.23%

–          For the year to date 2007; the APTF has achieved 13.70% returns as compared to 9.36% returns made by the GIC GC Index.

Year beginning information:

NAV at Inception ( March 2005) US $ 100.00
GIC GCC INDEX ( March 2005) 5,937.55

 

PERFORMANCE (June 2007)

Parameters APTF  (US $) GIC GCC Index
NAV, June, 2007

78.12

5,666.84

NAV, May, 2007

77.89

5,796.10

Percentage Change, June 2007

0.30%

-2.23%

Year To Date growth, 2007
(Since June 2007)

13.70%

9.36%

Fund growth since inception
(Since June 2007)

-21.88%

-4.56%