Third quarter 2002 dividend of AED 2.25 per share declared, bringing total 16 month dividend to AED 11.00/share
Daman UAE Value Fund announced today that it will maintain its quarterly dividend distribution despite significant declines in the UAE market during September, 2002. During the month, the Fund declined by 4.16% while the National Bank of Abu Dhabi General Index declined by 4.81%, Mr. Shehab Gargash, Director, announced today. Despite the decline, Mr. Gargash announced that the Fund has declared a dividend of AED 2.25/share for the Third Quarter of 2002, maintaining its history of uninterrupted quarterly dividend payments since inception.
During the month, 30 out of 32 heavily traded equities tracked by the National Bank of Abu Dhabi General Index declined, an indication that the declines in the market during the month took place across all sectors and all stocks. The market declines follow growing regional political uncertainty, and have been accompanied by low market volume.
“The markets took back some of the gains made this year, but the Fund was able to distribute its quarterly dividend as usual. This was possible because of the Dividend Reserve Account, which was established in early 2002 precisely to safeguard investor interests through effective management of situations such as these,” Mr. Gargash said. “That account locks away a portion of realized profits each month to help ensure the Fund’s ability to pay dividends consistently. Should market conditions remain negative, our dividend payments are unlikely to be affected over the medium term because of the steps that we have taken to lock in profits.”
The Fund declared its September 30, 2002 NAV of AED 122.89/share. The Fund also declared a dividend of AED 2.25/share for the Third Quarter of 2002, bringing the total dividend distributed over five quarters of operations to AED 11.00/share. On the ex-dividend date (October 15, 2002), the Fund’s ex-dividend NAV will be AED 120.64/share and the annualized dividend yield will reach 7.29% based on that NAV price.
UAE Markets are Strong Despite Regional Instability “We remain fundamentally optimistic about the solid foundations and inherent quality of the UAE and GCC markets in the medium and long term. We have taken this defensive stance in order to protect our investors during this period of externally generated market uncertainty,” Mr. Mustafa Farid, Senior Portfolio Manager, said.
September was the first month that the Fund has declined, Mr. Farid said. “The Fund declined because all sectors of the UAE market declined, and there were only two stocks tracked by the NBAD Index that posted gains. We will remain cautious in the coming period until the regional uncertainty is resolved.”
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 commissions an independent audit of its Net Asset Value (NAV) at the end of each month, and releases monthly NAV statements. The Fund has announced five quarterly dividends totaling AED 11.00/share over five quarters, the most recent being AED 2.25/share for the Third Quarter of 2002.
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.
For more information, please contact Mohammed Sulaiman, Daman Securities
Tel: +971.4.332.4140 Fax:+ 971.4.332.4240 Email: [email protected]