Now is the time for risk managed funds and good opportunities for buyers with a ling view, says Gargash
DUBAI – United Arab Emirates: Daman’s APTF fund, which was designed and tailored to suit more volatile market situations, entered its 12TH month of operation registering a 23.72% overall growth. Launched in March of 2005, the results included a decline of .81% in February.
Commenting on results, Shehab Gargash, Managing Director of Daman said:
“All of last week we went through a volatile period in which we witnessed significant negative performance throughout the GCC markets which are under pressure from the recent round of IPO’s. This, coupled with margin call selling consequently generated an overall negative sentiment along with the general expectation that profit growth will be lower than in 2005.”
When asked about the future, Mr. Gargash continued: “My belief is that the implication is on price in the short term. The quality of corporations in the region is stellar and our belief is that the fundamentals are solid. Much in the future will depend on the announcement of Q1 results after March 31.”
Amid these market conditions, Daman announced that their flagship Daman UAE Value Fund also turned in a negative 5.80% performance in February. Mr. Gargash commented further: “Last July, in a boom period, we were widely quoted as being “negative” for saying that the markets would be volatile towards the end of the year.
In fact, there has been an overall decline of over 36% in the DFM since last November through end February. In the same period, the ADSM declined 23% and the NBAD index-which serves us all as a UAE benchmark-has fallen over 20%. Last week drove the figures to unexpected lows.
Obviously, we are once again living in the peaks and troughs of a market that is rapidly changing and maturing. This negative period will ultimately yield value in lower price levels and ratios. I believe it will also lead to better valuations in the future. Liquidity levels will determine the direction of the markets in the period ahead. We see this as an opportunity for buyers who take a long view”.
(As of February 28th 2006)
I) Daman Value Fund ( DUV):
Year beginning information:
|NAV at beginning of Year 2006||AED 456.06|
|NBAD Index at beginning of Year 2006||17,108.45|
|Parameters||Daman UAE Value Fund||Benchmark NBAD Index|
|Ex Dividend NAV,March 1st , 2006||AED 395.75||15,254.59|
|Ex Dividend NAV,February 1st , 2006||AED 420.16||15,666.49|
|Percentage Change, February 2006||(5.80 %)||(2.62 %)|
|Year To Date growth, 2006||(13.22 %)||(10.83 %)|
|Fund growth since inception||374.15 %||520.86 %|
|Dividend distributed during 2005||AED 40.00||N/A|
|Dividends since Inception||AED 79.00||N/A|
|Dividend Yield, 2005||8.77 %||0.81 %|
Performance of selected UAE Mutual Funds and NBAD Benchmark Index
(1st July 2001 – 28th February 2006)
|Daman UAE ValueFund||Emirates Equity Fund (EFF)||NBAD Fund||NBAD Index|
|Since Inception 1July 2001||374.15 %||144.84 %||415.70 %||520.86 %|
|Year To Date 2006||-13.22 %||-12.16 %||-13.56 %||-10.84 %|
II) ARABIAN PROGRAMMED TRADING FUND (APTF)
(As of February 23rd 2006) Year beginning information:
|GIC Index at inception – MAR 29TH 2005||5,873.77|
|APTF NAV at beginning of Year 2006||US $ 121.96|
|NAV of APTF as on February 23rd 2006 ( US $)||123.72|
|NAV of APTF as on January 26th 2006 ( US $)||124.83|
|Percentage Change, February 2006||-0.81 %|
|YTD Fund growth, 2006||1.44 %|
|APTF Fund Growth Since Inception (SinceMarch 2005)||23.72 %|
|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|
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 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 dividends totaling AED 64 per share since inception, the most recent being AED 11.00 per share for the third quarter of 2005.
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.
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 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 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. The fund has registered a year-to-date growth of 19.47% so far.
Minimum investment in this Fund is US$1 million. Redemptions will be quarterly.