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Daman UAE Value Fund announces Dh4 dividend

The dividend distribution follows growth of 11.71 per cent during the third quarter of 2004.

The fund's year to date dividend yield is 7.38 per cent, exceeding the NBAD Index yield of 2.13 per cent.

“The fund has consistently sought to generate and lock-in gains for investors by trading actively and distributing quarterly dividends. We are pleased that our third quarter results have validated our focus on those goals,” Shehab M Gargash, director of the fund, said.

As of September 30, 2004, the fund's net asset value (NAV) was Dh203.68 per share, which was adjusted to Dh199.68 per share following the Dh4.00 per share dividend declaration.

The fund grew by 5.09 per cent during September 2004. “Investors began to price in expected third quarter results during September, which drove prices up early in the month. Even though corporate financial results did not begin to be announced until the middle of October, positive expectations were an important factor in driving market growth early on in September.

By the end of the month, profit taking began to dampen this growth,” Gargash said. The fund has distributed dividends every quarter since its inception in July 2001. These payments have increased progressively from Dh2 per share following the first quarter of operations to Dh4 per share for the third quarter of 2004. Over its life, it has distributed a total of Dh34 per share, including Dh10.75 per share during 2004.

Daman also announced that the NAV for another major offering, the IFA Khaleeji Fund — that it launched in association with IFA and Univest groups of Kuwait — as of September 30, 2004 stood at $104.03, an increase of $1.34 during the month of September.

The regional fund was launched in last April, and provides a single entry vehicle for regional and international investors into the six GCC markets and Iraq.