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Daman Eyes GCC Rebound with Fund of 200 Million Dhiram

Dubai, United Arab Emirates : 23 February 2010

Daman Investments, a Dubai-based asset management firm, announced in Dubai on Monday to introduce a Dh200 million fund that relies on the recovery in GCC markets.

The investment will be in top ranking equities listed on the local bourses as well as commodities and debt products. The fund, Daman Fifth Fund, aims 25 per cent internal rate of return per annum.

Shahab Gargash, group managing director, told reporters that this product is expected to be well received in the markets.

The fund will also pay out consistent dividends, within a closed-ended fund structure.

Shehzad Janab, head of asset management and advisory for Daman, said that GCC markets were facing indecision in the short term but emphasized that it was just a state of affairs that cannot continue. Disclosing the source of the fund’s returns, he said the valuation of the market would go through a correction and under-valued stocks will start to perform.

The concentration would be on markets in Qatar and Saudi Arabia, which are poised for a jump as a result of titanic government stimulus, he said.

The investment firm will afford the fund’s seed capital. Dh200 million will be raised through subscriptions to the mutual fund for two million units, with an initial unit price of Dh100 per unit. The minimum original investment is Dh200, 000 and minimum further investment is Dh100, 000.

The fund will be for two years, extendable by further two years, the company announced.

The company said its first fund launched in 2001, provided a return of 273.84 per cent over its lifespan. Daman’s latest investment offer will concentrate on establishing long-term value, regardless of market’s rises and falls.

The company had announced earlier that it would launch an initial public offering by the end of 2012. Gargash said that listing is in the planning stage and it would in one of the UAE markets.

Andrew Reid, Staff Writer, Gulf Jobs Market News
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