FACT SHEET
December 2014
Fund Objective
The primary objective of Vision Emerging GCC Fund (VEGF) is to maximize the risk
NAV: RO.
adjusted returns, as measured by Sharpe Ratio. It follows a flexible asset allocation
policy with investments spread across a diversified range of investment options
Fund Information
including alternative investments.
1.310 { 3.40 USD }
Fund type
Jun-05
Sep-05
Dec-05
Mar-06
Jul-06
Oct-06
Jan-07
May-07
Aug-07
Nov-07
Feb-08
Jun-08
Sep-08
Dec-08
Apr-09
Jul-09
Oct-09
Jan-10
May-10
Aug-10
Nov-10
Mar-11
Jun-11
Sep-11
Dec-11
Apr-12
Jul-12
Oct-12
Jan-13
May-13
Aug-13
Nov-13
Mar-14
Jun-14
Sep-14
Dec-14
Performance Chart*
Open Ended
Lipper ID
65044199
Bloomberg ID
VSEMGCC OM
Global Custodian
National Bank Of Oman
Administrator
Vision Investment Services Co. SAOC
Auditors
PricewaterhouseCoopers
Date of Inception
May 19, 2005
2.000
YTD Returns
15.13%
1.700
Annualized Sharpe Ratio
0.40
Annualized Standard Deviation
17.42%
Highest Monthly Return
12.80% (July 2013)
(* Adjusted for dividends, assuming dividends are reinvested)
Least Monthly Return
-24.75% (October 2008)
Sector Holding
Dividends Paid For 2006
8.00%
Dividends Paid For 2013
10.00%
Bonus Paid For 2007
60.00%
3.200
2.900
2.600
2.300
1.400
1.100
0.800
Financials
54.3%
Materials, 0.1%
Health Care,
2.9%
Countrywise Allocation
Consumer Staples
3.7%
Cash
13.1%
Saudi Arabia
25.2%
Telecommunicati
on , 5.0%
Industrials, 5.2%
Cash
13.1%
Consumer
Discretionary
7.8%
UAE
34.6%
Qatar
20.0%
Energy
7.8%
Oman
3.1%
Note : Financials constitute Real Estate companies as per GICS classification
Returns since Returns Dec 2014 Top 5 Holdings
Scrip
2-Jun-05 YTD 2014 Returns
Bahrain
4.0%
Kuwait
0.1%
Sharpe
Standard
Ratio
Deviation
Country
% Exposure
VEGF
0.40
17.42%
159.22%
15.13%
-6.42%
Dubai Islamic Bank (AED)
UAE
7.68%
S & P GCC
-0.25
20.73%
-29.07%
-2.51%
-4.42%
Emirates NBD (AED)
UAE
6.41%
S & P KWT
-0.21
21.12%
-23.86%
-8.73%
-4.25%
Al Khaleej Training
Saudi Arabia
5.47%
S & P Oman
0.02
19.57%
28.73%
-4.49%
-2.10%
Qatar National Bank
Qatar
5.33%
S & P Qatar
0.12
24.65%
46.78%
23.09%
-1.46%
FGB
UAE
5.19%
S & P UAE
-0.08
30.56%
-28.37%
4.38%
-11.67%
Fund Performance*
S & P Bahrain
-0.42
15.38%
-31.06%
1.25%
-4.24%
1 Year
3 Years
5 Years
Since Inception
S & P Saudi
-0.16
27.27%
-34.34%
-6.54%
-4.25%
15.13%
88.80%
104.44%
159.22%
(* Adjusted for dividends, assuming dividends are reinvested)
Manager Report
GCC markets remained volatile in the month of December 2014. Investors’ sentiments turned negative during the month and discounted the falling oil prices. Most of the GCC markets had wiped out the
entire gains for the year towards the mid of the month. Slight recovery was witnessed towards the end of the month as the oil prices ticked up. Another expansionary budget by Saudi further helped the
GCC markets to recover from the fall. During the month all the GCC markets closed in the red territory.
The fund registered a return of 15.13% for the year. It is worth noting that despite the quarter being volatile, the fund outperformed major comparable benchmarks like S&P GCC (-2.51% YTD). The fund
continued to follow the approach of investing in fundamentally strong companies in order to withstand the volatility.
Qatar was the best-performing GCC market in 2014, registered 18.4% YTD. For the month, the market fell by 3.7%. Amongst the sectors, telecommunication (+6.6% MTD) and insurance (+5%MTD)
were the best two performers. The other sectors closed in the negative territory for the month. During the beginning of the month, HE the Prime Minister said that Qatar government is working to
strengthen the role of Qatar’s non-oil sector and the government is committed to achieve the Qatar National Vision 2030. According to Deloitte, Qatar will spend USD 182 bn over the next five years and
according to Market Intelligence, infrastructure spending in Qatar will continue to grow in double digits in 2015-2016. During the month, Ministry of Development Planning and Statistics noted that Qatari
economy is projected to grow by 7.7% in 2015e and 7.5% in 2016e.
Amongst the GCC markets, DFM lost the most during the month, down 11.9%. For the year DFM registered 12% gains. Consumer staples (+5.3% MTD) was the top performing sector and real estate
and construction sector (-21.9%MTD) was the worst performing sector. Unikai and Ajman Bank were the top two gainers, 32.33% MTD and 19.15% MTD, respectively. During the month, Marka agreed
to buy a sporting goods retails from Dubai World for USD 60 million. According to Drake & Scull International, its subsidiary Drake & Scull Engineering has won AED 82.5 million health- care project in
Abu Dhabi. During the month, ADX fell 3.1%MTD. For the year ADX posted a gain of 5.6%. Services sector (2.42% MTD) was the top performer while Energy sector (-13.94%MTD) was the top loser.
According to an online report, UAE GDP to grow to AED 1.54 trillion in 2014.
In the last 3 months of the year, TASI started losing its gains. The highest gain for TASI was 30% which was recorded during August. For the month, the market fell 3.4% and for the year the market
registered a -2.4%YTD. Agriculture & Food Industries sector (5.14% MTD) was the best performer while Building & Construction (-12.37%MTD) was the worst performer. Saudi Marketing Company
and Al Khaleej Training and Education Company were the top two performers, gained 19.9% MTD and 19.5% MTD, respectively. The Saudi government announced another expansionary budget. Since
2011, for the first time a fiscal deficit is projected. The spending is projected at USD 229.3 billion, up 0.6 per cent from the 2014 budget, while total revenues are projected at USD 190.7 billion, leading to a
deficit of USD 38.6 billion. During the month, Takween Advanced Industries agreed to buy a packaging unit of Savola Group for USD 242.5 million. The other markets MSM, KSE and BSE closed the
year at -7.2%, -13.4% and 14.2%. During the month, gold gained 0.8 per cent to close the year at -1.5 per cent. Oil continued the downward trajectory, WTI fell 19.5% MTD and registered -45.9% YTD.
We are of the opinion that the governments will continue to undertake spending as evidenced through the recent budgets announced by Saudi, Oman and UAE. The prime two events Expo 2020 and
FIFA 2022 to bode-well for the GCC growth. We are of the view that an improvement in the oil price and yearly results to regain the sentiments. However, we don’t rule out that the falling oil prices
would impact the GCC economies. Expected opening of the Saudi market to foreigners before April 2015 is expected to further improve the market sentiments. The fund to remain invested in
fundamentally strong companies and continues to create value ‘NAV’ for the investors.
Investment Manager –Vision Investment Services Co. SAOC; +968 24726000; + 968 24726010; [email protected]