vision asset management co. (s.a.o.c) · aramco sold $25.6 billion of shares at 32 riyals each, the...

CONTENTS

Market Update…..……………………………………………………………………................2

Funds Snapshot..………………………………………………………………………………4

Equity Funds

Diversified

Vision Emerging GCC Fund………………………………………………...…….…….5

Country Specific

Vision Emerging Oman Fund…………………………………………….………...…...6

Thematic

Vision Real Economy GCC Fund……………………….……………………..………..7

Vision Focused Fund………………………………………………..…………………..8

Shariah

Vision Al Khair GCC Fund…………………………………………………...….....…...9

Vision Asset Management Co. (S.A.O.C)

Factsheets – November 2019

Investment Manager –Vision Asset Management Co. SAOC; +968 24726000; + 968 24726010; http://www.investvis.co.om/

MTD YTD P/E (x)

Commodities

Brent spot 3.65% 16.04% -

Gold -3.24% 14.15% -

Leading Benchmarks

S&P Global BMI 2.31% 19.58% 20.16

S&P Developed BMI 2.59% 20.85% 20.99

S&P Emerging BMI 0.08% 9.23% 15.23

S&P GCC Comp Index 1.28% 2.30% 16.04

S&P GCC Shariah Index 1.01% 0.44% 18.15

MSCI World 2.63% 21.68% 19.99

MSCI Emerging -0.19% 7.69% 14.54

MSCI GCC 1.18% 0.54% 15.44

Developed Equities

Dow Jones 3.72% 20.25% 19.30

S&P 500 3.40% 25.30% 20.89

FTSE 1.35% 9.19% 17.76

DAX 2.87% 25.36% 24.49

CAC 3.06% 24.83% 21.15

Emerging Equities

Nikkei 1.60% 16.38% 18.54

Sensex 1.66% 13.10% 29.09

Shanghai -1.95% 15.16% 13.82

GCC Equities & Egypt

Saudi Arabia 1.48% 0.41% 20.25

Abu Dhabi -1.51% 2.35% 15.47

Dubai -2.48% 5.89% 10.63

Oman 1.61% -6.00% 7.67

Kuwait 3.69% 16.71% 14.59

Doha -0.40% -1.47% 14.73

Bahrain 0.24% 14.18% 12.33

Egypt -4.87% -2.86% 11.86

Global Markets

Global equity markets ended November in positive territory amid receding fears of a global recession and signs of progress in US-China trade talks.

The US equity market outperformed most other major markets to reach record highs during the month on optimism over trade relations and a fresh wave of merger and acquisition activity. Investors were also cheered by a resilient US economy and corporate earnings, putting the US equity market on track for its largest annual rise since 2013.

The UK equity market provided a positive return over November led by Consumer and Technology stocks, which outperformed. Conversely, Energy stocks proved the month’s laggards. Within the equity market the FTSE 100 posted a positive return over November, but trailed small and mid-cap indices, where stocks more broadly benefitted from the strengthened domestic currency.

European markets rallied in November buoyed by some better than expected economic data and positive US-China trade rhetoric. Investors continued to puruse a riskier investment strategy towards cyclical sectors. In economic news, November’s eurozone manufacturing PMI reading jumped to 46.9 (45.9 in October), alleviating some investor concern about a never-ending slowdown in the sector. In addition, headline & core inflation also increased to 1.0% & 1.3% from 0.7% & 1.1% in October respectively.

Asian equity market performance was marginally positive in November as investors in the region took a more circumspect view of developments in the ongoing trade dispute between the US-China. Chinese equities ended the month higher amid mixed economic data and US-China trade tensions. In Taiwan, the equity market continued to benefit from positive earnings revisions helped by strong Q3 earnings. Korean equities were flat on the month due to yet another disappointing 3Q earnings season and mixed macro indicators. Indian equity market performance was dampened on concerns around macroeconomic data coupled with ratings agency Moody’s downgrade of India’s outlook from stable to negative. In Japan, second quarter corporate earnings moved through its final phases with positive surprises outweighing negative news leading to a positive performance in the equity market.

Emerging markets started the month of a strong note bolstered by signs of stabilization in global growth. However, sentiment turned negative owing to economic, political & corporate factors. Plagued with strikes and antigovernment protests across the region, Latin American equity markets, along with their respective currencies, came under the most pressure. In Latin America the biggest protests since the Pinochet-era knocked confidence towards equity markets in Chile, which suffered their worst performance in two years. Brazil also lost

Market Update

ground on worries that antifree market protests in Chile could spill over to the continent’s largest economy and cause the Brazilian government to water-down their reform agenda. Equity performance in the EMEA region was a mixed bag with Turkey being the stand out performer and Poland being the biggest detractor. Equity markets in Greece finished in positive territory as the country completed the early repayment of €2.7 billion of loans to the International Monetary Fund (IMF).

GCC Markets

Aramco sold $25.6 billion of shares at 32 riyals each, the top of the range at which they were marketed, and the company had orders for $119 billion of stock. About 4.9 million individual investors, almost 15% of the kingdom’s population, applied for the shares. Saudi Arabia sold only 1.5% of the company’s capital in the IPO.

At sector level, two of the top ten largest sectors by market cap namely the Materials Sector and the Utilities Sector recorded steep double-digit declines in their third quarter net profits resulting in an overall decline in aggregate quarterly profits for the third quarter of 2019. Banking and Telecom sectors had 11% and 3.4% growth in profits during Q3-19, respectively, partially offseting the overall decline at the GCC level. The Banking sector represented 61% of the GCC earnings in Q3-19, increasing marginally both as compared to Q3-18 as well as sequentially.

After three consecutive months of decline, the broader GCC gauge (MSCI GCC Index) saw gains during November-19 primarily on the back of Kuwait, Saudi and Oman that showed low single digit gains. These gains were partially offset by declines in the UAE and Qatari benchmarks. The 3.7% gains in Kuwait’s All Share Index once again pushed the Kuwaiti market to the top spot in terms of YTD-19 gains at 16.7% followed by Bahrain at 14.2%.

In Oman, on the economic front, the latest data released by NCSI has shown progress in terms of decline in Oman’s budget deficit. According to the data, the Sultanate’s budget deficit declined by 19.4% to OMR 1.5 Bn during the first nine months of the year as compared to OMR 1.9 Bn during 9M-18. Total revenue during the year increased by 2.5% to OMR 7.95 Bn whereas total expenditure declined by 1.8% during the period to OMR 9.5 Bn.

Saudi Arabia government announced its 2020 budget, with plans to cut spending by 2.7% Y-o-Y in 2020 in order to compensate an expected drop in oil revenues. Spending cuts will be concentrated mostly in current expenditure, with no change in wages, as capital expenditure is set to expand only 1% Y-o-Y

Oil prices have witnessed gradual gains since last month after hopes of a possible partial trade deal between the US and China. It is anticipated that the trade deal would help to reverse the slowing oil demand growth, which was also highlighted by the OPEC secretary general. On the supply side, oil prices were capped led by reports which said that OPEC may not implement deeper cuts next year as it expects a slowdown in supplies from non-OPEC producers, especially from the shale industry.

Dubai's economy is in the midst of implementing a series of economic stimulus measures introduced last year with indicative real GDP of 3.2% in 2020. Dubai's economic growth slowed to 1.7% in 2018 but is expected to pick up following the introduction of stimulus measures by both the federal and the emirate's governments.

Vision Funds

Kuwait led the gains for GCC markets, followed by Saudi Arabia & Bahrain. Dubai declined the most, followed by Abu Dhabi & Qatar. The Vision Emerging GCC Fund advanced 1.88% while the Vision Real Economy GCC Fund declined 0.43%. The Sharia focused Vision Al Khair GCC Fund advanced 0.54% for the month. Vision Focused Fund advanced 3.10% for the month with its concentrated portfolio strategy. The Vision Emerging Oman Fund advanced 2.21% for the month.

Outlook

Kuwait remains a clear Overweight for funds under management, ahead of the possible MSCI EM upgrade in May 2020. Oil prices seem to have found a strong bottom near $60 level. At that price, GCC public spending and debt seems sustainable. Social changes in Saudi are translating into continued strong recreational spend and discretionary purchases. The introduction of tourism visa in Saudi in addition to other social regulations being relaxed should provide impetus to the hospitality and tourism sector. An easing of geo political climate could further improve sentiments with improved budgetary spend in the coming year would provide additional impetus for the markets.

Nov-19 YTD 2018 3 Year 5 YearSince

Inception

Ann.

Return

May, 2005 Vision Emerging GCC Fund * 12.55 32.59 1.88% 1.99% 0.25% 4.58% -19.53% 122.90% 5.65%

August, 2007 Vision Emerging Oman Fund * 1.89 4.92 2.21% -2.55% -6.93% -8.79% -15.93% 13.27% 1.02%

April, 2010 Vision Real Economy GCC Fund * 7.85 20.38 -0.43% -2.59% 0.26% -1.41% -17.50% 64.29% 5.29%

May, 2013 Vision Al Khair GCC Fund * 8.89 23.08 0.54% 2.63% 2.31% 4.51% -15.31% 7.09% 1.05%

January, 2017 Vision Focused Fund 2.08 5.41 3.10% 5.76% -4.25% NA NA -9.59% NA

Returns Matrix

AUM

(OMR mn)

AUM

(USD mn)Inception Mutual Fund

Performance (Return)

Funds Snapshot

NAV (per unit)

Performance Chart*

Bloomberg ID VSEMGCC OM

Investment Manager Vision Asset Management Co. SAOC

Custodian National Bank Of Oman

(* Adjusted for dividends, assuming dividends are reinvested) Administrator Vision Investment Services Co. SAOC

Country Allocation Auditors Crowe Mak Ghazali LLC

Fund Type Open Ended

Ann. Standard Deviation

High/(Low) Monthly Return 12.80% (July 2013), -24.75% (October 2008)

Latest Dividend Paid 60 baiza (2016)

Total Div. & Bonus Paid 370 baiza (Dividend), 60% (Bonus)

Top 5 Holdings

Weights

10.4%

7.1%

Sector Allocation 7.0%

5.2%

4.6%

Fund Performance*

Nov-19 5 Years Since Inception

1.88% -19.53% 122.90%

Monthly Returns

NCB KSA

YTD

1.99%

(* Adjusted for dividends, assuming dividends are reinvested)

QNB Qatar Qatar

NBK Kuwait Kuwait

Kuwait Finance House Kuwait

Rajhi Bank KSA

RO. 1.024 (USD. 2.660)

Fund Objective

The primary objective of Vision Emerging GCC Fund (VEGF) is to maximize the risk

adjusted returns, as measured by Sharpe Ratio. It follows a flexible asset allocation policy

with investments spread across a diversified range of investment options including

alternative investments.

Lipper ID 65044199

20.47%

Scrip Country

Fund Information

Date of Inception May 19, 2005


FACT SHEETNovember 2019

NAV

Performance Chart*

* Adjusted for dividends, assuming dividends are reinvested

Sector Allocation - VEOF

YTD Since Incep

Fund -2.55% 13.27%

MSM30 Index -6.00% -37.29%

Monthly Returns

Sector Allocation - MSM Index

6-Aug-07

VISOMAN OM

Date of Inception

Bloomberg ID

65107048

National bank Of Oman

Lipper ID

245 baiza

13.13% (Oct 2007); -26.58% (Oct 2008)

10.1%

Allocation

Annualized Standard Deviation

Vision Investment Services Co. SAOC

Open Ended Fund

13.07%

Fund Type

PricewaterhouseCoopers LLP

Sohar International Bank

Bank Muscat

Investment Manager

Custodian

Total Dividend & Bonus Paid

Administrator

Auditors

High/(Low) Monthly Return

Top 5 Holdings

Oman Telecommunication

Scrip

Nov-19

7.4%

8.1%

Bank Dhofar 8.5%

Fund Objective

-15.93%

1.61% -37.53%

RO. 0.925 (USD. 2.400)


The primary objective of the Fund is to achieve growth through capital appreciation

and dividend income by investing in equities listed and/or to be listed on the Muscat

Securities Market (“MSM”)

Ooredoo

Vision Asset Management Co. SAOC

* Adjusted for dividends, assuming dividends are reinvested

Fund Information

Fund Performance*

7.2%

5 Years

2.21%

YearYearly

Return

Total

ReturnJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2007 32.36% 32.36% 4.45% 13.13% 4.92% 7.49%

2008 -37.42% -17.16% 1.40% 12.79% -0.02% 12.56% 2.35% -1.95% -6.01% -11.91% -9.80% -26.58% 0.21% -11.83%

2009 22.92% 1.82% -9.52% -0.11% 1.71% 10.45% 6.64% 3.28% 2.99% 8.23% 2.55% -3.24% -0.51% -0.12%

2010 10.05% 12.05% 2.94% 2.56% 2.51% 2.33% -8.07% -2.35% 3.26% -0.98% 3.13% 1.81% 0.61% 2.48%

2011 -10.22% 0.60% 1.71% -11.20% 0.00% 7.11% -5.26% 0.00% -2.73% 0.07% -2.67% 0.62% -2.96% 5.89%

2012 4.47% 5.10% -1.79% 4.45% -0.19% 2.91% 0.00% -3.30% -5.95% 2.49% 1.42% 2.10% -1.76% 4.57%

2013 29.76% 36.37% 1.05% 3.90% 3.95% 1.97% 5.89% -1.94% 5.82% 0.62% 0.52% 2.04% 1.29% 1.52%

2014 -4.46% 30.29% 6.24% 0.46% -0.84% -1.15% 0.22% 1.52% 1.41% 2.25% 0.88% -6.97% -4.60% -3.31%

2015 -7.92% 19.97% 3.10% 0.26% -3.32% 2.37% 0.96% 1.84% 1.93% -7.83% -0.01% 1.41% -6.45% -1.76%

2016 9.01% 30.78% -3.89% 3.07% 2.90% 7.43% -2.39% -0.66% 1.77% -1.73% -0.23% -2.66% 0.37% 5.31%

2017 -4.50% 24.90% -0.09% 1.32% -0.64% 1.26% -0.29% -4.40% -2.50% 0.50% 1.33% -3.18% 2.33% -0.01%

2018 -6.93% 16.24% -0.88% -0.35% -1.55% 0.84% -0.35% -0.59% -4.04% 0.93% 2.80% -2.13% -0.35% -1.32%2019 -2.55% 13.27% -3.02% -1.17% 1.56% 1.01% -2.13% -1.44% -6.14% 5.35% 0.83% 0.83% 2.21%

Banks45.6%

Capital Goods4.4%

Cash4.9%

Energy5.8%

Food & Beverage

0.0%

Materials7.4%

Telecommunication Services

14.6%

Insurance 8.3%

Diversified Financials

9.9%



0.400

0.600

0.800

1.000

1.200

1.400

1.600

1.800

2.000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

6

Banks50.8%

Materials5.8%

Utilities3.9%

Capital Goods0.7%

Insurance0.5%

Commercial & Professional

Serv0.7%

Diversified Financials

7.9%

Telecommunication Services

18.7%

Energy6.7%

Food & Beverage

4.4%

Performance Chart * Fund Objective

Fund Information

Date of Inception April 14, 2010

Lipper ID 68053041

Bloomberg ID VIREGCC OM


Custodian National Bank of Oman

Administrator Vision Investment Services Co. SAOC

Auditors Crowe Mak Ghazali LLC

Fund type Open Ended

Annualized Standard Deviation 10.71%

High/(Low) Monthly Return 10.32% (March 2011), -11.55% (August 2015)


Total Dividend Paid 490 baiza

Top 5 Holdings

Fund Performance *

Nov-19 YTD Since Incep.

-0.43% -2.59% 64.29%

Monthly Returns

RO. 1.106 (USD. 2.870)NAV (per unit)

The objective of the Fund is to achieve capital appreciation and income generation by providing its investors

the opportunity to participate in the growth of Real Economy Sectors of GCC.

Sector Allocation


-17.50%

7.2%

6.7%

6.4%

6.0%

KSA

Kuwait

UAE

KSA


Country Allocation

United Electronics

Jarir Marketing

Scrip Country Allocation

5 Years

Leejam

Aramex

Agility Kuwait

KSA

4.2%


Investment Manager –Vision Asset Management Co. SAOC; +968 24726000; + 968 24726010; http://www.investvis.co.om/ 7

Performance Chart Fund Objective

Fund Information

Date of Inception 12-Jan-17

Lipper ID 68404006

Bloomberg ID -




Auditors Crowe Mak Ghazali LLC


Annualized Standard Deviation 7.61%

High/(Low) Monthly Return 3.29% (July '17)/-4.32% (Nov '17)

Latest Dividend Paid -

Total Dividend Paid -

Top 5 Holdings

Fund Performance

Nov-19 YTD Since Incep.

3.10% 5.76% -9.59%

Monthly Returns

Country Allocation

Kuwait Finance House

Kuwait

KSA

Qatar

AllocationCountry

RO. 0.904 (USD. 2.347)NAV (per unit)

The objective of the Fund is to pursue long-term capital growth by investing in a concentrated set of

select stocks in the middle east equity market sphere.

5 Years

Sector Allocation

NA

NBK

Seera Holdings

QNBK

Zain KSA

Scrip

KSA

Kuwait

11.0%

9.6%

9.6%

7.4%

6.7%


Investment Manager –Vision Asset Management Co. SAOC; +968 24726000; + 968 24726010; http://www.investvis.co.om/ 8

NAV (per unit)

Performance Chart* Fund Objective

Fund Information

Date of Inception May 15, 2013

Lipper ID 68212188

Bloomberg ID VISAKGC OM




Countrywise Allocation Auditors PricewaterhouseCoopers LLP


Ann. Standard Deviation 10.40%

High / (Low) Monthly Return 8.53% (April 2015), -12.18% (August 2015)

Latest Dividend Paid 50 Baiza (2015)

Total Dividend & Bonus Paid 50 baiza (Dividend), 5% (Bonus)

Top 5 Holdings

Allocation

Rajhi Bank 10.3%

Jarir Marketing 6.9%

Kuwait Finance House 6.5%

Sector Allocation Agility Kuwait 5.0%

Aramex 4.7%

Fund Performance*

Nov-19 YTD 5 Years Since Inception

0.54% 2.63% -15.31% 7.09%

(* Adjusted for bonus, dividend)

RO. 0.977 (USD. 2.536)

The objective of the Fund is to achieve capital appreciation and income generation by providing its unit holders an

opportunity to invest in the listed securities in the GCC economies that are compliant to Shariah principles. The Fund will

follow a dynamic allocation policy with investments spread across a diversified range of industries in the GCC.

Monthly Returns

UAE

Scrip Country

KSA

KSA

Kuwait

Kuwait


9

vision asset management co. (s.a.o.c) · aramco sold $25.6 billion of shares at 32 riyals each, the...

Documents