Vision Asset Management Co. (S.A.O.C) Factsheets 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 ; +968 24726000; + 968 24726010; http://www.investvis.co.om/
Market Update Global Markets Global growth remains robust and many emerging market countries are better prepared to face crises, but risks to the world economy have increased, finance chiefs from the G20 group of nations said at their summit in Buenos Aires in July. The US equity market ended June in positive territory, buoyed by robust second quarter economic growth and relief over the agreement reached by the US and the EU on defusing trade tensions. While the US economy recorded its strongest pace of growth since 2014 at 4.1% and trade progress included reports of efforts by the US and China to also come to an agreement, optimism was tempered. UK equity markets rose during July, a month dominated by Brexit headlines, mixed economic data and continued sterling weakness. Weaker than expected retail sales data released for the previous month added to downward pressure on sterling, as the World Cup and extended hot weather kept consumers at home. Economic data released mid-month showed that despite record employment levels, UK wage growth dipped to a six-month low in June. European equity markets made solid gains in July as second quarter earnings season proved to be reasonably strong. All sectors posted positive returns with relative strength coming from healthcare, financials, energy and telecoms, while consumer staples, information technology and real estate were the relative laggards over the month. Asian equity market performance was mixed over July. There was divergence in performance with the ASEAN, MTD YTD P/E (x) Commodities Brent spot -6.53% 11.04% - Gold -2.32% -6.06% - Leading Benchmarks S&P Global BMI 2.57% 1.27% 18.45 S&P Developed BMI 2.66% 2.04% 18.96 S&P Emerging BMI 2.14% -5.29% 14.83 S&P GCC Comp Index 2.23% 12.26% 10.94 S&P GCC Shariah Index 1.25% 11.34% 9.80 MSCI World 3.05% 2.36% 18.61 MSCI Emerging 1.68% -6.13% 13.51 MSCI GCC 3.30% 15.33% 14.04 Developed Equities Dow Jones 4.71% 2.82% 18.15 S&P 500 3.60% 5.34% 20.49 FTSE 1.46% 0.79% 17.24 DAX 4.06% -0.87% 14.38 CAC 3.53% 3.74% 17.00 Emerging Equities Nikkei 1.12% -0.93% 16.27 Sensex 6.16% 10.42% 24.40 Shanghai 1.02% -13.03% 13.96 GCC Equities & Egypt Saudi Arabia -0.23% 14.79% 18.01 Abu Dhabi 6.57% 10.48% 12.78 4.78% -12.29% 9.38 Oman -5.14% -14.96% 8.78 Kuwait 5.67% 3.52% 14.61 Doha 8.88% 15.27% 14.83 Bahrain 3.61% 3.61% 1.39 Egypt -4.70% -4.70% 12.51 Indian and Taiwanese markets being notable outperformers, while China and South Korea lagged. China s economic activity data remained soft over the month which points to a negative impact from continuous deleveraging efforts. Japan s equity market ended the month higher in local currency due to a positive earnings season with companies delivering high single digit earnings growth. Emerging equity markets drew support from encouraging macroeconomic data release and upbeat corporate earnings. Latin America was the best performing region, led by strong performances from Brazil and Mexico. The EMEA (Europe, Middle East & Africa) region also generated positive returns. Equity performance in emerging Asia was more dispersed, with the Philippines leading the gains. The S&P Emerging BMI gained by 2.14% while the S&P Developed BMI gained by 2.66%.
GCC Markets International trade concerns once again came to the fore after reports that the US could impose tariffs on additional Chinese goods worth USD 200 Bn with an expected reciprocal reaction from China. The news affected markets across the globe, including Europe and Asia. Oil prices also receded, as a result, as an international trade dispute between two of the largest economies could depress oil demand. In addition, Libya s oil production, which was suffering from a force majeure at several ports that halved the country s output, was reportedly back online. The second quarter results of GCC corporate earnings season was on a positive note with most banks reporting strong earnings across the GCC, thereby boosting investor sentiment in most of the GCC markets during the month. This pushed the aggregate GCC index up by more than 3% in July-18. Petrochemical stocks also reported gains largely due to elevated oil prices that resulted in better product prices. Global Markets also had a positive show with the MSCI World Index up 2.8% highlighting strong US market performance on the back of solid improvement in quarterly earnings. However, the ongoing trade war concerns between US and China did limit growth in some of the indices. Boursa Kuwait indices posted positive performance during July-18, however, gains were primarily skewed towards large-cap stocks. Gains for the Premier Market index came after investors started accumulating largecap stocks before the expected MSCI decision to upgrade to the Emerging Market status next year. JPMorgan has launched a consultation that could bring the GCC countries into its EM benchmark, resulting in inflows of up to c.usd 45bn (2.8% of GDP). Decision is set for September and inclusion could be phased over 6 months. Meanwhile IMF estimates Saudi Arabia s GDP growth for 2018 to be higher by 20 bps at 1.9%. GDP growth forecast for 2019 (1.9%) was left unchanged. However, this is subject to revision for 2019 as the oil GDP forecast depends on the nature of the OPEC+ agreement in 2019, and global trade. Meanwhile in M&A, in Oman, Bank Dhofar has initiated merger talks with the National Bank of Oman. The merger talks are still at a very preliminary stage. This is the second attempt for Bank Dhofar to merge with a domestic bank after protracted negotiations with Bank Sohar, which lasted over three years, came to an end in October 2016. If successful, the merged entity would become the second largest bank in Oman on key balance sheet metrics. The merged entity would have an asset and loan market share of 25%. In Kuwait, Kuwait Finance House KSCP wants to hold renewed talks with Bahrain s Ahli United Bank BSC for a potential acquisition/ merger which if successful would create an entity with about $92 billion of assets. Vision Funds Doha led the gains for the GCC markets followed by Abu Dhabi, Kuwait, & Bahrain. Oman declined the most in July while Saudi Arabia was also down for the month. The Vision Emerging GCC Fund advanced by 0.06% while the Vision Real Economy GCC Fund advanced by 0.87%. The Sharia focused Vision Al Khair GCC Fund gained 0.77% for the month. Vision Focused Fund gained 2.50% for the month with its concentrated portfolio strategy. The Vision Emerging Oman Fund ended 4.04% down for the month. Outlook The backdrop of current oil prices gives GCC countries ample flexibility in terms of their ongoing fiscal consolidation plans and managing their current accounts balances. However, more protectionist global trade policies and mounting trade tensions could impact the region through lower global oil demand and volatility in oil prices. This should push GCC countries to expedite their diversification plans, and their individual fiscal consolidation plans targeting both additional revenues and expense optimization going forward.
Inception Mutual Fund AUM (OMR mn) Funds Snapshot Returns Matrix AUM (USD mn) Performance (Return) Jul-18 YTD 2017 3 Year 5 Year Since Inception May, 2005 Vision Emerging GCC Fund * 14.61 37.93 0.06% 5.80% -3.25% -12.64% 27.51% 124.80% 6.38% August, 2007 Vision Emerging Oman Fund * 1.95 5.05-4.04% -6.78% -4.50% -10.20% -9.40% 16.43% 1.41% April, 2010 Vision Real Economy GCC Fund * 8.82 22.90 0.87% 7.39% -4.07% -9.63% 26.99% 80.66% 7.54% May, 2013 Vision Al Khair GCC Fund * 8.86 22.99 0.02% 4.14% -5.41% -17.69% 7.18% 6.20% 1.20% January, 2017 Vision Focused Fund 2.42 6.28 0.77% 1.74% -10.71% NA NA -9.10% NA Ann. Return Risk Matrix Year of Std. Sharpe Active Tracking Informatio Winning Losing Mutual Fund Beta R Squared Inception Deviation Ratio Return Error n Ratio Months Months May, 2005 Vision Emerging GCC Fund * 16.02% 0.20 1.08% 7.63% 0.14 0.94 78% 87 70 August, 2007 Vision Emerging Oman Fund * 13.85% -0.12 5.25% 4.13% 1.27 0.91 95% 74 57 April, 2010 Vision Real Economy GCC Fund * 11.06% 0.54 NA NA NA NA NA 55 44 May, 2013 Vision Al Khair GCC Fund * 10.98% -0.15-3.63% 7.66% (0.47) 1.10 82% 35 27 (* Adjusted for dividends, assuming dividends are reinvested) ; +968 24726000; + 968 24726010; http://www.investvis.co.om/ 4
NAV (per unit) RO. 1.060 (USD. 2.750) Performance Chart* 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. Date of Inception Lipper ID Bloomberg ID Custodian VSEMGCC OM National Bank Of Oman (* Adjusted for dividends, assuming dividends are reinvested) Administrator Vision Investment Services Co. SAOC Country Allocation Auditors Moore Stephens LLC Fund Type Ann. Standard Deviation Open Ended High/(Low) Monthly Return 12.80% (July 2013), -24.75% (October 2008) Latest Dividend Paid 60 baiza (2016) Total Div. & Bonus Paid May 19, 2005 65044199 16.02% 370 baiza (Dividend), 60% (Bonus) Scrip Country Allocation Al Rajhi Bank KSA 10.41% Sector Allocation Agility Logistics Kuwait 6.60% Samba Bank KSA 6.40% NCB Bank KSA 6.33% Yansab KSA 5.91% Fund Performance* Jul-18 YTD 5 Years Since Inception 0.06% 5.80% 27.51% 124.80% (* Adjusted for dividends, assuming dividends are reinvested) ; +968 24726000; + 968 24726010; http://www.investvis.co.om/
NAV RO. 0.951 (USD. 2.467) Performance Chart* 2.000 1.800 1.600 1.400 1.200 1.000 0.800 0.600 0.400 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 * Adjusted for dividends, assuming dividends are reinvested Sector Allocation - VEOF Materials 8% Telecommunic ation Services 14% Banks 40% 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 ) Date of Inception Lipper ID Bloomberg ID Custodian Administrator Auditors Fund Type Annualized Standard Deviation High/(Low) Monthly Return 6-Aug-07 65107048 VISOMAN OM Latest Dividend Paid 70 baiza (2016) National bank Of Oman Vision Investment Services Co. SAOC PricewaterhouseCoopers LLP Open Ended Fund 13.85% 13.13% (Oct 2007); -26.58% (Oct 2008) Total Dividend & Bonus Paid 245 baiza Food & Beverage 3% Energy 3% Sector Allocation - MSM Index Leasing 2% Cash 3% Services 0% Capital Goods 2% Bonds 0% Scrip Allocation Com & Prof Insurance Serv 1% 1% Capital Goods 2% Div Fins 2% Utilities 5% Telecom 18% Materials 5% Energy 8% Banks 58% Bank Muscat (Omr) 11.24% Oman United Insurance (Omr) 8.33% Ooredoo (Omr) 7.43% National Bank Of Oman (Omr) 7.33% Oman Telecommunication (Omr) 7.16% Fund Performance* Jul-18 YTD 5 Years Since Incep Year Yearly Return Total Return Fund -4.04% -6.78% -9.40% 16.43% MSM30 Index -5.14% -14.96% -34.72% -33.09% * Adjusted for dividends, assuming dividends are reinvested Jan 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% 2018-6.78% 16.43% -0.88% -0.35% -1.55% 0.84% -0.35% -0.59% -4.04% ; +968 24726000; + 968 24726010; http://www.investvis.co.om/ 6
NAV (per unit) RO. 1.268 (USD. 3.292) Performance Chart * 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. Date of Inception April 14, 2010 Lipper ID 68053041 (* Adjusted for dividends, assuming dividends are reinvested) Country Allocation Bloomberg ID VIREGCC OM Custodian National Bank of Oman Administrator Vision Investment Services Co. SAOC Auditors Moore Stephens LLC Fund type Open Ended Annualized Standard Deviation 11.06% High/(Low) Monthly Return 10.32% (March 2011), -11.55% (August 2015) Latest Dividend Paid 60 baiza (2017) Total Dividend Paid 490 baiza Scrip Country Allocation Aramex 9.95% Sector Allocation Yansab KSA 9.20% Agility Kuwait 7.26% Emaar Prop 7.20% Jarir Mktg KSA 7.12% Fund Performance * Jul-18 YTD 5 Years Since Incep. 0.87% 7.39% 26.99% 80.66% (* Adjusted for dividends, assuming dividends are reinvested) ; +968 24726000; + 968 24726010; http://www.investvis.co.om/ 7
NAV (per unit) RO. 0.908 (USD. 2.358) Performance Chart 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. Date of Inception 12-Jan-17 Lipper ID 68404006 Bloomberg ID - Custodian National Bank of Oman Country Allocation Kuwait 11.1% Cash 4.2% KSA 50.0% Administrator Auditors Fund type Vision Investment Services Co. SAOC Moore Stephens LLC Open Ended Annualized Standard Deviation - High/(Low) Monthly Return 3.29% (July '17)/-4.32% (Nov '17) Latest Dividend Paid - Total Dividend Paid - 34.8% Sector Allocation Scrip Country Allocation materials 13.8% real estate 7.5% cash 4.2% consumer discretionary 5.3% Aramex NBK DIB Al Rajhi Kuwait Saudi 11.36% 11.05% 9.99% 9.35% Budget 7.80% industrials 19.6% healthcare 3.9% financials 46.2% Fund Performance Jul-18 YTD 5 Years Since Incep. 0.77% 1.74% NA NA ; +968 24726000; + 968 24726010; http://www.investvis.co.om/ 8
NAV (per unit) RO. 0.969 (USD. 2.515) Performance Chart* 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. Date of Inception May 15, 2013 Lipper ID 68212188 Bloomberg ID VISAKGC OM (* Adjusted for bonus, dividend) Custodian National Bank of Oman Countrywise Allocation Administrator Vision Investment Services Co. SAOC Auditors PricewaterhouseCoopers LLP Fund type Open Ended Ann. Standard Deviation 10.98% High / (Low) Monthly Return 8.53% (April 2015), -12.18% (August 2015) Latest Dividend Paid - Total Dividend & Bonus Paid 50 baiza (Dividend), 5% (Bonus) Scrip Country Allocation Sector Allocation DIB Aramex Al Rajhi Bank Jarir Agility KSA KSA Kuwait 11.47% 9.20% 7.62% 5.94% 5.88% Fund Performance* Jul-18 YTD 5 Years Since Inception 0.02% 4.14% 7.18% 6.20% (* Adjusted for bonus, dividend) 9