BLOM SAUDI ARABIA Fund Fact Sheet November 2014
xMember of BLOM BANK Group
ASSET MANAGEMENT
BLOM SAUDI ARABIA Fund An Open-Ended One Class Investment Fund
Fact Sheet
November 2014
Market Review Tadawul Stock Exchange Yearly Performance
Equity Performance The Saudi bourse continued its three-month decline by November, stretching since endAugust 2014. The drop in the gauge continued as oil prices show no sign of ceasing their downward trend, especially after the OPEC meeting culminated in a decision against cutting production on November 27th. Consequently, the Tadawul All Share Index (TASI) ended November with a 14.05% slide to 8,624.89 points. During the month of November, the volume and value of traded shares increased by 12.04% and 16.40% to respective values of 4.56B and $41.24B.
120.00% 100.00% 80.00%
60.00% 40.00% 20.00%
0.00%
All sectors posted a negative performance during the month, with the most prominent declines witnessed in the Telecom and Information Technology sector with a 26.86% loss, Petrochemical with a 20.76% drop and Hotel & Tourism with a monthly downturn of 19.16%.
-20.00% -40.00% -60.00% -80.00% 2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
In terms of companies, the top gainers of the month were Malath Insurance (Insurance, +19.96%), Kingdom Holding Co (Multi-Investment, +9.85%), Middle East Specialized Cables (Industrial Investment, +7.45%), Solidarity Saudi Takaful (Insurance, +3.06%) and United International Transportation (Transport, +2.25%).
Sector Performance –November 2014
Telecom. & Info. Tech. Petrochemical Hotel & Tourism
Industrial Investment Multi Investments Building & Construction Agriculture & Food Insurance Real Estate Development Energy & Utilities Banks & Financial Services Retail Cement Transportation
Media & Publishers -30%
-25%
-20%
-15%
-10%
-5%
0%
BLOMINVEST SAUDI ARABIA Asset Management Department Al-Oula Building, 3rd Floor King Fahed Road, Riyadh P.O. Box 8151, Riyadh 11482, Saudi Arabia Tel: +966 1 4949555 Fax: +966 1 4949551 Email: [email protected] Website: www.blominvestksa.com 1/2
As for the worst performers during the month of September they were: Medgulf (Insurance, -45.81%), Al Khodari, (Building and Construction, -42.47%), Amana Insurance after they were forbidden from trading for 2 hours on November 5th due to losses surpassing 50% of capital (Insurance, -37.83%), Saudi Arabian Cooperative Insurance (Insurance, -30.41%), and Bank Albilad (Banking and Financial Services, 29.48%), whose research and advisory manager said that “concerns over forthcoming government spending have negatively affected share prices of non-petrochemical sectors”. The Capital Markets Authority (CMA) announced the adoption of the Credit Rating Agencies Regulations, in addition to the updating of the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority on November 10th, 2014 in efforts to develop the Saudi Capital Market. Economic PerformanceThe Saudi Arabian non-oil producing private sector continued to grow albeit at a slower pace. The headline SABB HSBC Saudi Arabia Purchasing Managers Index (PMI) decreased from 59.1 in October to 57.6 in November, still well above the 50 mark separating expansion from recession. The toned down growth was due to softer advances in output, new orders and employment. As for inflation it dropped from 2.8% y-o-y in September to 2.6% in October mainly due to a slowdown in housing inflation to 2.8%. Oil prices fell further as the market faces rising US stockpiles and a firm decision on no cuts in OPEC’s production. According to official figures from the Kingdom’s central bank, the average oil price for the Saudi Arabian Arab Light fell from $94.9/barrel in September to $85.2 in October 2014. According to the latest OPEC report, Saudi Arabia’s crude oil production also fell from 9.65 mbpd in October to 9.59 mbpd in November. Accordingly, the reserve assets of the central bank slid by a monthly 0.33% to reach $742.46B in October 2014. However, these reserve assets remain at extremely comfortable levels and are 3% higher than October 2013. The Tadawul All Share Index (TASI) continued its recent slide, and fell by 7.55% compared to the previous month, to reach 10,034.92 points. During the month of October, the volume of traded shares dropped by 33.24% to 4.07B, while the value of traded shares declined by 34.10% to $35.43B. All sectors posted a dip in performance. The biggest losers were the petrochemical sector and the transportation sector, with respective declines of 13.80% month-on-month (m-o-m) and 12.47% m-o-m. The sharp drop in oil prices is a likely factor behind these stumbles in performance.
ASSET MANAGEMENT
Member of BLOM BANK Group
BLOM SAUDI ARABIA Fund An Open-Ended One Class Investment Fund
Fact Sheet Fund Objective
November 2014
Investment Philosophy
The objective of the Fund is to generate long-term capital growth primarily through investing in listed Saudi equity securities. The Fund will seek to outperform the Tadawul index on a risk-adjusted basis.
The fund primarily invests in equity securities listed on the Tadawul, either directly or through other funds or collective investment schemes established under the laws and regulations of the Kingdom of Saudi Arabia. Liquidity is provided through bi-weekly redemption.
Manager Report
Base Currency
The BLOM SAUDI ARABIA Fund (BSAF) closed the month at SAR 1,601.07 recording a month-to-month decrease of -10.74%.
Saudi Riyal
Net Asset Value Bi-Weekly
Subscription/Redemption
The Fund outperformed, on a year-to-date basis, the overall Saudi market by 18.46%; BSAF recorded a YTD return of 19.51% compared to TASI’s 1.05%. Furthermore, the Fund dominated the Saudi index by 29.67% since inception.
SAR 10,000
The Fund reallocated its assets during the month by increasing its allocation to cash from 4.33% to 12.33% and to the cement industry from 14.92% to 21.82%. On the other hand, the Fund decreased its allocation to the banks and financial services from 28.94% to 21.66% and to petrochemical industries from 27.11 to 19.77%.
Fund Manager
Asset Allocation by Sector
Bi-Weekly
Minimum Investment
BLOMINVEST SAUDI ARABIA
Sector
Placement Agent
+ BLOM BANK S.A.L Custodian, Administrative Agent SABB SECURITIES LIMITED
Auditors ERNST & YOUNG
Launch Date
06/07/2011
Assets under Management SAR 35. 410
Allocation (%)
Cement
Cement
21.82%
Petrochemical Industries
Petrochemical Industries
19.77%
Cash
16.66%
Banks & Financial Services
Retail
13.29%
Agriculture & Food Industries
Banks & Financial Services
12.66%
Industrial Investment
Agriculture & Food Industries
6.02%
Telecommunication & IT
Industrial Investment
5.60%
Building & Construction
Telecommunication & IT
2.00%
Insurance
Building & Construction
1.00%
Energy & Utilities Sector
Insurance
0.65%
Energy & Utilities Sector
0.52%
Cash
Retail
Million*
Fees Management: Subscription:
1.5% 0.5%
Fund Performance 2,050.00
Z
*Exchange
`
NAV
Rate (USD/SAR) = 3.75 1,900.00
BLOMINVEST SAUDI ARABIA Asset Management Department Al-Oula Building, 3rd Floor King Fahed Road, Riyadh P.O. Box 8151, Riyadh 11482, Saudi Arabia Tel: +966 1 4949555 Fax: +966 1 4949551
1,750.00
Email: [email protected]
1,000.00
TASI
BSAF TASI
Since Inception YTD 60.11% 19.51% 30.43% 1.05%
T 1M -10.74% -14.45%
1,600.00 1,450.00 1,300.00 1,150.00
850.00
Website: www.blominvestksa.com
2/2
This document is for information purposes only and does not constitute or form part of an offer or solicitation of any offer or a recommendation to invest in BLOM Saudi Arabia Fund (the “Fund”) in any jurisdiction to any person. The information may be subject to verification or amendment and has been supplied for “information purposes” only and in no way may be read as a statement of fact. Past performance is not necessarily indicative for future results. Information contained herein are and shall remain the property of BLOMINVEST SAUDI ARABIA
ASSET MANAGEMENT
BLOM SAUDI ARABIA Fund An Open-Ended One Class Investment Fund
Fact Sheet
November 2014
Market Review Tadawul Stock Exchange Yearly Performance
Equity Performance The Saudi bourse continued its three-month decline by November, stretching since endAugust 2014. The drop in the gauge continued as oil prices show no sign of ceasing their downward trend, especially after the OPEC meeting culminated in a decision against cutting production on November 27th. Consequently, the Tadawul All Share Index (TASI) ended November with a 14.05% slide to 8,624.89 points. During the month of November, the volume and value of traded shares increased by 12.04% and 16.40% to respective values of 4.56B and $41.24B.
120.00% 100.00% 80.00%
60.00% 40.00% 20.00%
0.00%
All sectors posted a negative performance during the month, with the most prominent declines witnessed in the Telecom and Information Technology sector with a 26.86% loss, Petrochemical with a 20.76% drop and Hotel & Tourism with a monthly downturn of 19.16%.
-20.00% -40.00% -60.00% -80.00% 2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
In terms of companies, the top gainers of the month were Malath Insurance (Insurance, +19.96%), Kingdom Holding Co (Multi-Investment, +9.85%), Middle East Specialized Cables (Industrial Investment, +7.45%), Solidarity Saudi Takaful (Insurance, +3.06%) and United International Transportation (Transport, +2.25%).
Sector Performance –November 2014
Telecom. & Info. Tech. Petrochemical Hotel & Tourism
Industrial Investment Multi Investments Building & Construction Agriculture & Food Insurance Real Estate Development Energy & Utilities Banks & Financial Services Retail Cement Transportation
Media & Publishers -30%
-25%
-20%
-15%
-10%
-5%
0%
BLOMINVEST SAUDI ARABIA Asset Management Department Al-Oula Building, 3rd Floor King Fahed Road, Riyadh P.O. Box 8151, Riyadh 11482, Saudi Arabia Tel: +966 1 4949555 Fax: +966 1 4949551 Email: [email protected] Website: www.blominvestksa.com 1/2
As for the worst performers during the month of September they were: Medgulf (Insurance, -45.81%), Al Khodari, (Building and Construction, -42.47%), Amana Insurance after they were forbidden from trading for 2 hours on November 5th due to losses surpassing 50% of capital (Insurance, -37.83%), Saudi Arabian Cooperative Insurance (Insurance, -30.41%), and Bank Albilad (Banking and Financial Services, 29.48%), whose research and advisory manager said that “concerns over forthcoming government spending have negatively affected share prices of non-petrochemical sectors”. The Capital Markets Authority (CMA) announced the adoption of the Credit Rating Agencies Regulations, in addition to the updating of the Glossary of Defined Terms Used in the Regulations and Rules of the Capital Market Authority on November 10th, 2014 in efforts to develop the Saudi Capital Market. Economic PerformanceThe Saudi Arabian non-oil producing private sector continued to grow albeit at a slower pace. The headline SABB HSBC Saudi Arabia Purchasing Managers Index (PMI) decreased from 59.1 in October to 57.6 in November, still well above the 50 mark separating expansion from recession. The toned down growth was due to softer advances in output, new orders and employment. As for inflation it dropped from 2.8% y-o-y in September to 2.6% in October mainly due to a slowdown in housing inflation to 2.8%. Oil prices fell further as the market faces rising US stockpiles and a firm decision on no cuts in OPEC’s production. According to official figures from the Kingdom’s central bank, the average oil price for the Saudi Arabian Arab Light fell from $94.9/barrel in September to $85.2 in October 2014. According to the latest OPEC report, Saudi Arabia’s crude oil production also fell from 9.65 mbpd in October to 9.59 mbpd in November. Accordingly, the reserve assets of the central bank slid by a monthly 0.33% to reach $742.46B in October 2014. However, these reserve assets remain at extremely comfortable levels and are 3% higher than October 2013. The Tadawul All Share Index (TASI) continued its recent slide, and fell by 7.55% compared to the previous month, to reach 10,034.92 points. During the month of October, the volume of traded shares dropped by 33.24% to 4.07B, while the value of traded shares declined by 34.10% to $35.43B. All sectors posted a dip in performance. The biggest losers were the petrochemical sector and the transportation sector, with respective declines of 13.80% month-on-month (m-o-m) and 12.47% m-o-m. The sharp drop in oil prices is a likely factor behind these stumbles in performance.
ASSET MANAGEMENT
Member of BLOM BANK Group
BLOM SAUDI ARABIA Fund An Open-Ended One Class Investment Fund
Fact Sheet Fund Objective
November 2014
Investment Philosophy
The objective of the Fund is to generate long-term capital growth primarily through investing in listed Saudi equity securities. The Fund will seek to outperform the Tadawul index on a risk-adjusted basis.
The fund primarily invests in equity securities listed on the Tadawul, either directly or through other funds or collective investment schemes established under the laws and regulations of the Kingdom of Saudi Arabia. Liquidity is provided through bi-weekly redemption.
Manager Report
Base Currency
The BLOM SAUDI ARABIA Fund (BSAF) closed the month at SAR 1,601.07 recording a month-to-month decrease of -10.74%.
Saudi Riyal
Net Asset Value Bi-Weekly
Subscription/Redemption
The Fund outperformed, on a year-to-date basis, the overall Saudi market by 18.46%; BSAF recorded a YTD return of 19.51% compared to TASI’s 1.05%. Furthermore, the Fund dominated the Saudi index by 29.67% since inception.
SAR 10,000
The Fund reallocated its assets during the month by increasing its allocation to cash from 4.33% to 12.33% and to the cement industry from 14.92% to 21.82%. On the other hand, the Fund decreased its allocation to the banks and financial services from 28.94% to 21.66% and to petrochemical industries from 27.11 to 19.77%.
Fund Manager
Asset Allocation by Sector
Bi-Weekly
Minimum Investment
BLOMINVEST SAUDI ARABIA
Sector
Placement Agent
+ BLOM BANK S.A.L Custodian, Administrative Agent SABB SECURITIES LIMITED
Auditors ERNST & YOUNG
Launch Date
06/07/2011
Assets under Management SAR 35. 410
Allocation (%)
Cement
Cement
21.82%
Petrochemical Industries
Petrochemical Industries
19.77%
Cash
16.66%
Banks & Financial Services
Retail
13.29%
Agriculture & Food Industries
Banks & Financial Services
12.66%
Industrial Investment
Agriculture & Food Industries
6.02%
Telecommunication & IT
Industrial Investment
5.60%
Building & Construction
Telecommunication & IT
2.00%
Insurance
Building & Construction
1.00%
Energy & Utilities Sector
Insurance
0.65%
Energy & Utilities Sector
0.52%
Cash
Retail
Million*
Fees Management: Subscription:
1.5% 0.5%
Fund Performance 2,050.00
Z
*Exchange
`
NAV
Rate (USD/SAR) = 3.75 1,900.00
BLOMINVEST SAUDI ARABIA Asset Management Department Al-Oula Building, 3rd Floor King Fahed Road, Riyadh P.O. Box 8151, Riyadh 11482, Saudi Arabia Tel: +966 1 4949555 Fax: +966 1 4949551
1,750.00
Email: [email protected]
1,000.00
TASI
BSAF TASI
Since Inception YTD 60.11% 19.51% 30.43% 1.05%
T 1M -10.74% -14.45%
1,600.00 1,450.00 1,300.00 1,150.00
850.00
Website: www.blominvestksa.com
2/2
This document is for information purposes only and does not constitute or form part of an offer or solicitation of any offer or a recommendation to invest in BLOM Saudi Arabia Fund (the “Fund”) in any jurisdiction to any person. The information may be subject to verification or amendment and has been supplied for “information purposes” only and in no way may be read as a statement of fact. Past performance is not necessarily indicative for future results. Information contained herein are and shall remain the property of BLOMINVEST SAUDI ARABIA
