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* Annualized Fund Highlights Fund Manager Shirish Raut Inception Date 05/09/94 Structure Open Ended Mutual Fund Custodian Bank Muscat SAOG Domicile Oman Portfolio Performance Portfolio Name Bank Muscat Oryx Fund S&P GCC Composite Index 2 year 7.7% 5.6% YTD 13.6% 4.5% MTD -4.3% -5.9% 3 years* 11.3% 7.5% 5 Years* 2.0% -5.4% Top 3 Holdings Company Name % NAV CASH 17.5 NATIONAL BANK OF KUWAIT 7.5 JARIR MARKETING CO 4.1 Objective Portfolio Report Global markets came under significant pressure in August with steep volatility putting pressure on monthly performance on the back of retaliatory trade tariffs from the US and China, Brexit uncertainty and an inversion of the US yield curve on the back of a softening global growth expectations. As a result, MSCI World closed the month 2.2% lower while the MSCI Emerging Markets Index declined 5.1% MoM. The sentiment also weighed on oil prices which declined 6.1% MoM during the month under review. Within the region, the weakness was registered across the board with Dubai (-5.5% MoM), Saudi Arabia (-8.2%), Qatar (-2.6% MoM), Abu Dhabi (-2.9%) and Kuwait (-3.1%). Oman (+6.5%) bucked the trend being the only positive performer in the region during the month. As a result of the decline in stock prices, the portfolio closed the month -4.3% lower in comparison to the S&P GCC Index which was down by -5.9% MoM. Overall, the portfolio is now up 13.6% YTD as compared to the benchmark which is up 4.5% thus showing outperformance of 10.3% over the index. In key developments during the month, the final tranche of the Saudi MSCI Emerging Market Index upgrade is now complete with Saudi comprising 2.7% of the index. There is a smaller tranche of USD 1.9bn expected for FTSE inflows but now expect investors shift focus on bottom-up ideas. In other news, the CFO of Aramco has stated that the company is now ready for an IPO which should be completed over the next 12 months. Over in Kuwait, AUB’s special professional advisors have completed the due-diligence on KFH and had submitted it to the boar for review and evaluation. During the month, we have booked profits in the the large cap stocks in the Saudi Market. As highlighted above, with the flow story now coming to an end in Saudi, we expect the investor focus to shift to fundamental driven themes where we are looking for a pick-up in government spending and domestic demand. We continue to hold the large caps in Kuwait as we expect the MSCI upgrade story will continue to play out while we have also increased exposure to UAE banks and real estate. We believe the above changes will allow the portfolio to continue to deliver superior returns for the rest of the year. The Fund’s main objective to achieve long-term capital appreciation by investing in a diversified basket of equities listed on the MENA region stock exchanges. Bank Muscat Oryx Fund August 2019 Benchmark S&P GCC Composite Index Currency OMR/USD Risk Profile High Minimum Initital Purchase OMR 50 Min. Additional Purchase OMR 50 Initial Subscription Fee Up to 3% Annual Management Fee 1.85% Valuation Daily Subscription & Redemption Daily For further information. please contact: Bank Muscat Asset Management P.O. Box 134. PC 112. Ruwi. Sultanate of Oman. Tel: +968 24768620/ E-mail: [email protected]. This report is provided for information purposes only and is intended as a tool to help investors track their portfolio performance. The information is not to be construed in any manner as a proposal, advice, offer, recommendation or solicitation to purchase or sell or hold the securities or financial products described in this report. The report is based on information and valuations but Bank Muscat cannot guarantee its accuracy, reliability or completeness. Bank Muscat (SAOG) is not accountable for any decision based on the contents of this report. This report does not substitute transaction confirmations and other official records. Past performance does not guarantee future returns. If you find any discrepancies in this report, please contact your portfolio manager. Bank Muscat does not guarantee neither we assume any responsibility or liabilities for any claim, negligence, default, error, omission or inaccuracy of the contents of this report. Bank Muscat (SAOG) will not be responsible or liable for any loss or damage of any kind which arises, directly or indirectly, and is caused by the use of any part of the information provided. 7983 OMR 1.95 USD 5.06
