Oman Premier Fund
Presentation
1
Oman Equity Markets
Financial Index
Industrial Index
Services Index
MSM30 Index
Change during 4Q2014
Year to Date (%)
-15.60%
-3.70%
-9.20%
-7.50%
-6.40%
-2.80%
-12.00%
-3.70%
2
Possible impact of oil price fall on Govt
budget
Oman Budget (RO m)
Revenues
Oil Revenue
Gas Revenue
Other Current and Capital Revenues
Total Revenues
Expenditure
Current Expenditure (Defense, Oil & Gas, Civil Ministries)
Investment Expenditure (Education, health, housing, etc)
Participation/Support of domestic, regional and int'l institutions
Others
Increase on account Standardization of Ministry Grades
2014E @ 2015E @ USD
95/bbl
65/bbl
10,093
1,390
2,050
13,533
7,936
2,787
1,665
1,500
900
6,905
1,500
2,050
10,455
2015E @
USD 85/bbl
9,030
1,500
2,050
12,580
7,322
4,525
211
1,442
900
14,400
7,322
4,525
211
1,442
900
14,400
Total Expenditure
14,789
Surplus/(Deficit)
-863
-2,882
-1,820
Key Assumptions
Daily Avg Production
945,000
945,000
945,000
Government in process to address the gap
3
Stable Corporate Performance
Earnings have been mostly in line
Positive Surprise: Nawras, National Bank of Oman
Negative Surprise: Oman Cement, Raysut Cement
4
Valuations
S Arabia
UAE
Qatar
Kuwait
Oman
Bahrain
PE 14E PE 15E PB 14E Div Yield 14E
13.7
12.2
2.9
4.3
13.6
11.7
2.1
3.8
14.6
12.9
2.6
4.2
16.1
15.7
1.7
3.6
10.8
9.8
1.9
4.9
10.2
9.9
1.4
4.9
Source: Bloomberg
Dividend yield of Oman is at 4.7% - attractive for investors
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Oman strategy 2015
Sector
Outlook
For
Against
Telecom
OW
Subscriber growth, Data business
growth , Dividend yields
Royalty hike, cost pressures
Banking
NW
Retail loan growth, Interest rate
hike, Cheap valuations
Tighter Liquidity, low fee income
Cement
UW
Volume growth , Dividend yields
Cost increase, UAE imports
Industrials
NW
Volume growth, presence in
export markets
Higher costs , competition
Oil marketing
OW
Stable growth in retail volumes ,
Dividends
Slowdown on commercial
business
Power
UW
Dividend
No earnings growth
Contracting
UW
Tender awards, preference to
local players
Cost pressures, competition
Holding
UW
Dividend
Volatile earnings
Marine
NW
Stable charter rates and long
term contracts
Slowdown in exploration activities
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Oman Premier Fund - Summary of terms
Fund
Oman Premier Fund
Fund Manager
Muscat Capital LLC
Objective
The Fund’s objective is to offer a medium to long term capital appreciation through
investment principally in securities listed on the Muscat Securities Market, in the
Sultanate of Oman. To achieve this objective, the Fund will act as a feeder fund
subscribing to the units of Muscat Fund- an open-ended investment fund established
under the laws of the Sultanate of Oman and registered with CMA, Oman.
Benchmark Index
MSM 30 Index in the Sultanate of Oman
Investment Strategy
The Fund Manager invests the subscription amount into the units of Foreign Fund.
The Foreign Fund will invest principally in equity securities and equity related
instruments such as convertible bonds and warrants. At least 80% of the Foreign
Fund’s assets will be invested in securities that are part of the MSM30 Index. The rest
20% of the Fund’s assets can be invested into securities that are not part of the MSM
30 index.
Unit price at inception
SAR 100.
Date of Inception
The Fund was launched on 29 May 2011
Fund Term
Open-ended
Minimum Subscription
SAR 10,000
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Summary of terms - continued
Business Day
Days on which banks are open for business in both Saudi Arabia and
Oman. 12 Noon is the cut off time.
Fees
Management Fee: The Investors will be subject to an annual
Management Fee from the Fund and / or the Foreign Fund. The total
of such management fees shall not exceed 1.25% per annum
Custodian Fee : 0.08% p.a
Administrator Fees: 0.15% p.a
Subscription Fee : Up to 2% of subscription amount
Legal Advisors
Hourani & Associates, In affiliation with Meshal Al Akeel
Fund Auditors
KPMG Al Fozan & Al Sadhan
Fund Board
Dr. Yasser bin Mohammed Al Harby- Independent Board Member
Saleh AlHammad - Independent Board Member
Abdullah Al Hinai
Abdul Wahid Al-Murshidi
Salah Saleh Sultan
CMA Authorisation No. 08096-37
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Muscat Fund and Oman Premier Fund
(as on 28 Dec 2014)
Top 10 Holdings
Company
% of Assets
Oman Tel.
10.6
Bank Muscat
9.6
Raysut Cement
8.4
Ooredoo
7.9
Bank Dhofar
7.5
National Bank Of Oman
6.0
Bank Sohar
5.8
Al-Ahli Bank
5.0
Renaissance Services
4.4
Oman Cement
3.9
Muscat Fund
MSM 30 Index
OPF
YTD
-3.51%
-5.83%
1 Year
-3.13%
-5.46%
3 Years
21.60%
13.33%
5 Year
13.41%
3.86%
-10.6%
-10.1%
10.7%
N.A
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Thank You
The information and any disclosures provided herein are in summary form and have been prepared
for informational purposes. The information and any disclosures provided herein may be
considered confidential. Any use, distribution, modification, copying, forwarding or disclosure by
any person is strictly prohibited. The information and any disclosures provided herein do not
constitute a solicitation or offer to purchase or sell any security or other financial product or
instrument. The current performance may be unedited. Past performance does not guarantee
future returns. There can be no assurance that any portfolio or fund will achieve any targeted rates
of return, and there is no guarantee against the loss of your entire investment.
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