Daman ESG Fixed Maturity Fund offers expected
returns of 7% per annum over a 4-year timeline.*
Daman ESG Fixed Maturity Fund offers expected returns of 7% per annum over a 4-year timeline.*
In association with:
For Professional Investor Only**
The US Federal Reserve (Fed) operates under a dual mandate: to achieve maximum employment and maintain price stability. Both of these indicators have shown improvement from their post-COVID peaks, with inflation decreasing to comfortable levels and the job market showing signs of normalization. These two factors have now prompted the Fed to start the easing.
We have observed a significant decrease in inflation, bringing it into a range that allows the Fed to consider cutting rates. The Fed’s preferred inflation measure, the core PCE, (Personal Consumption Expenditures) has dropped by more than half from its peak of 5.6% in early 2022, now comfortably sitting at 2.6% with a downward trend.
The labor market has recovered from post-COVID shocks and has returned to a normal stance. Following the latest NFP results, the market was unsettled by the slowdown in labor growth, leading to heightened recession fears. However, other indicators do not yet suggest an imminent recession.
For Professional Investor Only**
The US Federal Reserve (Fed) operates under a dual mandate: to achieve maximum employment and maintain price stability. Both of these indicators have shown improvement from their post-COVID peaks, with inflation decreasing to comfortable levels and the job market showing signs of normalization. These two factors have now prompted the Fed to start the easing.
We have observed a significant decrease in inflation, bringing it into a range that allows the Fed to consider cutting rates. The Fed’s preferred inflation measure, the core PCE, (Personal Consumption Expenditures) has dropped by more than half from its peak of 5.6% in early 2022, now comfortably sitting at 2.6% with a downward trend.
The labor market has recovered from post-COVID shocks and has returned to a normal stance. Following the latest NFP results, the market was unsettled by the slowdown in labor growth, leading to heightened recession fears. However, other indicators do not yet suggest an imminent recession.
For Professional Investor Only**
ESG bonds have recently gained an important place in the global investment universe. This impressive performance by ESG bonds in the primary market recorded in 2023 with $900 bn of ESG bonds issued. The previous record was set in 2021 when issuance reached just under $1 trillion.
ESG investing is gaining momentum in investment circles, making it increasingly easier for companies to raise capital when they align with ESG principles. This has been the case due to, alignment with ESG principles typically offers greater transparency and supports compliance with regulatory standards.
Asset Managers (including pension funds, endowments, insurance companies etc) are now focusing on ESG and adopting the Principles for Responsible Investment (PRI).
Dynamic Development In The ESG Bond Market
For Professional Investor Only**
Fund characteristics at inception
Expected Yield – 6.1%
Target Distribution – 1.5% per quarter 6% per annum
MSCI ESG Rating – A & MSCI ESG Score – 5.91
Average Credit Rating – BBB-
Average Maturity – 4.35 years
Average Duration – 3.38 years
*”All prices, valuations, and forecasts are indicative, subject to risk, and may differ from actual results; past performance is not indicative of future results, and investments may fluctuate in value due to economic conditions, with no guarantee of future performance.”
Rating Breakdown
Sector Breakdown
Maturity Breakdown
For Professional Investor Only**
For Professional Investor Only**
Looking for a reliable investment option with a focus on sustainability? Our ESG Fixed Maturity Fund offers a expected return of 7%* per annum over 4 years. By investing in this fund, You are not only taking steps towards securing your financial future, but also contributing to a more environmentally responsible world.
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For Professional Investor Only**
Product-Specific Questions
The maturity date of this product is October 2028.
The expected net return on the investment is 7% per annum over the 4 years of the product, with quarterly distributions of 1.5% (6% per annum).
The risks associated with this product are inline with other fixed income investment alternatives available in the market. The product can experience mark to market losses due to movements in interest rates, and losses due to bond defaults. However, this portfolio of bonds will be actively managed to ensure mitigation of credit and market risks.
Interest payments will be made on a quarterly basis, at a rate of 1.5% per quarter, totalling 6% per annum.
ESG-Related Questions
The product is compliant with article 8 of Sustainable Finance Disclosure Regulation (SFDR), which ensures that 80% of securities are ESG compliant. The product also follows Société Gene+rale ESG framework where each security is rated based on it’s ESG score, and any security with a rating below B+, is not included in the portfolio.
The performance of the product is tracked and reported according to SFDR’s article 8.
Product-Specific Questions
A Professional Investor (”PI”) is someone who meets the requirements set out by the Securities and Commodities Authority (SCA) and has opted in to be treated as PI.
PI’s are assumed to have more experience and knowledge in the investment field and are better able to assess resources to protect their own interests.
The client gets onboarded with Daman, and invest in the fund directly from there.
The minimum investment amount is USD 137,000 (AED 500,000) for professional investors, and USD 1,000,000 (AED 3,675,000) for institutional investors.
The fund has a deferred sales fee of 2% for the professional investors and 1% for institutional which is paid to the distributor at the time of the subscription.
General Questions
Traditional investing delivers value by translating investor capital into investment opportunities that carry risks commensurate with expected returns. Sustainable investing balances traditional investing with environmental, social, and governance-related (ESG) insights to improve long-term outcomes.
The key differentiating factor of this ESG FMP will be that it will be close ended, ESG compliant, with limited duration risk.
Unit holders in the Daman ESG FMP will receive monthly factsheets, stating the performance of the fund. Clients will also receive a monthly statement including the net asset value of the holdings in the fund.
For Professional Investor Only**
Daman Investments PSC (“Daman”) is a private joint stock company operating under the regulation, control and supervision of the Securities & Commodities Authority of the UAE (“SCA”). Daman is licensed and authorised by the SCA- License Number-301043 for the conduct of the following financial activities: (i) Portfolios Management (Category 2- Dealing in Investment); (ii) Investment Fund Management. (Category 2- Dealing in Investment); and (iii) Promotion (Category 5- Arranging and Advice).
Daman was registered in the Commercial Register on 14 November 2006 as a Private Joint Stock Company with registration number 1001646. Daman is incorporated in Dubai, UAE and operates as an independent entity licensed. Daman’s issued share capital is AED 268,823,500. Pursuant to SCA guidelines, Daman’s capital adequacy ratio must demonstrate a strong capacity to absorb unforeseen losses by having significant and sufficient capital reserves.
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Daman Investments © 2024 All Rights Reserved
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