A Strong ESG
Commitment.
A Secure Future.

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**

Why Should You Invest in the ESG? Fixed Maturity Prodcut Now?

Favorable Macroeconomic Environment

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.

Moderating Inflation

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.

Easing Labor Market

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**

Favorable Macroeconomic Environment

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.

Moderating Inflation

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.

Easing Labor Market

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**

Why Should You Invest in the ESG? Fixed Maturity Prodcut Now?

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

Bloomberg Global Agg Corp ESG vs
Bloomberg Global Agg Corp
Adoption Rate In The ESG Bonds Out Of 
Total Issued

For Professional Investor Only**

Product Overview

Fund characteristics at inception

Expected Net Total Return – 7.0% per annum *

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**

Why Choose Daman?

For Professional Investor Only**

Invest Now

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**

FAQs

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.

https://www.sca.gov.ae/assets/ea784204/rulebook5en.aspx

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). The correspondence address for Daman is P.O. Box 9436, Suite 601, 6th Floor, Shiekh Rashid Tower, Dubai World Trade Centre, Dubai, United Arab Emirates

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Daman Investments is regulated by the Emirates Securities and Commodities Authority (SCA).