NAFA Asset Allocation Fund (NAAF) Report - February 2018

Transcription

1. NAFA Asset Allocation Fund (NAAF) MONTHLY REPORT (MUFAP's Recommended Format) Unit Price (28/02/2018): Rs. 16.0434 February 2018 Performance % Feb 2018 Performance Period FY FY FY FY FYTD Rolling 2018 12 Months 2017 2016 2015 2014 Since Launch FY Last 3 Last 5 2013 Years* Years* August 20, 2010* NAFA Asset Allocation Fund (1.2%) (5.6%) (4.5%) 29.9% 7.6% 24.6% 13.7% 32.0% 11.5% 15.8% 17.5% (0.5%) (2.0%) (4.1%) 14.2% 6.2% 9.6% 15.3% 17.1% 6.7% 10.6% Benchmark** * Annualized Return All Other returns are Cumulative The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. Launch Date: Fund Size: Type: Dealing Days: Dealing Time: August 20, 2010 Rs. 3,529 million Open-end – Asset Allocation Fund Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 4:30 P.M (Friday) 9:00 A.M to 5:00 P.M Settlement: 2-3 business days Pricing Mechanism: Forward Pricing Load:*** Front End Load (Individual):3% (Nil on investment above Rs. 101 million) Front End Load (Other): 3% (Nil on investment above Rs. 50 million) Back End Load: NIL Management Fee: 2% per annum Total Expense Ratio (%) 3.16% p.a (including 0.38% government levies) Selling & Marketing Expenses 0.4% per annum Risk Profile: Moderate Listing: Pakistan Stock Exchange Custodian & Trustee: Central Depository Company (CDC) Auditors: Deloitte Yousuf Adil Chartered Accountants Benchmark:** Daily weighted return of KSE-30 Total Return Index & 6-month KIBOR based on Fund's actual allocation. Fund Manager: Taha Khan Javed, CFA Minimum Growth Unit: Rs. 10,000/Subscription: Income Unit: Rs. 100,000/Asset Manager Rating: AM1 by PACRA (Very High Quality) ** effective from September 01, 2016; Previously 1/3 of average 3-month bank deposit rate; 1/3 of 6-month KIBOR; 1/3 of KSE 30 Index Total Return. *** effective from January 02, 2017 Asset Allocation (% of Total Assets) Equities / Stocks Cash Bank Placements Others including receivables Total Leverage 9.5% To generate income by investing in Debt & Money Market securities and to generate capital appreciation by investing in equity and equity related securities. During the month under review, NAFA Asset Allocation Fund's (NAAF) unit price (NAV) decreased by 1.2%, while the Benchmark decreased by 0.5%. Thus your Fund underperformed the Benchmark by 0.7%. Since inception on August 20, 2010 the Fund has posted 17.5% p.a return, versus 10.6% p.a by the Benchmark. Thus, to date the outperformance of your Fund stands at 6.9% p.a. This outperformance is net of management fee and all other expenses. NAAF started off the month with an allocation of around 62% in equities, which decreased to around 51% towards the end of the month. NAAF underperformed the Benchmark in February as the Fund was underweight in select Commercial Banks, Power Generation & Distribution Companies, and Technology & Communication sectors stocks which outperformed the market and overweight in select Cement, Textile Composite, Automobile Assembler, and Oil & Gas Exploration Companies sectors stocks which underperformed the market. During the month, the allocation was decreased primarily in Oil & Gas Exploration Companies, Textile Composite, Oil & Gas Marketing Companies, Cement, and Fertilizer sectors. Relative Performance of NAFA Asset Allocation Fund (NAAF) for the Last Three Years 28-Feb-18 31-Jan-18 51.2% 40.3% 7.8% 0.7% 100.0% Nil 61.5% 30.4% 7.6% 0.5% 100.0% Nil 70.0% Annualized Return Risk (Std. Deviation) NAAF 11.5% 10.8% Benchmark 6.7% 8.8% Peers Avg. 3.6% 12.4% 50.0% Characteristics of Equity Portfolio**** NAAF KSE-30 PER 10.1 10.4 Cum. Return NAAF, 38.9% DY 4.5% 5.8% PBV 1.9 1.9 **** Based on NAFA's estimates 30.0% Benchmark 21.5% Peers Avg. 12.6% 10.0% Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Taha Khan Javed, CFA Hassan Raza, CFA Muhammad Ali Bhabha, CFA, FRM Sindh Workers' Welfare Fund (SWWF) The Scheme has maintained provisions against Sindh worker’s welfare Fund’s liability to the tune of Rs. 18,468,474/- if the same were not made the NAV Per unit/last one year return of the  Scheme would be higher by Rs. 0.084/0.50%. For details   investors are advised to read the note 9.2 of the Financial Statements of the Scheme for the period ended December 31, 2017. Notes: 1) The calculation of performance does not include cost of front end load. 2) Taxes apply. Further, tax credit also available as per section 62 of the Income Tax Ordinance, 2001. 28-Feb-18 31-Oct-17 30-Jun-17 28-Feb-17 31-Oct-16 30-Jun-16 29-Feb-16 -10.0% 31-Oct-15 13.1% 8.8% 5.7% 4.5% 4.3% 14.8% 28-Feb-15 Commercial Banks Oil & Gas Exploration Companies Fertilizer Textile Composite Cement Others 30-Jun-15 Top Five Sectors (% of Total Assets) (as on 28, February 2018) Top Ten Holdings (as on February 28, 2018) Habib Bank Ltd Bank Al-Falah Ltd Engro Corporation Ltd Mari Petroleum Co Ltd Oil & Gas Dev Co Ltd Pak Petroleum Ltd Pakistan Oilfields Ltd Engro Fertilizer Ltd Hub Power Co Ltd Nishat Mills Ltd Total Equity Equity Equity Equity Equity Equity Equity Equity Equity Equity % of Total Assets 3.4% 2.9% 2.5% 2.4% 2.2% 2.1% 2.1% 2.0% 1.7% 1.6% 22.9% Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. Past performance is not necessarily indicative of future results. Please read the Offering Documents to understand the investment policies and the risks involved.