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NIT Islamic Equity Fund Report - July 2019

IM Insights
By IM Insights
4 years ago
NIT Islamic Equity Fund Report - July 2019


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  1. NIT ISLAMIC EQUITY FUND FUND MANAGER REPORT - July 2019 NIT-IEF Objective Fund 's Information Fund Type Open-End Trustee Central Depository Company Islamic Equity Auditors A.F. Ferguson & Co. Chartered Accountants Launch Date 18th May 2015 Pricing Mechanism Forward Pricing Management Fee 2.00% Dealing Days* Daily (Monday to Friday) Front End Load 0%-3% Valuation Days* Daily (Monday to Friday) Back End Load 0.00% AMC Rating AM2++ (PACRA) Benchmark KMI-30 Risk Profile Moderate / High Par Value PKR 10.00 Fund Manager Wasim Akram Minimum Investment PKR 5,000 Cut-off timing** 9.00 AM to 3.30 PM (Mon to Fri) The objective of the Fund is to provide investors with long term capital growth from an actively Category managed portfolio of Shariah Compliant listed equities. Profile of Investment Managers National Investment Trust Ltd. (NITL) is the first and the largest Asset Management Company of Pakistan, formed in 1962. The size of total Funds under management by NITL is approximately Rs. 69 billion as of July 31, 2019. The family of Funds of NIT comprises of 10 funds including 4 equity Funds 2 fixed income nature Funds, 1 Islamic Income Fund, 1 Money Market Fund, 1 conventional Pension Fund and 1 Islamic Pension Fund . NIT's tally of nationwide branches is 24, no other Mutual Fund in Pakistan has such a vast network of nationwide branches. Further to cater to the matters relating to investments in NIT and day to day inquiries/issues of its unit holders, a state of the art Investors’ Facilitation Centre is also in place. The Board of Directors of NITL consists of representatives of leading financial institutions, prominent industrialists and nominee of Govt. of Pakistan. The Company has been assigned an Asset Manager rating of “AM2++” by PACRA, which reflects the company's very strong capacity to manage the risks inherent in the asset management business and the asset manager meets very high investment management industry standards and benchmarks. All Investment decisions are taken by the Investment Committee of NITL. Selling and Marketing Expenses 0.08% per annum Fund Commentary & Performance Review *except public holiday ** Ramzan Timing 10.00 AM to 2.00 PM (Mon to Thur), 9.00 AM to 12.00 Noon (Fri) Fund Returns* NIT-IEF KMI-30 The benchmark KMI-30 index posted a return of -6.56% during July, 2019. The month -7.22% Jul-19 of July marked the sixth consecutive negative return for the benchmark KMI-30 index. -25.83% Since Inception Declining trend continued in the market amidst continuing macroeconomic -7.22% adjustments. The much awaited Extended Finance Facility of USD 6 billion was YTD approved by the IMF and the first tranche was also released. However, investors N/A 5 yrs remained concerned regarding the conditionalities attached with the IMF Program. Nil Leverage Fears of rising inflation coupled with further hike in the discount rate by SBP by 100 * The returns are calculated inclusive of dividend. bps during the month also triggered negative sentiment in the market. Rising interest Fund's Year to Date Performance Fund's Asset Allocation rates continue to make fixed income investements more attractive for investors causing selling in the stock market as investors switch to safer investment avenues JUNE 2019 JULY 2019 offering decent returns. Average volumes dropped drastically, and stood at 76 million Equity Investments shares, down 43% MoM. Foreign investors remained net buyers during the month 97% with net buying to the tune of USD 30 million. NIT IEF posted a return of -7.22% during the month of July, 2019 as against a benchmark return of -6.56% showing an under performance of 0.66%. Future Outlook -6.56% -6.56% -6.56% N/A Equity Investments 94% Sector Allocation (As % of Total Assets) Improvements on the external front have been encouraging, and the MPC’s recent statements suggest that the major monetary adjustment have already been undertaken by SBP. However, continuing CAD improvement in the coming months, coupled with inflation numbers will give a more clear indication of economic stability. Technical Information 31-07-2019 Net Assets NIT-IEF (PKR Million) 2,722 Nav per Unit NIT-IEF (PKR) 6.68 Total Expense Ratio (Incl. Govt Levy)^ 2.69% Other Bank Assets Balances 0% 3% Other Assets 0% Bank Balances 6% ^This includes 0.30% representing Govt. levy, Sind Worker's Welfare Fund and SECP Fee Top Ten Holdings Sector Allocation (As % of Total Assets) (As % of Total Assets) Oil & Gas Development Company Ltd. Oil and Gas Exploration 12.01% Pakistan Petroleum Limited. 9.98% Lucky Cement Limited. 8.20% Hub Power Company Limited. 7.02% Pakistan Oilfields Limited. 6.72% Engro Corporation Limited. 5.55% Indus Motor Company Ltd. 3.97% Mari Petroleum Company Ltd. 3.61% Engro Fertilizers Limited. 3.47% Pakistan State Oil Co Ltd. 2.67% 32.32% Cements Fertilizers 12.48% Historical Fund Perdformance 12.09% Power Generation and Transmission 7.02% Oil and Gas Marketing 6.12% Others 26.67% WWF Disclosure: The Scheme has maintained provisions against Sind Workers’ Welfare Fund’s liability to the tune of Rs. 10.38 million, if the same were not made the NAV per unit/ year to date return of the Scheme would be higher by Rs. 0.03/ 0.38%. For details investors are advised to read the latest Financial Statement of the Scheme. Compliance with Circular # 16 of 2010 / Noncompliant Investments Performance Period FY19 FY18 FY17 FY16 N/A NIT-IEF -25.43% -16.37% 18.38% 5.78% Benchmark -23.84% -9.59% 18.80% 15.53% FY15*** 2.70% 1.98% ***Launched on May 18, Members of the Investment Committee Adnan Afridi - Managing Director Manzoor Ahmed - Chief Operating Officer Amir Amin - Head of Finance Wasim Akram -Fund Manager Faisal Aslam - Head of Compliance Raza Abbas Jaffery - Head of Trading Ali Kamal - Head of Research Syed Ali Raza Bukhari - Head of Marketing Salman H. Chawala - Manager / Incharge Risk MUFAP's Recommended Format. 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 Document to understand the investment policies and risks involved . Note: Performance data does not include the cost incurred directly by an investor in the form of sales load. Note: All the figures given in the report are currently under Full Year Audit review.