NIT Islamic Income Fund Report - July 2019

Transcription

1. NIT ISLAMIC INCOME FUND FUND MANAGER REPORT - JULY 2019 Fund 's Basic Informations Objective of the fund Fund Type Open-End Category Shariah Compliant (Islamic) Income Launch Date 4th July 2016 Listing PSX Stability Rating AA- (f) (PACRA) 12-Apr-19 Management Fee 7.5% of Gross Earnings, subject to a minimum fee of 0.25% p.a. and maximum fee of 1% p.a. of Average Annual Net Assets. Front End Load Nil Back End Load Nil Cutt-off timing 3:30 PM Par Value PKR 10.00 Min Subscription Growth Unit PKR 1,000 Unit PKR 100,000 Trustee Central Depositary Co. (CDC) Auditors EY Ford Rhodes Registrar National Investment Trust Ltd. Pricing Mechanism Forward Day Pricing Valuation Days Redemption Days The objective of the NIT Islamic Income Fund is to generate a stable Shariah compliant income stream, while seeking maximum possible preservation of capital, over the medium to long-term period, by investing in a diversified portfolio of Shariah Compliant fixed income and money market instruments. Profile of Investment Managers Daily (Monday to Friday) public holiday Daily (Monday to Friday) public holiday National Investment Trust Ltd. (NITL) is the first and the largest Asset Management Company of Pakistan, formed in 1962. With approximately Rs. 69 billion assets under management as on 31 July 2019, the family of Funds of NIT comprises of ten funds including 4 equity funds, 2 fixed income funds, 1 money market fund, 1 islamic income 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 NITL managed Funds and day to day inquiries/issues of their 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 a nominee of Govt. of Pakistan. The Company has been assigned an Asset Manager rating of “AM2++” by PACRA, which reflects the company's high investment management industry standards and benchmarks with noted strengths in several of the rating factors. All Investment decisions are taken by the Investment Committee of the respective fund Income except except Fund Performance Review The Fund posted an annualized return of 10.94% p.a for the month of July against its benchmark return of 5.42% p.a. State Bank of Pakistan announced its Monetary Policy during the month and decided to increase Policy Rates by 100 bps to 13.25%. In its statement, the Monetary Policy Committee was of the view that the adjustment related to interest rates from previously accumulated imbalances has taken place. It was discussed that going forward the MPC will be ready to take action depending on economic developments and inflation which would provide grounds for either modest tightening or easing monetary conditions. . Subscription Days Each valuation day AMC Rating AM2++ (PACRA) 05-Nov-18 Risk Profile Medium The Consumer Price Index (CPI) for the month of July increased to 10.34% versus 8.89% over the previous month. CPI inflation for July 2019 stood at 10.34% compared to 5.83% during the same period last year. Benchmark 6-Mth avg. deposit rates of three A rated Islamic Bank or Islamic windows of Conventional Banks as selected by MUFAP. As at July 31, 2019, the Fund had an exposure of about 68% of total assets in cash at bank, about 3% in commercial paper and about 24% in corporate sukuk while the remaining was in the form of other assets. The weighted average time to maturity of the portfolio stood at 286 days. Fund Manager Shoaib Ahmad Khan Total Expense Ratio 1.64% (This includes 0.37% representing Govt. Levy, Sindh Workers Welfare Fund & (Annualized) SECP Fee.) Total Expense Ratio 0.14% (This includes 0.03% representing Govt. Levy, Sindh Workers Welfare Fund & (Absolute) SECP Fee.) TFC / Sukuk Holdings (% of TA) Technical Information Net Assets PKR 665 Mln NAV per Unit (July 31, 2019) Leveraging Standard Deviation of Return 7.43% DAWOOD HERC - SUKUK II 5.89% 286 DUBAI ISLAMIC BANK 3.79% Nil DAWOOD HERC - SUKUK I 3.32% GHANI GASES LTD. - SUKUK 2.73% FATIMA FERTILIZER - SUKUK 0.64% 9.8734 Weighted Avg. Maturity (Days) Asset Quality as of 31 July 2019 (% of TA) HUBCO SUKUK 0.033 AA+, 11.53% AA, 73.44% A, 6.20% Others, 4.40% AA-, 0.64% A+, 3.79% Fund's Return v/s Benchmark 23.80% NIT-IIF Benchmark July-19 10.94% 5.42% Year to Date 10.94% 5.42% 12 M Trailing 8.66% 3.93% 12.00% - - 10.00% 6.41% 3.14% 3 Years Since Inception (Returns are calculated inclusive of dividends) NIT IIF Year to Date Return v/s Benchmark NIT IIF Return Benchmark Return 14.00% 8.00% 6.00% 4.00% 2.00% Asset Allocation (% of TA) 0.00% Jun-19 Jul-19 Cash 63.09% 68.32% Sukuk 24.49% 23.80% TDRs 0.00% 0.00% Performance Period FY19 FY18 FY17 CP 0.00% 3.47% NIT-IIF 8.23% 4.41% 4.61% Others 4.83% 4.40% Benchmark 3.69% 2.44% 3.11% SINDH-WWF Disclosure- The Scheme has maintained provisions against Sindh Workers’ Welfare Fund’s liability to the tune of Rs. 1.91m, If the same were not made the NAV per unit/ current year to date return of the Scheme would be higher by Rs. 0.0284/ 3.42%. For details investors are advised to read the latest financial statement of the scheme. FY16 Members of the Investment Committee Adnan Afridi, Managing Director Manzoor Ahmed, Chief Operating Officer Aamir Amin, Head of Finance Ali Kamal, Head of Research Shoaib. A. Khan, EVP/ Fund Manager Syed Ali Raza Bukhari, Head of Marketing Faisal Aslam, Head of Compliance Salman H. Chawala, Incharge Risk Mgmt. MUFAP's Recommended Format. Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a National Investment Trust Ltd, 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 National Bank Building, (6th Floor) policies and risks involved. I.I. Chundrigar Road, P.O Box # 5671. Note: Performance data does not include the cost incurred directly by an investor in the form of sales load etc. Karachi - 74000, Pakistan Tel: 111-648-648 FY15 Launched on 4th July, 2016