Pakistan: NAFA Government Securities Savings Fund - May 2017

Transcription

1. NAFA Government Securities Savings Fund (NGSSF) May 2017 Unit Price (31/05/2017): Rs. 10.8400 Performance % May 2017 Performance Period FYTD 2017 Trailing 12 months June 16 - May 17 FY 2016 Since Launch July 10, 2014* NAFA Government Securities Savings Fund 4.3% 5.8% 5.8% 6.5% 8.9% Benchmark** 6.0% 5.8% 5.8% 6.2% 7.1% * Annualized Return Based on Morning Star Methodology The performance reported is net of management fee & all other expenses All other returns are Annualized Simple Return and based on dividend reinvestment gross of with-holding tax where applicable. Launch Date: Fund Size: Type: Dealing Days: Ramazan Dealing Time: Settlement: Pricing Mechanism Load:*** Management Fee: Total Expense Ratio: Risk Profile: Fund stability rating Listing: Custodian & Trustee: Auditors: Benchmark:** Fund Manager: Minimum Subscription: Asset Manager Rating: July 10, 2014 Rs. 116 million Open-end – Income Fund Daily – Monday to Saturday (Mon - Thr) 8:30 A.M to 2:30 P.M (Friday) 8:30 A.M to 12:30 P.M (Saturday) 9:00 A.M to 1:00 P.M 2-3 business days Forward Pricing Front End Load (Individual): without life insurance 1%, with life insurance 3% (Nil on investment above Rs. 26 million) Front End Load (Other): 1% (Nil on investment above Rs. 16 million) Back End Load: NIL 10% of Net Income (Min 0.5% p.a., Max 1.0% p.a.) 1.77% p.a.(including 0.43% government levies) Low "AA- (f)" by PACRA Pakistan Stock Exchange Central Depository Company (CDC) KPMG Taseer Hadi & Co. Chartered Accountants 6-Month PKRV Muhammad Ali Bhabha, CFA, FRM Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM1 by PACRA (Very High Quality) ** effective from September 01, 2016; Previously 70% average 6-Month PKRV & 30% average 3-Month deposit rates (A+ & above rated banks) *** effective from January 02, 2017 Asset Allocation (% of Total Assets) Tbills Bank Deposits Others including receivables Total Leverage 31-May-17 29-Apr-17 73.3% 25.5% 1.2% 100.0% Nil 72.7% 26.2% 1.1% 100.0% Nil To provide competitive return from portfolio of low credit risk by investing primarily in Government Securities. During the month under review, the Fund has generated an annualized return of 4.3% against the benchmark return of 6.0%. Since its launch in July 2014, the Fund offered an annualized return of 8.9% against the Benchmark return of 7.1%, hence an outperformance of 1.8% p.a. This outperformance is net of management fee and all other expenses. NAFA Government Securities Savings Fund (NGSSF) invests a minimum of 70% in Government Securities. The Fund invests a minimum 10% of its assets in less than 90 days T-Bills or saving accounts with banks, which enhances liquidity profile of the Fund. As the asset allocation of the Fund shows, exposure in Government Securities was around 73% of the Total Assets and 76% of Net Assets at the end of the month with average Yield to Maturity of 5.95% p.a. Last one year allocation in Government Securities was around 79.9% of net assets. The weighted average time-to-maturity of the Fund is 22 days. We will rebalance the allocation of the fund proactively based on the capital market outlook. Credit Quality of the Portfolio as of May 31, 2017 (% of Total Assets) Government Securities (AAA rated) AAA AA+ AAA+ AOthers including receivables Total 73.3% 0.6% 1.4% 13.6% 9.8% 0.1% 1.2% 100.0% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 398,619/- If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0373/0.36%. For details investors are advised to read note 5 of the Financial Statements of the Scheme for the period ended March 31, 2017. Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Hassan Raza, CFA 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. 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 investment policies and the risks involved.