Pakistan: NAFA Government Securities Savings Fund Quarterly Report - 31 March 2017

Transcription

2. NAFA GOVERNMENT SECURITIES SAVINGS FUND MISSION STATEMENT To rank in the top quartile in performance of NAFA FUNDS relative to the competition , and to consistently offer Superior risk-adjusted returns to investors. Quarterly Report Page 01
3. Contents NAFA GOVERNMENT SECURITIES SAVINGS FUND Page 02 FUND 'S INFORMATION 03 DIRECTORS' REPORT 05 CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES 09 CONDENSED INTERIM INCOME STATEMENT 10 CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME 11 CONDENSED INTERIM DISTRIBUTION STATEMENT 12 CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS' FUND 13 CONDENSED INTERIM CASH FLOW STATEMENT 14 NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS 15 Quarterly Report
4. NAFA GOVERNMENT SECURITIES SAVINGS FUND Mr . Nausherwan Adil Dr. Amjad Waheed Mr. Aamir Sattar Mr. Abdul Hadi Palekar Mr. Foo Chiah Shiung (Kelvin Foo) Mr. Lui Mang Yin (Martin Lui) Mr. Kamal Amir Chinoy Mr. Shehryar Faruque Mr. Humayun Bashir Chairman Chief Executive Officer Director Director Director Director Director Director Director Chief Financial Officer Mr. Khalid Mehmood Mr. Foo Chiah Shiung (Kelvin Foo) Mr. Aamir Sattar Human Resource and Remuneration Committee Mr. Kamal Amir Chinoy Mr. Lui Mang Yin (Martin Lui) Mr. Abdul Hadi Palekar Summit Bank Limited JS Bank Limited Khushhali Bank Limited Sindh Bank Limited Samba Bank Limited Dubai Islamic Bank Pakistan Limited Bankislami Pakistan Limited Zarai Taraqiati Bank Limited MCB Bank Limited Quarterly Report Chairman Member Member Page 03
5. NAFA GOVERNMENT SECURITIES SAVINGS FUND KPMG Taseer Hadi & Co. Chartered Accountants Sheikh Sultan Trust Building No.02 Beaumont Road, Karachi - 75530, Pakistan. 7-Noon Avenue, Canal Bank, Muslim Town, Lahore. UAN: 042-111-111-632 Fax: 92-42-35861095 Opposite Gul Haji Plaza, 2nd Floor National Bank Building University Road Peshawar, UAN: 091-111 111 632 (nfa) Fax: 091-5703202 Page 04 Quarterly Report
6. NAFA GOVERNMENT SECURITIES SAVINGS FUND DIRECTORS ’ REPORT The Board of Directors of NBP Fullerton Asset Management Limited is pleased to present the unaudited financial statements of NAFA Government Securities Savings Fund (NGSSF) for the period ended March 31, 2017. Fund’s Performance The size of NAFA Government Securities Savings Fund has declined from Rs. 304 million to Rs. 148 million during the period (i.e. a decline of 51%). During the period, the unit price of the Fund has increased from Rs. 10.2882 on June 30, 2016 to Rs. 10.7539 on March 31, 2017, thus showing return of 6.0% as compared to the benchmark return of 5.8% for the same period. The performance of the Fund is net of management fee and all other expenses. The Fund has been assigned a stability rating of ‘AA- (f)’ by PACRA. During the period under review, State Bank of Pakistan (SBP) maintained the discount rate and policy rate at 6.25% and 5.75% respectively. The improved interbank liquidity conditions (due to net government retirement and increase in bank deposits) were well calibrated through the open market operations – keeping the weighted average overnight repo rate close to the policy rate. However, long-term sovereign yields witnessed an average increase of around 60 basis points, indicating investors’ demand for higher term premium. CPI on year-on-year basis was recorded at 4.01% in 9MFY17 as compared to 2.64% in corresponding period last year. The Fund has earned total income of Rs.8.93 million during the period. After deducting expenses of Rs.2.50 million, the net income is Rs.6.43 million. The below chart presents the asset allocation and the weighted average credit rating of each of the sub-asset classes of NGSSF. Quarterly Report Page 05
7. NAFA GOVERNMENT SECURITIES SAVINGS FUND Acknowledgement The Board takes this opportunity to thank its valued unit-holders for their confidence and trust in the Management Company , and providing the opportunity to serve them. It also offers its sincere gratitude to the Securities & Exchange Commission of Pakistan and State Bank of Pakistan for their patronage and guidance. The Board also wishes to place on record its appreciation for the hard work, dedication and commitment shown by the staff and the Trustee. On behalf of the Board of NBP Fullerton Asset Management Limited Chief Executive Director Date: April 28, 2017 Place: Karachi. Page 06 Quarterly Report
8. NAFA GOVERNMENT SECURITIES SAVINGS FUND Quarterly Report Page 07
9. NAFA GOVERNMENT SECURITIES SAVINGS FUND Page 08 Quarterly Report
10. NAFA GOVERNMENT SECURITIES SAVINGS FUND CONDENSED INTERIM STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) AS AT 31 MARCH 2017 Note 31 March 2017 (Unaudited) 30 June 2016 (Audited) (Rupees in '000) Assets Bank balances Investments Profit receivables Deposit and prepayments Receivable against sale of units Total assets 150,998 104,780 71 988 256,837 69,130 249,698 4,102 227 700 323,857 Liabilities Payable to NBP Fullerton Asset Management Limited Management Company Payable to Central Depository Company of Pakistan Limited - Trustee Payable to Securities and Exchange Commission of Pakistan Payable against purchase of investments Payable against redemption of units Accrued expenses and other liabilities Total liabilities 2,632 25 102 104,831 796 108,386 2,912 71 275 11,748 4,942 19,948 Net Assets 148,451 303,909 Unit holders’ fund (as per statement attached) 148,451 303,909 Contingencies and commitments 4 6 Number of units in issue (Number of units) 29,539,643 13,804,381 (Rupees) 10.7539 Net assets value per unit 10.2882 The annexed notes 1 to 11 form an integral part of thIs interim financial statements. For NBP Fullerton Asset Management Limited (Management Company) Chief Executive Quarterly Report Director Page 09
11. NAFA GOVERNMENT SECURITIES SAVINGS FUND CONDENSED INTERIM INCOME STATEMENT (UNAUDITED) FOR THE NINE MONTHS PERIOD AND QUARTER ENDED MARCH 31, 2017 Nine months ended March 31, March 31, Note 2017 2016 Three months ended March 31, March 31, 2017 2016 -------------------------(Rupees in '000)------------------------------- Income Income from Market Treasury Bills Income from Pakistan investment bonds Profit on bank deposits and Term deposit receipts Gain on sale of investments - net Reversal of provision for Workers' Welfare Fund Net unrealised (diminution) / appreciation on re-measurement of investments classified as 'financial assets at fair value through profit or loss' Total income 3,656 4,794 2,491 (2,194) 1,621 10,790 5,410 5,195 1,616 - 877 1,611 669 (2,174) 1,621 3,756 1,569 2,218 213 - (50) 10,318 (818) 22,193 1,415 4,019 (583) 7,173 Expenses Remuneration of NBP Fullerton Asset Management Limited - Management Company Sindh Sales Tax on remuneration of Management Company Federal Excise Duty on remuneration of Management Company Remuneration of Central Depository Company of Pakistan Limited - Trustee Sindh Sales Tax on remuneration of Trustee Annual fee - Securities and Exchange Commission of Pakistan Accounting and operational charges to the Management Company Securities transaction cost Settlement and bank charges Annual listing fee Legal & Professional charges Auditors' remuneration Fund rating fee Printing charges Provision for Sindh Workers' Welfare Fund- previous years Total expenses 784 102 231 30 102 136 1 71 33 19 382 162 42 277 2,372 2,378 386 381 472 66 208 133 16 99 30 243 144 38 4,594 222 29 64 8 28 38 1 (2) 11 10 87 37 277 810 672 109 108 168 23 74 98 4 14 10 22 28 7 1,337 Net income from operating activities 7,946 17,599 3,209 5,836 (1,385) (3,816) (434) (3,531) Element of income / (loss) and capital gains (losses) included in prices of units issued less those in units redeemed - net Provision for Sindh Workers' Welfare Fund 5 6,429 Net income for the period before taxation 7 Taxation Net income for the period after taxation (131) 6,429 (131) 13,783 2,644 - 13,783 2,644 2,305 2,305 The annexed notes 1 to 11 form an integral part of thIs interim financial statements. For NBP Fullerton Asset Management Limited (Management Company) Chief Executive Page 10 Director Quarterly Report
12. NAFA GOVERNMENT SECURITIES SAVINGS FUND CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) FOR THE NINE MONTHS PERIOD AND QUARTER ENDED MARCH 31, 2017 Nine months ended March 31, March 31, 2017 2016 Three months ended March 31, March 31, 2017 2016 -------------------------(Rupees in '000)------------------------------Net income for the period after taxation Other comprehensive income for the period Total comprehensive income for the period 6,429 6,429 13,783 13,783 2,644 2,305 - 2,644 2,305 The annexed notes 1 to 11 form an integral part of thIs interim financial statements. For NBP Fullerton Asset Management Limited (Management Company) Chief Executive Quarterly Report Director Page 11
13. NAFA GOVERNMENT SECURITIES SAVINGS FUND CONDENSED INTERIM DISTRIBUTION STATEMENT (UNAUDITED) FOR THE NINE MONTHS PERIOD AND QUARTER ENDED MARCH 31, 2017 Nine months ended March 31, March 31, 2017 2016 Three months ended March 31, March 31, 2017 2016 -------------------------(Rupees in '000)------------------------------Undistributed income brought forward comprising: - Realised income - Unrealised income / (loss) Final cash distribution for the year ended 30 June Nil (2015: 11.104% ) 35,676 3,009 38,685 - 62,780 4,128 66,908 (28,191) 43,936 (1,465) 42,471 - 50,429 (235) 50,194 - Net income for the period after taxation 6,429 13,783 2,644 2,305 Undistributed income carried forward 45,114 52,500 45,114 52,500 45,164 (50) 53,318 (818) 43,699 1,415 53,083 (583) 45,114 52,500 45,114 52,500 Undistributed income carried forward comprising: - Realised income - Unrealised (loss) / income The annexed notes 1 to 11 form an integral part of thIs interim financial statements. For NBP Fullerton Asset Management Limited (Management Company) Chief Executive Page 12 Director Quarterly Report
14. NAFA GOVERNMENT SECURITIES SAVINGS FUND CONDENSED INTERIM STATEMENT OF MOVEMENT IN UNIT HOLDERS ’ FUND (UNAUDITED) FOR THE NINE MONTHS PERIOD AND QUARTER ENDED MARCH 31, 2017 Nine months ended March 31, March 31, 2017 2016 Three months ended March 31, March 31, 2017 2016 -------------------------(Rupees in '000)------------------------------Net assets at beginning of the period 303,909 545,763 158,099 342,831 Issue of units 8,058,625 (March 31, 2016: 46,634,044 units) Redemption of units 23,793,887 (March 31, 2016: 67,799,486 units) 84,377 (247,650) (163,273) 495,626 (742,076) (246,450) 3,382 (16,108) (12,726) 163,489 (223,435) (59,946) 1,385 3,816 434 3,531 (50) (2,194) 8,673 6,429 (818) 1,616 12,985 13,783 1,415 (2,174) 3,403 2,644 (583) 213 2,675 2,305 Element of income / (loss) and capital gains (losses) included in prices of units issued less those in units redeemed - net Net unrealised (diminution) / appreciation on re-measurement of investments classified as 'financial assets at fair value through profit or loss' Gain on sale of investments - net Other net income for period Total comprehensive income for the period Final cash distribution for the year ended 30 June 2016: Nil (2015: 11.104%) Net assets at end of period 148,451 (28,191) 288,721 - 148,451 288,721 The annexed notes 1 to 11 form an integral part of thIs interim financial statements. For NBP Fullerton Asset Management Limited (Management Company) Chief Executive Quarterly Report Director Page 13
15. NAFA GOVERNMENT SECURITIES SAVINGS FUND CONDENSED INTERIM CASH FLOW STATEMENT (UNAUDITED) FOR THE NINE MONTHS PERIOD AND QUARTER ENDED MARCH 31, 2017 Nine months ended March 31, March 31, 2017 2016 Three months ended March 31, March 31, 2017 2016 -------------------------(Rupees in '000)------------------------------CASH FLOWS FROM OPERATING ACTIVITIES Net income for the period before taxation 6,429 13,783 2,644 2,305 Adjustments: Element of (income) / loss and capital (gains) / losses included in prices of units issued less those in units redeemed - net 1,385 3,816 434 3,530 50 7,865 818 18,417 (1,415) 1,663 583 6,419 144,868 4,031 (761) 148,138 159,439 2,106 105 70,454 232,104 12,629 3,054 (226) 15,457 80,093 971 9 70,454 151,527 (280) (46) (173) 104,831 (4,146) 100,186 (925) (39) (445) (99,130) (1,426) (101,965) 9 (31) 28 49,840 (1,329) 48,517 275 27 74 (89,954) 110 (89,468) Net cash generated from / (used in) operating activities 256,189 148,556 65,637 68,478 CASH FLOWS FROM FINANCING ACTIVITIES Net receipts from issue of units Net payments against redemption of units Distribution paid Net cash (used in) / generated from financing activities 85,077 (259,398) (174,321) 495,626 (763,694) (28,191) (296,259) 3,382 (16,108) (12,726) 93,035 (222,596) (129,561) Net (decrease) / increase in cash and cash equivalents during the period Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period 81,868 69,130 150,998 (147,703) 242,065 94,362 52,911 98,087 150,998 (61,083) 155,445 94,362 Net unrealised diminution / (appreciation) on re-measurement of investments classified as 'financial assets at fair value through profit or loss' (Increase) / decrease in assets Investments - net Profit receivables Deposit and prepayments Receivable against sale of units Increase / (decrease) in liabilities Payable to NBP Fullerton Asset Management Limited Management Company Payable to Central Depository Company of Pakistan Limited - Trustee Payable to Securities and Exchange Commission of Pakistan Payable against purchase of investments Accrued expenses and other liabilities The annexed notes 1 to 11 form an integral part of thIs interim financial statements. For NBP Fullerton Asset Management Limited (Management Company) Chief Executive Page 14 Director Quarterly Report
16. NAFA GOVERNMENT SECURITIES SAVINGS FUND NOTES TO AND FORMING PART OF THE INTERIM FINANCIAL STATEMENTS (UNAUDITED) FOR THE NINE MONTHS PERIOD AND QUARTER ENDED MARCH 31, 2017 1 LEGAL STATUS AND NATURE OF BUSINESS The NAFA Government Securities Savings Fund (the Fund) was established under a Trust Deed executed between NBP Fullerton Asset Management [formerly National Fullerton Asset Management Limited (NAFA)] as Management Company and Central Depository Company of Pakistan Limited (CDC) as Trustee. The Trust Deed was executed on June 05, 2014 and was authorised by the Securities and Exchange Commission of Pakistan (SECP) on May 30, 2014 in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules). The Management Company of the Fund has been licensed to act as an Asset Management Company under the NBFC Rules through a certificate of registration issued by the SECP. The Registered and Principal office of the Management Company is situated at 7th Floor, Clifton Diamond Building, Block No. 4, Scheme No. 5, Clifton, Karachi. The Management Company is a member of the Mutual Funds Association of Pakistan (MUFAP). The Fund is an open-ended mutual fund and is listed on the Pakistan Stock Exchange. Units of the Fund are offered for public subscription on a continuous basis. These units are transferable and can be redeemed by surrendering them to the Fund. The Board of Directors have approved that the Fund should be categorised as "Income Scheme" as per the categories defined by the Securities and Exchange Commission of Pakistan. The core objective of the Fund is to earn a competitive rate of return while preserving capital to the extent possible by investing in liquid assets. The Fund comprises of investments of various time horizons with a significant amount invested in short term investments for the purpose of maintaining liquidity. The Pakistan Credit Rating Agency Limited (PACRA) has assigned an asset manager rating of AM1 w.e.f April 21, 2017 to the Management Company and a stability rating of 'AA-(f)' to the Fund. Title of the assets of the Fund is held in the name of Central Depository Company of Pakistan Limited (CDC) as the trustee of the Fund. 2 BASIS OF PREPARATION 2.1 Statement of compliance This condensed interim financial information has been prepared in accordance with the approved accounting standards as applicable in Pakistan for interim financial reporting. Approved accounting standards comprise of International Accounting Standard (IAS) 34: 'Interim Financial Reporting', the Trust Deed, Non Banking Finance Companies (Establishment and Regulation) Rules, 2003 (NBFC Rules), Non Banking Finance Companies and Notified Entities Regulations 2008 (NBFC Regulations) and the directives issued by the SECP. Wherever the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or directives issued by the SECP differ with the requirements of IAS, the requirements of the Trust Deed, the NBFC Rules, the NBFC Regulations or the directives issued by the SECP prevail. The disclosures made in this condensed interim financial information have been limited based on the requirements of the International Accounting Standard 34: 'Interim Financial Reporting'. This condensed interim financial information does not include all the information and disclosures required in a full set of financial statements and should be read in conjunction with the annual published financial statements of the Fund for the year ended June 30, 2016. In compliance with schedule V of the NBFC Regulations the directors of the Management Company hereby declare that this condensed interim financial information gives a true and fair view of the state of the Fund’s affairs as at March 31, 2017. 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies adopted for the preparation of the condensed interim financial information are the same as those applied in the preparation of the annual audited financial statements for the year ended June 30, 2016. Quarterly Report Page 15
17. NAFA GOVERNMENT SECURITIES SAVINGS FUND 31 March 2017 (Unaudited) Note 4 INVESTMENTS (Rupees in '000) Financial assets 'at fair value through profit or loss' held for trading Market Treasury Bills Pakistan Investment Bonds 4.1 4.2 Loans and receivables Term Deposit Receipts - Long Term 4.1 Market Treasury Bills Face Value Issue date Tenor As at July 01, 2016 Purchases during the period Sales/ matured during the period As at March 31, 2017 Market value as at March 31, 2017 ---------------------------------- Rupees in ‘000 ---------------------------------6-Aug-15 20-Aug-15 29-Oct-15 21-Jan-16 4-Feb-16 17-Mar-16 11-Jul-16 18-Aug-16 27-Oct-16 10-Nov-16 24-Nov-16 9-Jun-16 8-Dec-16 23-Jun-16 14-Apr-16 11-Jul-16 4-Aug-16 15-Sep-16 19-Jan-17 Total 12 Months 12 Months 12 Months 12 Months 12 Months 12 Months 3 Months 3 Months 3 Months 3 Months 3 Months 6 Months 3 Months 6 Months 12 Months 6 Months 6 Months 6 Months 3 Months 50,000 70,000 50,000 170,000 30,000 10,000 20,000 70,000 30,000 65,000 12,000 73,000 55,000 50,000 30,000 15,000 55,000 15,000 50,000 175,000 755,000 50,000 30,000 10,000 70,000 50,000 20,000 70,000 30,000 65,000 12,000 73,000 55,000 50,000 30,000 15,000 55,000 15,000 50,000 70,000 820,000 105,000 105,000 165,820 58,878 224,698 104,780 25,000 249,698 Market value as a percentage of net assets Market value as a percentage of total investments -------------%------------- 104,780 104,780 70.58 70.58 100.00 100.00 Market value as a percentage of net assets Market value as a percentage of total investments Pakistan Investment Bonds Face Value Issue date Tenor As at July 01, 2016 Purchases during the period Sales/ matured during the period As at March 31, 2017 Market value as at March 31, 2017 ---------------------------------- Rupees in ‘000 ---------------------------------17 July 2014 Total 5 104,780 104,780 104,830 Carrying value as at March 31, 2017 4.2 June 30, 2016 (Audited) 3 Years 55,900 55,900 3,500 3,500 59,400 59,400 - - -------------%------------- - PROVISION FOR SINDH WORKERS' WELFARE FUND The Finance Act, 2008 introduced amendments to the Workers' Welfare Fund (WWF) Ordinance, 1971 whereby the definition of industrial establishment was extended. The amendments were challenged at various levels and conflicting judgements were rendered by the Lahore High Court, Sindh High Court and Peshawar High Court. The Honourable Supreme Court of Pakistan vide its judgement dated November 10 , 2016, has upheld the view of Lahore High Court and decided that WWF is not a tax and hence the amendments introduced through Finance Act, 2008 are ultra-vires to the Constitution. The Federal Board of Revenue has filed Civil Review Petitions in respect of above judgement with the prayer that the judgement dated November 10, 2016 passed in the Civil Appeal may kindly be reviewed in the interest of justice. Furthermore, the Sindh Revenue Board (SRB) had written to few mutual funds in January 2016 to register and pay Sindh Workers Welfare Fund (SWWF) for the accounting year closing on or after December 31, 2013. The MUFAP reviewed the issue and based on an opinion decided that SWWF is not applicable on mutual funds as they are not financial institutions as required by SWWF Act, 2014. The MUFAP wrote to the SRB that mutual funds are not establishments and are pass through vehicles hence, they do not have any worker and no SWWF is payable by them. The SRB responded back that as mutual funds are included in definition of financial institutions in the Financial Institutions (Recovery of Finance) Ordinance, 2001, therefore SWWF is applicable on mutual funds. The MUFAP has taken up this matter before the Sindh Finance Ministry to exclude mutual funds from SWWF. Page 16 Quarterly Report
18. NAFA GOVERNMENT SECURITIES SAVINGS FUND In view of the above developments regarding the applicability of Federal and Sindh WWF on Mutual Funds , the MUFAP has recommended the following to all its members on January 12, 2017: - based on legal opinion, the entire provision against the Federal WWF held by the CISs till June 30, 2015, to be reversed on January 12, 2017; and - the provision in respect of Sindh WWF should be made on January 12, 2017 with effect from the date of enactment of the Sindh WWF Act, 2014 (i.e. starting from May 21, 2015). Accordingly, the provision for SWWF is being made on a daily basis going forward. The above decisions were communicated to the SECP and the Pakistan Stock Exchange Limited on January 12, 2017 and the SECP vide its letter dated February 1, 2017 has advised MUFAP that the adjustments relating to the above should be prospective and supported by adequate disclosures in the financial statements of the CISs/ mutual funds. Accordingly, the Fund has recorded these adjustments in its books on January 12, 2017. The scheme has maintained provision against Sindh Workers’ Welfare Fund’s liability to the tune of Rs 0.408 Million, If the same were not been made, the NAV per unit of the scheme would have been higher by Re 0.0296. 6 CONTINGENCIES AND COMMITMENTS There were no contingencies and commitments outstanding as at 31 March 2017 and 30 June 2016. 7 TAXATION The income of the Fund is exempt from income tax under clause 99 of Part I of the Second Schedule to the Income Tax Ordinance, 2001 subject to the condition that not less than ninety percent of its accounting income for the period, as reduced by capital gains, whether realised or unrealised, is distributed to the unit holders. The management intends to distribute atleast 90% of the Fund's net accounting income earned by the year end to the unit holders. Accordingly, no provision for taxation has been made in this condensed interim financial information. The Fund is also exempt from the provision of section 113 (minimum tax) under clause 11A of Part IV of the Second Schedule to the Income Tax Ordinance, 2001. 8 TOTAL EXPENSE RATIO Total expense ratio (all the expenses incurred during the period divided by Average net assets value for the period) is 1.85% p.a. including 0.47% representing government levies on Collective Investment scheme such as Sales tax, Worker's Welfare Fundband Securities & Exchange Commission of Pakistan fee for the period. 9 TRANSACTIONS AND BALANCES WITH CONNECTED PERSONS 9.1 Connected persons include NBP Fullerton Asset Management Limited being the Management Company, Central Depository Company of Pakistan Limited being the Trustee, National Bank of Pakistan (NBP) and Alexandra Fund Management Pte. Limited being the sponsors, other collective investment schemes managed by the Management Company, directors and officers of the Management Company, entities under common management or directorships, any person or company beneficially owning directly or indirectly ten percent or more of the capital of the Management Company and unit holders holding ten percent or more units of the Fund. 9.2 The transactions with connected persons are in the normal course of business, at contracted rates/agreed rates. 9.3 Remuneration and front-end load payable to the Management Company are determined in accordance with the provisions of the NBFC Regulations and the Trust Deed respectively. 9.4 Remuneration payable to the Trustee is determined in accordance with the provisions of the NBFC Regulations and the Trust Deed. Quarterly Report Page 17
19. NAFA GOVERNMENT SECURITIES SAVINGS FUND 9 .5 Details of the transactions with connected persons are as follows: Nine month ended Quarter ended March 31, March 31, March 31, March 31, 2017 2016 2017 2016 --------------------------------Rupees in '000------------------------------NBP Fullerton Asset Management Limited Management Company Remuneration of the Management Company Sindh Sales Tax on remuneration of Management Company Federal Excise Duty on remuneration of Management Company Accounting and operational charges to the Management Company Sales load Units issued: 5,593,008 (31 March 2016: Nil units) Employees of the Management Company Dividend Re-invest: Nil units (31 March 2016: 6,896 units) Units issued: Nil (31 March 2016: 21,655 units) Units redeeemed: 36,504 (31 March 2016: 85,614 units) Mr Khalid Mehmood - CFO Units issued: Nil (31 March 2016: 142,640 units) Units redeeemed: 144,963 (31 March 2016: 5,665 units) Central Depository Company of Pakistan Limited - Trustee Remuneration of the Trustee Sindh Sales Tax on remuneration of Trustee Service Provident Fund Trust Purchase of Pakistan Investment Bond 784 102 136 7 58,683 2,378 386 381 133 37 - 222 29 38 - 672 109 108 98 35 - 381 71 232 942 - 50 149 1,509 1,500 60 - - 231 30 472 66 64 8 168 23 - - - 3,766 NAFA Income Opportunity Fund Sale of Market Treasury Bills 68,308 4,780 - - NAFA Government Securities Liquid Fund Sale of Market Treasury Bills 47,634 178,381 - - 89,954 - - 82,911 - - 100,000 - - Summit Bank Limited Purchase of Treasury Bills National Bank of Pakistan Sale of Market Treasury Bills Purchase of Treasury Bills 69,704 * Attock Petroleum Limited Units issued / transferred In: Nil (March 31, 2016: 9,590,854 units) Units redeeemed: Nil (31 December 2015: Nil) - 82,911 - 31 March 2017 Unaudited 9.6 NBP Fullerton Asset Management Limited - Management Company Management remuneration payable Sindh Sales Tax payable Federal Excise Duty payable Sales load and transfer load payable Sindh Sales Tax and FED payable on sales load Accounting and operational charges to the Management Company Other payable Units held: 5,593,008 (30 June 2016: Nil units held) Employees of the Management Company Units held: 29,730 (30 June 2016: 66,234 units held) Mr Khalid Mehmood - CFO Units held: Nil (30 June 2016: 144,963 units) Page 18 30 June 2016 Audited ------(Rupees in ‘000)-----70 9 1,864 103 405 136 45 60,147 186 30 1,864 145 420 222 45 - 320 681 - 1,491 Quarterly Report
20. NAFA GOVERNMENT SECURITIES SAVINGS FUND 31 March 2017 Unaudited Central Depository Company of Pakistan Limited - Trustee Trustee remuneration payable Sindh Sales Tax on remuneration of Trustee Security deposit CDS charges payable 30 June 2016 Audited ------ (Rupees in ‘000)-----22 3 102 7 53 7 102 11 National Bank of Pakistan Bank Balances 432 1,036 Summit Bank Bank Balances 229 278 * Attock Petroleum Limited Units held: Nil (30 June 2016: 10,056,987 units) NAFA Asset Allocation Fund Net receivable against conversion of units NAFA Islamic Asset Allocation Fund Payable against conversion of units NAFA Money Market Fund Payable against conversion of units Gul Ahmed Energy Limited Units held: Nil (30 June 2016: 3,598,267 units) NAFA Saving Plus Fund Net receivable against conversion of units - 103,468 - (700) - 700 - (8,945) - 37,020 - (2,103) * Current balances with these parties have not been disclosed as they did not remain connected persons and related parties as at period end. 10 GENERAL 10.1 Figures have been rounded off to the nearest thousand rupees. 11 DATE OF AUTHORISATION FOR ISSUE These financial statements were authorised for issue by the Board of Directors of the Management Company on April 28, 2017. For NBP Fullerton Asset Management Limited (Management Company) Chief Executive Quarterly Report Director Page 19