Pakistan: NAFA Islamic Asset Allocation Fund Report - February 2018

Transcription

1. Capital Review NAFA Markets Islamic Asset Allocation Fund (NIAAF) February 2018 Unit Price (28/02/2018): Rs. 15.8862 Performance % Feb 2018 Performance Period Rolling FYTD 2018 12 months FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 Last 3 Years* Last 5 Last 10 Since Launch Years* Years* October 26, 2007* NAFA Islamic Asset Allocation Fund (1.8%) (6.5%) (7.5%) 20.3% 13.1% 33.8% 22.2% 36.3% 10.8% 18.9% 15.2% 14.8% Benchmark** 10.3% (1.2%) (2.5%) (5.8%) 11.9% 9.2% 12.1% 17.7% 28.9% 7.3% 11.4% 10.3% The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. * Annualized Return All Other returns are Cumulative Note:** Effective from September 01, 2016; Previously average of (i) average 3-month Islamic banks deposit rate (ii) 6-month KIBOR or its Shariah Compliant equivalent (iii) KMI 30 Index ** KSE-30 is used as equity component for the Benchmark before June 30, 2008, the launch date of KMI-30 Index. The fund category was changed to Islamic Asset Allocation from Islamic Balanced with effect from April 22, 2014. Consequently, allowed equity range is now 0% to 90% which previously was 30% to 70%. Previous benchmark was 50% KMI-30 Index & 50% Islamic Bank Deposit. Launch Date: Fund Size: Fund Size: (Excluding investment by fund of funds) Type: Dealing Days: Dealing Time: Settlement: Pricing Mechanism: Load:*** Management Fee: Total Expense Ratio (%) Selling & Marketing Expenses Risk Profile: Listing: Custodian & Trustee: Auditors: Benchmark:** Fund Manager: Minimum Subscription: Asset Manager Rating: October 26, 2007 Rs. 12,349 million Rs. 12,334 million Open-end-Shariah Compliant -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 2-3 business days Forward Pricing 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 2% per annum 3.07% p.a (including 0.37% government levies) 0.4% per annum Moderate Pakistan Stock Exchange Central Depository Company (CDC) Deloitte Yousuf Adil Chartered Accountants Daily weighted return of KMI-30 Index & 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP, based on Fund's actual allocation. Taha Khan Javed, CFA Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM1 by PACRA (Very High Quality) *** effective from January 02, 2017 Asset Allocation (% of Total Assets) Note: Equities / Stocks Cash Others including receivables Total Leverage Amount invested by fund of funds is Rs 15 million. 28-Feb-18 31-Jan-18 51.5% 48.2% 0.3% 100.0% Nil 62.1% 37.4% 0.5% 100.0% Nil To generate capital appreciation by investing in Shariah Compliant equity and equity related securities and income by investing in Shariah Compliant bank deposits, debt & money market securities. ‘s During the month under review, unit price (NAV) of NAFA Islamic Asset Allocation Fund decreased by 1.8%, whereas the Benchmark decreased by 1.2%, thus an underperformance of 0.6% was recorded. Since inception your Fund has posted 14.8% p.a return, versus 10.3% p.a by the Benchmark.Thus, to-date the outperformance of your Fund stands at 4.5% p.a. This outperformance is net of management fee and all other expenses. NIAAF started off the month with an allocation of around 62% in equities, which decreased to around 52% towards the end of the month. NIAAF underperformed the Benchmark in February as the Fund was overweight in select Oil & Gas Exploration Companies, Oil & Gas Marketing Companies, Cement, Automobile Assembler, and Textile Composite 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 Islamic Asset Allocation Fund (NIAAF) for the Last Three Years 70.0% 60.0% NIAAF Annualized Return Risk (Std. Deviation) 50.0% Cum. Return Benchmark ** 10.8% 10.9% 7.3% 9.0% 40.0% NIAAF, 36.3% 30.0% Benchmark ** 23.7% 20.0% 10.0% 0.0% 14.9% 6.5% 6.1% 4.3% 4.0% 15.7% Dr. Amjad Waheed, CFA Sajjad Anwar, CFA Muhammad Ali Bhabha, CFA, FRM Taha Khan Javed, CFA Hassan Raza, CFA 28-Feb-18 30-Nov-17 31-Aug-17 31-May-17 28-Feb-17 30-Nov-16 31-Aug-16 31-May-16 Top Five Sectors (% of Total Assets) (as on February 28, 2018) Oil & Gas Exploration Companies Cement Fertilizer Textile Composite Power Generation & Distribution Others 29-Feb-16 -20.0% 30-Nov-15 -10.0% 31-Aug-15 DY 4.6% 4.7% 31-May-15 PBV 2.2 2.0 28-Feb-15 NIAAF PER 10.7 10.4 Top Ten Holdings (as on February 28, 2018) % of Total Assets % of Total Assets Pakistan Oilfields Ltd Equity 3.9% Nishat Mills Ltd Equity 2.8% Oil & Gas Dev Co Ltd Equity 3.8% Engro Fertilizer Ltd Equity 2.4% Pak Petroleum Ltd Equity 3.7% Hub Power Company Ltd Equity 2.4% Mari Petroleum Company Ltd Equity 3.5% Millat Tractors Ltd Equity 1.8% Engro Corporation Ltd Equity 3.4% Indus Motor Company Ltd Equity 1.6% Details of Non-Compliant Investments Sindh Workers' Welfare Fund (SWWF) The Scheme has maintained provisions against worker’s welfare Fund’s liability to the tune of Rs. 60,862,273/- if the same were not made the NAV Per unit/return of the   Scheme would be higher by Rs. 0.0783/0.46%. For details  investors are advised to read the note 9.1 of the Financial Statements of the Scheme for the period ended December 31, 2017. Eden Housing (Sukuk II) Total SUKUK 4,921,875 4,921,875 - - - 4,921,875 4,921,875 - - - 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 Documents to understand the investment policies and the risk involved. The scheme holds certain non-compliant investments. Before making any investment decision, investors should review the latest monthly Fund Manager Report and Financial statements. The reported return may include provisions and reversal of provisions against some debt securities.