Pakistan: NAFA Islamic Income Fund - August 2017

Transcription

1. NAFA Islamic Income Fund (NIIF) Capital Markets Review (Formerly; NAFA Islamic Aggressive Income Fund) MONTHLY REPORT (MUFAP's Recommended Format) Unit Price (31/08/2017): Rs. 9.5816 August 2017 Performance % Aug FYTD 2017 2018 Trailing 12 months Sep 16 - Aug 17 NAFA Islamic Income Fund 4.6% 4.4% 5.2% 5.4% 7.4% 9.2% 13.6% 6.8% 6.6% Benchmark** 2.3% 2.4% 3.5% 3.9% 4.8% 6.6% 6.5% 7.0% 6.2% (Formerly; NAFA Islamic Aggressive Income Fund) * Annualized Return Based on Morning Star Methodology All other returns are Annualized Simple Return 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: FY 2014 The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. General Information Launch Date: Fund Size: Type: Dealing Days: Dealing Time: FY FY FY 2017 2016 2015 Since Launch FY 2013 October 26, 2007* Performance Period Investment Objective October 26, 2007 Rs. 4,223 million Open-end – Shariah Compliant Income Fund Daily – Monday to Friday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M 2-3 business days Forward Pricing Front End Load (Individual): without life Takaful 1%, with life Takaful 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.) 1.04% p.a. (including 0.25% government levies) Low to Medium "A-(f)" by PACRA Pakistan Stock Exchange Central Depository Company (CDC) Deloitte Yousuf Adil Chartered Accountants 6-month average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP Muhammad Ali Bhabha, CFA, FRM Growth Unit: Rs. 10,000/Income Unit: Rs. 100,000/AM1 by PACRA (Very High Quality) ** effective from March 14, 2017; Previously 1-year average deposit rates of three A rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP *** effective from January 02, 2017 Asset Allocation (% of Total Assets) 31-Aug-17 Sukuks GOP Ijara Sukuks - Govt. Backed Certificate of Musharakah (COM) Bank Deposits Others including receivables Total Leverage 3.6% 9.4% 4.0% 79.5% 3.5% 100.0% Nil 31-July-17 To earn a reasonable rate of return in a Shariah compliant manner by investing in Shariah compliant debt securities, money market instruments and bank deposits. Fund Manager Commentary During the month under review, the Fund posted an annualized return of 4.6% as compared to the Benchmark return of 2.3% thus registering an outperformance of 2.3% p.a. This outperformance net of management fee and all other expenses. The allocation in corporate Sukuks stood at around 3.7% of the net assets. Around 80% of net assets of the portfolio is allocated in bank deposits. The higher allocation in bank deposits is due to better yields as compared to other authorized alternative investment avenues. The weighted average Yield-to-Maturity (YTM) of the Sukuk portfolio is around 5.6% p.a. and weighted average time to maturity is 4.1 years. The weighted average time to maturity of the Fund is 202 days. We will rebalance the allocation of the Fund proactively based on the capital market outlook. SECP has approved the change in category of NAFA Islamic Aggressive Income Fund from Shariah Compliant Aggressive Income Fund to Shariah Compliant Income Fund w.e.f. March 14, 2017. Consequently name of NAFA Islamic Aggressive Income Fund has been changed to NAFA Islamic Income Fund from March 14, 2017. 4.4% 11.3% 83.2% 1.1% 100.0% Nil Top Sukuk Holdings (as at August 31, 2017) Details of Non-Compliant Investments Particulars New Allied Electronics (Sukuk I) New Allied Electronics (Sukuk II) Value of Type of Investments Investment before Provision SUKUK SUKUK Total Name of Sukuk % of Total Assets Dubai Islamic Bank - Sukuk 14-JUL-17 14-JUL-27 K-Electric AZM Sukuk Limited - 5 Years 19-MAR-14 19-MAR-19 Total 3.0% 0.6% 3.6% Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 3,134,695/-. If the same were not made the NAV per unit/ last one year return of scheme would be higher by Rs. 0.0071/0.08%. For details investors are advised to read note 5 of the Financial Statements of the Scheme for the period ended March 31, 2017. 110,000,000 4,905,437 114,905,437 Provision held Value of Investments after Provision % of Net Assets % of Gross Assets 110,000,000 4,905,437 114,905,437 - 0.0% 0.0% Credit Quality of the Portfolio as of August 31, 2017 (% of Total Assets) GOP Ijarah Sukuk (AAA rated) AAA AA+ AA AA‐ A+ A‐ Others including receivables Total 9.4% 13.7% 7.6% 0.6% 14.0% 4.2% 47.0% 3.5% 100.0% Name of the Members of Investment Committee 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. 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 returns may include provisioning and reversal of provisioning against some debt securities.