Pakistan: NAFA Riba Free Savings Fund Report - September 2017

Transcription

1. Capital Review NAFAMarkets Riba Free Savings Fund (NRFSF) September 2017 Unit Price (29/09/2017): Rs. 10.3080 Performance % Sep 2017 FYTD 2018 Trailing 12 months Oct 16 - Sep 17 NAFA Riba Free Savings Fund 4.9% 4.7% 5.7% 5.9% 5.5% 7.4% 7.8% 8.7% 7.9% Benchmark* 2.3% 2.3% 2.6% 3.1% 4.9% 6.7% 6.7% 7.3% 6.3% * Annualized Return Based on Morning Star Methodology All other returns are Annualized Simple Return FY 2017 FY 2016 FY FY 2015 2014 Since Launch FY 2013 August 20, 2010* Performance Period The performance reported is net of management fee & all other expenses and based on dividend reinvestment gross of with-holding tax where applicable. To provide preservation of capital and earn a reasonable rate of return August 20, 2010 along with a high degree of liquidity by investing in short-term Shariah Rs. 2,948 million Open-end – Shariah Compliant Income Fund compliant banks and money market / debt securities. Daily – Monday to Saturday (Mon - Thr) 9:00 A.M to 5:00 P.M (Friday) 9:00 A.M to 5:30 P.M The Fund generated an annualized return of 4.9% for the month of (Saturday) 9:00 A.M to 1:00 P.M September 2017 versus the Benchmark return of 2.3% thus registering an Settlement: 2-3 business days outperformance of 2.6% p.a. This reported return is net of management fee Pricing Mechanism: Forward Pricing and all other expenses. Load:*** Front End Load (Individual): without life Takaful 0.5%, with life Takaful 3% (Nil on The Fund aims to consistently provide better return than the profit rates investment above Rs. 26 million) offered by Islamic Banks / Islamic windows of commercial banks, while also Front End Load (Other): 0.5% (Nil on providing easy liquidity along with a high quality credit profile. The Fund is investment above Rs. 16 million) allowed to invest in short-term Shariah compliant money market securities of Back End Load: NIL up to six months maturity rated AA- or better. The Fund is not authorized to Management Fee: 10% of Net Income (Min 0.5% p.a., Max invest in corporate debt securities and Equities. 1.25% p.a.) Total Expense Ratio: 1.11% p.a.(including 0.26% government The allocation of the Fund in GOP Ijarah Sukuks is around 3.4% of net assets, levies) which are floating rate instruments with 6-months coupon re-setting. Around Risk Profile: Very Low Fund Stability Rating: "A(f)" by PACRA 97% of net assets of the portfolio are invested in bank deposits which Listing: Pakistan Stock Exchange enhance the liquidity profile of the Fund. The weighted average time to Custodian & Trustee: Central Depository Company (CDC) maturity of the Fund is 15 days. Auditors: Deloitte Yousuf Adil Chartered Accountants We will rebalance the allocation of the Fund proactively based on the capital Benchmark:** 6-month average deposit rates of three A market outlook. rated Islamic Banks/Islamic windows of conventional banks as selected by MUFAP Fund Manager: Muhammad Ali Bhabha CFA,FRM Minimum Growth Unit: Rs. 10,000/Subscription: Income Unit: Rs. 100,000/Credit Quality of the Portfolio as of September 29, 2017 (% of Total Assets) Asset Manager Rating: AM1 by PACRA (Very High Quality) 3.4% GOP Ijarah Sukuk (AAA rated) ** effective from September 01, 2016; Previously Average 6-month deposit rate of A- and above rated Islamic Banks 25.0% AAA *** effective from January 02, 2017 0.3% AA+ Asset Allocation (% of Total Assets) 29-Sep-17 31-Aug-17 A+ 25.0% 44.8% AGOP Ijara Sukuks 3.4% 3.5% 1.5% Others including receivables Bank Deposits 95.1% 94.7% 100.0% Total Others including receivables 1.5% 1.8% Total 100.0% 100.0% Leverage Nil Nil Launch Date: Fund Size: Type: Dealing Days: Dealing Time: Sindh Workers' Welfare Fund (SWWF) The scheme has maintained provisions against Sindh Workers' Welfare Fund's liability to the tune of Rs. 2,186,818/-. If the same were not made the NAV per unit/last one year return of scheme would be higher by Rs. 0.0076/0.08%. For details investors are advised to read note 16 of the financial statements of the Scheme for the year ended June 30, 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.