For the Six months ended 30 th September 2014

Transcription

1 Interim Report For the Six months ended 30 th September 2014 National Asset Management Limited Union Bank Building, 64, Galle Road, Colombo 2. Phone : Fax : info@namal.lk

2 Table of Contents Report of the Investment Manager 1 Statement of Comprehensive Income 2 Statement of Financial Position 3 Statement of Movement in Unit Holders Fund 4 Notes To the Acccounts 5-6 Corporate Information 7

3 1H15 INTERIM REPORT Dear Investor, We take pleasure in presenting the interim report of the NAMAL High Yield Fund (NHYF) for the six months ended 30 th September Performance review The NHYF generated a return of 3.51% for the six month period under review, 8.60% over 12 months, and 24.45% over 24 months. Interest income increased 114.0% to Rs m. The fund recorded a profit of Rs m for the six months under review, an increase of 100.0%. Performance Comparison 6M* (%) 12M (%) 24M (%) NHYF *Period ending 1 st April th September 2014 Market Review Benchmark 12 month Treasury Bill auction yields declined by 116 basis points to 5.89% during the six month period under review. CBSL has limited access to the Standard Deposit Facility at 6.50% to a maximum of 3 times per month, with further deposits to be accepted at 5.00%. Inflationary pressures moderated with the CCPI (annual average) declining from 4.2% to 3.5% by September The Balance of Payment (BOP) improved marginally, with the trade deficit declining to USD 5.2b in the first eight months of the year, compared to a deficit of USD 5.6b the prior year. Worker s remittances have grown 10% to USD 4.5b from USD 4.1b, helping to offset the trade deficit and reduce external financing requirements. Earnings from tourism grew 32.1% to USD 1.4m from USD 1.1m the prior year. 32% 6% Asset Allocation 16% 2% 10% 34% Treasury Bill rates Repos Trust Certificates Treasury Bill Fixed Deposit Corporate Debt Commercial Paper Portfolio Composition The Portfolio is constructed to maximize returns by investing in high yielding corporate paper. CBSL s accommodative policy stance, large external borrowings, and slower credit demand resulted in excess liquidity in commercial paper markets. This is exerting downward pressure on commercial paper yields and credit spreads. As at 30 th September 2014, 74.75% of assets were invested in Commercial Debt with the remainder in Government Securities. Sincerely, The Fund Management Team 31 st October % 7.00% 6.50% 6.00% 5.50% Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 3 Months 6 Months 12 Months Source: Central Bank of Sri Lankla 1

4 STATEMENT OF COMPREHENSIVE INCOME For the 06 month period ended 30th September NAMAL HIGH YIELD FUND Note INVESTMENT INCOME Interest income Total Investment Income EXPENSES Management and registrar fees (18.97) (1.93) Trustee and custodian fees (6.38) (0.77) Audit fees (0.07) (0.40) Professional charges - - Other expenses (0.16) (0.16) Total operating expenses (25.58) (3.25) NET OPERATING PROFIT/(LOSS) FINANCE COST Distribution to Unit Holders - - Interest expense (0.08) (0.01) PROFIT AFTER DEDUCTIONS AND BEFORE TAX Income tax expense (28.56) (13.86) PROFIT AFTER TAX FOR THE PERIOD COMPREHENSIVE INCOME UNREALIZED GAIN/LOSS (0.91) - INCREASE IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS

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6 STATEMENT OF CHANGES IN UNIT HOLDERS' FUNDS For the 06 month period ended 30th September NAMAL HIGH YIELD FUND Rs.Mn. UNIT HOLDER' FUNDS AT THE BEGINNING OF THE PERIOD 7, Increase in net assets attributable to unit holders Unit Creations 5, , Payment on unit redemption (8,360.37) (692.85) UNIT HOLDERS' FUNDS AT THE END OF THE PERIOD 5,

7 NOTES TO THE FINANCIAL STATEMENTS For the 06 month period ended 30th September NAMAL HIGH YIELD FUND 1 All figures are provisional and unaudited. Where necessary comparative figures have been adjusted to confirm with the changes in presentation in the current period. 2 Income is recognised on an accrual basis. 3 Interest on repurchase agreements is shown together with the applicable notional tax credit which is set off against the income tax payable by the fund. 4 The profit and income of the fund is liable for income tax at the rate of 10% for the year of assessment 2013/2014 as specified in part A of the second schedule to the Inland Revenue Act No. 10 of There are no material Contingent Liabilities or contingent Assets which require disclosure in the financial statements. 6 No circumstances have arisen since the Balance Sheet date, which would require adjustments or disclosure in the financial statements. 5

8 NOTES TO THE FINANCIAL STATEMENTS For the 06 month period ended 30th September 7. FINANCIAL ASSETS - LOANS AND RECEIVABLES Treasury Bills Repurchase Agreements Capital Alliance Ltd National Savings Bank DFCC 1, Wealth Trust Securities Ltd First capital Treasuries Ltd , Investment in Commercial Papers Merchant Bank of SL Asia Capital PLC People's Leasing Co. PLC Siyapatha Finance Ltd Abans Fiance PLC Abans Ltd Hayleys PLC - - L B Finance PLC - - Mercantile Investment PLC DSI - - First Capital Holdings PLC Softlogic Holdings PLC Alliance Finance PLC Lanka Orix Leasing Co. PLC Orient Financial Services Janashakthi , , Placement with other Trust Certificates Mercantile Investments PLC - - Commercial Leasing & Finace PLC - - Peoples Leasing Investment in Treasury Bills Capital Alliance Investment in Fixed Deposits Orient Finance Central Finance DFCC 1, , , , OTHER RECEIVABLES Unit Creation Receivable ACCRUED EXPENSES Fund management fees payable Trustee fee and Custodian fee payable Audit fee payable Redemption payable INTEREST INCOME 06 month period ended 06 month period ended Interest on Treasury bill repurchase agreements (Note 12.1) Treasury Bills Treasury bond - Commercial papers Savings account Fixed deposits Trust Certificates Interest on Treasury Bill Repurchase Agreements and Treasury bills have been accounted for gross of notional tax. 6

9 CORPORATE INFORMATION Trustee & Custodian Auditors Bankers Lawyers Managers & Registrars Deutsche Bank AG 86,Galle Road Colombo 03 Ernst & Young Chartered Accountants 201, De Saram Place Colombo 10 Deutsche Bank AG 86, Galle Road Colombo 03 F J & G De Saram Attorneys-at-Law & Notries Public 216, De Saram Place Colombo 10 National Asset Management Limited (NAMAL) Union Bank Building 64, Galle Road Colombo 03 National Asset Management Limited Board of s (30 th September 2014) Mr. Alexis Lovell Chairman Mr. Ajith Wijeyesekera Deputy Chairman Mr. Anil Amarasuriya Mr. Palitha Gamage Mr. Tyrone de Silva Mr. Avancka Herat Ms. Khoo Siew Bee 7