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 Interim Report 2014 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 Accounts 5-8 Corporate Information 9

3 Dear Investor, We take pleasure in presenting the interim report of the NAMAL Growth Fund (NGF) for the six months ended 30 th September Performance review The NGF generated a return of 19.99% for the six month period under review, compared to the All Share Price Index (ASPI) ) and S&P Sri Lanka 20 Index (S&P SL20) which gained 21.51% and 23.12% respectively. The Fund s income increased 210.9% to from 20.16m the prior year. The increase in income was due to higher unrealized gains. This led to profit after tax declining by 243.0% to 57.61m. Market Review Year to date (Sept 2014) ASPI gained 22.65% and S&P SL20 gained 23.73% and NGF gained 33.22%. Average daily turnover rose to Rs 1510m during the six months from Rs 811m in the comparative period. FII s continue to accumulate Sri Lankan equities with a net foreign inflow of 13.9bn with foreign participation amounting to 29% of turnover. Benchmark 3, 6, and 12 month Treasury Bill auction yields declined by 50, 59 and 116 basis points respectively to 6.15%, 6.23%, and 5.89% respectively 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 Portfolio composition The Fund has 84% allocation to equity, with the remainder in GSEC and Corporate Debt. The highest equity concentrations are in manufacturing sector followed by healthcare sector and power and energy sector. Notable position changes at individual stock level were divestments of our positions in Access Engineering, Alumex, Lanka Milk Foods, MTD Walkers, People s Leasing and Finanace. The Fund also established a position in Cargills and Seylan Bank (NV) and added to its holding of Lanka IOC, Laugfs Gas, Nations Trust Bank and Tokyo Cement (Voting). Sincerely, The Fund Management Team 31 October % 18.5% 84.47% 1H15 INTERIM REPORT 12.19% 3.34% Equity 26.5% 23.1% Repos Debentures Sector Allocation Manufacturing 2.2% 9.6% 2.4% Asiri Hospitals Lanka IOC Tokyo Cement Cargills (Ceylon) Sampath Bank Tokyo Cement (NV) Performance Comparison 6M* (%) 12M (%) 6.40% 24M (%) Healthcare Power and Energy Banks, Finance and Insurance Beverage, Food and Tobacco Investment Trusts Hotels & Travels 9.28% 9.08% 8.47% 36M (%) ASPI S&P SL NGF * Period ending 1 st April th September 2014 Asset Allocation Top 6 Equity Holdings 18.56% 16.83% 0% 5% 10% 15% 20% *As a % of total equity holdings 1

4 STATEMENT OF COMPREHENSIVE INCOME Note INVESTMENT INCOME Dividend income Interest income Net realised (losses)/gains on financial assets held for trading Net change in unrealised gains/(losses) on financial assets held for trading Total investment income EXPENSES Management and Registrar fees Trustee fees Audit fee and expenses Professional charges Other expenses Expense on Shares Total operating expenses Net operating profit/(loss) FINANCE COST Interest expense (0.08) - PROFIT/(LOSS) AFTER DEDUCTIONS AND BEFORE TAX Income tax expense - (0.04) PROFIT/(LOSS) AFTER DISTRIBUTIONS AND TAX INCREASE/(DECREASE) IN NET ASSETS ATTRIBUTABLE TO UNIT HOLDERS

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6 STATEMENT OF CHANGES IN UNITHOLDERS' FUNDS UNIT HOLDERS' FUNDS AT THE BEGINNING OF THE PERIOD Increase/ (decrease) in net assets attributable to Unit Holders Received on unit creations Payments on unit redemptions (9.57) (15.97) UNIT HOLDERS' FUNDS AT THE END OF THE PERIOD

7 NOTES TO THE FINANCIAL STATEMENTS NAMAL GROWTH 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 accrual basis 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. The profit and income of the fund is liable for income tax at the rate of 10% for the year of assessment 2014/2015 as specified in part A of the Second Schedule to the Inland Revenue There are no material Contingent Liabilities or contingent Assets which require disclosure in the financial statements. 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 7 FINANCIAL ASSETS - HELD FOR TRADING Quoted equity securities (7.1) Debt securities - quoted debentures (7.2) Quoted equity securities Cost as at 30 September Appreciation/(depreciation) of market value quoted equity securities Market Value as at 30 September Company Number of Market Number of Market Shares Value Shares Value Banks, Finance and Insurance Central Finance Company PLC , Commercial Bank of Ceylon PLC , Commercial Bank of Ceylon PLC - 50, , People's Leasing & Finance , Hatton National Bank PLC -Non - - Sampath Bank PLC 114, Seylan Bank Non voting 150, Nations Trust bank PLC 160, , , , Beverages, Food and Tobacco Ceylon Tobacco Company PLC Distilleries Company of Sri Lanka PLC Cargills Ceylon PLC 180, Renuka Agri Foods PLC 420, , , , Chemicals and Pharmaceuticals CIC Holdings PLC Diversified Holdings CT Holdings PLC (Previously named , Aitken Spence PLC John Keells Holdings PLC Hayleys PLC , Free Lanka Capital holding PLC , Health Care Ceylon Hospitals PLC (Durdans) 100, , Ceylon Hospitals PLC (Durdans) - 54, , Asiri Hospitals PLC 2,611, ,611, ,766, ,766, Hotels and Travels Aitken Spence Hotel Holdings PLC Hotel Services (Ceylon) PLC - Kingsbury 392, , Free Lanka Capital Holdings 392, , Manufacturing ACL Cables PLC 171, , Tokyo Cement Company Lank PLC 488, , Tokyo Cement Company Lank PLC 550, Royal Ceramic PLC 150, , Kelani Tyres PLC 70, ,430, , Plantation Kegalle Plantations PLC Horana Plantations PLC Construction & Engineering Access Engineering PLC , MTD Walkers , , Investment Trusts Renuka Holdings PLC 197, , , , Power and Energy Laugfs Gas PLC 134, , Lanka IOC PLC 1,239, ,373, , Telecommunication Dialog Axiata PLC , , Total value of quoted equity securities in (At Market Value) 7,234, ,964,

9 NOTES TO THE FINANCIAL STATEMENTS 7 FINANCIAL ASSETS - HELD FOR TRADING (contd..) 7.2 Quoted debentures Cost Market Cost Market Value Value Lanka Orix Leasing Company PLC Lion Brewary PLC Haylys PLC Net realised (losses)/gains on financial assets held for trading Equity securities Proceeds on sale of equity shares Average cost of equity shares sold (48.22) (79.18) Net change in unrealised gains/(losses) on financial assets held for trading Equity securities Debt securities - quoted debentures FINANCIAL ASSETS - LOANS AND RECEIVABLES 8.1 Investments in commercial papers Carrying Carrying Value Value Repurchase agreements Placements with other banks - fixed deposits Union Bank of Colombo PLC

10 NOTES TO THE FINANCIAL STATEMENTS 9 ACCRUED INCOME AND OTHER RECEIVABLES Dividend receivable Receivable on unit creations Share application ACCRUED EXPENSES Fund management and registrar fee payable Trustee fee payable Audit fee INVESTMENT INCOME Dividend income Interest income Interest on Treasury bill repurchase agreements Interest on fixed deposits Interest on commercial papers Interest on debentures Interest on savings account

11 CORPORATE INFORMATION Trustee & Deutsche Bank AG 86,Galle Road Colombo 03 NAMALGROWTH FUND Interim Report 2014 Auditors Bankers Lawyers 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 Managers National Asset Management Limited (NAMAL) Union Bank Building 64,Galle Road Colombo 03 National Asset Management Limited Board of Directors (30 th September 2014) Mr. Alexis Lovell Chairman Mr. Ajith Wijeyesekera Deputy Chairman Mr. Anil Amarasuriya Director Mr.Palitha Gamage Director Mr. Tyrone de Silva Director Mr. Avancka Herat Director Ms. Khoo Siew Bee Director 9