For the Six months ended 30 th September 2013

Transcription

1 Interim Report For the Six months ended 30 th September 2013 National Asset Management Limited Union Bank Building, 64, Galle Road, Colombo 2. Phone : Fax : info@namal.lk

2 Interim Report 2013 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 Financial Statements 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 6.13% over 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 1..18% and declined 2.40% respectively. The Fund s income decreased 24.6% to 20.2m from 26.7m the prior year. The decline in income was due to higher realized gains being offset by lower unrealized gains. This also led to profit after tax declining by 30.3% to 16.8m. Market Review During the year, the ASPI gained 2. 84% YTD (Jan Sep 2013) and the S&P SL20 gained 4.18% YTD (Jan Sep 2013). The average daily turnover rose to Rs 811m during the six months from Rs 751m in the comparative period. FII s continue to accumulate Sri Lankan equities with a net foreign inflow of 14.7bn with foreign participation amounting to 33% of turnover. Benchmark 3, 6, and 12 month Treasury bill auction yields declined by 66, 62, and 78 basiss points respectively to 8.60% %, 9.63%, and 10.57% respectively over the six month period under review. After raising interest rates in 2012, CBSL took an accommodative policy stance, reducing policy ratess by 50 basis points in May 2013, and again in October Inflationary pressures moderated with the CCPI (annual average) declining from 8.81% to 7.83% by September The Balance of Payment (BOP) had improved marginally, with the trade deficit declining to USD 6.7b in the first nine months of the year, compared to a deficit of USD 6.9b the prior year. Worker s remittances have grown 11.4% to USD 4.9b from USD 4.4b, helping to offset the trade deficit and reduce external financing requirements. Earnings from tourism grew 24.2% to USD 883m from USD 711m the prior year. Portfolio composition The Fund has 81.7% allocation to equity, with the remainder in GSEC and Corporate Debt. The highest equity concentrations are in banks finance and insurance followed by healthcare and diversified holdings. Notable position changes at individual stock level were divestments of our positions in Lion Brewery and Distilleries Company of Sri Lanka. Your Fund also established a position in Royal Ceramics and addedd to its holding of Asiri Hospital Holdings. Sincerely, The Fund Management Team 31 December 2013 NAMAL GROWTH FUND 6M (%) ASPI 1.18 S&P SLL 20 (2.40) NGFF % 4.79% 6.40% 7.11% 2.9% 2.9% 9.1% 4.9% Asiri Hospitals Commercial Bank CT Holdings Central Finance Hayleys Durdans Performance Comparison Asset Allocation 26.8% 0% 81.70% Sector Allocation Banks, Finance anda Insurance Healthcare 33.1% Top 6 Equity Holdings 8.72% 5.49% INTERIM REPORT 12M (%) (2.82) 24M (%) ( 14.45) 36MM (%)) (17.06) (0.82) 6.80 (6.29) (0.20) (18.42) (11.93) 11.62% 9.50% 1H14 Equity Repos Fixed Depositt Debentures Diversified Holdings Manufacturing Investment Trusts Telecommunication Others 19.15% 18.54% 5% 10% 15% 20% 25% *As a % of total equity holdingss 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 0.37 Audit fee and expenses Professional charges 0.03 Other expenses Expense on Shares 0.35 Total operating expenses Net operating profit/(loss) FINANCE COST Interest expense PROFIT/(LOSS) AFTER DEDUCTIONS AND BEFORE TAX Income tax expense (0.04) (0.01) 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 (15.97) (4.23) UNIT HOLDERS' FUNDS AT THE END OF THE PERIOD

7 NOTES TO THE FINANCIAL STATEMENTS 1 All figures are provisiona and unaudited. Where necessary comparative figures have been adjusted to confirm with the changes in presentation in the curre 2 Income is recognised on accrual basis Interest on repurchase agreements is shown together with the applicable notion tax credit which is set off against the income tax payable by the fun The profit and income of the fund is liable for income tax at the rate of 10% for year of assessment 2013/2014 as specified in part A of the Second Schedule to th 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 31 March Appreciation/(depreciation) of market value quoted equity securities Market Value as at 31 March Company Number of Market Number of Market Shares Value Shares Value Banks, Finance and Insurance Central Finance Company PLC 103, , Commercial Bank of Ceylon PLC Non Voting 30, Commercial Bank of Ceylon PLC Voting 318, , People's Leasing & Finance Company PLC (previously named as Peoples' Leasing Company PLC) 321, , Hatton National Bank PLC Non voting Sampath Bank PLC Union Bank of Colombo PLC 1, Nations Trust bank PLC 50, , , Beverages, Food and Tobacco Ceylon Tobacco Company PLC Distilleries Company of Sri Lanka PLC 100, Lion Brewery Ceylon PLC 100, Renuka Agri Foods PLC 420, , , , Chemicals and Pharmaceuticals CIC Holdings PLC 1, , Diversified Holdings CT Holdings PLC (Previously named as Ceylon Theaters PLC) 156, , Aitken Spence PLC John Keells Holdings PLC Hayleys PLC 60, , Free Lanka Capital holding PLC 22, , , Health Care Ceylon Hospitals PLC (Durdans) Voting 100, , Ceylon Hospitals PLC (Durdans) Non Voting 54, , Asiri Hospitals PLC 2,611, ,200, ,766, ,355, Hotels and Travels Aitken Spence Hotel Holdings PLC Hotel Services (Ceylon) PLC Kingsbury 392, , Free Lanka Capital Holdings 392, , Manufacturing ACL Cables PLC 121, , Tokyo Cement Company Lank PLC Non Voting 88, , ACME Printing & Packaging PLC Royal Ceramic PLC 100, , , Plantation Kegalle Plantations PLC Horana Plantations PLC 50, , , Construction & Engineering Access Engineering PLC 50, MTD Walkers 50, , Investment Trusts Renuka Holdings PLC 197, , , , Power and Energy Laugfs Gas PLC 55, , Telecommunication Dialog Axiata PLC 682, , Total value of quoted equity securities in (At Market Value) 5,964, ,425,

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 (79.18) (0.70) 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 0.01 Share application ACCRUED EXPENSES Fund management and registrar fee payable Trustee fee payable 0.06 Audit fee INVESTMENT INCOME Dividend income Interest income Interest on Treasury bill repurchase agreements Interest on fixed deposits 0.85 Interest on commercial papers 0.81 Interest on debentures 0.50 Interest on savings account

11 NAMALGROWTH FUND Interim Report 2013 CORPORATE INFORMATION Trustee & Custodian Deutsche Bank AG 86,Galle Road Colombo 03 Auditors Ernst & Young Chartered Accountants 201, De Saram Place Colombo 10 Bankers Deutsche Bank AG 86, Galle Road Colombo 03 Lawyers F J & G De Saram Attorneys at Law & Notries Public 216, De Saram Place Colombo 10 Managers & Registrars National Asset Management Limited (NAMAL) Union Bank Building 64,Galle Road Colombo 03 National Asset Management Limited Board of Directors (30 th September 2013) Mr. Alexis Lovell Chairman Mr. Ajith Wijeyesekera Deputy Chairman Mr. Anil Amarasuriya Director Mr. Jitendrakumar Warnakula Director Ms. Khoo Siew Bee Director Mr. Avancka Herat Director Mr. Nihal Fonseka Director Mr. Tyrone de Silva Director Ms. Manohari Gunawardhena (Alternate) 9