BMA Funds Corporate Profile. Page 1

Transcription

1 BMA Funds Corporate Profile Page 1

2 Table of Contents About BMA 03 BMA Funds 06 Products 10 Page 2

3 About BMA Group Structure 100% wholly owned subsidiaries Equity Sales & Trading Retail Brokerage Research Treasury Markets Corp. Finance & Advisory Pakistan s leader in discretionary portfolio management Currently manages Rs. 11 billion in assets Launched 1st open end off shore equity fund & first principal guaranteed Fund Launched BMA Empress Cash Fund in November 2009 Page 3

4 About BMA Licenses/Memberships held by BMA Group BMA Asset Management Company Limited License Details Regulator Membership Asset Management Services License to Carry out Asset Management Services Securities & Exchange Commission of Pakistan Mutualfund Association of Pakistan Investment Advisory License to Carry out Investment Advisory Services Securities & Exchange Commission of Pakistan Auditors External / Internal Auditing E & Y / Deloitte / PWC Rating Agency Rating of the Asset Manager and Mutual Funds JCR VIS, PACRA Trustee To ensure compliance and transparency MCBFSL BMA Capital Management Company Limited License Details Regulator Membership Stock Broker Brokerage Services Karachi Stock Exchange Commodity Broker Commodity Product Services Pakistan Mercantile Exchange Financial Market Association Inter bank, FX and Money Market broker Financial Markets Association of Pakistan BMA Financial Services Limited License Details Regulator Membership Registered Service Provider Distribution of Mutual Funds MUFAP Page 4

5 About BMA Awards & Recognitions Page 5

6 BMA Funds Dedicated Team Farrukh Hussain Chief Investment Officer Adeel Ahmad Khan Chief Executive Officer Syed Qamar Abbas Investments Faisal Ali Khan Chief Financial Officer Zohaib Hasan Syed Business Development Page 6

7 BMA Funds A Complete Asset Management Company BMA Funds Fund Management Strong Asset Management Capability BMA Asset Management Company Limited (BMA Funds) is a Non Banking Finance Company licensed to perform Asset Management and Investment Advisory Services as per the NBFC Rules, Incorporated in April 2005 and fully licensed to carry out asset management and investment advisory services in November BMA Funds is actively engaged in the floating and managing open and closed end funds, as well as management of institutional portfolios. Currently, BMA has approximately Rs.8 billion in total assets under management for a host of corporate and retirement fund clients. BMA is not only one of the pioneers in the industry but has the capability of providing consistent returns to its clientele. l Key initiativesi i i include building its institutionali i management business, managing Pakistan s first US dollar denominated off shore fund and launching Pakistan s first principal guaranteed fund. Experienced Team of Professionals Our team has a combined experience of over fifty years in both international emerging markets, the Pakistan market and possesses an intimate understanding of Pakistani equity and debt markets. Strong Research Support A rigorous, transparent investment process drawing on contact with the top 100 companies and a proprietary research process based on cash flow and asset valuations Page 7

8 BMA Funds An Established Player BMA Asset Management Company Ltd. (BMA Funds) began operations injune 2005 NBFC and Licensed Asset Manager and Investment Advisor by the Securities and Exchange Commission of Pakistan Licensed to offer: Open and closed end mutual funds in both equity and fixed income asset classes and Separately Managed Accounts (SMA) ASSET MANAGEMENT More than Rs.08 billion ASSET MANAGEMENT Industry 1 st pioneers & Innovators BMA Funds has rapidly established a strong presence as a pioneer in asset management. under management Capital Guaranteed Fund Long short offshore fund Page 8

9 BMA Funds Product Array BMA Asset Management is one of the pioneers in the industry and has assets under management of over PKR.8 bn. It is continuously working to improve its product portfolio and provide its investors with the best returns Product Offering Offshore fund focusing on Pakistan equities Fixed income and cash funds Separately Managed Account for Corporate Surplus and Pension Funds Products Under Management BMA Pakistan Opportunities Fund BMA Chundrigar Road Savings Fund (BCSF) BMA Empress Cash Fund (BECF) Managed Accounts Product Pipeline BMA Merewether Asset Allocation Fund BMAPreciousMetalsFund BMA Chundrigar Road Savings Fund Launched in collaboration with SCB investing in fixed income Systemic Investment and Systemic withdrawal options No lock in period for investments Tax efficient i investment Low min investment requirement PKR, 5000 Profit payable monthly, quarterly or halfyearly y No redemption fees Product Snapshot BMA Empress Cash Fund Secure investment investing primarily in sovereign db debt and AA rated banks No lock in period for the investment Tax efficient investments Low minimum investment PKR 5,000 No redemption fees for investment t withdrawal Systemic Investment and Systemic withdrawal options BMA Pakistan Opportunities Fund Listed in Irish Stock Exchange Dublin Investing the KSE 100 Only long /short (125/25) fund in Pakistan Page 9

10 Products Mutual Funds Return Comparison for 2QCY14 HBL Money Market Fund JS Cash Fund AKD Cash Fund 9.03% Primus Daily Reserve Fund 9.02% BMA Empress Cash Fund 8.66% PICIC Cash Fund 8.64% BMA EMPRESS CASH FUND Faysal salmoney Market Fund 863% 8.63% Pakistan Cash Management Fund 8.61% The BMA Empress Cash Fund is a professionally managed Atlas Money Market Fund 8.59% money market fund, which aims to minimize risk, maximize KASB Cash Fund 8.50% liquidity and generate a competitive rate of return. Portfolio allocation will be concentrated in AA rated banks and short IGI Money Market Fund 8.46% duration sovereign rated securities, to enable the fund to Alfalah GHP Cash Fund 8.41% earn consistent risk adjusted returns. MCB Cash Management Optimizer 8.41% The portfolio shall be an actively managed mix of deposits, NAFA Money Market Fund 8.38% short term government securities and money market NAFA Government Securities 8.37% instruments. The aim will be to pool cash to be able to attain UBL Liquidity Plus Fund 8.37% attractive yields and to leverage size for better rates. Lakson Money Market Fund 8.34% BECF is a low risk investment offering high liquidity and ABL Cash Fund 8.34% flexibility of investment and redemption. BECF offers First Habib Cash Fund 8.26% competitive returns compared to 3 months bank deposits, Askari Sovereign Cash Fund 8.26% attractive tax free returns and systematic investment and withdrawal plans. UBL Money Market Fund 8.19% Source: Individual FMR s 9.80% 9.78% 7.00% 7.50% 8.00% 8.50% 9.00% 9.50% 10.00% Page 10

11 Mutual Funds BECF Fund Details Fund Type Open End Category Money Market Fund Benchmark* 3M Bank Rate Inception Date 12 Nov 09 Dealing Days Monday Friday Cut off time 4:00 PM Pricing Mechanism Forward Management Fee 0.75% Front end Load Upto 1% Back end Load Nil Portfolio Ratings Profile Month Return Benchmark AA+, 0.04% AA, 4.67% Accrued, 0.25% AAA, 95.03% December % 7.47% November % 7.80% October % 7.80% September % 7.63% August % 7.63% July % 7.63% June % 7.63% May % 7.63% April % 7.55% March % 7.55% February % 7.28% January % 7.20% Fund Stability Rating Risk Profile Listing Trustee Auditor Transfer Agent Legal Advisors AA+(F) (JCR) Low Risk KSE MCBFSL A. F. Fergusons & Co. Technology Trade KMS Law Associates Page 11

12 Products Mutual Funds Return Comparison for 2QCY14 United Growth & Income Fund 21.21% KASB Income Opportunity Fund 18.51% Alfalah GHP Income Multiplier Fund 14.42% BMA CHUNDRIGAR ROAD SAVINGS FUND Pakistan Income Enhancement Fund The BMA Chundrigar Road Savings Fund seeks to provide its investors attractive income with concern for preservation of Faysal Income & Growth Fund capital by investing in all fixed income and money market instruments of low risk and short duration to generate attractive rates of return. The Fund will seek to maintain a BMA Chundrigar Road Savings Fund rupee weighted average maturity of the investment portfolio of not more than 5 Years. The benchmark shall be the average one month Kibor rate prevailing within the IGI Aggressive Income Fund particulartime i period. Consistent with the objective of the Fund, fund assets will be invested in fixed income and money market instruments, with the constraint that the rupee weighted aggregate d ti f f d t b l th 1 AKD Aggressive Income Fund (Formerly: AKD Income Fund) duration of fund assets be lower than 1 year Askari High Yield Scheme 6.35% 10.56% 10.04% 9.29% 8.67% % 10.00% 5.00% 0.00% 5.00% 10.00% 15.00% 20.00% 25.00% Source: Individual FMR s Page 12

13 Mutual Funds BCSF Provisioned Investments Name Cost Provision Carrying % of Net Portfolio Held Value Assets Ratings % New Allied PPTFC mn mn 0.0 mn 0.00% AAA 56.97% New Allied Sukuk 472mn mn mn % 00% AA+ 0.49% PACE TFC mn mn 0.0 mn 0.00% AA 13.41% AA 0.00% A 0.00% TFCs (as a % of Net Assets) 1.40% BBB 10.34% Kohat Cement Company 1.40% Unrated 14.68% Accrued 4.11% Fund Details Fund Type Open End Category Aggressive Income Fund Inception Date 23 Aug 07 Benchmark 1M KIBOR Dealing Days Monday Friday Cut off time 400PM 4:00 Pricing Mechanism Forward Management Fee 1.50% Front end Load Upto 1% Back end Load Nil Fund Stability Rating A+ (F) (PACRA) Risk Profile High Risk Listing KSE Trustee MCBFSL Auditor A. F. Fergusons & Co. Transfer Agent Technology Trade Legal Advisors KMS Law Associates Unrated, 14.68% BBB, 10.34% AA, 13.41% AA+, 0.49% Accruals, 4.11% AAA, 56.97% Monthly Performance Month Return Benchmark December % 9.86% November % 9.93% October % 10.29% September % 10.30% August % 10.25% July % 10.20% June % 10.23% May % 10.38% April % 10.33% March % 10.44% February % 10.43% January % 10.43% Page 13

14 Products Separately Managed Accounts (SMA) BMA Funds Managed Account platform is a market leader for providing cutting edge infrastructure and experienced investment professionals to service leading blue chip investors in Pakistan and overseas. BMA Funds can offer tailored investment advisory services based on the following SMA mandates to optimize your risk adjusted returns. Mandate Type Discretionary Advisory Narrative BMA s BMAs Investment Committee takes Investment Decision on behalf of Client for Direct and Multi Manager Assets and has responsibility for delivering investment performance Non Discretionary Blended Approach Client invites BMA to be part of the Client Investment Committee which is jointly responsible for takinginvestment Decisions on DirectandMulti Manager Assets A combination of any of the above mandate types can be selected where the client can determine which particular model is better suited to meet the needs of Retirement Funds vs. Corporate Surplus. Page 14

15 SMA Discretionary and Non Discretionary Approach We offer both a discretionary and non discretionary approach DISCRETIONARY MANAGEMENT BMA is responsible for Decisions based on set parameters INVESTMENT APPROACH NON DISCRETIONARY MANAGEMENT Client and BMA adopt a joint decision making approach based on agreed parameters Ideally, we Core in house portfolio management across classes provide a combined to the best of 3 rd party specialist funds and strategies combination of Best execution the two, whereby Full and transparent reporting Risk Management a non discretionary core is complemented by discretionary management for high conviction ideas BMA Funds BMA Investment Management Equity and Fixed Income Concentrated equity strategies Access to BMA Funds and 3rd Party Research Best Execution Risk Management Access to unique, high h conviction iti ideas ACCESS TO BMA FUNDS IN ITS BROAD SENSE Sales and Trading Equities Fixed Income Commodities Risk Management Research Economics & Politics Investment Strategy Equity Research Fixed Income Research Investment Banking Real Estate Corporate Finance Mergers and Acquisitions Page 15

16 Investment Approach Strategic Asset Allocation We believe that portfolios should be managed in accordance with a strategic (long term) asset allocation plan that provides the most efficient trade off between long term return aspirations ( upside potential ) andtheriskof shorter term loss events ( downside risk ) Research has shown that the real foundation of returns in any portfolio comes from the original asset allocation policy decision (see pie chart) Investment Philosophy Construct portfolio that match our clients risk and return profiles. Security Selection Other Factors Market Timing Maximize the probability of investment success by minimizing i i i subjective & Judgmental errors. Combine the skills of in house portfolio managers with the best investment products available in the market kttoday. Asset Allocation Policy Note: This example is for illustrative purposes only. Page 16

17 SMA Fixed Income Return Comparison NAFA Income Opportunity Fund BMA Client 1 BMA Client 2 BMA Client 3 IGI Income Fund PICIC Income Fund First Habib Income Fund ABL Government Securities Fund NAFA Income Fund NAFA Financial Sector Income Fund MCB Dynamic Cash Fund Askari Sovereign Yield Enhancer NAFA Saving Plus Fund Lakson Income Fund Atlas Income Fund NIT Government Bond Fund HBL Income Fund Faysal Savings Growth Fund JS Income Fund UBL Savings Income Fund MetroBank Pakistan Sovereign Fund (Perpetual) NIT Income Fund Pakistan Income Fund ABL Income Fund UBL Government Securities Fund PkO Pak Oman Government tsecurities Fund NAMCO Income Fund 4.28% 13.14% 11.13% 10.54% 10.34% 8.57% 8.34% 8.24% 8.20% 8.19% 8.19% 7.99% 7.93% 7.82% 7.69% 7.68% 7.67% 7.66% 7.62% 7.59% 7.48% 7.45% 7.38% 6.96% 6.96% 6.70% 6.59% Fixed Income Fund Comparison BMA Funds Performance vs. Other Asset Managers From 01 Jan 2013 to 31 Dec 2013 Source: Individual FMR s Page 17

18 SMA Equity Return Comparison BMA Client 1 JS Large Cap Fund National Investment Unit Trust JS Growth Fund AKD Opportunity Fund JS Value Fund BMA Client 2 BMA Client 3 BMA Client 4 Crosby Dragon Fund PICIC Stock Fund ABL Stock Fund United Stock Advantage Fund KSE 100 IGI Stock Fund NAFA Stock Fund Atlas Stock Market Fund MCB Dynamic Stock Fund PICIC Energy Fund LaksonEquity Fund HBL Stock Fund Pakistan Stock Market Fund Askari Equity Fund Alfalah GHP Alpha Fund Pakistan Premier Fund KSE 30 Pakistan Strategic Allocation First Habib Stock Fund First Capital Mutual Fund 65.8% 64.6% 64.4% 64.2% 61.6% 61.0% 59.9% 58.7% 56.6% 53.7% 52.2% 50.5% 50.2% 49.4% 48.8% 8% 47.6% 46.0% 44.0% 44.0% 42.6% 41.4% 41.0% 40.2% 40.1% 39.3% 36.7% 36.3% 32.7% 32.6% Equity Fund Comparison BMA Funds Performance vs. Other Asset Managers From 01 Jan 2013 to 31 Dec 2013 Source: Individual FMR s Page 18

19 Products Separately Managed Accounts Reporting We attach great importance to keeping our clients regularly informed about the performance of the portfolio. We act in the following ways to do so: Report to clients Statements Weekly NAV Reports Monthly Fund Manager Report Reviews Quarterly client reviews Investor Relations Conference Calls or Monthly Meeting with ih Account Manager For in house fund management Fund Report Review and structure analysis NAV Statements Performance reports Security / Market Assessment Review of portfolio and market assessment Investment tati Action Note Minutes of investment committee meetings Page 19

20 Separately Managed Accounts Investor Relation Platform The aim of BMA s IRP is an Online Platform that provides our managed account investors with an unique experience of investing in BMA by focusing all the necessary information relating to the Account on one platform. Page 20

21 Investor Relations Platform Key Features Account Statement: Complete 360 degrees snapshot of a fund. You can view your account statements for any period i.e. monthly, annually or YTD at a click. Page 21

22 Products Separately Managed Accounts Select Clientele Managing for the last 91 months Discretionary mandate Outperformed in 6 out of 7 management periods Managing for the last 55 months Non Discretionary mandate Outperformed in 3 out of 5 management periods Managing for the last 69 months Discretionary mandate along with a third party Tripartite custodial agreement Outperformed in 3 out of 6 management periods Managing for the last 7 months Non Discretionary mandate along with a third party Tripartite custodial agreement Managed to outperform the benchmark since inception Managing the past 26 months Discretionary mandate with a third party tripartite custodial agreement Outperformed in 1 out of 1 management period Managing for the last 65 months Discretionary mandate along with a third party Tripartite custodial agreement Outperformed in 5 out of 7 management periods Managing for the last 15 months Discretionary mandate along with a third party Ti Tripartite custodial agreement Outperformed in 1 out of 1 management periods Page 22

23 BMA Pakistan Opportunities Fund Fact Card Fund Details Inception Date Oct 20, 2005 Exposure Range 25% to 125% Assets (Nov 30, 2014) US$ mn Min. Investment US$ 100,000 NAV (Nov 30, 2014) Base Currency US$ Listing Dublin, ISE Structure Open End Domicile Cayman Island Valuation Fortnightly Leverage Max 25% Dealing Day Monthly Bloomberg Ticker SEDOL Fees and Redemption Subscription Freq Redemption Freq BMAPAKO KY B0F4LR0 Monthly Monthly Management Fee 1.75% P.A Performance Fee 15% in excess of 10% Hurdle Rate 10% Manager Details Advisor BMA Funds Service Provider Auditor KPMG Legal Counsel Hogan Lovells, UK Administrator & Custodian Website Standard Chartered Bank, SG Fund Objective: The BMA POF is the first ever open end, USD denominated, offshore equity fund to be established for Pakistan. The fund aims to return +16% per annum through investment in listed securities on the Karachi Stock Exchange. The fund seeks to provide long term capital appreciation combined with capital preservation in periods of volatility. Unique Opportunity: Invest in the domestic demand story of a country with a population of 180mn. Insulated from global growth concerns, Pakistan has low correlation to global markets, a strong track record of outperformance in the EM and FM space and is consistently amongst the leading stock markets in the world in percentage gains. Specific Risk Factors: Currency devaluation is a risk which the fund attempts mitigate by investing in high dividend paying stocks as well as in stocks which have US$ based revenue streams. Regulatory Environment: CIMA and Irish Stock Exchange Taxation: Portfolio investments are subject to C.G.T. tax at a maximum of 12.5% if realized in less than 2 yr. Gains realized after 2 yrare exempt from C.G.T. Remittance of Dividends, Capital Gain and Principal: 100% repatriable under foreign exchange regulations of Pakistan. POF vs. MSCI EM PK (Inception to Nov 2014) POF MSCIEMPK 20 Oct 05 Oct 06 Oct 07 Oct 08 Oct 09 Oct 10 Oct 11 Oct 12 Oct 13 Oct 14 Source: Bloomberg / BMA Funds Risk Statistics POF MSCIEMPK Gross Exposure 94% 100% Net Exposure 117% 100% Return forthe Month 5.7% 1.1% 1% Return (CY14TD) 20.4% 4.6% Volatility (CY14TD) 55.6% 35.6% Sharpe Ratio (CY14TD) Return (ITD) 42.0% 3.1% Volatility (ITD) 91.5% 92.4% Sharpe Ratio (ITD) Top 5 Holdings as a % of NAV (Nov 30, 2014) Stock Average Holdings Maple Leaf Cement 13.99% Lucky Cement 12.43% Nishat Mills 11.66% DG Khan 10.28% Pakistan Oilfields 9.95% Total 58.31% Performance Summary Year POF MSCI EM PK Rel. Performance CY % 1.70% 3.40% CY % 32.50% 3.90% CY % 75.40% 8.80% CY % 78.10% 10.10% CY % 19.50% 2.50% CY % 17.10% 0.30% CY % 23.50% 10.20% CY % 26.50% 3.70% CY14 to 20.39% 4.59% 15.80% Nov14 ITD 41.96% 3.07% 45.03% Page 23

24 Benchmarking Benchmark Calculation for Client s Portfolio Portfolio Benchmarking a MUST for clients to ensure desired asset allocation and associated benchmark Assumptions: Benchmark Return Matrix Return Matrix for Determining Benchmark Rate Equity Return 15.00% Debt Return 10.00% Equity Allocaton 100% 90% 80% 75% 70% 60% 50% 40% 35% 30% 25% 20% 10% 0% 0% 15.00% D e 10% 14.50% b 20% 14.00% t 25% 13.75% 30% 13.50% A l l o c a i t o n 40% 13.00% 50% 12.50% 60% 12.00% 65% 11.75% 70% 11.50% 75% 11.25% 80% 11.00% 90% 10.50% 100% 10.00% Portfolio Stance Aggressive Neutral Conservative Page 24 he

25 BMA Funds Broader Client Base Page 25

26 BMA Funds Contact Info BMA Asset Management Company Limited BMA 111 ( ) BMA Asset Management Co. Ltd. Level 8, Unitower I.I. Chundrigar Road Karachi Pakistan BMA Funds Page 26

27 Thank You Page 27