IGI Life. Funds Performance Report January 2018

Transcription

1 IGI Life Funds Performance Report January 2018

2 IGI Life Insurance Limited

3 FUND MANAGER REPORT July 2015 Macro Review and Outlook: CPI inflation clocks in at +4.42%YoY; Food prices gain steam As per the latest data published by Pakistan Bureau of Statistics (PBS), headline CPI inflation clocked in at +4.42%YoY (+0.03%MoM) for the month of Jan-18 compared to +3.66%YoY (+0.18%MoM) in the same period last year, bringing 7MFY18 average inflation to +3.85%YoY. Key drivers include House Rent Index (HRI) and Food Index, rising by +5.43%YoY and +3.71%YoY respectively. Food prices have rebounded from the initial subdued start to FY18. During the month, food index rose by +3.71%YoY (down 1.05%MoM); a percentage point impact (ppt) of Within the food index, the food & non-alcoholic beverages group has grown by +5.10%YoY (Weightage: 34.83), primarily led by %YoY increase in prices of perishables. We also highlight that Jan-18 food inflation is considerably higher than the average of +2.00%YoY in 1HFY18, taking 7MFY18 average to +2.24%YoY and underlining the higher food price momentum. CPI Inflation 12% 10% 8% 6% 4% 2% Non-food inflation CPI inflation Food inflation 0% Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17-2% Current account balance reached a deficit of USD 1.13bn in month of Dec-17 During the month of Dec-17, Current account deficit clocked in at USD 1.13bn, down by 21.6%MoM or up by +4.3%YoY, on the back of monthly/yearly high/low base effect. In CY17 collectively, current account deficit reached to USD 14.10bn, rising significantly by 2.0x on the back of growth in imports, up by +24%YoY, decline in remittances by 3%YoY and simultaneous decline in foreign direct investment, down by 19%YoY. During the Month of Dec-17, Country s exports stood at USD 2.0bn, down by 7.2%MoM, whereas import bill also declined by 5.5%MoM to record at USD 4.2bn, on account of higher base effect. Resultantly, trade term for the month improved, wherein, Country s trade deficit reached USD 2.2bn, declining by 4.0%MoM. External Account (500) (1,000) (1,500) (2,000) (2,500) Trade Balance (USDmn) Current Acc. Bal. (USDmn) (500) (1,000) (1,500) (2,000) (2,500) (3,000) (3,500) FX Reserves increased by 7.5%MoM in Jan-18 FX reserves by the end of Jan-18 stood at USD 20.2bn as compared to USD 18.8bn in Dec-17 (up by 1.4bn). Equity Market Review and Outlook: New Year euphoria Index geared up by posting 8.8% in Jan-18, coupled with foreign inflows of USD 85.7mn. After posting the worst performance in CY17 (post 2007 crisis), down by 15.3%YoY, KSE 100 Index reached the level of ~40,470. However during the month of Jan-18, KSE 100 Index hit the level of 45,000 on 24-Jan, which is the peak of its recent rally, and later on made a correction of ~2%, whereby index lost ~1014 points and settled at ~44,050 Points, posting a return of 8.8%MoM. We attribute this sharp activity in KSE-100 Index foreign inflows (USD 85.7 Mn), devaluation of PKR, and clarity on Senate elections. Average trading volumes of the market were recorded at 241mn shares, up significantly by 43%MoM in Jan-18 as compared to average volume of 167.8mn shares registered in Dec-17. Increase in volume depict attractive price level coupled with foreign inflows. Leaders and Laggards by Market Capitalization: In the month of Jan-18, where index posted a healthy return of 8.8%MoM, Cements, Pharmaceutical and Engineering sector were in limelight while posting a return of 17%/17%/16% respectively, however Oil and Gas Exploration Companies remained under pressure, posting a meagre return of 1%. Volume wise, Banks led the chart, up by +16.1%MoM, followed by Cements, Power Generation & Distribution Companies, Oil & Gas Marketing Companies and Textile Composite, up by +9.4%/6.6%/3.6%MoM respectively. KSE , , , , , , , ,500.0 Index ,524.0 Vol. (mn) RS , , , /07/18 01/14/18 01/21/18 01/28/ Key domestic/international news SBP increased the Target rate by +25bps in its January monetary policy statement. Sharp rebound in international oil prices on the back of supply cuts by the 14-nation OPEC oil cartel and other producers led by Russia. US placed Pakistan on special watch list on account of violation of religious freedom. US suspends military related funds to Pakistan. Money Market Review and Outlook: Money Market Review The State Bank of Pakistan (SBP) has increased policy rate by +25bps (compared to market consensus of status quo), finally bringing a halt to ~3-year long monetary easing cycle. As per the statement, the rate increase decision came amid a) rising international oil prices, b) depreciating PKR and c) rising aggregate demand. Expecting upside risks of interest rates, investor s preference remained towards short positions. In the last T-Bill auction of the month, an amount of PKR 1,154bn was accepted at a cut-off yield of 6.21% for 3 month tenor, and no bids were received in 6 month and 12 month tenors. In the PIB auction during the month, against the target of PKR 50bn, bids worth PKR 33bn were received for 3 year and 10 year tenors. However, the auction was rejected. Source: SBP, PBS, Bloomberg Yield Curve /Jan/18 31/Dec/17 31/Jan/17 3M 6M 9M 1 YR 3YR 5YR 7YR 10YR

4 IGI Aggressive Fund IAF To provide investors with an opportunity to earn long term capital appreciation optimizing through broad mix of asset classes largely driven by equity with a proportion of fixed income & money market instruments. Fixed Income / Equity High 1.5% 25 Apr 08 absolute return of 3.79% against its last month absolute return of 0.68% NAV per Unit (PKR) % 198 Net Assets Value (PKR '000) 558, , % % 40.4% 19.7% 24.6% 22.3% 24.0% 3.1% 7.5% 2.7% 2.8% 7.4% 3.1% IGI Aggressive Fund IAF 3.79% 4.49% 4.98% 4.02% 7.19% 44.65% 12.18% IGI Aggressive Fund IAF BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

5 IGI Balanced Fund IBF The investment objective of the Fund is to earn competitive long term return by investing in mix of equity, fixed income and money market instrument. This fund is suited for investors with moderate risk tolerance. Fixed Income / Equity Moderate 1.5% 25 Apr 08 absolute return of 2.07% against its last month absolute return of 0.58%. 258 NAV per Unit (PKR) % Net Assets Value (PKR '000) 573, , % % 34.4% 24.1% 4.1% 12.8% 20.5% 3.4% 25.4% 3.7% 11.9% 19.8% 4.8% IGI Balanced Fund IBF 2.07% 2.66% 3.12% 1.51% 1.87% 24.40% 10.98% IGI Balanced Fund IBF BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

6 IGI Conservative Fund ICF To provide stable and competitive returns in line with the money markets exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low risk short term investments yielding competitive returns. Fixed Income Low 1.5% 25 Apr 08 absolute return of 0.78% against its last month absolute return of 0.48%. 158 NAV per Unit (PKR) % Net Assets Value (PKR '000) 566, , % % 55.2% 17.2% 6.1% 11.3% 4.4% 3.8% 18.6% 6.1% 11.2% 4.2% 4.8% IGI Conservative Fund ICF 0.78% 1.26% 1.71% 1.53% 2.92% 9.23% 7.40% IGI Conservative Fund ICF BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

7 IGI Islamic Fund IIF To provide maximum possible preservation of capital and a reasonable rate of return via investing in Shariah Compliant money market and debt securities having good credit quality rating and liquidity. Islamic Fixed Income Low 1.5% 25 Apr 08 absolute return of 0.38% against its last month absolute return of 0.36%. NAV per Unit (PKR) % Net Assets Value (PKR '000) 200, , % % 49.4% 21.8% 12.1% 10.2% 22.0% 16.7% 11.9% IGI Islamic Fund IIF 0.38% 0.74% 1.11% 2.21% 4.16% 4.49% 4.16% IGI Islamic Fund IIF BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

8 IGI FutureSecure Adventurous Fund IHA To provide investors with an opportunity to earn long term capital appreciation optimizing through broad mix of asset classes encompassing equity, fixed income & money market instruments. Fixed Income / Equity High 1.5% 25 Feb 10 absolute return of 4.33% against its last month absolute return of 0.82%. 345 NAV per Unit (PKR) % Net Assets Value (PKR '000) 31,853 30, % % 46.0% 15.0% 2.6% 25.1% 9.8% 2.5% 13.0% 2.6% 24.1% 10.9% 3.5% IGI FS Aggressive Fund IHA 4.33% 5.18% 5.65% 4.13% 7.95% 50.97% 19.48% IGI FutureSecure Aggressive Fund IHA BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

9 IGI FutureSecure Balanced Fund IHB The investment objective of the Fund is to earn competitive return by investing in various asset classes/instruments based on the market outlook. Fixed Income / Equity Moderate 1.5% 18 Feb 10 absolute return of 2.32% against its last month absolute return of 0.60%. 235 NAV per Unit (PKR) % Net Assets Value (PKR '000) 198, , % % 39.4% 16.3% 4.1% 12.9% 21.8% 3.5% 15.8% 4.2% 13.3% 22.0% 5.3% IGI FS Balanced Fund IHB 2.32% 2.93% 3.39% 1.37% 2.67% 27.27% 12.06% IGI FutureSecure Balanced Fund IHB BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

10 IGI FutureSecure Cautious Fund IHC To provide stable and competitive returns in line with the money markets exhibiting low volatility consistent with capital preservation by constructing a liquid portfolio of low risk short term investments yielding competitive returns. Fixed Income Low 1.5% 18 Mar 10 absolute return of 0.80% against its last month absolute return of 0.48%. 155 NAV per Unit (PKR) % Net Assets Value (PKR '000) 46,846 46, % % 60.3% 12.7% 6.0% 11.3% 4.4% 3.6% 13.8% 5.9% 11.1% 4.1% 4.7% IGI FS Cautious Fund IHC 0.80% 1.29% 1.75% 1.23% 2.70% 9.44% 5.94% IGI FutureSecure Cautious Fund IHC BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

11 IGI FutureSecure Fund HIS The objective of the fund is to generate a competitive return with minimum risk, by investing primarily in Government Securities. Govt. Securiities Low 1.5% 18 Mar 10 absolute return of 0.02% against its last month absolute return of 0.17%. 165 NAV per Unit (PKR) % Net Assets Value (PKR '000) 17,522 17, % ASSET ALLOCATION: 77.9% 77.8% 22.1% 22.2% IGI FS Secure Fund IHS 0.02% 0.19% 0.69% 1.79% 4.90% 0.25% 9.32% IGI FutureSecure Secure Fund IHS BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

12 IGI Sarmaya Pakistan Income Fund SPI The objective of the Fund is to deliver competitive above inflation returns primarily from debt and fixed income investments without taking excessive risk. The fund Is suited for investors with low risk tolerance. Fixed Income Low Sarmaya Plus 1.5% / Sarmaya Premium 2.4% 22 Jul 10 absolute return of 0.50% against its last month absolute return of 0.23%. 165 NAV per Unit (PKR) % Net Assets Value (PKR '000) 2,467 2, % % 46.6% 29.0% 28.0% 3.6% 13.2% 0.5% 11.9% 3.4% 12.9% 0.5% 8.5% Sarmaya Pakistan Income SPI 0.50% 0.72% 1.09% 2.27% 4.91% 5.87% 8.39% IGI Sarmaya Pakistan Income Fund SPI BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

13 IGI Sarmaya Pakistan Stock Fund SPS The objective of the fund is to provide investors long term capital appreciation through its investment in Pakistani equities. This fund is suited forinvestors with medium to long term horizon and high risk tolerance. Equity High Sarmaya Plus 1.5% / Sarmaya Premium 2.4% 03 Feb 11 absolute return of 7.64% against its last month absolute return of 1.34%. 400 NAV per Unit (PKR) % Net Assets Value (PKR '000) 80,139 75, % % 84.3% 10.3% 5.3% 6.1% 14.3% 1.4% Sarmaya Pakistan Stock SPS 7.64% 9.08% 10.24% 1.74% 8.27% 89.91% 20.42% IGI Sarmaya Pakistan Stock Fund SPS BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

14 IGI Sarmaya United Growth & Income Fund SUG Invest in medium to long term fixed income instruments as well as short tenor money market instruments to generate superior, long term, risk adjusted returns while preserving capital over the long term. Fixed Income Moderate Sarmaya Plus 1.5% / Sarmaya Premium 2.4% 05 Aug 10 absolute return of 0.49% against its last month absolute return of 0.21%. 195 NAV per Unit (PKR) % Net Assets Value (PKR '000) 1,284 1, % % 39.2% 65.6% 32.5% 3.8% 5.7% 1.9% Sarmaya United Growth SUG 0.49% 0.70% 0.99% 1.87% 4.99% 5.74% 4.80% IGI Sarmaya United Growth Income Fund SUG BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

15 IGI Sarmaya United Stock Fund SUS The Fund seeks to maximize total returns and outperform its benchmark by investing in a combination of listed equity securities offering long term capital gains and dividend yield potential. Equity High Sarmaya Plus 1.5% / Sarmaya Premium 2.4% 05 Aug 10 absolute return of 7.22% against its last month absolute return of 1.10%. 345 NAV per Unit (PKR) % Net Assets Value (PKR '000) 794, , % % 80.3% 17.7% 18.7% 1.0% Sarmaya United Stock SUS 7.22% 8.40% 8.83% 4.33% 6.57% 85.00% 21.16% IGI Sarmaya United Stock Fund SUS BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

16 IGI Sarmaya United Money Market Fund SUI The objective of Money Market Fund is to generate competitive returns within a low risk portfolio to provide a regular stream of income and easy liquidity to its investors by investing more than 50% of the portfolio in short term government securities Fixed Income Low Sarmaya Plus 1.5% / Sarmaya Premium 2.4% 19 Jul 12 absolute return of 0.48% against its last month absolute return of 0.37%. Value of 100 Rupees invested since inception 130 NAV per Unit (PKR) % Net Assets Value (PKR '000) 39,038 41, % % 55.7% 33.2% 4.1% 6.1% 5.1% 11.1% Sarmaya United Money SUI 0.48% 0.86% 1.24% 2.51% 5.44% 5.67% 6.79% IGI Sarmaya United Money Market Fund SUI BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17

17 IGI Sarmaya Secure Fund SSE The objective of the fund is to generate a competitive return with minimum risk, by investing primarily in Government Securities. Govt. Securiities Low Sarmaya Plus 1.5% / Sarmaya Premium 2.4% 22 Jul 10 absolute return of 0.31% against its last month absolute return of 0.47%. 220 NAV per Unit (PKR) % Net Assets Value (PKR '000) 4,884,871 5,025, % ASSET ALLOCATION: 85.6% 84.2% 2.6% 11.8% 4.4% 11.4% IGI Sarmaya Secure SSE 0.31% 0.78% 1.31% 2.75% 5.85% 3.62% 12.74% IGI Sarmaya Secure Fund SSE BID PRICE: Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17