Performance of Pak-Qatar Unit Funds

Transcription

1 31-Jul 1-Aug 3-Aug 6-Aug 7-Aug 8-Aug 9-Aug 10-Aug 13-Aug 15-Aug 16-Aug 17-Aug 20-Aug 24-Aug 27-Aug 28-Aug 29-Aug 30-Aug 31-Aug Performance of Pak-Qatar Unit Funds Economic Review The advent of new govt., country witnessed spike in remittance with Jul 18 reaching USD1,930mn which includes the effect of Eid Holidays along with payments from Tax Amnesty scheme against USD 1,594mn in Jun 18. The new govt. has early received economic challenges in the form ofbalance of trade deficit which for Jul 18 stood at USD4,447mn against USD4,149mn in Jun 18. This has led to a Current Account Deficit (CAD) for Jul 18 of UDS2,200mn which can result in full year deficit of USD20bn to USD24bn. Another trial for elected govt. is on fiscal front which has deteriorated to 6.6% of GDP in FY18. Govt. cognizant of twin deficits has engaged a path of economic austerity curbing expenditures. Overall FX reserve stood at 16,685mn(roughly above threshold of 3-month import cover) as at 24-Aug-18 with central banks FX reserves standing at UD10,226mn. Country faces around USD9,000mn repayments on upcoming loans and maturities for which govt. is working on plans to tap global bonds market, soft loans from neighbouring countries and incentivising Pakistani diaspora with attractive financial instruments to invest in Pakistan. On the inflation front, Y-o-Y inflation for month ofaug-18 stood at 5.84% compared to 5.83% in Jun 18. SBP estimates inflation figure to remain in range of 6% to 7% onback of rising food and energy prices. Equity Market Review KSE100 index declined to 2.3% on M-on-M basis with KMI-30 consecutively falling in red zone in two months. On sector front Refineries, Engineering, Banks and Cements reversed their gains with only Auto-parts and Textile Composites remaining in green zone. Foreign activity remained on the sell side with net sell ofusd 67mn. Local Investors i.e. Insurance companies Individuals remained major buyers during the month. Equity market remained volatile amid growing global Emerging Market sentiment deterioration i.e. Turkish Lira and South African RAND. As US currency strengthen central banks around the world reacted by increased policy rate to maintain confidence in their respective currencies. This along with increased Federal Reserve rate has encouraged portfolio managers to reallocate their portfolios in more secure US market thus increasing liquidity risk in Emerging Markets. Going forward govt. measures to control fiscal slippages and control over Balance of Trade along with contagion risk from Emerging markets will have a shadow image on the index. Country Index Aug-18 Jul-18 UK FTSE % 1.46% USA Nasdaq 5.71% 2.15% USA Dow % 4.71% China Shanghai -5.25% 1.02% Hong Kong Hang Seng -2.43% -1.29% Japan Nikkei % 1.12% India BSE % 6.16% Pakistan KMI % -0.13% Pakistan KSE % 1.91%. 43, KSE100 Volumes(mn) , ,350 41, ,550 40

2 PIF-Aggressive Fund The objective of investments is to enhance returns through a well-diversified, prudently invested portfolio while considering customer needs, regulatory restrictions and overall corporate strategy of PQFTL. The Fund intends to achieve capital appreciation with medium to long term investment horizon bytakingenhanced exposure to equities and fixed income investments. PIF-Aggressive Fund Fund Size PKR 1,828,000, Unit Price PKR 1, Aggressive Composite of (KMI-30 YTD & Average on ) based on actual allocation 1, , , , , , , , , , , Appointed Actuary Equities, 68.0% Placement, 0.0% 1.5% & Secretary Money Market Funds, 30.5% Fund s 1-month (absolute net of IMC) -0.40% - (1-month absolute net of IMC) -1.42% Calendar YTD (absolute net of IMC) 3.5% YTD (absolute net of IMC ) 2.07% 3-Years (absolute net of IMC) 10.8% 5-Years (absolute net of IMC) 32.5% Since Inception (absolute net of IMC) 121.5% Equities 68.0% 67% Money Market Funds 30.5% 13% Placement 0.0% 19% Sukuk 0.0% 0% Miscellaneous 1.5% 1% Sukuk, 0.0%

3 PIF-Balanced Fund regulatory restrictions and overall corporate strategy of PQFTL. Objective is to provide capital appreciation with a modest risk profile and a medium to long- term investment horizon by investing in a portfolio of fixed income instruments and a flavor of equity investments. 1, PIF-Balanced Fund Fund Size PKR 5,185,391, Unit Price PKR Balanced Composite of (KMI-30 YTD & Average on ) based on actual allocation Appointed Actuary 1, , , , , , , , , , , Money Market Funds, 2% & Secretary Placement, 21% Fund s 1-month (absolute net of IMC) -0.06% - (1-month absolute net of IMC) -0.85% Calendar YTD (absolute net of IMC) 4.20% YTD (absolute net of IMC) 1.97% 3-Years (absolute net of IMC) 13.1% 5-Years (absolute net of IMC) 34.2% Since Inception (absolute net of IMC) 120.9% Equities, 44% 3% Sukuk, 30% Equities 44% 42% Money Market Funds 2% 5% Placement 21% 6% Sukuk 30% 44% Miscellaneous 3% 3%

4 PIF-Conservative Fund regulatory restrictions and overall corporate strategy of PQFTL. The Fund aims to provide stable return exhibiting low volatility with capital preservation by constructing a portfolio composed of fixed income and Mutual Funds investments. PIF-Conservative Fund Fund Size PKR 1,508,923, Unit Price PKR Conservative Average on three Islamic Bank 1, , , , , , , , , , Appointed Actuary 1, Placement, 17.0% Mutual Funds, 0.0% & Secretary 1.8% Sukuk, 81.2% Fund s 1-month 5.0% - (1-month net of IMC) 4.7% 3-months 5.1% Calendar YTD 4.7% Since Inception 8.2% 3-Years 6.2% 5-Years 7.5% Since Inception (absolute net of IMC) 127% Mutual Funds 0.0% 0.7% Placement 17.0% 17.5% Sukuk 81.2% 79.8% Miscellaneous 1.8% 2.0%

5 PIF-SecureWealth Fund regulatory restrictions and overall corporate strategy of PQFTL. The fund aims to provide competitive returns from a portfolio of low credit risk with prime focus on investmentin Sukuks rated (A and above),islamic Deposits and Mutual Funds PIF-Secure Wealth Fund Fund Size PKR 106,686, Unit Price PKR Conservative Average on three Islamic Bank Appointed Actuary & Secretary Sukuk, 91% Fund s 1-month 4.7% - (1-month net of IMC) 4.7% 3-months 4.6% Calendar YTD 4.7% Since Inception 7.8% 3-Years 6.3% 5-Years 7.7% Since Inception (absolute net of IMC) 73.8% Placement, 6% Mutual Funds, 0% Miscellaneou s, 3% Mutual Funds 0% 0.0% Placement 6% 4.9% Sukuk 91% 91.6% Miscellaneous 3% 3.5%