IGI Life Funds Performance Report January 2019 IGI Life Insurance Limited
July 2015 Macro Review and Outlook: Headline inflation at +7.2% above market consensus CPI Inflation On the domestic macroeconomic front, headline inflation for Jan-19 came at +7.2%YoY or +1.0% on monthly basis. However monthly inflation print was slightly above market expectations, mainly due to an upward adjustment in electricity tariffs and higher than anticipated increase in house rental index (+8.2%YoY). However, downward revision in Petroleum Products Prices offset some of overall energy index which came in at +21%YoY. Food prices also showed a higher growth of +1.6% YoY or +0.3% on monthly basis. Current account balance reached a deficit of USD 4.9bn during 1HFY19 Country s current account deficit (CAD) witnessed an increase of +37% MoM to USD 1.7bn during Dec-18, as compared to USD 1.2bn in Nov-18. During 1HFY19, the deficit has decreased by 4% YoY to USD 8.0bn. Major rise in deficit is driven by 12% (USD 574mn) MoM rise in total imports to USD 5.5bn compared with USD 4.9bn in the last month. However total exports also increased by 8% (USD 188mn) MoM. Rise of CAD (USD 451mn MoM) is driven by rise in overall trade balance (USD 386 mn). Remittances also increased by +5% to USD 81mn in Dec-18. Monetary Policy Tightened Further by 25bps (+450bps Hike Cycle), Against Broader Market Consensus The State of Pakistan (SBP) increased policy rate by +25bps (compared to market consensus of status quo), taking policy rate to 10.25% and discount rate to 10.75%. The monetary policy committee acknowledges gradual improvement in key macroeconomic data points, C/a balance and headline inflation, however remain sceptical of elevated levels and of oncoming fiscal deficit for FY19 and core inflation. As per the statement, the rate increase decision came amid elevated level of a) current account deficit, b) core inflation and c) fiscal deficit. Key MPS takings: 1) Core inflation outlook changed from benign to bullish, 2) Growth target revised down to 4.0%, 3) External challenges still remain Equity Market Review and Outlook: Best performing market during Jan-19 During Jan-19, market index gained nearly ~4,000 points surged by ~10% (10.6% USD based) on a monthly basis making it one of the best performing month (last since Dec-16). Moreover, the KSE-100 index outperformed both MSCI Developed markets (+7.7% return) and Emerging Markets (+8.7% return) making it one of the best performing markets of Asia-pacific. Monthly volumes recorded an increase of +4% to 136mn shares along with +2% increase in value traded to USD 63mn. s, E&Ps and Fertilisers led to one of the best market rally Mutual funds and Brokers were top buyers during the month, (USD 16.6mn and 8.0mn respectively) while s, Insurance and Individuals remain net seller of market. on international side, foreign participation picked up pace depicted by a net buying of USD 16.2mn. Key interest was shown in s (+USD 19.7mn) followed by Fertilisers (+USD 2.3mn). In terms of sector performance, s added up nearly 1,225 points (+~14% return) followed by E&Ps adding 939points (+~18% return) and Fertilisers 694 (+~13% return). Tobacco and Chemicals dominated laggards table. External Account KSE 100 Key domestic/international news - Economic reform package 2019 announced by government with a focus on improving ease of doing business was well received by the market - SBP raised interest rate hiked by +25bps taking policy rate to 10.75% - Key wins on country s foreign policy side, including USA - Finalisation of funding from UAE worth USD 3bn and further interest of USD 3bn investment in oil facility Money Market Review and Outlook: Policy rate increased against status-quo expectation Yield Curve During the month of Jan-19, the State of Pakistan (SBP) has increased the policy rate by 25bps to 10.25%. The hike was contrary to the market expectations of status-quo. An active participation of PKR 985bn was witnessed in 3m T-Bill, out of which the SBP accepted bids worth PKR 936bn (bid-to-accept: 1.05) at the cut-off rate of 10.30%. Total target and maturity during the month stood at PKR 3.20trn and PKR 3.33trn, respectively. On the investment bonds, SBP accepted bids worth PKR 54bn (Target: PKR 50bn, Maturities: PKR 0bn) in total against the participation of PKR 203bn on 3 and 5 years tenor at a cut-off rate of ~12.24% and ~12.70% respectively. Source: SBP, PBS, Bloomberg
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 25 Apr 08 absolute return of 7.85% against its last month absolute return of 6.87%. 348 NAV per Unit (PKR) 302.2 280.2 7.85% Net Assets Value (PKR '000) 719,104 665,857 8.00% 298 248 198 148 98 56.4% 60.4% 4.9% 15.8% 21.9% 1.0% 13.7% 23.5% 2.4% IGI Aggressive Fund IAF 7.85% 0.45% 1.81% 1.42% 1.78% 92.48% 10.81% IGI Aggressive Fund IAF BID PRICE: 330.00 320.00 310.00 300.00 307.72 304.76 315.64 314.19 306.18 303.04 306.59 303.86 301.76 307.81 300.90 302.23 290.00 280.00 270.00 280.22 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 25 Apr 08 NAV per Unit (PKR) 278.0 264.1 5.27% Net Assets Value (PKR '000) 744,983 708,035 5.22% absolute return of 5.27% against its last month absolute return of 4.31%. 258 238 218 198 178 158 138 118 98 24.3% 37.8% 34.3% 39.4% 39.7% 18.1% 3.0% 0.6% 2.8% IGI Balanced Fund IBF 5.27% 0.74% 0.82% 0.09% 0.35% 62.10% 9.95% IGI Balanced Fund IBF BID PRICE: 285.00 280.00 275.00 277.06 276.16 281.48 281.23 277.48 275.70 278.28 276.98 276.08 280.30 275.99 278.02 270.00 265.00 264.09 260.00 255.00 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 / Equity Low 25 Apr 08 absolute return of 1.69% against its last month absolute return of 0.48%. 158 NAV per Unit (PKR) 210.3 206.8 1.69% Net Assets Value (PKR '000) 559,844 550,932 1.62% 148 138 128 118 108 98 56.2% 56.6% 39.5% 30.7% 0.9% 3.4% 0.1% 10.1% 2.5% IGI Conservative Fund ICF 1.69% 1.20% 0.82% 2.20% 4.63% 19.87% 7.14% IGI Conservative Fund ICF BID PRICE: 211.00 209.00 207.00 205.00 203.00 201.00 199.00 197.00 195.00 210.32 208.62 207.83 205.80 206.35 206.93 206.83 204.28 204.36 204.75 203.56 201.02 201.64 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 25 Apr 08 absolute return of 0.67% against its last month absolute return of 0.64%. NAV per Unit (PKR) 157.5 156.4 0.67% Net Assets Value (PKR '000) 216,431 217,677 0.57% 180 170 160 150 140 130 120 110 100 90 80 62.8% 62.9% 22.4% 5.2% 9.6% 21.3% 2.4% 13.4% IGI Islamic Fund IIF 0.67% 1.31% 1.84% 3.30% 5.74% 7.84% 4.30% IGI Islamic Fund IIF BID PRICE: 158.00 156.41 157.45 155.42 156.00 154.61 153.84 154.00 153.15 152.43 151.80 151.16 152.00 150.01 150.50 148.90 149.40 150.00 148.00 146.00 144.00 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 25 Feb 10 absolute return of 8.56% against its last month absolute return of 7.35%. 345 NAV per Unit (PKR) 403.0 371.2 8.56% Net Assets Value (PKR '000) 27,213 25,003 8.84% 295 245 195 145 95 57.6% 67.0% 27.5% 29.7% 6.5% 7.4% 1.0% 4.0% IGI FS Aggressive Fund IHA 8.56% 0.58% 1.85% 1.37% 1.89% 100.76% 16.87% IGI FutureSecure Aggressive Fund IHA BID PRICE: 430.00 420.00 410.00 400.00 390.00 380.00 370.00 360.00 350.00 421.26 419.29 410.77 406.83 407.87 408.60 410.56 403.30 404.53 401.60 400.68 402.99 371.22 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 18 Feb 10 NAV per Unit (PKR) 248.5 235.6 5.47% Net Assets Value (PKR '000) 172,612 162,991 5.90% absolute return of 5.47% against its last month absolute return of 4.36%. 235 215 195 175 155 135 115 95 41.2% 34.5% 43.2% 41.3% 4.4% 19.3% 0.6% 12.0% 3.5% IGI FS Balanced Fund IHB 5.47% 0.87% 0.73% 0.19% 0.45% 64.43% 10.70% IGI FutureSecure Balanced Fund IHB BID PRICE: 260.00 255.00 250.00 247.42 246.60 251.83 251.60 248.01 246.32 249.01 247.47 246.45 250.35 246.38 248.53 245.00 240.00 235.00 230.00 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 235.64
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 / Equity Low 18 Mar 10 absolute return of 1.49% against its last month absolute return of 0.17%. 165 NAV per Unit (PKR) 165.2 162.7 1.49% Net Assets Value (PKR '000) 43,286 40,739 6.25% 155 145 135 125 115 105 95 56.0% 35.5% 59.0% 5.2% 3.2% 29.6% 0.1% 7.8% 3.6% IGI FS Cautious Fund IHC 1.49% 1.31% 0.94% 2.15% 4.79% 17.56% 5.81% IGI FutureSecure Cautious Fund IHC BID PRICE: 166.00 165.18 163.63 164.00 163.03 161.69 162.04 162.44 162.75 162.00 160.26 160.57 160.93 159.50 160.00 157.63 158.04 158.00 156.00 154.00 152.00 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 18 Mar 10 absolute return of 1.02% against its last month absolute return of 0.25%. 175 NAV per Unit (PKR) 209.8 207.7 1.02% Net Assets Value (PKR '000) 17,805 17,641 0.93% 165 155 145 135 125 115 105 95 ASSET ALLOCATION: 91.0% 90.8% 7.5% 9.2% IGI FS Secure Fund IHS 1.02% 1.28% 1.46% 1.68% 3.92% 12.06% 8.70% IGI FutureSecure Secure Fund IHS BID PRICE: 212.00 210.00 208.00 206.00 204.00 202.00 200.00 198.00 196.00 194.00 209.79 207.48 205.67 206.24 206.66 207.35 206.32 206.77 207.14 207.67 204.29 201.88 202.29 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 / Sarmaya Premium 2.4% 22 Jul 10 absolute return of 0.67% against its last month absolute return of 0.70%. 175 NAV per Unit (PKR) 196.0 194.7 0.67% Net Assets Value (PKR '000) 2,243 2,230 0.57% 165 155 145 135 125 115 105 95 76.5% 55.5% 38.1% 50.0% 43.8% 1.8% 0.6% 1.8% 4.0% Sarmaya Pakistan Income SPI 0.67% 1.38% 1.99% 3.89% 6.80% 7.92% 8.20% IGI Sarmaya Pakistan Income Fund SPI BID PRICE: 198.00 196.00 194.00 192.00 190.00 188.00 186.00 184.00 182.00 180.00 195.97 194.66 193.30 192.15 190.79 189.89 188.63 187.49 186.53 183.49 184.06 184.78 185.51 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 for investors with medium to long term horizon and high risk tolerance. Equity High Sarmaya Plus / Sarmaya Premium 2.4% 03 Feb 11 absolute return of 10.78% against its last month absolute return of 9.23%. 400 NAV per Unit (PKR) 350.9 316.7 10.78% Net Assets Value (PKR '000) 63,920 58,247 9.74% 350 300 250 200 150 100 91.7% 86.3% 2.3% 6.0% 13.3% 0.4% Sarmaya Pakistan Stock SPS 10.78% 0.55% 2.03% 2.38% 4.44% 126.94% 16.99% IGI Sarmaya Pakistan Stock Fund SPS BID PRICE: 410.00 390.00 370.00 350.00 367.17 365.13 385.90 379.67 363.21 354.14 359.43 352.83 349.24 358.12 348.93 350.86 330.00 310.00 290.00 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18 316.71
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 / Sarmaya Premium 2.4% 05 Aug 10 NAV per Unit (PKR) 163.3 162.3 0.59% Net Assets Value (PKR '000) 144 137 4.63% 79.5% 50.1% 47.0% absolute return of 0.59% against its last month absolute return of 8.38%. 235 215 195 175 155 135 115 95 75 19.1% 1.4% 2.9% Sarmaya United Growth SUG 0.59% 9.02% 9.55% 11.18% 14.91% 6.96% 5.94% IGI Sarmaya United Growth Income Fund SUG BID PRICE: 162.32 163.28 160.00 155.00 150.00 145.00 142.09 142.48 143.20 144.42 145.54 146.08 146.86 147.46 148.18 149.04 149.77 140.00 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 / Sarmaya Premium 2.4% 05 Aug 10 absolute return of 11.28% against its last month absolute return of 9.03%. 345 NAV per Unit (PKR) 404.9 363.9 11.28% Net Assets Value (PKR '000) 516,550 473,040 9.20% 295 245 195 145 95 88.8% 92.5% 10.2% 1.0% 6.5% 1.0% Sarmaya United Stock SUS 11.28% 1.23% 1.55% 2.08% 4.00% 132.76% 17.89% IGI Sarmaya United Stock Fund SUS BID PRICE: 500.00 450.00 400.00 421.79 414.49 437.71 435.47 414.43 403.96 413.54 405.17 398.72 411.32 400.02 363.89 404.93 350.00 300.00 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 / Sarmaya Premium 2.4% 19 Jul 12 NAV per Unit (PKR) 155.7 154.4 0.85% Net Assets Value (PKR '000) 11,971 17,469 31.47% absolute return of 0.85% against its last month absolute return of 0.91%. Value of 100 Rupees invested since inception 140 135 130 125 120 115 110 105 100 88.5% 74.0% 14.3% 22.1% 2.9% 23.1% Sarmaya United Money SUI 0.85% 1.77% 2.51% 5.07% 8.20% 9.99% 7.01% IGI Sarmaya United Money Market Fund SUI BID PRICE: 156.00 154.43 155.74 154.00 151.92 153.04 152.00 150.19 149.20 150.00 148.23 147.29 148.00 146.58 145.97 145.28 146.00 144.53 143.94 144.00 142.00 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18
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 / Sarmaya Premium 2.4% 22 Jul 10 absolute return of 0.79% against its last month absolute return of 0.70%. 220 NAV per Unit (PKR) 261.0 259.0 0.79% Net Assets Value (PKR '000) 3,082,537 3,190,051 3.37% 200 180 160 140 120 100 ASSET ALLOCATION: 49.3% 50.9% 44.1% 48.8% 7.1% IGI Sarmaya Secure SSE 0.79% 1.49% 1.59% 3.28% 5.73% 9.27% 11.89% IGI Sarmaya Secure Fund SSE BID PRICE: 270.00 265.00 260.00 255.00 250.00 245.00 240.00 235.00 261.00 258.96 256.91 257.16 254.89 255.26 250.42 251.13 252.29 252.72 246.85 247.57 248.85 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18