IGI Life Funds Performance Report December 2018 IGI Life Insurance Limited
FUND MANAGER REPORT July 2015 Macro Review and Outlook: CPI for the month of Dec-18 up by 6.16%YoY: CPI Inflation For the month of Dec-18, headline inflation leaped up to +6.16%YoY as against +4.57%YoY recorded in the same period last year. On a monthly basis inflation witnessed a drop of 0.42%. Key contributors to this uptick were Utility index (HWEGF) (up +9.1%YoY), transport index (up +18.2%YoY) and education index (up +10.4%YoY). Food basket as a whole registered a meagre +0.95%YoY inflation due to seasonal effect while non-food inflation continued its robust upward trend, up +9.8%YoY, on the back of HRI index, education index and motor fuel prices. At the same time, during the month, core inflation remained at +7.9%YoY. Current account balance reached a deficit of USD 1.3bn in month of Nov-18 External Account During the month of Nov-18, Current account deficit decreased by 13%YoY to USD 1.3bn. For 5MFY19 collectively, current account deficit inched down by 3.1%YoY to USD 6.1bn, due to increase in remittances, up by +12.6%YoY and a slight uptick in exports (+0.44%YoY). However, this was partially countered by increase in imports, up by +4.62%YoY. On sequential basis, for the month of Nov-18, Country s exports and imports decreased by 8%/11%MoM to USD 1.9/4.3bn. Resultantly, trade deficit for the month reached USD 2.4bn, decreasing by 11%MoM. Equity Market Review and Outlook: Economic uncertainty unsettled the market in Dec-18 KSE 100 Following an increasing trend till the mid of Nov-18, reaching 41,662 the market started to decline in the later half wherein KSE-100 recorded a level of 40,496 points at month end. The market continued to follow decreasing trend during Dec-18 with index dropping by 8%MoM to close at 37,167 points, a decrease of 3,330 points. The activity in the market can be attributed to, a) uncertainty over IMF bailout package, b) declining crude oil prices and c) above expected increase in policy rate by 150bps. Leaders and Laggards Major positive contribution was led by Textile Weaving (+49.5%MoM), Transport (+12.8%MoM), followed by sugar and allied industries (+5.2%MoM). On the contrary, Commercial s witnessed a decline of 7.2%MoM despite increase in policy rate. Similarly, Oil & Gas Exploration Companies performed negatively by 11%MoM owing to decrease in crude oil prices. Likewise, Cements came as laggards as well with 11%MoM drop, attributed to expected decline in profitability following increase in policy rate and PKR depreciation. Key domestic/international news Uncertainty over IMF bailout package Decrease in crude oil prices with USA having buildup inventories Increase in policy rate by 150bps Domestic political unrest Money Market Review and Outlook: Money Market Review The SBP conducted two T-bill auctions during the month of Dec-18 with a cumulative target of PKR 200bn against maturity of PKR 44bn. The total accepted amount was PKR 2.02bn all of which were for 3M tenor. For 3M T-Bill, the cut-off yields increased by 150bps to 10.30%. During the last week of Dec-18, PIB auction was conducted with a target of PKR 50bn against maturity of PKR 14.9bn. Cumulative participation of PKR 20bn was received across all tenors. The cutoff yields for 3Y, 5Y and 10Y were 12.3%, 12.7% and 13.2%. In the last week of the month, Government injected PKR 950bn through an OMO. The yields across all tenors inceased by 66-116bps due to increase of 150bps in policy rate. Yield Curve 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 1.5% 25 Apr 08 absolute return of 6.87% against its last month absolute return of 2.25%. 348 NAV per Unit (PKR) 280.2 300.9 6.87% Net Assets Value (PKR '000) 665,857 702,138 5.17% 298 248 198 148 98 60.4% 65.7% 13.7% 23.5% 2.4% 7.7% 2.9% 22.3% 1.4% IGI Aggressive Fund IAF 6.87% 8.96% 7.14% 7.53% 5.48% 5.48% 10.12% IGI Aggressive Fund IAF BID PRICE: 330.00 320.00 310.00 300.00 296.47 307.72 304.76 315.64 314.19 306.18 303.04 306.59 303.86 301.76 307.81 300.90 290.00 280.00 270.00 280.22 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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. NAV per Unit (PKR) 264.1 276.0 4.31% Net Assets Value (PKR '000) 708,035 738,068 4.07% Fixed Income / Equity Moderate 1.5% 25 Apr 08 absolute return of 4.31% against its last month absolute return of 1.54%. 238 218 198 178 158 138 118 98 39.4% 39.7% 37.8% 43.7% 18.1% 2.8% 11.8% 5.0% 1.8% IGI Balanced Fund IBF 4.31% 5.78% 4.34% 4.21% 2.70% 2.70% 9.51% IGI Balanced Fund IBF BID PRICE: 285.00 280.00 275.00 271.43 277.06 276.16 281.48 281.23 277.48 275.70 278.28 276.98 276.08 280.30 275.99 270.00 265.00 264.09 260.00 255.00 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% 25 Apr 08 absolute return of 0.48% against its last month absolute return of 0.38%. 158 NAV per Unit (PKR) 206.8 207.8 0.48% Net Assets Value (PKR '000) 550,932 550,383 0.10% 148 138 128 118 108 98 56.6% 56.6% 30.7% 22.4% 10.1% 2.5% 8.3% 10.3% 2.4% IGI Conservative Fund ICF 0.48% 0.85% 0.05% 1.02% 3.70% 3.70% 7.03% IGI Conservative Fund ICF BID PRICE: 211.00 209.00 207.00 205.00 203.00 201.00 199.00 197.00 195.00 208.62 207.83 205.80 206.35 206.93 206.83 204.28 204.36 204.75 203.56 201.02 201.64 199.45 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% 25 Apr 08 absolute return of 0.64% against its last month absolute return of 0.53%. NAV per Unit (PKR) 156.4 155.4 0.64% Net Assets Value (PKR '000) 217,677 212,785 2.30% 180 170 160 150 140 130 120 110 100 90 80 62.9% 56.4% 21.3% 2.4% 13.4% 26.9% 2.7% 14.1% IGI Islamic Fund IIF 0.64% 1.17% 1.67% 3.04% 5.44% 5.44% 4.27% IGI Islamic Fund IIF BID PRICE: 158.00 156.00 154.00 152.00 150.00 148.00 146.00 144.00 156.41 155.42 154.61 153.84 153.15 152.43 151.80 151.16 150.01 150.50 148.34 148.90 149.40 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% 25 Feb 10 absolute return of 7.35% against its last month absolute return of 2.41%. 345 NAV per Unit (PKR) 371.2 400.7 7.35% Net Assets Value (PKR '000) 25,003 26,966 7.28% 295 245 195 145 95 67.0% 71.3% 29.7% 27.5% 4.0% 4.7% 1.9% IGI FS Aggressive Fund IHA 7.35% 9.58% 7.56% 7.95% 5.71% 5.71% 15.97% IGI FutureSecure Aggressive Fund IHA BID PRICE: 430.00 420.00 410.00 400.00 390.00 380.00 370.00 360.00 350.00 421.26 419.29 410.77 406.83 407.87 408.60 410.56 403.30 404.53 401.60 400.68 393.72 371.22 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% 18 Feb 10 absolute return of 4.36% against its last month absolute return of 1.59%. 215 NAV per Unit (PKR) 235.6 246.4 4.36% Net Assets Value (PKR '000) 162,991 170,620 4.47% 195 175 155 135 115 95 43.2% 41.3% 41.3% 45.2% 12.0% 3.5% 6.4% 5.2% 1.9% IGI FS Balanced Fund IHB 4.36% 5.88% 4.39% 4.33% 2.56% 2.56% 10.14% IGI FutureSecure Balanced Fund IHB BID PRICE: 260.00 255.00 250.00 247.42 246.60 251.83 251.60 248.01 246.32 249.01 247.47 246.45 250.35 246.38 245.00 241.82 240.00 235.00 235.64 230.00 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18
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 1.5% 18 Mar 10 absolute return of 0.17% against its last month absolute return of 0.37%. 165 NAV per Unit (PKR) 162.7 163.0 0.17% Net Assets Value (PKR '000) 40,739 40,370 0.91% 155 145 135 125 115 105 95 59.0% 29.6% 59.5% 7.8% 3.6% 21.2% 7.9% 9.0% 2.3% IGI FS Cautious Fund IHC 0.17% 0.54% 0.19% 1.13% 4.07% 4.07% 5.69% IGI FutureSecure Cautious Fund IHC BID PRICE: 166.00 164.00 162.00 160.00 158.00 156.00 154.00 152.00 163.63 163.03 161.69 162.04 162.44 162.75 160.26 160.57 160.93 159.50 157.63 158.04 156.38 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% 18 Mar 10 absolute return of 0.25% against its last month absolute return of 0.18%. 175 NAV per Unit (PKR) 207.7 207.1 0.25% Net Assets Value (PKR '000) 17,641 17,831 1.07% 165 155 145 135 125 115 105 95 ASSET ALLOCATION: 90.8% 89.8% 9.2% 10.2% IGI FS Secure Fund IHS 0.25% 0.43% 0.15% 0.49% 2.89% 2.89% 8.66% IGI FutureSecure Secure Fund IHS BID PRICE: 212.00 210.00 208.00 206.00 204.00 202.00 200.00 198.00 196.00 194.00 207.48 205.67 206.24 206.66 207.35 206.32 206.77 207.14 207.67 204.29 201.83 201.88 202.29 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% / Sarmaya Premium 2.4% 22 Jul 10 absolute return of 0.70% against its last month absolute return of 0.60%. 175 NAV per Unit (PKR) 194.7 193.3 0.70% Net Assets Value (PKR '000) 2,230 2,217 0.55% 165 155 145 135 125 115 105 95 55.5% 46.9% 42.5% 38.1% 0.6% 1.8% 4.0% 2.5% 1.8% 6.3% Sarmaya Pakistan Income SPI 0.70% 1.30% 2.02% 3.82% 6.62% 6.62% 8.20% IGI Sarmaya Pakistan Income Fund SPI BID PRICE: 198.00 196.00 194.00 192.00 190.00 188.00 186.00 184.00 182.00 180.00 194.66 193.30 192.15 190.79 189.89 188.63 187.49 186.53 183.49 184.06 184.78 185.51 182.58 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% / Sarmaya Premium 2.4% 03 Feb 11 absolute return of 9.23% against its last month absolute return of 2.57%. 400 NAV per Unit (PKR) 316.7 348.9 9.23% Net Assets Value (PKR '000) 58,247 64,335 9.46% 350 300 250 200 150 100 86.3% 84.7% 13.3% 0.4% 9.1% 4.9% 1.3% Sarmaya Pakistan Stock SPS 9.23% 11.56% 9.31% 10.57% 7.15% 7.15% 15.68% IGI Sarmaya Pakistan Stock Fund SPS BID PRICE: 410.00 390.00 370.00 350.00 341.12 367.17 365.13 385.90 379.67 363.21 354.14 359.43 352.83 349.24 358.12 348.93 330.00 310.00 290.00 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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. NAV per Unit (PKR) 162.3 149.8 8.38% Net Assets Value (PKR '000) 137 1,336 89.72% 50.1% 47.0% Fixed Income Moderate Sarmaya Plus 1.5% / Sarmaya Premium 2.4% 05 Aug 10 59.1% absolute return of 8.38% against its last month absolute return of 0.49%. 235 215 195 175 155 135 115 95 75 36.1% 2.9% 4.8% Sarmaya United Growth SUG 8.38% 8.91% 9.55% 11.12% 14.80% 14.80% 5.93% IGI Sarmaya United Growth Income Fund SUG BID PRICE: 162.32 160.00 155.00 150.00 145.00 140.00 145.54 146.08 146.86 147.46 148.18 149.04 149.77 144.42 141.40 142.09 142.48 143.20 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% / Sarmaya Premium 2.4% 05 Aug 10 absolute return of 9.03% against its last month absolute return of 2.75%. 345 NAV per Unit (PKR) 363.9 400.0 9.03% Net Assets Value (PKR '000) 473,040 530,814 10.88% 295 245 195 145 95 92.5% 89.6% 6.5% 1.0% 10.4% Sarmaya United Stock SUS 9.03% 11.53% 8.73% 9.92% 7.50% 7.50% 16.59% IGI Sarmaya United Stock Fund SUS BID PRICE: 500.00 450.00 400.00 393.39 421.79 414.49 437.71 435.47 414.43 403.96 413.54 405.17 398.72 411.32 400.02 363.89 350.00 300.00 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% / Sarmaya Premium 2.4% 19 Jul 12 NAV per Unit (PKR) 154.4 153.0 0.91% Net Assets Value (PKR '000) 17,469 17,261 1.21% absolute return of 0.91% against its last month absolute return of 0.73%. Value of 100 Rupees invested since inception 140 135 130 125 120 115 110 105 100 74.0% 38.0% 35.9% 25.2% 23.1% 2.9% 1.0% Sarmaya United Money SUI 0.91% 1.65% 2.82% 4.85% 7.81% 7.81% 6.96% IGI Sarmaya United Money Market Fund SUI BID PRICE: 156.00 154.00 152.00 150.00 148.00 146.00 144.00 142.00 154.43 153.04 151.92 150.19 149.20 148.23 147.29 146.58 145.97 145.28 144.53 143.94 143.25 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 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 1.5% / Sarmaya Premium 2.4% 22 Jul 10 absolute return of 0.70% against its last month absolute return of 0.10%. 220 NAV per Unit (PKR) 259.0 257.2 0.70% Net Assets Value (PKR '000) 3,190,051 3,199,468 0.29% 200 180 160 140 120 100 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 ASSET ALLOCATION: 44.1% 48.8% 43.6% 48.4% 7.1% 8.0% IGI Sarmaya Secure SSE 0.70% 0.80% 1.45% 2.64% 5.23% 5.23% 11.92% IGI Sarmaya Secure Fund SSE BID PRICE: 270.00 265.00 260.00 255.00 250.00 245.00 240.00 235.00 230.00 258.96 256.91 257.16 254.89 255.26 246.09 246.85 247.57 248.85 250.42 251.13 252.29 252.72 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18