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EQUITY MARKET
Although the worlds major indices witnessed a growth on account of US Federal reserve direction, bearish momentum continued to dominate the local bourse during the month of September, with benchmark index down by 1.49% to reach 21,833 points. Increase in the policy rate by 50bps, sharp devaluation of local currency and a 0.5% hike in Minimum Deposit Rate (MDR) for banks resulted in subdued investor sentiments. Positively, on CYTD basis, KSE-100 index managed to stay on top with a return of 18.4% (USD Returns) outclassing regional peers. Market volumes witnessed a surge of 6.7% MoM in September up 46% MoM, whereas value traded weakened by 13.9% MoM to USD 92mn. The drop in value traded was primarily attributable to volumes witnessed in low-tier stocks. Going forward, with currency depreciation expected to dominate headlines, we anticipate Chemical, Telecom, Electricity and Textile sectors to be major beneficiaries. Oil Marketing Companies, on the other hand, are expected to be negatively impacted owing to heavy imports.
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.
FUND RETURNS
(Holding Period Annualized % p.a) FY14 to Date Benchmark (YTD) Month on Month Benchmark (MoM) Sep13 7.36 7.96 7.23 8.00 Aug13 7.38 7.87 7.24 7.89
Sep13
Aug13
Investment Objective
Faysal Money Market Fund (FMMF) seeks 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.
8.19% 9.69%
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The Scheme has maintained provisions against Workers' Welfare Fund liability to the tune of Rs. 9,821,016 as at September 30, 2013. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 0.222 (0.22%). For details investors are advised to read the latest financial statements for the Quarter and Nine months ended March 31, 2013.
Performance Review
FMMF ended September with its highest ever assets under management of PKR 4,495mn depicting a growth of 56.5% during 1QFY14. Your fund generated a return of 7.23% in September 2013 - clocking in FY14 YTD return at 7.36%. Bearing in mind the uncertainty associated with policy rate, funds were deployed in shorter tenor instruments while residual cash was deployed in other high yielding avenues. With over 75% of investments of your fund positioned in prime quality instruments (i.e. AA+ or higher), FMMF has the highest fund stability rating within the money market category.
MUFAPs recommended format
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.
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Mr. Enamullah Khan Mr. Najm-Ul-Hassan Mr. Ayub Khuhro Mr. Vasseh Ahmed Mr. Syed Shahid Iqbal Mr. Imran Altaf Mr. Muhammad Asif Tahir Mr. Muhammad Faraz Khan
Chief Executive Officer Chief Financial Officer Acting Head of Research Senior Portfolio Manager Fund Manager (Fixed Income) Fund Manager (Fixed Income) Head of Compliance & Internal Audit Manager Risk
7.85% 8.28%
8.02% 7.66%
7.89% 7.24%
8.00% 7.23%
7.65% 7.90%
7.81% 7.71%
7.83% 7.48%
10.00%
8.15% 7.73%
8.16% 8.12%
8.31% 7.89%
8.22% 8.86%
INVESTMENT COMMITTEE
FUND RETURNS
(Holding Period Annualized % p.a) FY14 to Date Benchmark (YTD) Month on Month Benchmark (MoM) Sep13 7.04 9.10 6.82 9.20 Aug13 7.10 9.05 7.19 9.08
PIBs, 10.22%
T-Bills, 50.09%
Sep13
Aug13
Investment Objective
To generate competitive returns by investing primarily in debt and fixed income instruments having investment grade credit rating.
Government Securities AAA AA+ AA AANR (includes receivables against sale of Government Securities)
9.49%
9.38%
9.54%
9.56%
9.41% 8.16%
9.37% 8.85%
9.29%
9.35%
INVESTMENT COMMITTEE
Mr. Enamullah Khan Mr. Najm-Ul-Hassan Mr. Ayub Khuhro Mr. Vasseh Ahmed Mr. Syed Shahid Iqbal Mr. Imran Altaf Mr. Muhammad Asif Tahir Mr. Muhammad Faraz Khan Chief Executive Officer Chief Financial Officer Acting Head of Research Senior Portfolio Manager Fund Manager (Fixed Income) Fund Manager (Fixed Income) Head of Compliance & Internal Audit Manager Risk
11.00% 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00%
9.75% 10.23%
7.42%
7.26%
7.51%
7.53%
5.01%
6.67%
6.97%
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The Scheme has maintained provisions against Workers' Welfare Fund liability to the tune of Rs. 48,196,701 as at September 30, 2013. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 6.085 (5.95%). For details investors are advised to read the latest financial statements for the Quarter and Nine months ended March 31, 2013.
Performance Review
Faysal Savings Growth Fund generated an annualized yield of 6.82% over the month of September, allowing YTD return to consolidate at 7.04%. Exposure in T-Bills was reduced from 50% to 37% during the month, whereby proceeds were mainly placed in longer tenor bonds to capitalize on widening differential between PIB yields and policy rate. Cash in bank was increased from 10% to 24%, to ensure adequate liquidity and to provide a cushion in the current volatile environment. Going forward, the fund shall continue to focus on high credit quality assets to raise fund yields.
MUFAPs recommended format
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.
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6.82%
FUND RETURNS
(Holding Period Annualized % p.a) FY14 to Date Benchmark (YTD) Month on Month Benchmark (MoM) Sep13 7.34 8.44 7.41 8.51 Aug13 7.25 8.34 7.18 8.35
Cash , 59.64%
T-Bills, 28.85%
Cash , 61.05%
Sep13
Aug13
Investment Objective
Faysal Financial Sector Opportunity Fund (FFSOF) seeks to provide a competitive rate of return to its investors by investing in money market and debt instruments with major exposure in financial sector.
5.60%
Returns(MoM) Benchmark FFSOF
7.30%
INVESTMENT COMMITTEE
Mr. Enamullah Khan Mr. Najm-Ul-Hassan Mr. Ayub Khuhro Mr. Vasseh Ahmed Mr. Syed Shahid Iqbal Mr. Imran Altaf Mr. Muhammad Asif Tahir Mr. Muhammad Faraz Khan Chief Executive Officer Chief Financial Officer Acting Head of Research Senior Portfolio Manager Fund Manager (Fixed Income) Fund Manager (Fixed Income) Head of Compliance & Internal Audit Manager Risk
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7.18%
NON COMPLIANCE
Name of Investment Company
Habib Bank Limited Pak Iran Joint Investment Company Limited
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% of Net Assets
7.41%
% of Total Assets
9.75
N/A
N/A
0.37
45,000,000
10.37
N/A
N/A
10
10.37
0.37
45,000,000
45,000,000
10.37
9.75
The Scheme has maintained provisions against Workers' Welfare Fund liability to the tune of Rs. 195,448 as at September 30, 2013. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 0.045 (0.05%).
Performance Review
Faysal Financial Sector Opportunity Fund yielded an annualized return of 7.41% during September 23bps higher on a MoM basis. The performance demonstrated during the month allowed your fund to maintain its rank amongst the top most quartile of the Income Category. On the asset allocation side, funds were redeployed from shorter tenor government instruments to other high yielding avenues to generate higher yields. Going forward, the fund shall continue to focus on high credit quality assets and aim to provide competitive returns.
MUFAPs recommended format
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.
FUND RETURNS
(Holding Period Annualized % p.a) FY14 to Date Benchmark (YTD) Month on Month Benchmark (MoM) Sep13 6.09 6.90 5.63 6.86 Aug13 6.29 6.92 6.15 6.78
Sep13
Cash, 56.27%
Aug13
Investment Objective
Faysal Islamic Savings Growth Fund (FISGF) seeks to provide maximum possible preservation of capital and a reasonable rate of return via investing in Shariah Complaint money market and debt securities having good credit quality rating and liquidity.
12.00%
10.39%
INVESTMENT COMMITTEE
Mr. Enamullah Khan Mr. Najm-Ul-Hassan Mr. Ayub Khuhro Mr. Vasseh Ahmed Mr. Syed Shahid Iqbal Mr. Imran Altaf Mr. Muhammad Asif Tahir Chief Executive Officer Chief Financial Officer Acting Head of Research Senior Portfolio Manager Fund Manager (Fixed Income) Fund Manager (Fixed Income) Head of Compliance & Internal Audit
Returns(MoM) Benchmark
10.00%
FISGF
7.60% 7.08% 7.15% 7.22% 7.20% 7.05% 7.18% 6.54% 7.20% 6.92% 7.06% 6.39% 7.01% 6.49% 6.86% 7.00% 6.86% 5.63% 6.84% 6.78% 6.15%
5.75%
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The Scheme has maintained provisions against Workers' Welfare Fund liability to the tune of Rs. 2,991,003 as at September 30, 2013. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 0.423 (0.41%). For details investors are advised to read the latest financial statements for the Quarter and Nine months ended March 31, 2013.
Performance Review
During the month, your fund yielded 5.63%, while YTD return consolidated at 6.09%. Lack of CP-Sukuks and availability of high quality corporate Sukuk kept the fund devoid of high yielding assets. At the end of the month, investment in GOP Ijara Sukuk was raised up to 51%, in a bid to increase returns to a certain extent. That said, FISGF has already subscribed to upcoming CP-Sukuks and high quality corporate Sukuks (scheduled for October) to raise portfolio yield and improve returns.
MUFAPs recommended format
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.
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FUND RETURNS
(Holding Period Annualized % p.a) FY14 to date Benchmark (YTD) Month-on Month Benchmark (MoM) Sep13 6.19 9.28 7.52 9.43 Aug13 5.51 9.2 5.49 9.25
Pricing Mechanism Dealing Days Cut-Off Timing AMC Rating NAV per Unit (PKR) Net Assets (PKR mn) Leverage Weighted Average Maturity (Years)
PIBs, 19.64%
Sep13
Aug13
Investment Objective
Faysal Income & Growth Fund (FIGF) seeks to provide its investors with optimal yields through a diversified portfolio consisting of both long-term fixed instruments as well as shortterm money market securities.
9.46%
9.42%
9.44% 8.32%
9.43%
9.36%
5.50%
Mr. Ayub Khuhro Mr. Vasseh Ahmed Mr. Syed Shahid Iqbal Mr. Imran Altaf Mr. Muhammad Asif Tahir
Acting Head of Research Senior Portfolio Manager Fund Manager (Fixed Income) Fund Manager (Fixed Income) Head of Compliance & Internal Audit
5.19%
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Mr. Najm-Ul-Hassan
8.00%
6.80%
7.06%
10.00%
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NON COMPLIANCE
Name of Instrument Bank Alfalah Limited Rating required N/A Existing Rating N/A Maximum Existing Exposure as Exposure as a a % of NAV % of NAV 10 10.33% Excess Exposure 0.33 Type of Instrument TFC's Value of Provision Investment (If any) before provisioning 51,128,872 Value of Investment after provision 51,128,872 % of Net Assets 10.33 % of Total Assets 10.01
The Scheme has maintained provisions against Workers' Welfare Fund liability to the tune of Rs. 6,589,281 as at September 30, 2013. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs.1.408 (1.33%). For details investors are advised to read the latest financial statements for the the Quarter and Nine months ended March 31, 2013.
Performance Review
FIGF generated a return of 7.52% over September, allowing YTD return to clock in at 6.19%. Exposure in T-bills was reduced from 38% to 10%, with proceeds placed in longer tenor bonds to capitalize on widening differential between PIB yields and policy rate. Exposure against TFCs with good credit quality was also increased during the month in a bid to achieve higher portfolio returns in the months to come.
MUFAPs recommended format
Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.
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9.43% 7.52%
9.15%
9.25%
INVESTMENT COMMITTEE
12.00%
9.76% 10.44%
12%
FUND RETURNS
FY14 to Date Benchmark (YTD) Month-on Month Benchmark (MoM) Sep13 (0.51) 3.24 (3.82) (0.44) Aug13 3.44 3.89 1.09 (1.64)
Equities, 38.38%
Sep13
Aug13
Investment Objective
Faysal Asset Allocation Fund (FAAF) endeavors 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.
INVESTMENT COMMITTEE
Mr. Enamullah Khan Mr. Najm-Ul-Hassan Mr. Ayub Khuhro Mr. Vasseh Ahmed Mr. Muhammad Raheel Mr. Muhammad Asif Tahir Chief Executive Officer Chief Financial Officer Acting Head of Research Senior Portfolio Manager Acting Fund Manager Head of Compliance & Internal Audit
NON COMPLIANCE
Name of Instrument Trust Investment Bank ICI Pakistan Limited Rating Existing Maximum Existing required Rating Exposure as a Exposure as a % of NAV % of NAV BBB N/A D N/A 10% 10% 0.00% 23.61% Excess Exposure 13.61% Type of Instrument TFC Equity Shares Value of Investment before provisioning 13,137,042 29,384,850 Provision (If any) 13,137,042 Value of Investment after provision 29,384,850 % of Net Assets 23.61% % of Total Assets 21.65%
The Scheme has maintained provisions against Workers' Welfare Fund liability to the tune of Rs. 2,249,330 as at September 30, 2013. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 1.197 (1.81%). For details investors are advised to read the latest financial statements for the Quarter and Nine months ended March 31, 2013.
Performance Review
Your fund posted a return of -3.82% over the month of September on account of the fall in the broader KSE-100 index. Exposure to equities was increased initially owing to positive development at the start of the month when entry into the IMF program provided much needed stability. However, +50bps hike in discount rate, Pak Rupee depreciation and rise in saving deposit rates subsequently dampened investor sentiments. Going forward, your fund shall continue to proactively regulate exposure between equities and fixed income avenues to stave off systematic and unsystematic risks.
FUND RETURNS
FY14 to Date Benchmark (YTD) Month-on Month Benchmark (MoM) Sep13 (1.44) 2.91 (1.49) 0.15 Aug13 0.05 3.21 -1.69 -1.27
Sep13
Aug13
Investment Objective
Faysal Balanced Growth Fund (FBGF) endeavors to provide investors with an opportunity to earn income and long-term capital appreciation by investing in a large pool of funds representing equity / non equity investments in a broad range of sectors and financial instruments.
NON COMPLIANCE
Name of Instrument Pak Electron Limited* Pak Electron Limited (Sector) Pak Electron Limited (Group) Listed Equity Securities Rating Existing Required Rating AN/A N/A N/A Withdrawn N/A N/A N/A Maximum Existing Excess/Short Type of Exposure as Exposure Exposure Instrument a% of NAV as a% of NAV Preference 10% 37.24% 27.24% Shares Preference 25% 37.24% 12.24% Shares Preference 35% 37.24% 2.24% Shares Equity 30% to 70% 20.06% 9.94% Shares Value of Provision Value of Investment before if any Investment after provisioning provisioning 37,490,000 37,490,000 37,490,000 20,194,860 37,490,000 37,490,000 37,490,000 20,194,860 % of Net Assets 37.24% 37.24% 37.24% 20.06% % of Total Assets 33.19% 33.19% 33.19% 17.88%
*SECP had granted extension to regularize this exposure till December 31, 2013
The Scheme has maintained provisions against Workers' Welfare Fund liability to the tune of Rs. 4,661,795 as at September 30, 2013. If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 0.846 (1.42%). For details investors are advised to read the latest financial statements for the Quarter and Nine months ended March 31, 2013.
Performance Review
Owing to fall in the broader KSE-100 index, your fund posted a return of -1.49% over August. Equity exposure was curtailed from 30% to 21% on account of +50bps hike in discount rate, Pak Rupee depreciation, projected rise in inflation and anticipation of further monetary contraction. Going forward, investments shall be regulated in accordance with economic developments and investment sentiments.