IGI Fund Management Report - igilife.com.pk

IGI Life Insurance Limited

IGI|Life

Funds Performance ReportJuly 2019

July 2015

Source: SBP, PBS, Bloomberg

Equity Market Review and Outlook:

FUND MANAGER REPORT

For the month of July 2019

Macro Review and Outlook:Jul-19 inflation clocked in at 10.3%YoY (+2.3% m/m)Jul-19, monthly inflation creeped to a double digit growth of +10.34% (+2.3% m/m) from +9.0% y/y (+0.5% m/m) in previous month, highest reading in more than 5-yrs years. Inflation print reflects recent budgetary measuresThe outturn was in line with the market consensus (Bloomberg median: 10.3%, mean 10.37%). The rise follows i) government’s decision to increase utility prices (gas and electricity), ii) +15% GST on domestic supplies of clothing, iii) increase in POL prices during the start of the month (HSD +12.3% y/y, MS +18.3% y/y) and iv) quarterly revision in house rental index. Subsequently, the largest impact came from Housing, Water, Electricity, Gas & Fuels (HWEG&F) head whereby monthly inflation rose by +1.1% m/m or +3.5% y/y. The breakdown shows that inflation increased across almost all goods and services last month. The only exception was perishable food items inflation, which decelerated by 0.06% m/m to 8.1%. Core inflation continue to rise on account of rise in HRI and exchange rateCore inflation (NFNE) inched up by +1.7% m/m to +7.8% reflecting the underlying price increase of mainly house rental index and recent budgetary measures. The wholesale price index (WPI) a proxy index to exchange rate movements is up by +13.5% y/y (+3.1% m/m).C/a deficit finally receding, down to 4.8% of GDP from 6.3% in 2018For the month of Jun-19, C/a deficit clocked in at USD 0.995bn (USD 1.97bn in Jun-18). C/a deficit for FY19, declined by ~32% to USD 13.6bn. or 4.8% of GDP, compared to 6.3% of GDP during FY18. Trade deficit during the period reduced by ~11% y/ y to USD 28.2bn, thanks to a faster slowdown in import bill 7% y/y to USD 52.4bn compared to exports 2% y/y to USD 24.2bn. Moreover, net services deficit also improved to USD 4.3bn down from USD 6.0bn last year and so has income surplus improved to USD 18.9bn from USD 17.9bn. up by +5% y/y.

CPI Inflation

External Account

KSE-100 index performance remained lackluster in the month of Jul-19, declining by 1,963.1pts m/m (down by 5.8%). Several positives in the month including formalization of Extended Fund Facility program (EFF) with the IMF and much awaited US visit by Imran Khan failed to attract volumes. Post IMF growth, exchange rate and interest rates outlook kept investors nervous Major attrition in the local bourse came from Power Generation (-270pts MoM) followed by Oil & Gas Exploration Companies (-231pts MoM), and Cements (-187.5pts). On the contrary, expected resolution of GIDC issue kept Fertilizer sector (+41pts) in limelight. Monthly volumes stood at 76mn (135mn previous month).

KSE 100

Money Market Review and Outlook:A healthy participation in Jul-19During the month of Jul-19, SBP conducted two T-bill auctions with a cumulative target of PKR 1.3trn against the maturity of PKR 1.094trn. The total accepted amount was PKR 2.308trn with a majority chunk in 3m tenure. The cut-off yields were 13.75% / 13.95% and 14.10% for the 3m, 6m and 12m tenure respectively. SBP conducted fixed PIB auction on July 24, 2019 with a target of PKR100bn against the maturity of PKR 83.1bn. the auction received a cumulative participation of PKR 566.8bn (5.6x) in all, 3/5 and 10 yrs tenure, however, SBP accepted PKR 172.4bn, (PKR 107 / 46 / 19bn for 3/5 and 10yrs). The cut-off yields and coupon rates were 14.25% / 7.5%, 13.80% / 8.0% and 13.55% / 8.75% respectively for 3/5 and 10 yrs bond. In the floating bond auction SBP accepted PKR 84.2bn and set spread at a cut-off of 75bps over the benchmark.

Yield Curve

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date

Jul‐19 Jun‐19 MoM %

NAV per Unit (PKR) 260.4 270.6 ‐3.80%

Net Assets Value (PKR '000) 617,288 640,059 ‐3.56%

* Asset Allocation have been developed by looking through the underlying assets of mutual funds investments.

30 Days 60 Days 90 Days 180 Days 365 Days CYTD Since Inception

IGI Aggressive Fund ‐ IAF ‐3.80% ‐7.93% ‐8.75% ‐13.86% ‐15.08% ‐12.21% 8.86%

IGI Aggressive Fund ‐ IAF BID PRICE:

Disclaimer: Past performance is not indicative of future performance. Market volatility can significantly affect short‐term performance. The value of

investment can fall as well as rise.

ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:

Absolute Return Annualized Return

High

Daily Forward Pricing

Monday to Friday

1.5%

25‐Apr‐08

ASSETS UNDER MANAGEMENT:

During the month the fund generated an

absolute return of ‐3.80% against its last

month absolute return of ‐4.30%.

Value of 100 Rupees invested 5 years ago

Fixed Income / Equity

IGI Aggressive Fund

INVESTMENT OBJECTIVE: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.

FUND INFORMATION: RETURNS:


306.59 303.86 301.76307.81

300.90

280.22

302.23297.12 295.82

285.34 282.80

270.63

260.36

250.00

260.00

270.00

280.00

290.00

300.00

310.00

320.00

Jul‐18 Aug‐18 Sep‐18 Oct‐18 Nov‐18 Dec‐18 Jan‐19 Feb‐19 Mar‐19 Apr‐19 May‐19 Jun‐19 Jul‐19

8.3%

24.8%

65.7%

1.2%

BankDeposits

TFC's /Sukuk

T‐Bills TDR PIB's Stock DFI &Others

8.1%0.3%

26.0%

64.9%

0.7%

BankDeposits

TFC's /Sukuk


98

148

198

248

298

348

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 266.0 269.1 ‐1.15%




IGI Balanced Fund ‐ IBF ‐1.15% ‐2.63% ‐2.66% ‐4.32% ‐4.41% 1.25% 9.07%

IGI Balanced Fund ‐ IBF BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Moderate


Monday to Friday

1.5%

25‐Apr‐08







IGI Balanced Fund

INVESTMENT OBJECTIVE: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.



5.5%

24.8%

39.5%

29.6%

0.5%

BankDeposits

TFC's /Sukuk


3.7%

26.2%

40.9%

28.9%

0.3%

BankDeposits

TFC's /Sukuk


98

118

138

158

178

198

218

238

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

278.28276.98 276.08

280.30

275.99

264.09

278.02276.47 276.60

273.28 273.20

269.11

266.01

255.00

260.00

265.00

270.00

275.00

280.00

285.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 220.3 218.5 0.85%

Net Assets Value (PKR '000) 563,066 561,763 0.23%



IGI Conservative Fund ‐ ICF 0.85% 1.62% 2.31% 4.76% 7.06% 11.23% 7.26%

IGI Conservative Fund ‐ ICF BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Low


Monday to Friday

1.5%

25‐Apr‐08



absolute return of 0.85% against its last

month absolute return of 0.76%.



IGI Conservative Fund

INVESTMENT OBJECTIVE: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.



0.7% 0.0%

40.1%

0.0%

56.3%

2.8% 0.0%

BankDeposits

TFC's /Sukuk


41.1%

56.8%

2.7%

BankDeposits

TFC's /Sukuk


98

108

118

128

138

148

158

168

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

205.80 206.35 206.93208.62 207.83 206.83

210.32212.41

213.99215.36

216.81218.47

220.33

200.00

205.00

210.00

215.00

220.00

225.00

230.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 163.3 161.8 0.90%




IGI Islamic Fund ‐ IIF 0.90% 0.92% 1.68% 3.69% 7.10% 7.53% 4.44%

IGI Islamic Fund ‐ IIF BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Low


Monday to Friday

1.5%

25‐Apr‐08






Islamic Fixed Income

IGI Islamic Fund

INVESTMENT OBJECTIVE: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.



53.0%

26.0%

6.5%14.5%

BankDeposits

TFC's /Sukuk


58.1%

24.2%

5.6%12.1%

BankDeposits

TFC's /Sukuk


80

100

120

140

160

180

200

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

152.43153.15

153.84154.61

155.42156.41

157.45158.51

159.59160.56

161.76 161.81163.26

150.00

152.00

154.00

156.00

158.00

160.00

162.00

164.00

166.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 352.6 364.0 ‐3.13%




IGI FS Aggressive Fund ‐ IHA ‐3.13% ‐6.59% ‐7.42% ‐12.50% ‐13.70% ‐8.63% 14.29%

IGI FutureSecure Aggressive Fund ‐ IHA BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


High


Monday to Friday

1.5%

25‐Feb‐10







IGI Future Secure Adventurous Fund

INVESTMENT OBJECTIVE: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.



10.2%2.0%

30.8%

56.0%

1.0%

BankDeposits

TFC's /Sukuk


9.7%2.5%

32.2%

55.1%

0.6%

BankDeposits

TFC's /Sukuk


95

145

195

245

295

345

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

408.60404.53 401.60

410.56

400.68

371.22

402.99396.21 394.74

380.89377.50

364.02

352.62

350.00

360.00

370.00

380.00

390.00

400.00

410.00

420.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 237.6 240.3 ‐1.11%




IGI FS Balanced Fund ‐ IHB ‐1.11% ‐2.55% ‐2.57% ‐4.40% ‐4.58% 1.43% 9.59%

IGI FutureSecure Balanced Fund ‐ IHB BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Moderate


Monday to Friday

1.5%

18‐Feb‐10







IGI Future Secure Balanced Fund

INVESTMENT OBJECTIVE:

The investment objective of the Fund is to earn competitive return by investing in various asset classes/instruments based on the market outlook.



6.8%

17.1%

46.7%

28.9%

0.5%

BankDeposits

TFC's /Sukuk


6.3%

18.0%

47.6%

27.8%

0.3%

BankDeposits

TFC's /Sukuk


95

115

135

155

175

195

215

235

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

249.01247.47 246.45

250.35

246.38

235.64

248.53247.20

247.22

243.88 243.81

240.27237.60

230.00

235.00

240.00

245.00

250.00

255.00

260.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 173.0 171.5 0.85%




IGI FS Cautious Fund ‐ IHC 0.85% 1.59% 2.24% 4.72% 6.98% 10.82% 6.02%

IGI FutureSecure Cautious Fund ‐ IHC BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Low


Monday to Friday

1.5%

18‐Mar‐10







IGI Future Secure Cautious Fund

INVESTMENT OBJECTIVE: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.



0.8%

33.5%

62.8%

2.9% 0.1%

BankDeposits

TFC's /Sukuk


34.4%

62.9%

2.8%

BankDeposits

TFC's /Sukuk


95

105

115

125

135

145

155

165

175

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

161.69 162.04 162.44163.63 163.03 162.75

165.18166.70

168.08169.19

170.27171.52

172.97

158.00

160.00

162.00

164.00

166.00

168.00

170.00

172.00

174.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 217.8 216.3 0.68%



IGI FS Secure Fund ‐ IHS 0.68% 1.61% 1.56% 3.80% 5.55% 8.38% 8.65%

IGI FutureSecure Secure Fund ‐ IHS BID PRICE:



ASSET ALLOCATION:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Low


Monday to Friday

1.5%

18‐Mar‐10






Govt. Securiities

IGI Future Secure Fund


The objective of the fund is to generate a competitive return with minimum risk, by investing primarily in Government Securities.



6.3%

93.7%

BankDeposits

TFC's /Sukuk


5.9% 0.3%

93.8%

BankDeposits

TFC's /Sukuk


95

105

115

125

135

145

155

165

175

185

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

206.32207.48 207.35 206.77 207.14 207.67

209.79

211.62212.71

214.42 214.33

216.31217.77

204.00

206.00

208.00

210.00

212.00

214.00

216.00

218.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 202.8 200.8 1.00%




Sarmaya Pakistan Income ‐ SPI 1.00% 0.76% 1.20% 3.51% 7.53% 7.24% 8.14%

IGI Sarmaya Pakistan Income Fund ‐ SPI BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Low


Monday to Friday

22‐Jul‐10






Fixed Income

IGI Sarmaya Pakistan Income Fund

INVESTMENT OBJECTIVE: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.


Sarmaya Plus 1.5% / Sarmaya Premium 2.4%


64.4%

33.2%

2.4%

BankDeposits

TFC's /Sukuk


28.7%32.6% 31.6%

4.1% 3.0%

BankDeposits

TFC's /Sukuk


95

105

115

125

135

145

155

165

175

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

188.63189.89 190.79

192.15193.30

194.66195.97

197.49198.75

200.43 201.31 200.83202.84

180.00

185.00

190.00

195.00

200.00

205.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 278.3 293.2 ‐5.08%




Sarmaya Pakistan Stock ‐ SPS ‐5.08% ‐10.53% ‐12.63% ‐20.68% ‐22.57% ‐20.88% 12.80%

IGI Sarmaya Pakistan Stock Fund ‐ SPS BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


High


Monday to Friday

03‐Feb‐11






Equity

IGI Sarmaya Pakistan Stock Fund

INVESTMENT OBJECTIVE: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.




9.4%

88.5%

2.1%

BankDeposits

TFC's /Sukuk


12.1%

87.5%

0.4%

BankDeposits

TFC's /Sukuk


100

150

200

250

300

350

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

359.43352.83 349.24

358.12348.93

316.71

350.86

337.87 335.68

318.54311.03

293.21

278.30

260.00

280.00

300.00

320.00

340.00

360.00

380.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 176.0 175.2 0.48%

Net Assets Value (PKR '000) 0.60 147 ‐99.59%



Sarmaya United Growth ‐ SUG 0.48% 0.46% 0.99% 7.81% 19.86% 14.54% 6.49%

IGI Sarmaya United Growth Income Fund ‐ SUG BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Moderate


Monday to Friday

05‐Aug‐10






Fixed Income

IGI Sarmaya United Growth & Income Fund

INVESTMENT OBJECTIVE: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.




63.7%

16.3%6.7%

13.4%

BankDeposits

TFC's /Sukuk


100.0%

BankDeposits

TFC's /Sukuk


75

95

115

135

155

175

195

215

235

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

146.86 147.46 148.18 149.04 149.77

162.32 163.28

171.10172.91 174.31 175.22 175.19 176.03

140.00

145.00

150.00

155.00

160.00

165.00

170.00

175.00

180.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 319.2 340.6 ‐6.27%




Sarmaya United Stock ‐ SUS ‐6.27% ‐11.62% ‐13.22% ‐21.16% ‐22.80% ‐21.13% 13.78%

IGI United Stock Fund ‐ SUS BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


High


Monday to Friday

05‐Aug‐10






Equity

IGI United Stock Fund (Formerly: IGI Sarmaya United Stock Fund)

INVESTMENT OBJECTIVE: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.




7.2%

91.8%

1.0%

BankDeposits

TFC's /Sukuk


3.5%

96.5%

BankDeposits

TFC's /Sukuk


95

145

195

245

295

345

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

413.54 405.17 398.72411.32

400.02

363.89

404.93393.04

384.14367.85 361.20

340.58

319.24

300.00

350.00

400.00

450.00

500.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 162.5 160.7 1.12%




Sarmaya United Money ‐ SUI 1.12% 0.71% 1.40% 4.31% 9.59% 8.95% 7.14%

IGI Sarmaya United Money Market Fund ‐ SUI BID PRICE:



ASSET ALLOCATION *:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Low


Monday to Friday

19‐Jul‐12





Value of 100 Rupees invested since inception

Fixed Income

IGI Sarmaya United Money Market Fund

INVESTMENT OBJECTIVE: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




84.5%

15.5%

BankDeposits

TFC's /Sukuk


7.6%

72.4%

20.0%

BankDeposits

TFC's /Sukuk


100

105

110

115

120

125

130

135

140

145

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

148.23 149.20 150.19151.92

153.04154.43

155.74157.22

158.90160.21

161.31 160.65162.46

142.00

147.00

152.00

157.00

162.00

167.00


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 271.3 268.6 1.02%

Net Assets Value (PKR '000) 2,741,975 2,738,744 0.12%


IGI Sarmaya Secure ‐ SSE 1.02% 1.62% 1.15% 3.97% 7.37% 8.24% 11.68%

IGI Secure Fund ‐ SSE BID PRICE:



ASSET ALLOCATION:

Jul‐19 Jun‐19

FUND PERFORMANCE:


Low


Monday to Friday

22‐Jul‐10






Govt. Securiities

IGI Secure Fund (Formerly: IGI Sarmaya Secure Fund)


The objective of the fund is to generate a competitive return with minimum risk, by investing primarily in Government Securities.




5.1%

27.7%

67.2%

BankDeposits

TFC's /Sukuk


5.6%

25.9%

68.5%

BankDeposits

TFC's /Sukuk


100

120

140

160

180

200

220

240

Jul‐13

Jul‐14

Jul‐15

Jul‐16

Jul‐17

Jul‐18

Jul‐19

252.72254.89 255.26

256.91 257.16258.96

261.00

264.09 265.07

268.27267.03

268.60271.35

245.00

250.00

255.00

260.00

265.00

270.00

275.00


IGI Fund Management Report - igilife.com.pk

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