dawood capital management limiteddawood capital management limited treasure chest -january 2013...

DAWOOD CAPITAL MANAGEMENT LIMITED

TREASURE CHEST - JANUARY 2013

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 dependent 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.

Economic Review:

While World Bank revealed that Pakistan’s

economic growth rate will remain lowest in

the region as growth is expected to remain

3.8% during the FY 2012-13, the Federal

Bureau of Statics during the month gave

positive figures of food and textile exports for

the half year ended as compare to the

corresponding period of last year. After poor

gas supply during the last month of the last

year the Prime Minister first and then

President before the mid of the month took

notice and ordered uninterrupted gas supply

to the industries in Punjab. Political turmoil in

the capital city kept business closed until

government amicably resolved the issue.

State Bank set over 300 billion target for

agriculture disbursement. The WAPDA

Chairman has informed the National

Assembly that the U.S. has agreed in principle

to provide $ 3.5 bn for the construction of

Diamer- Bhasha Dam whose total project is

currently placed at between $ 13-14 bn.

Sensitive Price Index rose on weekly basis.

The depleting forex reserves during the

month will be a point of concern to deal in

future.

Stock Market Review:

Negative sentiments prevailed during the

earlier week of the month and market despite

ending up positive saw ups and down owing

to political turmoil in the country. The the

benchmark KSE-100 index gained 337.41

points, closing at 17,242.74 points. During the

month the sit-in protest and in addition the

Supreme Court arrest orders against the

Prime Minister in the Rental Power scam

case, created panic among investors which

triggered massive selling, pressing the index

to nosedive 3.2 percent in a single day.

Speculation of market crash similar to that of

2008 was turned down by pundits as termed

all due to political uncertainty. Market

recovered and retuned back in the green zone

and also close at all-time high level during the

last day of the month. Daily average volume

trading stood just below 100 million.

Money Market Review:

Government continued to inject sizeable

amount owing to tight liquidity. Moving

forward it seems very unlikely that the central

bank will reduce the interest rate and chances

are that the rate will remain where they are.

During the last T-Bill auction the yield went

lower and the weighted average yield of 3M,

6M and 12M stood at 9.0922%, 9.1340% and

9.2354% respectively.

PREMIER SAVINGS PLANS FOR INDIVIDUAL INVESTORS FIND US ON

PAKISTAN ECONOMIC UPDATES

INVESTMENT COMMITTEE

Tara Uzra Dawood Chief Investment Officer

Syed Kabiruddin Member

Muhammad Abbas Fund Manager Fixed Income

Muhammad Aslam Assistant Fund Manager Equity

Zeeshan Swalaheen Research Associate

CUTT-OFF TIMINGS OF FUNDS

Business Day Business Hours Cut-Off Timings

DIF

Monday - Friday 9:00 AM - 5:00 PM 9:00 AM - 5:00 PM

Saturday 9:00 AM - 1:30 PM 9:00 AM - 1:30 PM

DIF-S Monday - Friday 9:00 AM - 5:00 PM 9:00 AM - 12:00 PM

Saturday 9:00 AM - 1:30 PM 9:00 AM - 12:00 PM

REGISTERED ADDRESS

5B Lakson Square Building No. 1, Sarwar Shaheed Road, Karachi-74200, Pakistan

UAN: (92 21) 111-DAWOOD (329-663) Tel: (92 21) 35621001-6 Fax: (92 21) 35621010

Email: [email protected]

URL: www.edawood.com

STOCK MARKET STATISTICS

Indices Jan-13 Dec-12 Return Avg. Vol. Avg. Val. Jan-13 Dec-12

KSE-100 17,242.74 17,172.04 0.41% 104.84 3.47 Avg. Vol. 160.44 M 164.62 M

KSE-30 14,084.85 14,044.29 0.29% 47.48 2.84 Mkt. Cap. PKR 4.33 T PKR 4.24 T

KMI-30 29,695.20 29,622.70 0.24% 30.92 1.96 FIPI $ 15.42 M $ 0.83 M

All-Shares 12,207.26 12,092.49 0.95% 160.44 4.06 6M KIBOR 9.44% 9.44%

http://www.ladiesfund.com/

http://www.fundbaby.com/

http://www.facebook.com/dawoodFunds

http://www.twitter.com/dawoodfunds

http://www.linkedin.com/company/673167?trk=tyah

http://www.youtube.com/dawoodfunds

FUND MANAGER’S COMMENTS

During the month, Fund generated the return of 4.64% pa as compared to its benchmark return of 9.45%. It was due to the defaults of debt issuers on its due payments and provisions as per rules. DIF is still a goldmine for those who want to earn capital gains on investments.

DAWOOD INCOME FUND TREASURE CHEST - JANUARY 2013

FUND STATISTICS

Name of Fund Dawood Income Fund

Structure Open End

Industry Category Income

Benchmark Avg. 6 Month KIBOR

Trustee & Custodian MCB Financial Services Limited

Auditor Ernst & Young Ford Rhodes Sidat Hyder

Registrar Noble Computer Services (Pvt.) Ltd.

Legal Advisor Bawaney & Partners

Launch Date 19-May-2003

Listing KSE

Duration Perpetual

Management Fee 1.00% per annum

Sales Load 1% Front End

Pricing Mechanism Forward

Leverage Nil

Risk Profile Medium

AMC Rating AM3- by PACRA

Stability Rating A+(f) by PACRA

PERFORMANCE STATISTICS

Net Assets PKR 368.42 M

NAV PKR 70.4983

Wt. Avg. Time To Maturity 0.16 Years

Standard Deviation 2.08%

Sharpe Ratio (0.52)

Information Ratio (0.46)

VAMI 0.99

RETURNS Jan-2013 Dec-2012

DIF -4.64% 4.97%

Benchmark 9.36% 9.45%

Alpha -14.00% -4.48%

HISTORIC RETURNS

1 Month 3 Months 6 Months YTD

-4.64% -2.59% 5.55% -3.09%

INVESTMENT OBJECTIVE

To preserve the investor’s capital while providing a return greater than that offered by other investments of similar risk profile through investments in a portfolio of money market instruments.

ASSET MIX Jan-2013 Dec-2012

TFC / Sukuk 9.54% 10.78%

T-Bills 84.16% 79.45%

Cash 5.08% 8.54%

Others 1.22% 1.23%

CREDIT QUALITY Jan-2013 Dec-2012

AAA 84.16% 79.45%

A- 6.14% 6.10%

BBB- 1.26% 2.50%

< BBB- 0.67% 0.73%

Unrated 1.46% 1.46%

DETAILS OF NON COMPLIANT INVESTMENT

Name of Investment Type Value Before Provision

Provision (if any)

Value After Provision

% Net Assets % Gross Assets

Trust Investment Bank Limited TFC 18,742,500 14,056,875 4,685,625 1.27% 1.26%

Escort Investment Bank Limited TFC 368,380 - 368,380 0.10% 0.10%

Pace Pakistan Limited TFC 9,089,080 9,089,080 - 0.00% 0.00%

Dewan Cement Limited TFC 150,000,000 150,000,000 - 0.00% 0.00%

Invest Capital and Investment Bank Limited TFC 30,000,000 30,000,000 - 0.00% 0.00%

Eden Housing Limited SUKUK 7,149,186 5,004,430 2,144,756 0.58% 0.58%

New Allied Electronics Industries Limited TFC 25,433,190 25,433,190 - 0.00% 0.00%

Kohat Cement Company Limited SUKUK 5,452,301 - 5,452,301 1.48% 1.46%

Trust Investment Bank Limited COI 8,041,359 8,041,359 - 0.00% 0.00%

TOTAL 254,275,996 241,624,934 12,651,061 3.43% 3.39%

DIF(DMMF) TOP TEN DEBT SECURITIES

INVESTEE COMPANY TYPE %

Avari Hotels (Pvt) Limited TFC 6.22%

Kohat Cement Company Limited SUKUK 1.48%

Trust Investment Bank Limited TFC 1.27%

Eden Housing Limited SUKUK 0.58%

Escort Investment Bank Limited TFC 0.10%

TOTAL 9.65%

WWF DISCLOSURE

The Scheme has maintained provisions against Workers’ Welfare Fund’s liability to the tune of Rs. 3.47M, if the same were not made the NAV per unit/return YTD of the Scheme would be higher by Rs. 0.66/1.55%. For details investors are advised to read the Note 8 of the latest Financial Statements of the Scheme.

DAWOOD ISLAMIC FUND TREASURE CHEST - JANUARY 2013

FUND STATISTICS

Name of Fund Dawood Islamic Fund

Structure Open End

Industry Category Islamic Asset Allocation

Benchmark 25% KMI-30 + 75% Savings Rate

Shariah Advisor Mufti Zeeshan Abdul Aziz

Trustee & Custodian CDC Pakistan Limited

Auditor Ernst & Young Ford Rhodes Sidat Hyder

Registrar Noble Computer Services (Pvt) Ltd.


Launch Date 14-Jul-2007

Listing KSE

Duration Perpetual


Sales Load 1.50% Front End


Risk Profile Medium



Net Assets PKR 117.22 Mn

NAV PKR 95.3148



Sharpe Ratio (0.08)

Sortino Ratio (0.10)


VAMI 1.01


DIF-S 0.75% 3.10%


Alpha -0.05% 2.26%

HISTORICAL RETURNS


0.75% 4.78% 9.36% 1.44%


To provide Riba-Free "Halal Munafa!" to investors by investing maximum 25% of net assets in equities, while the high percentage of non-equity income provides stability.


Cash & Eq. 97.17% 95.99%

Others 2.83% 4.01%



Provision (if any)


% of Net Assets

% Gross Assets

Pak Elektron Limited SUKUK

17,280,105 17,280,105

- 0.00% 0.00%

Maple Leaf Cement Factory Limited SUKUK

45,630,387 45,630,387

- 0.00% 0.00%

Maple Leaf Cement Factory Limited SUKUK

613,335 613,335

- 0.00% 0.00%

New Allied Electronics Industries Limited SUKUK

5,027,500 5,027,500

- 0.00% 0.00%

TOTAL 68,551,327 68,551,327 - 0.00% 0.00%


During the month, Fund generated a return of 0.75% as compared to its benchmark which produced a return of 0.80%, hence, just slightly below by .05%. The fund will exceed the benchmark if there are reversal in future. Now DIF-S is fully liquid and still a goldmine for those who want to earn capital gains on investments.

WWF DISCLOSURE


WWF DISCLOSURE


FIRST DAWOOD MUTUAL FUND

TREASURE CHEST - JANUARY 2013

FUND STATISTICS

Name of Fund First Dawood Mutual Fund

Structure Closed End

Industry Category Balanced

Benchmark 50% KSE-100 + 50% Avg. 6 M KIBOR

Trustee & Custodian CDC Pakistan Limited

Auditor Ernst & Young Ford Rhodes

Registrar FD Registrar Services Pvt. Limited


Launch Date 23-Mar-2005

Listing KSE



Risk Profile Medium - High



Net Assets PKR 559.29 M

NAV PKR 9.63



Sharpe Ratio 0.39

Sortino Ratio 0.67


VAMI 1.15


FDMF -2.33% 0.31%


Alpha -3.73% -1.09%

HISTORICAL RETURNS


-2.33% 0.10% 10.18% 12.76%


To preserve the investor’s capital while providing a return greater than that offered by other investments of similar risk profile through investments in a mixed portfolio of money market, fixed income and stocks.


Equities 17.57% 23.33%

GoP Ijarah 51.82% 50.63%

T-Bills 6.56% 6.36%

TFC/Sukuk 4.81% 5.11%

Cash & Eq. 16.81% 12.53%

Others 2.43% 2.04%

CREDIT QUALITY Jan-2013 Dec-2012

AAA 58.33% 56.99%

A- 0.37% 0.36%

BBB- 0.41% 0.81%

<BBB- 3.26% 3.20%

Unrated 0.76% 0.74%

EQUITY ALLOCATION Jan-2013 Dec-2012

Life Insurance 10.41% 13.37%

Pharma & Bio Tech 5.38% 5.27%

Equity Invest. Instruments 0.68% 0.60%

Non-Life Insurance 0.44% 1.59%

Financial Services 0.42% 0.41%

Beverages 0.12% 0.25%

Fixed Line Telecom 0.08% 0.00%

Construction & Materials 0.04% 0.25%

Oil & Gas 0.00% 0.65%

Chemicals 0.00% 0.47%

Commercial Banks 0.00% 0.24%

Personal Goods 0.00% 0.22%

FDMF TOP TEN DEBT SECURITIES

Investee Company Type %

Gop Ijarah SUKUK 52.33%

B.R.R. Guardian Modaraba SUKUK 3.16%

Kohat Cement Company Limited SUKUK 0.42%

Trust Investment Bank Limited TFC 0.77%

Avari Hotels (Pvt) Limited TFC 0.36%

Escort Investment Bank Limited TFC 0.13%

TOTAL 57.18%


During the month, Fund generated a return of -2.33% against 1.39% return on its benchmark, hence, the fund underperformed. In anticipation of positive market sentiments, FDMF has taken new exposures with cautious approach.



Provision (if any)


% Net Assets % Gross Assets

Trust Investment Bank Limited TFC 9,371,250 7,028,438 2,342,813 0.42% 0.41%

Escort Investment Bank Limited TFC 736,760 0 736,760 0.13% 0.13%

Maple Leaf Cement Factory Limited SUKUK 51,344,946 51,344,946 0 0.00% 0.00%

Maple Leaf Cement Factory Limited SUKUK 756,668 756,668 0 0.00% 0.00%

Pace Pakistan Limited TFC 9,988,000 9,988,000 0 0.00% 0.00%

B.R.R. Guardian Modaraba SUKUK 17,695,313 0 17,695,313 3.16% 3.13%

Amtex Limited SUKUK 22,500,000 22,500,000 0 0.00% 0.00%

New Allied Electronics Industries Limited TFC 7,222,749 7,222,749 0 0.00% 0.00%

Kohat Cement Company Limited SUKUK 4,303,316 0 4,303,316 0.77% 0.76%

TOTAL 123,919,001 98,840,801 25,078,201 4.48% 4.44%

dawood capital management limiteddawood capital management limited treasure chest -january 2013...

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