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IGI Life Insurance Limited

IGI|Life

Funds Performance ReportOctober 2016

July 2015

Source: SBP, PBS, Bloomberg

FUND MANAGER REPORT

For the month of October 2016

Macro Review and Outlook:

Equity Market Review and Outlook:

CPI Inflation

Monthly Inflation creeped to print +4.2%YoY growth: For the month of Oct-16, general inflation level as measured by CPI inched up by+4.2%YoY (+0.8%MoM) compared to previous month +3.9%YoY (+0.2%MoM). Higher inflation during the month was led by increase in housing and utilities as property rents witnessed quarterly revisions, moving up by +4.9%YoY (+1.4%MoM) along with food index up by +3.6%YoY (+0.9%MoM). Core inflation clocked in at +5.2%YoY (+0.9%MoM) compared to previous month +4.8% (+0.3%MoM). Going forward, we expect the CPI to moderate given government recent decision of withholding price increase for POL products. Exports remain shy, upcoming ‘Export Package’ may bring along awaited benefits: On external front, current account balance continues to deteriorate, with deficit extending to USD 1.37bn for 1QFY17 compared to USD 0.58bn in 1QFY16. For Sep-16 month alone Current account recorded a deficit of USD 0.16bn compared to a surplus of USD 0. 30bn in Sep-15. Country’s import showed a moderate growth of +1%YoY in 1QFY17, to USD 10.2bn as oil prices recover. Export decline by 5%YoY with largest decline in agricultural sector as products remain uncompetitive due benign recovery in Textile product prices and stronger rupee (PKR). Upcoming news of Government led special Export Packages particularly targeted towards Textile sector, will bode well for overall export oriented sectors. FX Reserves, continue to pile up extending support to PKR: Nevertheless, foreign exchange reserves stand at USD 23.6bn by Sep-16 end, an all-time high, extending support to PKR against USD. With current liquid reserve position of USD 18.5bn Pakistan import coverage stands just under ~6months. Looking ahead, with major uni/multi-lateral funding expected we expect FX reserves to remain stable, while weaker USD could further extend support to PKR. Tax Collection slips while Sovereign Rating Upgraded by S&P: On fiscal front, provisionally tax collection stood at PKR 860bn during 4MFY17 (+4.41%YoY) against a target of PKR 942bn. Nevertheless, international rating agency ‘S&P Global Ratings’ upgraded Pakistan Sovereign rating from ‘B- ‘to ‘B’ with a ‘Stable outlook’. The agency highlighted country’s growth prospects under on-going CPEC projects.

External Account

KSE 100Monthly Performance marred by Political Noise: For the month of Oct-16, the benchmark KSE100 index shaved off nearly ~650 points (down by 2.1%MoM), as political tension garnered investors’ attention. Positive momentum earlier gathered in Cements, Autos, Telecom and E&Ps was reversed during the month. Trading volumes remained thin recording decline of 20%MoM to average 449mn shares compared to record high level of 590mn witnessed in Sep-16. Nevertheless, despite a weaker monthly performance CY16 to date returns still stand tall at +20.1% compared to MSCI FM index (down by 2.0%) and Asia region (average return +9.7%). Nevertheless, despite a weaker monthly performance CY16 to date returns still stand tall at +20.1% compared to MSCI FM index (down by 2.0%) and Asia region (average return +9.7%). With MSCI emerging status timeline closing up, we expect blue chip stocks (in particularly those included in Pakistan MSCI EM index) to remain in limelight. As of Oct-16, Pakistan trades at an attractive CY17 forward P/E multiple of 8.6x compared to MSCI Emerging Market P/E of 11.2x. Key global and domestic news during the month: � Opposition party Tehreek-e-Insaf (PTI) leader Imran Khan finally called-off its sit-in, following formation of judicial commission by Supreme Court (apex) to review the Panama Papers leaks� S&P Global Ratings’ upgraded Pakistan Sovereign rating from ‘B- ‘to ‘B’ with a ‘Stable outlook’. � Russian President Vladimir Putin non-OPEC member Russia was ready to work with the cartel in imposing measures to limit oil production; causing a short-term surge in oil price.� Pound Sterling (GBP) tumbles to 31-year low as concerns over Brexit were compounded by the renewed strength of the dollar on resurgent U.S. interest rate hike expectations. � Global market keenly awaits US Presidential Election, with candidate Hillary Clinton of Democratic Party being favoured by market

Markets remain well-liquid, yield curve unchanged: Overall money market remained well-liquid owing to recent maturity of PIBs which kept O/N rates well below the ceiling rate. Viewing from auction results, banks and institutions remained cautious jacking up yields, subsequently the government showed less interest in borrowing at higher cost causing Central bank to accept PKR 156bn against target of PKR 450bn in the two treasury bill auction held during the month. By the month end, yields for T-bills settled at 5.86%/5.90%/5.91% for 3/ 6/ 12 months respectively. Similarly, SBP scrapped PIB auction owing to higher bids received at higher yields.

Yield Curve

Money Market Review and Outlook:

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date

Oct‐16 Sep‐16 MoM %

NAV per Unit (PKR) 282.1 284.1 ‐0.71%

Net Assets Value (PKR '000) 299,052.9 306,085.7 ‐2.30%

* 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 ‐0.71% 1.01% 1.66% 11.14% 13.92% 17.92% 12.94%

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 *:

Oct‐16 Sep‐16

FUND PERFORMANCE:

Absolute Return Annualized Return

Note: Fund returns are gross of management fee.

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 ‐0.71% against its last

month absolute return of 1.73%.

Value of 100 Rupees invested 5 years ago

Fixed Income / Equity

IGI Aggressive Fund‐IAF


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:

234.77 247.64

239.96 245.37 241.05 236.55 246.25

253.83 259.76 266.25 277.51 279.30 284.13 282.12

150.00

170.00

190.00

210.00

230.00

250.00

270.00

290.00

310.00

Sep‐15 Oct‐15 Nov‐15 Dec‐15 Jan‐16 Feb‐16 Mar‐16 Apr‐16 May‐16 Jun‐16 Jul‐16 Aug‐16 Sep‐16 Oct‐16

Cash21%

TFC's / Sukuk4%

T‐Bills2%

TDR3%

PIB's4%

Stock62%

DFI & Others4%

Cash25% TFC's /

Sukuk3%T‐Bills

3%TDR1%PIB's

2%

Stock62%

DFI & Others4%

291

98

148

198

248

298

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 252.01 252.30 ‐0.11%

Net Assets Value (PKR '000) 354,567 362,130 ‐2.09%



IGI Balanced Fund ‐ IBF ‐0.11% 1.05% 1.71% 7.90% 10.65% 13.12% 11.45%

IGI Balanced Fund ‐ IBF BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Moderate


Monday to Friday

1.5%

25‐Apr‐08







IGI Balanced Fund‐IBF


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.


219.19

227.76 223.85

227.11 225.36 223.58 229.29

233.57 237.43

241.22

247.77 249.40 252.30 252.01

200.00

210.00

220.00

230.00

240.00

250.00

260.00


Cash17% TFC's /

Sukuk9%

T‐Bills9%

TDR11%

PIB's5%

Stock40%

DFI & Others9%Cash

16% TFC's / Sukuk8%

T‐Bills12%

TDR12%

PIB's5%

Stock40%

DFI & Others7%

228

100

120

140

160

180

200

220

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 188.61 188.14 0.25%




IGI Conservative Fund ‐ ICF 0.25% 0.65% 0.93% 2.82% 5.49% 5.69% 7.73%

IGI Conservative Fund ‐ ICF BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Low


Monday to Friday

1.5%

25‐Apr‐08



absolute return of 0.25% against its last



Fixed Income

IGI Conservative Fund ‐ ICF


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.


177.96 178.79 179.20

180.05 181.12

182.06 183.01 183.43

184.64 185.44

186.87 187.38 188.14 188.61

172.00

174.00

176.00

178.00

180.00

182.00

184.00

186.00

188.00

190.00


Cash51%

TFC's / Sukuk10%

T‐Bills9%

TDR10%

PIB's13%

DFI & Others7%

Cash53%

TFC's / Sukuk9%

T‐Bills11%

TDR10%

PIB's12%

DFI & Others5%

151

100

110

120

130

140

150

160

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 141.06 140.39 0.47%

Net Assets Value (PKR '000) 178,635 175,541 1.76%



IGI Islamic Fund ‐ IIF 0.47% 0.89% 1.39% 2.80% 5.76% 5.80% 4.12%

IGI Islamic Fund ‐ IIF BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Low


Monday to Friday

1.5%

25‐Apr‐08






Islamic Fixed Income

IGI Islamic Fund ‐ IIF


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.


132.22 133.38 133.84

134.54 135.14 135.94

136.76 137.21 137.79 138.41 139.13

139.81 140.39 141.06

126.00

128.00

130.00

132.00

134.00

136.00

138.00

140.00

142.00


Cash77%

TFC's / Sukuk7%

TDR4%

PIB's11%

DFI & Others1%

Cash68%

TFC's / Sukuk12%

TDR13%

PIB's2%

DFI & Others5%

149

80

90

100

110

120

130

140

150

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 378.52 381.22 ‐0.71%




IGI FS Aggressive Fund ‐ IHA ‐0.71% 0.94% 1.62% 11.93% 19.45% 21.15% 22.02%

IGI FutureSecure Aggressive Fund ‐ IHA BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



High


Monday to Friday

1.5%

25‐Feb‐10







IGI FutureSecure Adventurous Fund‐ IHA


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.


300.93 316.89 308.83 321.68 318.61 315.30 328.30 338.19 346.08 356.48 372.48 375.01 381.22 378.52

‐

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00


Cash18%

TFC's / Sukuk3%

T‐Bills5%

PIB's8%

Stock62%

DFI & Others3%Cash

17%TFC's / Sukuk2%T‐Bills11%

PIB's5%

Stock61%

DFI & Others2%

307

95

145

195

245

295

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 227.98 228.20 ‐0.10%




IGI FS Balanced Fund ‐ IHB ‐0.10% 1.02% 1.63% 8.46% 14.18% 15.35% 13.07%

IGI FutureSecure Balanced Fund ‐ IHB BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Moderate


Monday to Friday

1.5%

18‐Feb‐10







IGI FutureSecure Balanced Fund‐ IHB


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.


194.18 199.66 197.48

202.06 202.07 200.41 206.14

210.20 213.90

217.97 224.32 225.68 228.20 227.98

170.00

180.00

190.00

200.00

210.00

220.00

230.00

240.00


Cash23%

T‐Bills21%

PIB's12%

Stock40%

DFI & Others1%

Cash14%

T‐Bills28%

PIB's16%

Stock39%

DFI & Others1%

215

70

90

110

130

150

170

190

210

230

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 147.17 146.64 0.36%




IGI FS Cautious Fund ‐ IHC 0.36% 0.78% 1.15% 2.86% 5.20% 5.20% 6.00%

IGI FutureSecure Cautious Fund ‐ IHC BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Low


Monday to Friday

1.5%

18‐Mar‐10






Fixed Income

IGI FutureSecure Cautious Fund‐ IHC


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.


139.32 139.90 140.46

141.05 141.61 142.13 142.94 143.07

143.97 144.60

145.51 146.03 146.64 147.17

134.00

136.00

138.00

140.00

142.00

144.00

146.00

148.00


Cash46%

TFC's / Sukuk9%

T‐Bills6%

TDR14%

PIB's16%

DFI & Others9%

Cash42%

TFC's / Sukuk7%

T‐Bills18%

TDR16%

PIB's10%

DFI & Others7%

153

70

90

110

130

150

Oct‐11 Oct‐12 Oct‐13 Oct‐14 Oct‐15 Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 189.31 188.93 0.20%



IGI FS Secure Fund ‐ IHS 0.20% 0.41% 0.57% 4.73% 10.77% 12.00% 10.10%

IGI FutureSecure Secure Fund ‐ IHS BID PRICE:



ASSET ALLOCATION:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Low


Monday to Friday

1.5%

18‐Mar‐10






Govt. Securiities

IGI FutureSecure Fund‐ IHS



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


167.63 170.91 169.68

172.06 175.76

179.35 180.88 180.76 183.93

187.00 188.24 188.55 188.93 189.31

155.00

160.00

165.00

170.00

175.00

180.00

185.00

190.00

195.00


Cash11%

PIB's89%

Cash12%

PIB's88%

168

100

110

120

130

140

150

160

170

180

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 169.19 168.37 0.49%

Net Assets Value (PKR '000) 2,878 2,614 10.11%



Sarmaya Pakistan Income ‐ SPI 0.49% 1.05% 1.36% 2.68% 4.74% 5.12% 8.73%

IGI Sarmaya Pakistan Income Fund ‐ SPI BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Low


Monday to Friday

22‐Jul‐10






Fixed Income

IGI Sarmaya Pakistan Income Fund ‐ SPI


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%

160.25 161.53 161.59

162.26 163.08

163.84 164.55 164.78

165.67 166.24 166.92 167.43

168.37 169.19

154.00

156.00

158.00

160.00

162.00

164.00

166.00

168.00

170.00


Cash30%

TFC's / Sukuk24%

T‐Bills3%

PIB's7%

DFI & Others24%Cash

19%

TFC's / Sukuk25%

T‐Bills1%

PIB's5%

DFI & Others36%

155

70

90

110

130

150

170

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 133.26 133.31 ‐0.03%




Sarmaya United Growth ‐ SUG ‐0.03% 0.16% 0.25% 5.93% 11.21% 11.95% 4.70%

IGI Sarmaya United Growth Income Fund ‐ SUG BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Moderate


Monday to Friday

05‐Aug‐10






Fixed Income

IGI Sarmaya United Growth & Income Fund ‐ SUG


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.



117.35 119.83 120.39 121.16 121.87

123.80 125.65 125.81

127.73 129.04

132.92 133.04 133.31 133.26

105.00

110.00

115.00

120.00

125.00

130.00

135.00


Cash26%

TFC's / Sukuk20%

T‐Bills18%

PIB's31%

DFI & Others5%

Cash53%

TFC's / Sukuk12%

T‐Bills19%

PIB's14%

DFI & Others2%

139

75

85

95

105

115

125

135

145

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 339.21 340.13 ‐0.27%




Sarmaya Pakistan Stock ‐ SPS ‐0.27% ‐0.07% 1.64% 16.13% 11.34% 16.55% 23.68%

IGI Sarmaya Pakistan Stock Fund ‐ SPS BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



High


Monday to Friday

03‐Feb‐11






Equity

IGI Sarmaya Pakistan Stock Fund ‐ SPS


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.



281.82 304.67 292.45 297.99 288.95

264.84 278.67 292.11 307.50 313.41 333.72 339.45 340.13 339.21

‐

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00


Cash4.00% T‐Bills

6.30%

Stock85.20%

DFI & Others4.50%

Cash6%

T‐Bills1%

Stock90%

DFI & Others3%

336

100

150

200

250

300

350


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 397.35 405.77 ‐2.08%




Sarmaya United Stock ‐ SUS ‐2.08% ‐0.36% ‐0.61% 13.99% 16.56% 17.65% 24.72%

IGI Sarmaya United Stock Fund ‐ SUS BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



High


Monday to Friday

05‐Aug‐10






Equity

IGI Sarmaya United Stock Fund ‐ SUS


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.



322.11 340.90 330.87 346.29 341.66

319.61 336.17 348.59 356.46 375.68

399.79 398.77 405.77 397.35

‐

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00


Cash8%

Stock87%

DFI & Others5%

Cash8%

Stock87%

DFI & Others5%

310

95

145

195

245

295

345


Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 229.17 228.58 0.25%

Net Assets Value (PKR '000) 5,842,644 5,653,940 3.34%


IGI Sarmaya Secure ‐ SSE 0.25% 0.60% 0.77% 4.09% 8.97% 10.39% 14.10%

IGI Sarmaya Secure Fund ‐ SSE BID PRICE:



ASSET ALLOCATION:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Low


Monday to Friday

22‐Jul‐10






Govt. Securiities

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.



206.59 210.30 209.30 210.86

214.70 218.29

219.98 220.16 223.03

225.83 227.41 227.79 228.58 229.17

195.00

200.00

205.00

210.00

215.00

220.00

225.00

230.00

235.00


211

100

120

140

160

180

200

220

Oct‐11

Oct‐12

Oct‐13

Oct‐14

Oct‐15

Oct‐16

Cash7%

PIB's93%

Cash5%

PIB's95%

Strategy

Risk Profile

Pricing Mechanism

Pricing Days

Management Fee

Launch Date


NAV per Unit (PKR) 134.61 134.09 0.38%




Sarmaya United Money ‐ SUI 0.38% 0.80% 1.24% 2.59% 5.05% 5.01% 7.17%

IGI Sarmaya United Money Market Fund ‐ SUI BID PRICE:



ASSET ALLOCATION *:

Oct‐16 Sep‐16

FUND PERFORMANCE:



Low


Monday to Friday

19‐Jul‐12





Value of 100 Rupees invested since inception

Fixed Income

IGI Sarmaya United Money Market Fund ‐ SUI


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



127.59 128.14

128.65 129.20

129.76 130.27

130.77 131.21 131.82

132.36 132.95

133.54 134.09

134.61

124.00

126.00

128.00

130.00

132.00

134.00

136.00


Cash48%

T‐Bills51%

DFI & Others1%

Cash40%

T‐Bills59%

DFI & Others1%

124

100

105

110

115

120

125

Oct‐13

Oct‐14

Oct‐15

Oct‐16

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