tpl life · however, automobile assembler, power generation & distribution and chemicals...
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June 2017
October 2019
Fund Performance Report
TPL LIFE
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July 2015
2 of 7
October 2019
FUND MANAGER REPORT
Yield Curve
Macro Review and Outlook:
The KSE-100 index continued its upward momentum in October 2019 closing at 34,204 index
level (+6.60% MoM). The positive performance may be attributed to consistent decline in the
fixed income yields indicating rate cut going forward, improving macroeconomic
fundamentals as current account deficit for 1QFY20 fell by 64% compared to the same period
last year and FATF decision to keep Pakistan in Grey List till Feb 2020.
Sectors that outperformed the benchmark during the period were Engineering,
Pharmaceuticals, Cement and Oil and Gas Marketing Companies. However, Automobile
Assembler, Power Generation & Distribution and Chemicals underperformed the benchmark
on the back of weak demand and high bank financing rates.
It is believed that expectations of rate cut will lead Pakistan equities to gain further traction.
Currently, the market is trading at a P.E multiple of 6.5x and has a dividend yield of 8.0%.
During the month of October 2019, SBP conducted two T-bill auctions with a cumulative
target of PKR 1,600 billion against the maturity of PKR 2,887 billion. The total accepted
amount was PKR 1,238 billion out of which PKR 466 billion was for 3M tenor (excluding non-
competitive bids). The cut-off yields were 13.2981%, 13.2999% and 12.7900% for the 3M, 6M
and 12M tenor respectively.
SBP conducted Fixed PIB auction with a target of PKR 100 billion against the maturity of PKR
20 billion. Cumulative participation of PKR 367 billion was received in 3Y, 5Y, 10Y & 20Y
tenors. The government accepted PKR 40 billion, PKR 30 billion and PKR 31 billion in the 3Y, 5Y
and 10Y tenors respectively while rejected all the bids in 20Y tenor. The cut off yields were
11.80%, 11.60% and 11.35% leading to an inverted yield curve. In the floating PIB auction the
government accepted PKR 54 billion and set spread at a cut-off of 31bps over the benchmark.
Going forward, we believe that the next few months are quite crucial for Pakistan’s economy
as the government is considering several options to manage its fiscal account. However, the
upcoming inflation numbers and monetary policy decision in November will act as a catalyst
in setting out the direction of the market.
Equity Market Review and Outlook:
CPI for October 2019 clocked in at 11.04% YoY under new base compared to 11.08% under the
old methodology. The increase was mainly due to increase in food and petrol prices and rise
in utility tariffs. On the other hand, The Current Account Deficit (CAD) for the month of
September 2019 narrowed further taking 1QFY20 cumulative deficit to USD 1.50 billion
compared to USD 4.30 billion during the same period last year. The steep decline in CAD was
primarily driven by significant import compression due to slowdown in the economy.
Moreover, FATF on October 18th, 2019 announced to keep Pakistan in the grey list till
February 2020. However, large scale manufacturing remained subdued in 2MFY20 taking
relevant index down by 6.04% YoY. The shrinkage in demand was witnessed across most
sectors with automobiles, pharmaceuticals and food, beverages and tobacco leading the
decline.
Going forward, results of ongoing IMF review of 1QFY20, upcoming monetary policy,
measures to meet FATF requirements and fiscal management will remain in focus.
CPI Inflation
Source: PBS
KSE 100 Performance
Source: PSX
Money Market Review and Outlook:
-
2.00
4.00
6.00
8.00
10.00
12.00
14.00
CPI Inflation
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Strategy
Risk Profile
Pricing Mechanism
Pricing Days
Management Fee
Launch Date
Bid Offer Spread 5%
Oct-19 Sep-19 MoM %
NAV per Unit (PKR) 73.42 69.58 5.52%
Net Assets Value (PKR '000) 8,973 8,410 6.69%
30 Days 60 Days 90 Days 180 Days 365 Days YTD Since Inception
TPL Progressive Fund - TPF 7.02% 15.67% 7.85% -3.37% -17.04% -4.31% -25.08%
* Asset Allocation has been developed by looking through the underlying assets of mutual fund investments.
June 2017
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TPL Progressive Fund - TPF
INVESTMENT OBJECTIVE:This is an investment fund designed on an aggressive investment strategy to provide higher returns in long term by investing primarily in equities along with
debt / money market instruments.
FUND INFORMATION: RETURNS:
October 2019
Note: Fund returns are gross of management fee.
ASSETS UNDER MANAGEMENT:
Absolute Return
TPL Progressive Fund - TPF BID PRICE:
During the month the fund showed an absolute
return of 5.52% against its last month return of
8.20% in line with equity market performance.
Value of 100 Rupees invested since inception
Aggressive
High
Daily Forward Pricing
Monday to Friday
1.5%
30-Oct-16
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-19 Sep-19
FUND PERFORMANCE:
62.00
65.00
68.00
71.00
74.00
77.00
80.00
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
Unit Price 75.95 72.06 69.03 64.30 69.58 73.42
Deposits6%
TDR4%
PIB's22%
Stock66%
DFI & Others
2%
Deposits5%
TDR4%
PIB's21%Stock
67%
DFI & Others
3%
73.42
-
20.00
40.00
60.00
80.00
100.00
120.00
Since Inception Oct-19
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Strategy
Risk Profile
Pricing Mechanism
Pricing Days
Management Fee
Launch Date
Bid Offer Spread 5%
Oct-19 Sep-19 MoM %
NAV per Unit (PKR) 103.49 100.02 3.47%
Net Assets Value (PKR '000) 8,577 8,469 1.28%
30 Days 60 Days 90 Days 180 Days 365 Days YTD Since Inception
TPL Steady Fund - TSF 4.97% 9.04% 8.75% 7.01% 5.38% 8.85% 4.99%
* Asset Allocation has been developed by looking through the underlying assets of mutual fund investments.
June 2017
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Balanced
Moderate
Daily Forward Pricing
Monday to Friday
1.5%
TPL Steady Fund - TSF
INVESTMENT OBJECTIVE:
The primary investment objective of this fund is to provide stable returns by balancing the investment in equities and debt / money market instruments.
FUND INFORMATION: RETURNS:
October 2019
Note: Fund returns are gross of management fee.
ASSETS UNDER MANAGEMENT:
Absolute Return
TPL Steady Fund - TSF BID PRICE:
During the month the fund showed an absolute
return of 3.47% against its last month return of
3.94% in line with equity market performance.
Value of 100 Rupees invested since inception30-Oct-16
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-19 Sep-19
FUND PERFORMANCE:
93.00
95.00
97.00
99.00
101.00
103.00
105.00
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
Unit Price 98.34 96.70 96.50 96.23 100.02 103.49
Deposits1%
TDR5%
PIB's74%
Stock19%
DFI & Others
1%
103.49
90.00
92.00
94.00
96.00
98.00
100.00
102.00
104.00
Since Inception Oct-19
Deposits1%
TDR5%
PIB's73%
Stock20%
DFI & Others
1%
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Strategy
Risk Profile
Pricing Mechanism
Pricing Days
Management Fee
Launch Date
Bid Offer Spread 5%
Oct-19 Sep-19 MoM %
NAV per Unit (PKR) 123.68 120.61 2.55%
Net Assets Value (PKR '000) 5,506 7,027 -21.65%
30 Days 60 Days 90 Days 180 Days 365 Days YTD Since Inception
TPL Reliance Fund - TRF 4.05% 6.55% 8.50% 11.07% 14.79% 13.55% 25.18%
* Asset Allocation has been developed by looking through the underlying assets of mutual fund investments.
June 2017
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30-Oct-16
During the month the fund generated an
annualized return of 30.97% against its last month
annualized return of 29.71%.
Value of 100 Rupees invested since inception
INVESTMENT OBJECTIVE:The primary investment objective of this fund is to generate income by investing in a range of debt instruments of various maturities with a view to maximize
the optimal balance between yield, safety and liquidity.
FUND INFORMATION: RETURNS:
Conservative
Absolute Return
TPL Reliance Fund - TRF BID PRICE:
TPL Reliance Fund - TRF
IGI Conservative Fund - ICF 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-19 Sep-19
FUND PERFORMANCE:
Note: Fund returns are gross of management fee.
ASSETS UNDER MANAGEMENT:
Low
Daily Forward Pricing
Monday to Friday
1.5%
October 2019
112.00
114.00
116.00
118.00
120.00
122.00
124.00
126.00
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
Unit Price 114.13 114.01 115.59 117.74 120.61 123.68
TDR19%
PIB's81%
TDR18%
PIB's82%
123.68
90.00
95.00
100.00
105.00
110.00
115.00
120.00
125.00
130.00
Since Inception Oct-19
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Strategy
Risk Profile
Pricing Mechanism
Pricing Days
Management Fee
Launch Date
Bid Offer Spread 0%
Oct-19 Sep-19 MoM %
NAV per Unit (PKR) 102.36 98.28 4.16%
Net Assets Value (PKR '000) 993 956 3.85%
30 Days 60 Days 90 Days 180 Days 365 Days YTD Since Inception
TPL Booster Fund - TBF 5.66% 10.58% 9.98% 7.61% 6.30% 10.28% 3.86%
* Asset Allocation has been developed by looking through the underlying assets of mutual fund investments.
June 2017
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Balanced (without Bid-offer spread)
Moderate
Daily Forward Pricing
Monday to Friday
1.5%
TPL Booster Fund - TBF
INVESTMENT OBJECTIVE:The primary investment objective of the fund is to provide stable returns by balancing the investment in equities and debt / money market instruments.
Returns in this fund are maximized through low expense charge allocations.
FUND INFORMATION: RETURNS:
October 2019
Note: Fund returns are gross of management fee.
ASSETS UNDER MANAGEMENT:
Absolute Return
TPL Booster Fund - TBF BID PRICE:
During the month the fund showed an absolute
return of 4.16% against its last month return of
4.72% in line with equity market performance.
Value of 100 Rupees invested since inception30-Oct-16
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-19 Sep-19
FUND PERFORMANCE:
93.00
95.00
97.00
99.00
101.00
103.00
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
Unit Price 96.79 94.79 94.36 93.84 98.28 102.36
Deposits5%
PIB's70%
Stock24%
DFI & Others
1%
Deposits3%
PIB's69%
Stock27%
DFI & Others
1%
102.36
95.00
96.00
97.00
98.00
99.00
100.00
101.00
102.00
103.00
Since Inception Oct-19
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Strategy
Risk Profile
Pricing Mechanism
Pricing Days
Management Fee
Launch Date
Bid Offer Spread 5%
Oct-19 Sep-19 MoM %
NAV per Unit (PKR) 92.95 91.58 1.50%
Net Assets Value (PKR '000) 1,031 906 13.81%
30 Days 60 Days 90 Days 180 Days 365 Days YTD Since Inception
TPL Interest Free Fund - TIFF 3.00% 4.59% 3.49% 0.83% -1.84% 1.15% -5.55%
* Asset Allocation has been developed by looking through the underlying assets of mutual fund investments.
June 2017
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Islamic Balanced
Moderate
Daily Forward Pricing
Monday to Friday
1.5%
TPL Interest Free Fund - TIFF
INVESTMENT OBJECTIVE:The primary investment objective of this fund is to generate interest-free income by investing in a range of Islamic investment and shariah-compliant
instruments.
FUND INFORMATION: RETURNS:
October 2019
Note: Fund returns are gross of management fee.
ASSETS UNDER MANAGEMENT:
Absolute Return
TPL Interest Free Fund - TIFF BID PRICE:
During the month the fund showed an absolute
return of 1.50% against its last month return of
1.57% in line with equity market performance.
Value of 100 Rupees invested since inception30-Oct-16
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-19 Sep-19
FUND PERFORMANCE:
89.00
90.00
91.00
92.00
93.00
94.00
May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19
Unit Price 93.23 92.03 91.14 90.16 91.58 92.95
Deposits68%
Sukuk10%
Stock16%
DFI & Others
6%
92.95
80.00
85.00
90.00
95.00
100.00
105.00
Since Inception Oct-19
Deposits70%
Sukuk8%
Stock17%
DFI & Others
5%