fund manger report on sd balanced mutual fund
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8/3/2019 Fund Manger Report on SD Balanced Mutual Fund
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BALANCED
MUTUALFUND
FUNDMANAGER
REPORT
FINANCIALMARKETS &INSTITUES
Submitted by:Maria Masood11994Sidrah Shaikh11562Rabia Muhammad14530
Submitted t o:Sir Faisal Dhedhi
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8/3/2019 Fund Manger Report on SD Balanced Mutual Fund
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BALANCED MUTUALSD balanced mutual funds is geared towards Investors who desire a fund with a
combination of securities in a single portfolio, and who seek some current income and
moderate growth with medium-level risk, it provides cautious investors with a dual-
purpose vehicle. Sound denotes the smooth income stream through investments in Fixed
Income Market & Dynamic is representative of the growth feature that will come from
investing in stocks market.
KEY INFORMATION
Fund Type Open End
Category Balanced Scheme
Fund Launch Date 15 October,2011
Net Assets (PKR Mn) 100
NAV (PKR) 50
Benchmark 50% 6M Kibor & 50% KSE 30 Index
Management Fee 1.5%
Front End Load 2.5%
Back End Load 0
Pricing Mechanism Forward
Trustee Central Depositary Company of Pakistan Ltd.
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Risk Profile Medium
INITIAL PUBLIC OFFERING
Companies (%) of Total Fund
JS Bank Ltd 1.5
National Bank 4.00%
Soneri Bank Ltd 2.98%
United Bank Ltd 2.49%
Lackson Investments 8.65%
PSO 7.58%
Telenor
KASB Bank 7.77%
NIB Bank Limited 7.18%
Askari Bank Ltd 6.30%
Indus Motor Company Limited 2.19%
Allied Bank Ltd. 3.00%
MCB 0.05%
Faysal Bank 3.90%
Sui Southern Gas Company (SSGC) 0.82%
NetSol Technologies, Inc 2.90%
Standard Chartered 4.30%
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Unilever Pakistan Limited 4.03%
Public 24.09%
Total 100.00%
Asset Allocation:
Fund Size 100 Million
Unit Price 50 NAV perUnit
No. of Unit 2 Million
Asset Allocation
Nov-11 Fund (PKR)(Million) Oct-11 Fund (PKR)(Million)
Cash 10.00% 10.00 6.00% 6.00
T-Bills 12.00% 12.00 11.00% 11.00
TFCs 20.00% 20.00 30.00% 30.00
Equity 52.00% 52.00 48.00% 48.00
Other including receivables 3.00% 3.00 2.00% 2.00
Commodity Market 3% 3.00 3.00% 3.00
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Total 100% 100.00 100.00% 100.00
Equity Allocation
Company Symbol Percentage of Total Fund Size PKR Allocation (Million)
Construction and Materials
DG Khan Cement DGKC 0.25% 0.25
Lucky Cement 1.25%
1.50% 1.50
Chemicals
Fauji Fertilizer Co. FFC 6.71% 6.71
Fauji Fertilizer Bin Qasim Co. FFBL 4.50% 4.50
fatima frtilizer co 4.00% 4.00
Engro Corporation 1.50% 1.50
16.71%
personal goods
Nishat Mills Ltd INDU 0.50% 0
0.50% 0.50
Oil and Gas
Pakistan Oil Fields POL 5.00% 5.00
Oil and Gas Development Co. OGDCL 10.00% 10.00
Pakistan State Oil 1.25% 1.25
Pakistan Petrolium Ltds 4.00% 4.00
20.25%
BanksBank Al falah 3.00% 3.00
National Bank 1.00%
MCB Bank Ltd. MCB 4.50% 4.50
8.50% 8.50
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Electricity
Hub Power Co. HUBC 3.50% 3.50
Kapco 1.04% 1.04
4.54%
Total 52.00% 52.00
SECTOR WISE BREAKUP OF EQUITY ALLOCATION
Equity Allocation (%) Percentage of Total Fund Size Fund (PKR)(Million)
Construction and Materials 1.50% 1.50
Chemicals 16.71% 16.71
Personal Goods 0.50% 0.50
Oil and Gas 20.25% 20.25
Banks 8.50% 8.50
Electricity 4.54% 4.54
Total 52.00% 52.00
mpaniesme Symbol
% ofTotalFundSize
% ofEquity
Fund(PKR)(M)
No.of
Units
CurrentPrice - 2,DEC 11
ExpectedPrice inYear2012
Return(%)
W.AReturn
Return(PKR)(M)
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Khanment DGKC 0.25% 0.5% 0.25 4808 23.6 30 27 0.13 0.07ji Fertilizer
FFCL 6.71% 12.9% 6.71 129038 159.1 225 41 5.34 2.78ji Fertilizer
Qasim Co. FFBL 4.50% 8.7% 4.5 86538 52.95 64 21 1.81 0.94ma frtilizer
4.00% 7.7% 4 76923 23.57 24 2 0.14 0.07
hat Mills Ltd NML 0.50% 1.0% 0.5 9615 40.86 60 47 0.45 0.23istan Oilds 5.00% 9.6% 5 96154 362.17 425 17 1.67 0.87and Gas
velopmentNML 10.00% 19.2% 10 192308 158.53 170.00 7 1.39 0.72
k Al falah NPL 3.00% 5.8% 3 57692 11.75 14.00 19 1.10 0.57
onal Bank NIB 1.00% 1.9% 1 19231 40.90 55.00 34 0.66 0.34
B Bank Ltd. PPL 4.50% 8.7% 4.5 86538 147.95 210.00 42 3.63 1.89
ky Cement 1.25% 2.4% 1.25 24038 79.35 100.00 26 0.63 0.33
b Power Co. 3.50% 6.7% 3.5 67308 36.45 50.00 37 2.50 1.30
pco 1.04% 2.0% 1.04 20000 41.01 48.00 17 0.34 0.18istanrolium ltd 4.00% 7.7% 4 76923 169.91 225.00 32 2.49 1.30gro
poration 1.50% 2.9% 1.5 28846 112.90 225.00 99 2.86 1.49
O 1.25% 2.4% 1.25 24038 243.62 400.00 64 1.54 0.80
52.00% 100% 52.00100000
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T-BILLS EVALUATION
S.# Tenor Rate
Percent
age ofTotalFund
Percentage ofT-Bills
Fund(PKR)(Million)
Weighted AvgReturn
Return(Millions)
Fund- 12
13Months
11.94% 3.00% 25% 3 2.985% 0.36 3.36
26Months
11.97% 6.00% 50% 6 5.985% 0.72 6.72
312Months
12.28% 3.00% 25% 3 3.070% 0.37 3.37
12.00%100.00
% 12.00 12.04% 1.4413.4
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TFCS EVALUATION:
TFCTenor
IssuedDate
Rating
RateofReturn
%ofTotalFund
Percentage ofTFCs
Fund(PKR)(Million)
ReturnonTFC
Weighted AvgReturn
FundValue- 2012
AskariCommercial bank
10years 2009 AA-
14.47%
11.00% 55.00% 11 1.59 7.96% 12.59
StandardChartered
7years 2006 AAA
13.97%
9.00% 45.00% 9 1.26 6.29% 10.26
20.0
0%100.00
% 20 2.8514.25
% 22.85
GOLD Evaluation:
Forecasted Price $ 69,031.00
Current Price $ 57,335.00
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Return 20.40%
Commodity RatePercentage of TotalFund
Fund (PKR)(Million)
Return(Millions)
Return Fund -2012
Gold 20.40% 6% 6 1.22 7.22
CASH DEPOSIT
TenorRate
Percentageof TotalFund
Percentage onCash
Fund(PKR)(Million)
Return
Weighted AvgReturn
Fund value -2012 M
Tameer MicroFinance Bank 9.00% 10.00% 100.00% 10 1.00 9.00% 11.00
100.00
% 72 1.00 9.00% 11.00
Asset Allocation
Jan-12Fund (PKR)
(Million)Return -
2012
WeightedAvg
returnof
PortfolioReturn PKR
(Million)Fund - 2012
(Million)
Cash 10.00% 10.00 9.00% 0.90% 0.90 10.90
T-Bills 12.00% 12.00 12.06% 1.45% 1.45 13.45
TFCs/Sukuk 20.00% 20.00 14.25% 2.85% 2.85 22.85
Equity 52.00% 52.00 26.70% 13.88% 13.88 65.88Other including
receivables 3.00% 3.00 0.00% 0.00% 0.00 3.00
Commodity Market 3% 3.00 20.40% 0.61% 0.612 3.612
Total100.00
% 100.00 19.69% 19.69 119.69
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Benchmark Rate of Return 14.5%Weighted Avg return of
Portfolio 19.69%
Kse 30 Index 17.01%6month Kibor rate 11.97%
NAV - 2012 = 115,583,200.00
Date AUMs Units NAV / Unit
Inception 100,000,000 2,000,000 50.0
2012 115,583,200 2,000,000 57.8
Standard Deviation:
p r p*r WA. R-i return (WA. R-I return)2p*(WA. R-I
return)2
0.1 9.00% 0.90% 9.00% 0.0081 0.00080.12 12.04% 1.44% 12.04% 0.0145 0.0017
0.2 14.25% 2.85% 14.25% 0.0203 0.0041
0.52 26.70% 13.88% 26.70% 0.0713 0.0371
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0.03 0.00% 0.00% 0.00% 0.0000 0.0000
0.03 20.40% 0.61% 20.40% 0.0416 0.0012
1 19.69% 0.0449
S.D=0.21
Teynor's Measure=
Portfolio return -Rf
19.69 - 13.176.52 13.04
b b 0.5
Sharpe Ratio =Portfolio return -Rf
19.69 -13.176.52 30.75
s s 0.212
Jensen Measure=
Portfolio return - BenchmarkReturn 19.69 - 14.1 5.59
Benchmark Retun= Rf + (Rm-Rf)*b 14.1
Teynor's Measure=
Portfolioreturn - Rf
14.5 - 13.171.33 1.33
b b 1
Sharpe Ratio =Portfolio return -Rf
14.5 -13.176.52 0.40
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s s 16.4
JensenMeasure =
Portfolio return - BenchmarkReturn 14.5 - 14.3 0.20
BenchmarkRetun =
Rf + (Rm-Rf)*b 14.3
Interpretation:
Our Fund has yielded the better risk adjusted return as well w.r.t our benchmark in all the three ratios we
measured
FUNDS MANAGERs REVIEW:
During November 2011, Fund generated return of 19.69 %, outperforming the benchmark by
5.19%. There has been no major shift in equity holdings during the month however the fund has
reduced exposure in its fixed income portfolio in the light of expected drop in interest rates in the
near future.
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