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IGI|Life
Funds Performance ReportDecember 2017
IGI Life Insurance Limited
July 2015
Source: SBP, PBS, Bloomberg
Equity Market Review and Outlook:
FUND MANAGER REPORT
For the month of December 2017
Macro Review and Outlook:CPI InflationFood inflation spikes; Non-food prices continue to lead
As per the latest data published by Pakistan Bureau of Statistics (PBS), Dec-17 headline inflation clocked in at +4.57%YoY (down 0.10%MoM) compared to +3.70%YoY (down 0.68%MoM) in the same period last year. This translates into 1HFY18 average inflation of +3.76%YoY with growth in Dec-17 price level being the highest in the 6 months of FY18. For the month of Dec-17, non-food index continued its healthy growth (up +5.12%YoY), while food index recorded significant gains (up +3.79%YoY) following weak food inflationary pressure at the start of the fiscal year.Core inflation recorded a steady growth trend in 1HFY18, posting a figure of +5.45%YoY on average (5.5%YoY in dec-17). Also an indicator of aggregate demand, core inflation is expected to grow faster in 2HFY18 as demand pull inflationary pressures continue to build up. This could undo the subdued headline inflation in the remainder of FY18.
External AccountC/a deficit concerns worsen; Nov-17 deficit rises +~11%MoM to 5.1% of the GDPFor the month of Nov-17 C/a deficit posted USD 1.5bn (5.1% of GDP), up by +~11%MoM, despite some slowdown in widening trade deficit (down 5.4%MoM), wherein imports rose by a meagre +0.8%MoM (USD 4.5bn) and exports rose by +8.6%MoM (USD 2.1bn). Therefore, the uptick in C/a deficit, on a monthly basis, was due to weaker remittances (down 4.7%MoM), higher services deficit (up +16.8%MoM) and lower FDI (down 25%MoM).
FX Reserves up by 7.4%MoM in Dec-17: FX reserves by the end of Dec-17 stood at USD 20.2bn as compared to USD 18.8bn in Nov-17 (up by 1.4bn).
Index up by a meagre +1.15% in Dec-17, ending on a good note due to political clarity Starting the month at above ~40K, KSE-100 index soon fell below the level and touched a low of 37,919, marking a decline of 2,090 pints. However, soon after, the market rebounded to close the month off at 40,471. On a monthly basis, the numbers represent a meagre +1.15% growth. The fall and subsequent recovery in index can be attributed to a) Political clarity (certainty of timing of election) and b) higher daily traded volumes at the end of the month.Average trading volumes of the market were recorded at 165mn shares, up by ~47%MoM in Dec-17 as compared to average 113mn shares registered in Nov-17. The increase in volume depicts improvement in sentiments due to greater political clarity. Leaders and Laggards by Market Capitalization: In the month of Dec-17, the best performing sectors (by price) include Tobacco (up +14%MoM), Oil & Gas exploration companies (up +4%MoM) and Commercial Banks (up +4%MoM). While at the same time, worst performing sectors (by price) included Oil & Gas marketing companies (down 6%MoM), Power Generation & Distribution companies (down 3%MoM) and Refinery (down 17%MoM). Volume wise, Cement led the chart, up by +12%MoM followed by Commercial Banks and Technology & Communication, up by 11.5%MoM and 7.3%MoM respectively. On the other hand, volumes declined by 1.6%MoM and 0.9%MoM in Oil $ Gas marketing companies and Oil & Gas exploration companies respectively. Key domestic/international news: • OPEC agreed to extend oil output cuts until the end of 2018 as it tries to finish clearing a global glut of crude while signaling it could exit the deal earlier if the market overheats.• During the month, Moody’s Investors Service spelled out constraints in the Pakistani economy highlighting high debt burden, very narrow revenue base, fragile external payments position and high political uncertainity.• The senate passed the constitutional amendment to pave the way for delimitation of electoral constituencies on the basis of population census with two-thirds majority to remove the obstruction to the holding of the next general elections according to schedule.
KSE 100
Money Market Review and Outlook:
Yield CurveFollowing the trend of past few months, Investors remained biased towards short term bills as evident by a cumulative participation of PKR 809bn in T-bills auctions vs a target of PKR1,100bn, mainly concentrated in 3 months’ paper (approximately 89%). The bids for PKR 675bn were accepted with yields unchanged for 3 months and 6 months bills at 5.99% and 6.01% respectively. Moreover, the central bank rejected all bids for 12 months paper as the yields demanded were higher. As evident from the upward shift in yield curve, the market is also anticipating a rate hike, explaining the lack of interest in longer term paper.
Strategy
Risk Profile
Pricing Mechanism
Pricing Days
Management Fee
Launch Date
Dec‐17 Nov‐17 MoM %
NAV per Unit (PKR) 116.2 115.9 0.24%
Net Assets Value (PKR '000) 294,159 271,856 8.20%
* 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 0.24% 0.82% ‐1.77% ‐8.14% ‐7.62% ‐7.62% 6.79%
21‐Sep‐15 Value of 100 Rupees invested since inception
IGI Takaful Aggressive Fund‐TAF
For the month of December 2017
INVESTMENT OBJECTIVE:To provide investors with an opportunity to earn long‐term capital appreciation optimizing through broad mix of asset classes largely driven by Shariah
compliant equity with a proportion of Shariah compliant fixed income & money market instruments.
FUND INFORMATION: RETURNS:Fixed Income / Equity
High During the month the fund generated an
absolute return of 0.24% against its last
month absolute return of 0.58%.
Daily Forward Pricing
Monday to Friday
1.5%
Absolute Return Annualized Return
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.
ASSETS UNDER MANAGEMENT:
Note: Fund returns are gross of management fee.
ASSET ALLOCATION *:
Dec‐17 Nov‐17
FUND PERFORMANCE:
125.75128.18 128.58 128.20
131.23
134.95
126.46124.98
117.70 118.26115.23 115.89 116.17
105.00
110.00
115.00
120.00
125.00
130.00
135.00
140.00
Dec‐16 Jan‐17 Feb‐17 Mar‐17 Apr‐17 May‐17 Jun‐17 Jul‐17 Aug‐17 Sep‐17 Oct‐17 Nov‐17 Dec‐17
35.2%
7.5%10.8%
43.6%
2.8%
Cash TFC's /Sukuk
T‐Bills TDR PIB's Stock DFI &Others
34.9%
7.7%12.7%
40.8%
3.9%
Cash TFC's /Sukuk
T‐Bills TDR PIB's Stock DFI &Others
100
102
104
106
108
110
112
114
116
118
Dec‐15
Dec‐16
Dec‐17
Strategy
Risk Profile
Pricing Mechanism
Pricing Days
Management Fee
Launch Date
Dec‐17 Nov‐17 MoM %
NAV per Unit (PKR) 112.7 112.5 0.25%
Net Assets Value (PKR '000) 720,132 631,761 13.99%
* 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 Balanced Fund ‐ IBF 0.25% 0.72% ‐0.58% ‐4.63% ‐3.46% ‐3.46% 5.40%
21‐Sep‐15 Value of 100 Rupees invested since inception
IGI Takaful Balanced Fund‐TBF
For the month of December 2017
INVESTMENT OBJECTIVE:The investment objective of the Fund is to earn competitive long term return by investing in mix of Shariah compliant equity, fixed income and money
market instruments. This fund is suited for investors with moderate risk tolerance.
FUND INFORMATION: RETURNS:Fixed Income / Equity
Moderate During the month the fund generated an
absolute return of 0.25% against its last month
absolute return of 0.47%.
Daily Forward Pricing
Monday to Friday
1.5%
Absolute Return Annualized Return
IGI Balanced Fund ‐ IBF 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.
ASSETS UNDER MANAGEMENT:
Note: Fund returns are gross of management fee.
ASSET ALLOCATION *:
Dec‐17 Nov‐17
FUND PERFORMANCE:
46.5%
11.6%15.1%
23.6%
3.2%
Cash TFC's /Sukuk
T‐Bills TDR PIB's Stock DFI &Others
47.7%
10.5%17.4% 19.9%
4.5%
Cash TFC's /Sukuk
T‐Bills TDR PIB's Stock DFI &Others
100
102
104
106
108
110
112
114
Dec‐15
Dec‐16
Dec‐17
116.78118.22 118.49 118.46
120.39
122.68
118.22117.47
112.91 113.41111.95 112.47 112.75
106.00
108.00
110.00
112.00
114.00
116.00
118.00
120.00
122.00
124.00
Dec‐16 Jan‐17 Feb‐17 Mar‐17 Apr‐17 May‐17 Jun‐17 Jul‐17 Aug‐17 Sep‐17 Oct‐17 Nov‐17 Dec‐17
Strategy
Risk Profile
Pricing Mechanism
Pricing Days
Management Fee
Launch Date
Dec‐17 Nov‐17 MoM %
NAV per Unit (PKR) 108.1 107.8 0.33%
Net Assets Value (PKR '000) 43,125 40,746 5.84%
* 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 Conservative Fund ‐ ICF 0.33% 0.70% 0.73% 0.23% 1.81% 1.81% 3.48%
21‐Sep‐15 Value of 100 Rupees invested since inception
IGI Takaful Conservative Fund ‐ TCF
For the month of December 2017
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 Shariah compliant investments yielding competitive returns.
FUND INFORMATION: RETURNS:Fixed Income
Low During the month the fund generated an
absolute return of 0.33% against its last month
absolute return of 0.37%.
Daily Forward Pricing
Monday to Friday
1.5%
Absolute Return Annualized Return
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.
ASSETS UNDER MANAGEMENT:
Note: Fund returns are gross of management fee.
ASSET ALLOCATION *:
Dec‐17 Nov‐17
FUND PERFORMANCE:
54.8%
17.2% 20.7%
3.6% 3.7%
Cash TFC's /Sukuk
T‐Bills TDR PIB's Stock DFI &Others
51.0%
15.6%24.1%
3.5% 5.8%
Cash TFC's /Sukuk
T‐Bills TDR PIB's Stock DFI &Others
100
101
102
103
104
105
106
107
108
109
Dec‐15
Dec‐16
Dec‐17
106.19
106.65 106.66107.04
107.80
108.50
107.86 107.95
106.86
107.33 107.36107.75
108.11
105.00
105.50
106.00
106.50
107.00
107.50
108.00
108.50
109.00
Dec‐16 Jan‐17 Feb‐17 Mar‐17 Apr‐17 May‐17 Jun‐17 Jul‐17 Aug‐17 Sep‐17 Oct‐17 Nov‐17 Dec‐17