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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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

0

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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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