DAWOOD CAPITAL MANAGEMENT LIMITED TREASURE CHEST - JANUARY 2013 Disclaimer: This publicaon is for informaonal purposes only and nothing herein should be construed as a solicitaon, recommendaon or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecng the capital markets. These may go up or down based on market condions. Past performance is not necessarily indicave of future results. Economic Review: While World Bank revealed that Pakistan’s economic growth rate will remain lowest in the region as growth is expected to remain 3.8% during the FY 2012-13, the Federal Bureau of Stacs during the month gave posive figures of food and texle exports for the half year ended as compare to the corresponding period of last year. Aſter poor gas supply during the last month of the last year the Prime Minister first and then President before the mid of the month took noce and ordered uninterrupted gas supply to the industries in Punjab. Polical turmoil in the capital city kept business closed unl government amicably resolved the issue. State Bank set over 300 billion target for agriculture disbursement. The WAPDA Chairman has informed the Naonal Assembly that the U.S. has agreed in principle to provide $ 3.5 bn for the construcon of Diamer- Bhasha Dam whose total project is currently placed at between $ 13-14 bn. Sensive Price Index rose on weekly basis. The depleng forex reserves during the month will be a point of concern to deal in future. Stock Market Review: Negave senments prevailed during the earlier week of the month and market despite ending up posive saw ups and down owing to polical turmoil in the country. The the benchmark KSE-100 index gained 337.41 points, closing at 17,242.74 points. During the month the sit-in protest and in addion the Supreme Court arrest orders against the Prime Minister in the Rental Power scam case, created panic among investors which triggered massive selling, pressing the index to nosedive 3.2 percent in a single day. Speculaon of market crash similar to that of 2008 was turned down by pundits as termed all due to polical uncertainty. Market recovered and retuned back in the green zone and also close at all-me high level during the last day of the month. Daily average volume trading stood just below 100 million. Money Market Review: Government connued to inject sizeable amount owing to ght liquidity. Moving forward it seems very unlikely that the central bank will reduce the interest rate and chances are that the rate will remain where they are. During the last T-Bill aucon the yield went lower and the weighted average yield of 3M, 6M and 12M stood at 9.0922%, 9.1340% and 9.2354% respecvely. PREMIER SAVINGS PLANS FOR INDIVIDUAL INVESTORS FIND US ON PAKISTAN ECONOMIC UPDATES INVESTMENT COMMITTEE Tara Uzra Dawood Chief Investment Officer Syed Kabiruddin Member Muhammad Abbas Fund Manager Fixed Income Muhammad Aslam Assistant Fund Manager Equity Zeeshan Swalaheen Research Associate CUTT-OFF TIMINGS OF FUNDS Business Day Business Hours Cut-Off Timings DIF Monday - Friday 9:00 AM - 5:00 PM 9:00 AM - 5:00 PM Saturday 9:00 AM - 1:30 PM 9:00 AM - 1:30 PM DIF-S Monday - Friday 9:00 AM - 5:00 PM 9:00 AM - 12:00 PM Saturday 9:00 AM - 1:30 PM 9:00 AM - 12:00 PM REGISTERED ADDRESS 5B Lakson Square Building No. 1, Sarwar Shaheed Road, Karachi-74200, Pakistan UAN: (92 21) 111-DAWOOD (329-663) Tel: (92 21) 35621001-6 Fax: (92 21) 35621010 Email: [email protected]URL: www.edawood.com STOCK MARKET STATISTICS Indices Jan-13 Dec-12 Return Avg. Vol. Avg. Val. Jan-13 Dec-12 KSE-100 17,242.74 17,172.04 0.41% 104.84 3.47 Avg. Vol. 160.44 M 164.62 M KSE-30 14,084.85 14,044.29 0.29% 47.48 2.84 Mkt. Cap. PKR 4.33 T PKR 4.24 T KMI-30 29,695.20 29,622.70 0.24% 30.92 1.96 FIPI $ 15.42 M $ 0.83 M All-Shares 12,207.26 12,092.49 0.95% 160.44 4.06 6M KIBOR 9.44% 9.44%
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DAWOOD CAPITAL MANAGEMENT LIMITED
TREASURE CHEST - JANUARY 2013
Disclaimer:
This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependent on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.
Economic Review:
While World Bank revealed that Pakistan’s
economic growth rate will remain lowest in
the region as growth is expected to remain
3.8% during the FY 2012-13, the Federal
Bureau of Statics during the month gave
positive figures of food and textile exports for
the half year ended as compare to the
corresponding period of last year. After poor
gas supply during the last month of the last
year the Prime Minister first and then
President before the mid of the month took
notice and ordered uninterrupted gas supply
to the industries in Punjab. Political turmoil in
the capital city kept business closed until
government amicably resolved the issue.
State Bank set over 300 billion target for
agriculture disbursement. The WAPDA
Chairman has informed the National
Assembly that the U.S. has agreed in principle
to provide $ 3.5 bn for the construction of
Diamer- Bhasha Dam whose total project is
currently placed at between $ 13-14 bn.
Sensitive Price Index rose on weekly basis.
The depleting forex reserves during the
month will be a point of concern to deal in
future.
Stock Market Review:
Negative sentiments prevailed during the
earlier week of the month and market despite
ending up positive saw ups and down owing
to political turmoil in the country. The the
benchmark KSE-100 index gained 337.41
points, closing at 17,242.74 points. During the
month the sit-in protest and in addition the
Supreme Court arrest orders against the
Prime Minister in the Rental Power scam
case, created panic among investors which
triggered massive selling, pressing the index
to nosedive 3.2 percent in a single day.
Speculation of market crash similar to that of
2008 was turned down by pundits as termed
all due to political uncertainty. Market
recovered and retuned back in the green zone
and also close at all-time high level during the
last day of the month. Daily average volume
trading stood just below 100 million.
Money Market Review:
Government continued to inject sizeable
amount owing to tight liquidity. Moving
forward it seems very unlikely that the central
bank will reduce the interest rate and chances
are that the rate will remain where they are.
During the last T-Bill auction the yield went
lower and the weighted average yield of 3M,
6M and 12M stood at 9.0922%, 9.1340% and
9.2354% respectively.
PREMIER SAVINGS PLANS FOR INDIVIDUAL INVESTORS FIND US ON
PAKISTAN ECONOMIC UPDATES
INVESTMENT COMMITTEE
Tara Uzra Dawood Chief Investment Officer
Syed Kabiruddin Member
Muhammad Abbas Fund Manager Fixed Income
Muhammad Aslam Assistant Fund Manager Equity
Zeeshan Swalaheen Research Associate
CUTT-OFF TIMINGS OF FUNDS
Business Day Business Hours Cut-Off Timings
DIF
Monday - Friday 9:00 AM - 5:00 PM 9:00 AM - 5:00 PM
Saturday 9:00 AM - 1:30 PM 9:00 AM - 1:30 PM
DIF-S Monday - Friday 9:00 AM - 5:00 PM 9:00 AM - 12:00 PM
During the month, Fund generated the return of 4.64% pa as compared to its benchmark return of 9.45%. It was due to the defaults of debt issuers on its due payments and provisions as per rules. DIF is still a goldmine for those who want to earn capital gains on investments.
To preserve the investor’s capital while providing a return greater than that offered by other investments of similar risk profile through investments in a portfolio of money market instruments.
ASSET MIX Jan-2013 Dec-2012
TFC / Sukuk 9.54% 10.78%
T-Bills 84.16% 79.45%
Cash 5.08% 8.54%
Others 1.22% 1.23%
CREDIT QUALITY Jan-2013 Dec-2012
AAA 84.16% 79.45%
A- 6.14% 6.10%
BBB- 1.26% 2.50%
< BBB- 0.67% 0.73%
Unrated 1.46% 1.46%
DETAILS OF NON COMPLIANT INVESTMENT
Name of Investment Type Value Before Provision
Provision (if any)
Value After Provision
% Net Assets % Gross Assets
Trust Investment Bank Limited TFC 18,742,500 14,056,875 4,685,625 1.27% 1.26%
Escort Investment Bank Limited TFC 368,380 - 368,380 0.10% 0.10%
Pace Pakistan Limited TFC 9,089,080 9,089,080 - 0.00% 0.00%
Dewan Cement Limited TFC 150,000,000 150,000,000 - 0.00% 0.00%
Invest Capital and Investment Bank Limited TFC 30,000,000 30,000,000 - 0.00% 0.00%
Eden Housing Limited SUKUK 7,149,186 5,004,430 2,144,756 0.58% 0.58%
Kohat Cement Company Limited SUKUK 5,452,301 - 5,452,301 1.48% 1.46%
Trust Investment Bank Limited COI 8,041,359 8,041,359 - 0.00% 0.00%
TOTAL 254,275,996 241,624,934 12,651,061 3.43% 3.39%
DIF(DMMF) TOP TEN DEBT SECURITIES
INVESTEE COMPANY TYPE %
Avari Hotels (Pvt) Limited TFC 6.22%
Kohat Cement Company Limited SUKUK 1.48%
Trust Investment Bank Limited TFC 1.27%
Eden Housing Limited SUKUK 0.58%
Escort Investment Bank Limited TFC 0.10%
TOTAL 9.65%
WWF DISCLOSURE
The Scheme has maintained provisions against Workers’ Welfare Fund’s liability to the tune of Rs. 3.47M, if the same were not made the NAV per unit/return YTD of the Scheme would be higher by Rs. 0.66/1.55%. For details investors are advised to read the Note 8 of the latest Financial Statements of the Scheme.
DAWOOD ISLAMIC FUND TREASURE CHEST - JANUARY 2013
FUND STATISTICS
Name of Fund Dawood Islamic Fund
Structure Open End
Industry Category Islamic Asset Allocation
Benchmark 25% KMI-30 + 75% Savings Rate
Shariah Advisor Mufti Zeeshan Abdul Aziz
Trustee & Custodian CDC Pakistan Limited
Auditor Ernst & Young Ford Rhodes Sidat Hyder
Registrar Noble Computer Services (Pvt) Ltd.
Legal Advisor Bawaney & Partners
Launch Date 14-Jul-2007
Listing KSE
Duration Perpetual
Management Fee 1.50% per annum
Sales Load 1.50% Front End
Pricing Mechanism Forward
Risk Profile Medium
AMC Rating AM3- by PACRA
PERFORMANCE STATISTICS
Net Assets PKR 117.22 Mn
NAV PKR 95.3148
Wt. Avg. Time To Maturity 0.00 Years
Standard Deviation 3.47%
Sharpe Ratio (0.08)
Sortino Ratio (0.10)
Information Ratio (0.21)
VAMI 1.01
RETURNS Jan-2013 Dec-2012
DIF-S 0.75% 3.10%
Benchmark 0.80% 0.85%
Alpha -0.05% 2.26%
HISTORICAL RETURNS
1 Month 3 Months 6 Months YTD
0.75% 4.78% 9.36% 1.44%
INVESTMENT OBJECTIVE
To provide Riba-Free "Halal Munafa!" to investors by investing maximum 25% of net assets in equities, while the high percentage of non-equity income provides stability.
ASSET MIX Jan-2013 Dec-2012
Cash & Eq. 97.17% 95.99%
Others 2.83% 4.01%
DETAILS OF NON COMPLIANT INVESTMENT
Name of Investment Type Value Before Provision
Provision (if any)
Value After Provision
% of Net Assets
% Gross Assets
Pak Elektron Limited SUKUK
17,280,105 17,280,105
- 0.00% 0.00%
Maple Leaf Cement Factory Limited SUKUK
45,630,387 45,630,387
- 0.00% 0.00%
Maple Leaf Cement Factory Limited SUKUK
613,335 613,335
- 0.00% 0.00%
New Allied Electronics Industries Limited SUKUK
5,027,500 5,027,500
- 0.00% 0.00%
TOTAL 68,551,327 68,551,327 - 0.00% 0.00%
FUND MANAGER’S COMMENTS
During the month, Fund generated a return of 0.75% as compared to its benchmark which produced a return of 0.80%, hence, just slightly below by .05%. The fund will exceed the benchmark if there are reversal in future. Now DIF-S is fully liquid and still a goldmine for those who want to earn capital gains on investments.
WWF DISCLOSURE
The Scheme has maintained provisions against Workers’ Welfare Fund’s liability to the tune of Rs. 1.4M, if the same were not made the NAV per unit/return YTD of the Scheme would be higher by Rs. 1.15/1.23%. For details investors are advised to read the Note 8 of the latest Financial Statements of the Scheme.
WWF DISCLOSURE
The Scheme has maintained provisions against Workers’ Welfare Fund’s liability to the tune of Rs. 2.86M, if the same were not made the NAV per unit/return YTD of the Scheme would be higher by Rs. 0.045/0.53%. For details investors are advised to read the Note 10 of the latest Financial Statements of the Scheme.
FIRST DAWOOD MUTUAL FUND
TREASURE CHEST - JANUARY 2013
FUND STATISTICS
Name of Fund First Dawood Mutual Fund
Structure Closed End
Industry Category Balanced
Benchmark 50% KSE-100 + 50% Avg. 6 M KIBOR
Trustee & Custodian CDC Pakistan Limited
Auditor Ernst & Young Ford Rhodes
Registrar FD Registrar Services Pvt. Limited
Legal Advisor Bawaney & Partners
Launch Date 23-Mar-2005
Listing KSE
Management Fee 2.00% per annum
Pricing Mechanism Forward
Risk Profile Medium - High
AMC Rating AM3- by PACRA
PERFORMANCE STATISTICS
Net Assets PKR 559.29 M
NAV PKR 9.63
Wt. Avg. Time To Maturity 0.16 Years
Standard Deviation 2.14%
Sharpe Ratio 0.39
Sortino Ratio 0.67
Information Ratio (0.14)
VAMI 1.15
RETURNS Jan-2013 Dec-2012
FDMF -2.33% 0.31%
Benchmark 1.39% 1.39%
Alpha -3.73% -1.09%
HISTORICAL RETURNS
1 Month 3 Months 6 Months YTD
-2.33% 0.10% 10.18% 12.76%
INVESTMENT OBJECTIVE
To preserve the investor’s capital while providing a return greater than that offered by other investments of similar risk profile through investments in a mixed portfolio of money market, fixed income and stocks.
ASSET MIX Jan-201 Dec-2012
Equities 17.57% 23.33%
GoP Ijarah 51.82% 50.63%
T-Bills 6.56% 6.36%
TFC/Sukuk 4.81% 5.11%
Cash & Eq. 16.81% 12.53%
Others 2.43% 2.04%
CREDIT QUALITY Jan-2013 Dec-2012
AAA 58.33% 56.99%
A- 0.37% 0.36%
BBB- 0.41% 0.81%
<BBB- 3.26% 3.20%
Unrated 0.76% 0.74%
EQUITY ALLOCATION Jan-2013 Dec-2012
Life Insurance 10.41% 13.37%
Pharma & Bio Tech 5.38% 5.27%
Equity Invest. Instruments 0.68% 0.60%
Non-Life Insurance 0.44% 1.59%
Financial Services 0.42% 0.41%
Beverages 0.12% 0.25%
Fixed Line Telecom 0.08% 0.00%
Construction & Materials 0.04% 0.25%
Oil & Gas 0.00% 0.65%
Chemicals 0.00% 0.47%
Commercial Banks 0.00% 0.24%
Personal Goods 0.00% 0.22%
FDMF TOP TEN DEBT SECURITIES
Investee Company Type %
Gop Ijarah SUKUK 52.33%
B.R.R. Guardian Modaraba SUKUK 3.16%
Kohat Cement Company Limited SUKUK 0.42%
Trust Investment Bank Limited TFC 0.77%
Avari Hotels (Pvt) Limited TFC 0.36%
Escort Investment Bank Limited TFC 0.13%
TOTAL 57.18%
FUND MANAGER’S COMMENTS
During the month, Fund generated a return of -2.33% against 1.39% return on its benchmark, hence, the fund underperformed. In anticipation of positive market sentiments, FDMF has taken new exposures with cautious approach.
DETAILS OF NON COMPLIANT INVESTMENT
Name of Investment Type Value Before Provision
Provision (if any)
Value After Provision
% Net Assets % Gross Assets
Trust Investment Bank Limited TFC 9,371,250 7,028,438 2,342,813 0.42% 0.41%
Escort Investment Bank Limited TFC 736,760 0 736,760 0.13% 0.13%