dawood capital management limited · 2016. 12. 15. · kohat cement company limited sukuk 3.50%...

DAWOOD CAPITAL MANAGEMENT LIMITED

TREASURE CHEST - DECEMBER 2011

Economic Outlook Federal Finance Minister gave hope that government will be able to collect the reve-nue target of Rs 1.9 trillion at the end of financial year 2011-12. Pakistan Automotive Manufactures Association said that was some improvement in the auto sales figures in comparison to the last year. Foreign remittances and exports are on the increas-ing trend. According to Federal Bureau of Statistics the trade deficit during July-November 2011 widened by 36.73%. A currency swap agreement (CSA) has been signed between the central banks of Pakistan and China, the first in the history of the two nations. The most disturbing thing for the government and for the public was the gas crisis which seems to continue in the comings months as well. CNG sta-tions were closed because of supply problems causing trouble to the general public. The Minister for petroleum said that there is going to be much more severe problem in the month of January. The government has decided to increase gas tariff, for different consumers, from 13.98% to 207% from January 1, 2012. According to SBP, liquid foreign exchange reserves as on December 23, 2011 stood at $16.769.

Stock Market Review: Throughout the month the volume traded was very thin. The market remained neg-ative after the news emerged that President Asif Ali Zardari flown to UAE for medical treatment. Rumors immediately started to circulate that the president was all set to resign and a political reshuffle was on the cards, creating panic at the bourses. The other major news came from the fertilizer sector, where gas supply was suspended by the Sui Northern Gas Pipelines Limited (SNGPL). Outflow of foreign funds was also observed. Things started to settle down a bit after President returned back to the country though volume still remained very thin. Another positive development was a possible relaxation on the Capital Gains Tax (CGT) front as the KSE proposed collec-tion of CGT under the presumptive tax regime for individual investors.

Fixed Income / Money Market Review: During the mid of the month The Ministry of Finance rejected all bids for the sale of 3, 6 & 12 months GoP Market Treasury Bills (MTBs). Very thin participation was wit-nessed in the auction of MTBs, conducted by SBP. While the month was ending SBP in its reverse repo open market operation in treasury bills and Pakistan Investment Bond for four days injected Rs 22.3 billion and later on a further injection Rs 174.95 billion on December 30, 2011.

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 dependant 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.

PREMIER SAVINGS PLANS FOR INDIVIDUAL INVESTORS FIND US ON

STOCK MARKETS STATISTICS

PAKISTAN ECONOMIC UPDATES

Tara Uzra Dawood Chief Investment Officer

Syed Kabiruddin M ember

M uhammad Abbas Fund M anager Fixed Income

M uhammad Aslam Assistant Fund M anager Equity

Zeeshan Swalaheen Research Associate

INVESTMENT COMMITTEE

Indices D ec-11 N o v-11 R eturn A vg. Vo l. A vg. Val. D ec-11 N o v-11

KSE- 10 0 11,347.66 11,868.88 -4.39% 33.67 1.72 A vg. V o l. 41.55 M 45.04 M

KSE- 3 0 10,179.03 11,243.40 -9.47% 20.49 1.55 M kt . C ap . 2.95 T 3.00 T

KM I- 3 0 20,137.71 22,166.78 -9.15% 14.17 1.08 FIPI $ (24.92) M $ (4.19) M

A ll- Shares 7,856.82 8,215.84 -4.37% 41.55 1.76 6 M KIB OR 11.98% 11.91%

5B Lakson Square Building No. 1, Sarwar

Shaheed Road, Karachi-74200, Pakistan

Tel: (92 21) 35621001-6 Fax: (92 21) 35621010

Email: [email protected]

URL: www.edawood.com

DAWOOD CAPITAL MANAGEMENT LIMITED

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FUND STATISTICS PERFORMANCE STATISTICS

DETAILS OF NON COMPLIANT INVESTMENTS

DIF (DMMF) TOP TEN DEBT SECURITIES FUND MANAGER’S COMMENTS

During the month, debt pricing were down at MUFAP and also few defaults were occurred which caused provisions and suspension of income according to SECP pre-mentioned criteria. We are quite confident that in the new year, these defaults will be restructured and prices will improve which will improve the return of your fund as well. DIF is still a goldmine for those who want to earn capital gains on investments.

Name of Fund Dawood Income Fund

(Formerly Dawood Money Market Fund)

Structure Open End

Industry Category Fixed Income

Benchmark Avg. 6 Month KIBOR

Trustee & Custodian MCB Financial Services Limited

Auditor Ernst & Young Ford Rhodes

Registrar Gangjees Registrar Services (Pvt.) Ltd.

Legal Advisor Bawaney & Partners

Launch Date 19-May-2003

Listing KSE

Duration Perpetual

Management Fee 1.00% per annum

Sales Load 1% Front End

Pricing Mechanism Forward

Leverage Nil

Risk Profile Medium

AMC Rating AM3-

Stability Rating A- (f)

Net Assets PKR 450.25 Mn

NAV PKR 77.2111

Wt. Avg. Time To Maturity 0.80 Years

Standard Deviation 0.41%

Sharpe Ratio (0.18)

Information Ratio (0.25)

VAMI 1.06

RETURNS Dec-2011 Nov-2011

DIF (DMMF) 3.09% 9.79%

Benchmark 11.98% 11.91%

Alpha -8.89% -2.12%

1 Month 3 Months 6 Months YTD

3.09% 9.48% 12.18% 12.18%

HISTORIC RETURNS

INVESTMENT OBJECTIVE

To preserve the investor’s capital w hile 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 Dec-2011 Nov-2011

Placements 5.89% 5.57%

TFC / Sukuk 21.85% 21.18%

T-Bills 65.58% 67.80%

Cash 6.00% 3.43%

Others 0.68% 2.02%

CREDIT QUALITY Dec-2011 Nov-2011

AAA 65.58% 67.80%

A- 4.96% 4.66%

BBB 5.27% 4.90%

< BBB 14.22% 13.37%

Unrated 3.28% 3.82%

Name of Investment Type Value Before

Provision

Provision

(if any)

Value After

Provision

% Net

Assets

% Gross

Assets

Escort Investment Bank Limited TFC 552,570 - 552,570 0.12% 0.12%

Pace Pakistan Limited TFC 9,403,856 - 9,403,856 2.09% 2.07%

Dewan Cement Limited TFC 150,000,000 150,000,000 - 0.00% 0.00%

Invest Capital and Investment Bank Limited TFC 22,500,000 - 22,500,000 5.00% 4.95%

Invest Capital and Investment Bank Limited TFC 15,569,441 15,569,441 - 0.00% 0.00%

Eden Housing Limited SUKUK 9,898,874 4,454,493 5,444,381 1.21% 1.20%

New Allied Electronics Industries Limited TFC 25,433,190 25,433,190 - 0.00% 0.00%

Kohat Cement Company Limited SUKUK 14,938,720 - 14,938,720 3.32% 3.28%

Invest Capital Investment Bank Limited COM 36,750,000 9,950,795 26,799,205 5.95% 5.89%

Trust Investment Bank Limited COI 8,041,359 8,041,359 - 0.00% 0.00%

TOTAL 293,088,010 213,449,279 79,638,732 17.69% 17.51%

INVESTEE COMPANY TYPE %

Invest Capital Investment Bank Limited COM 5.95%

Trust Investment Bank Limited TFC 5.33%

Avari Hotels (Pvt) Limited TFC 5.02%

Invest Capital and Investment Bank Limited TFC 5.00%

Kohat Cement Company Limited SUKUK 3.32%

Pace Pakistan Limited TFC 2.09%

Eden Housing Limited SUKUK 1.21%

Escort Investment Bank Limited TFC 0.12%

TOTAL 28.03%

DAWOOD INCOME FUND


(FORMERLY DAWOOD MONEY MARKET FUND)

DAWOOD ISLAMIC FUND TREASURE CHEST - DECEMBER 2011



DIF (DMMF) TOP TEN SECURITIES FUND MANAGER’S COMMENTS

During the month your fund was up by 0.11% as compared to its benchmark which was down by 0.90%. Thus DIF out-performed by 1.01%. Despite volatile equity markets and worst geo-political conditions, Fund held blue chip scripts in the portfolio and as we are hoping upward trend in the year to come, DIF will be the best choice of investment.

Name of Fund Dawood Islamic Fund

Structure Open End

Industry Category Islamic Asset Allocation

Benchmark 25% KMI-30 + 75% Savings Rate

Shariah Advisors Prof. Mufti Munib-ur-Rehman

Mufti Syed Sabir Hussain

Mufti Zahid Siraj

Trustee & Custodian CDC Pakistan Limited


Registrar Gangjees Registrar Services (Pvt.) Ltd.


Launch Date 14-Jul-2007

Listing KSE

Duration Perpetual


Sales Load 1.50% Front End


Risk Profile Medium

AMC Rating AM3-

Net Assets PKR 336.74 Mn

NAV PKR 104.4637



Sharpe Ratio (1.13)

Sortino Ratio (2.94)

Information Ratio 0.26

VAMI 1.03


0.11% 0.55% 2.66% 2.66%

HISTORICAL RETURNS


Musharika 7.85% 8.01%

Sukuk 24.89% 25.72%

GoP Ijara 29.73% 29.55%

Cash & Eq. 20.59% 19.88%

Equities 11.76% 11.65%

Others 5.18% 5.18%


AAA 29.73% 29.55%

AA 7.44% 7.33%

A 4.62% 4.67%

< A- 17.24% 17.40%

Unrated 3.46% 4.34%

EQUITY ALLOCATION Dec-2011 Nov-2011

Oil & Gas 7.13% 7.23%

Pharma & Bio Tech 1.97% 2.01%

Cement 1.07% 0.69%Personal Goods 0.77% 0.74%

Electricity 0.75% 0.81%

Chemicals 0.07% 0.18%

Investee Company Type %

Gop Ijarah SUKUK 30.13%

Maple Leaf Cement Factory Limited SUKUK 9.12%

Invest Capital Investment Bank Ltd. COM 7.96%

Engro Fertilizer Limited SUKUK 7.54%

Pak Elektron Limited SUKUK 4.68%

Kohat Cement Company Limited SUKUK 3.50%

Maple Leaf Cement Factory Limited SUKUK 0.38%

TOTAL 63.31%

Name of Investment Type Value Before

Provision

Provision

(if any)

Value After

Provision

% of Net

Assets

% Gross

Assets

M aple Leaf Cement Factory Limited SUKUK 48,104,993 17,380,171 30,724,822 9.12% 9.00%

M aple Leaf Cement Factory Limited SUKUK 1,840,000 544,531 1,295,469 0.38% 0.38%

New Allied Electronics Industries Limited SUKUK 5,027,500 5,027,500 - 0.00% 0.00%

Kohat Cement Company Limited SUKUK 11,790,625 - 11,790,625 3.50% 3.46%

Invest Capital Investment Bank Limited COM 36,750,000 9,950,794 26,799,206 7.96% 7.85%

TOTAL 103,513,118 32,902,996 70,610,122 20.97% 20.69%

Returns Dec-2011 Nov-2011

DIF-S 0.11% 0.29%

Benchmark -0.90% -0.82%

Alpha 1.01% 1.11%

FIRST DAWOOD MUTUAL FUND




FDMF TOP TEN DEBT SECURITIES FUND MANAGER’S COMMENTS

During the month, FDMF down by 1.36% as compared to its bench-mark which was down by 0.30%. Thus FDMF was underperformed by 1.06%. Stock markets were not performing at par and a very lacklus-ter trading witnessed during the period under review due to the po-litical instability and foreign outflows were observed due to year end holidays. We are hopeful that these will recover in the year to come.

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


Registrar FD Registrar Services Pvt. Limited


Launch Date 23-Mar-2005

Listing KSE



Risk Profile Medium - High

AMC Rating AM3-

Net Assets PKR 505.52 M

NAV PKR 8.70



Sharpe Ratio (0.68)

Sortino Ratio (0.85)

Information Ratio (0.66)

VAMI 0.95

RETURNS Dec-2011 Nov-2011

FDMF -1.36% -2.97%

Benchmark -0.30% -0.92%

Alpha -1.06% -2.05%


-1.36% 0.56% -4.65% -4.65%

HISTORICAL RETURNS

INVESTMENT OBJECTIVE

To preserve the investor’s capital w hile providing a return

greater than that offered by other investments of similar risk

profile through investments in a mixed portfolio of money market,

f ixed income and stocks.


Equities 36.89% 38.91%

TFC / Sukuk 20.67% 20.97%

T-Bills 38.55% 32.99%

Cash & Eq. 2.81% 5.98%

Others 1.08% 1.16%


AAA 38.55% 32.99%

A- 0.40% 0.40%

BBB 2.35% 2.32%

dawood capital management limited · 2016. 12. 15. · kohat cement company limited sukuk 3.50%...

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