BALANCED

MUTUAL
FUND
FUND
MANAGER
REPORT
FINANCIAL
MARKETS &
INSTITUES
Submitted by:
Maria Masood
11994
Sidrah Shaikh
11562
Rabia Muhammad
14530
Submitted to:
Sir Faisal Dhedhi
1

BALANCED MUTUAL
SD 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 dualpurpose 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

Pricing Mechanism

Forward

Trustee

Central Depositary Company of Pakistan Ltd.

2

Risk Profile

Medium

INITIAL PUBLIC OFFERING

Companies

JS Bank Ltd
National Bank
Soneri Bank Ltd
United Bank Ltd
Lackson Investments
PSO
Telenor
KASB Bank
NIB Bank Limited
Askari Bank Ltd
Indus Motor Company Limited
Allied Bank Ltd.
MCB
Faysal Bank

Sui Southern Gas Company (SSGC)

NetSol Technologies, Inc
Standard Chartered

(%) of Total Fund

1.59%
4.00%
2.98%
2.49%
8.65%
7.58%
6.18%
7.77%
7.18%
6.30%
2.19%
3.00%
0.05%
3.90%
0.82%
2.90%
4.30%
3

Unilever Pakistan Limited

Public

4.03%
24.09%
100.00%

Total

Asset Allocation:
Fund Size
Unit Price
No. of Unit

100 Million
50 NAV perUnit
2 Million

Asset Allocation
Cash
T-Bills
TFCs
Equity
Other including receivables
Commodity Market

Nov-11
10.00%
12.00%
20.00%
52.00%
3.00%
3%

Fund (PKR)(Million)
10.00
12.00
20.00
52.00
3.00
3.00

Oct-11
6.00%
11.00%
30.00%
48.00%
2.00%
3.00%

Fund (PKR)(Million)
6.00
11.00
30.00
48.00
2.00
3.00
4

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%

Lucky Cement

0.25

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%

0.50

0.50%

0.50

5.00%

5.00

10.00%

10.00

Pakistan State Oil

1.25%

1.25

Pakistan Petrolium Ltds

4.00%

4.00

Oil and Gas

Pakistan Oil Fields

POL

Oil and Gas Development Co.

OGDCL

20.25%
Banks
Bank Al falah

3.00%

3.00

National Bank

1.00%

1.00

4.50%

4.50

8.50%

8.50

MCB Bank Ltd.

MCB

Electricity
Hub Power Co.

HUBC

Kapco

3.50%

3.50

1.04%

1.04

4.54%
Total

52.00%

52.00

SECTOR WISE BREAKUP OF EQUITY ALLOCATION

Equity Allocation (%)

Percentage of Total Fund Size

Construction and Materials

Chemicals
Personal Goods
Oil and Gas
Banks
Electricity
Total

Companies
Name

% of
Total
Fund
Symbol Size

Fund No.
% of
(PKR) of
Equity (M)
Units

Current
Price - 2,
DEC 11

Fund (PKR)(Million)

1.50%
16.71%
0.50%
20.25%
8.50%
4.54%

1.50
16.71
0.50
20.25
8.50
4.54

52.00%

52.00

Expected
Price in
Return
Year
Return W.A
(PKR)
2012
(%)
Return (M)
6

Fu
2012

DG Khan
Cement
Fauji Fertilizer
Co.
Fauji Fertilizer
Bin Qasim Co.
fatima frtilizer
co

DGKC

0.25%

0.5%

0.25

4808

23.6

30

27

0.13

0.07

0.32

FFCL

6.71%

12.9%

6.71

129038

159.1

225

41

5.34

2.78

9.49

FFBL

4.50%

8.7%

4.5

86538

52.95

64

21

1.81

0.94

5.44

4.00%

7.7%

76923

23.57

24

0.14

0.07

4.07

0.50%

1.0%

0.5

9615

40.86

60

47

0.45

0.23

0.73

5.00%

9.6%

96154

362.17

425

17

1.67

0.87

5.87

Nishat Mills Ltd

Pakistan Oil
Fields
Oil and Gas
Development
Co.

NML

NML

10.00%

19.2%

10

192308

158.53

170.00

1.39

0.72

10.72

Bank Al falah

NPL

3.00%

5.8%

57692

11.75

14.00

19

1.10

0.57

3.57

National Bank

NIB

1.00%

1.9%

19231

40.90

55.00

34

0.66

0.34

1.34

MCB Bank Ltd.

PPL

4.50%

8.7%

4.5

86538

147.95

210.00

42

3.63

1.89

6.39

Lucky Cement

1.25%

2.4%

1.25

24038

79.35

100.00

26

0.63

0.33

1.58

Hub Power Co.

3.50%

6.7%

3.5

67308

36.45

50.00

37

2.50

1.30

4.80

Kapco
Pakistan
Petrolium ltd
Engro
Corporation

1.04%

2.0%

1.04

20000

41.01

48.00

17

0.34

0.18

1.22

4.00%

7.7%

76923

169.91

225.00

32

2.49

1.30

5.30

1.50%

2.9%

1.5

28846

112.90

225.00

99

2.86

1.49

2.99

PSO

1.25%

2.4%

1.25

24038

243.62

400.00

64

1.54

0.80

2.05

52.00%

100%

52.00

100000
0

T-BILLS EVALUATION

S.#

1
2
3

Tenor
3
Months
6
Months
12
Months

Percent
age of
Total
Fund

Rate
11.94
%
11.97
%
12.28
%

Percent
age of
T-Bills

Fund
(PKR)
(Million)

Weight
ed Avg
Return

Return(Milli
ons)

Fund
- 12

3.00%

25%

2.985%

0.36

3.36

6.00%

50%

5.985%

0.72

6.72

3.00%

25%
100.00
%

3.070%

0.37

12.00

12.04%

1.44

3.37
13.4
4

12.00%

TFCS EVALUATION:

TFC
Askari
Commercial bank
Standard
Chartered

Ten
or
10
year
s
7
year
s

Issu
ed
Dat
e

Rati
ng

Rate
of
Retu
rn

%of
Total
Fund

Fund
(PKR)
(Millio
n)

Retu
rn
on
TFC

Weight
ed Avg
Return

Fund
Value
- 2012

2009

AA-

14.47
%

11.00
%

55.00%

11

1.59

7.96%

12.59

2006

AAA

13.97
%

9.00
%

45.00%

1.26

6.29%

10.26

20.0
0%

100.00
%

20

2.85

14.25
%

22.85

Percent
age of
TFCs

GOLD Evaluation:

Forecasted Price

69,031.00

Current Price

57,335.00

Return

Commodity
Gold

20.40%

Percentage of Total
Fund (PKR)
Rate
Fund
(Million)
20.40%
6%

Return
(Millions)
6

CASH DEPOSIT
Percentage
Percent Fund
of Total
age on
(PKR)
Fund
Cash
(Million)

Tenor

Rat
e

Tameer Micro
Finance Bank

9.00
%

10.00%

100.00%
100.00
%

Return Fund 2012

1.22
7.22

Retur
n

Weight
ed Avg
Return

10

1.00

9.00%

11.00

72

1.00

9.00%

11.00

Fund value 2012 M

Asset Allocation

Jan-12

Fund (PKR)
(Million)

Return 2012

Weighted
Avg
return
of
Portfolio

Return 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
Other including
receivables

52.00%

52.00

26.70%

13.88%

13.88

65.88

3.00%

3.00

0.00%

0.00%

0.00

3.00

Commodity Market

3%
100.00
%

3.00

20.40%

0.61%

0.612

3.612

19.69%

19.69

119.69

Total

100.00

Benchmark Rate of Return

14.5%

Weighted Avg return of

Portfolio
Kse 30 Index
6month Kibor rate

19.69%
17.01%
11.97%

NAV - 2012 =

115,583,200.00

Date
Inception

AUMs
100,000,000
115,583,200

2012

Units
2,000,000
2,000,000

NAV / Unit
50.0
57.8

Standard Deviation:

p*r

WA. R-i return

(WA. R-I return)2

p*(WA. R-I
return)2

0.1

9.00%

0.90%

9.00%

0.0081

0.0008

0.12

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
10

0.03

0.00%

0.00%

0.00%

0.0000

0.0000

0.03

20.40%

0.61%

20.40%

0.0416

0.0012

19.69%

0.0449

S.D=0.21
Teynor's Measure
=

Portfolio return Rf
b

Sharpe Ratio =

Portfolio return Rf
s

Jensen Measure
=

19.69 - 13.17

19.69 -13.17
s

Portfolio return - Benchmark

Return

0.5

Sharpe Ratio =

Portfolio
return - Rf

0.212

19.69 - 14.1

1.33
b

Portfolio return Rf

14.5 -13.17

5.59

14.1

14.5 - 13.17

30.75

6.52

Benchmark Retun
=
Rf + (Rm-Rf)*b

Teynor's Measure
=

13.04

6.52

1.33

6.52

0.40
11

Jensen
Measure =

Portfolio return - Benchmark

Return

Benchmark
Retun =

Rf + (RmRf)*b

16.4

0.20

14.5 - 14.3

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.

12