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