Has picic growth paid dividend what is tax rate on it
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Posted 04 June 2011 - 08:34 PM
PICIC GROWTH FUND - Analysis of Financial Statements - Financial Year 2004 - 3Q 2011
June 04, 2011
PICIC Growth Fund is one of the largest close-ended scheme in Pakistan. The principal business of the Fund is to invest in listed equity securities with an objective to generate capital growth. The Fund aims to be the top performer of the mutual fund industry.
Through wealth maximisation of the certificate holders by investing in the best available opportunities, with an emphasis on growth, considering risk parameters and applicable rules and to provide investors lucrative investment opportunities through an investment mix of blue chip shares having the potential of offering healthy dividends and growth opportunity.
Its certificates are listed on all the three stock exchanges of Pakistan. The Fund is being managed by PICIC Asset Management Company Limited which is the investment advisor. PICIC Asset Management Company Limited (PICIC AMC) is a wholly-owned subsidiary of NIB Bank Limited (NIB) and NIB is a subsidiary of Fullerton Financial Holdings Limited which is wholly-owned by Temasek Holdings, the investment arm of the Government of Singapore. Central Depository Company of Pakistan Limited is the Trustee of the Fund.
Its customers, rather shareholders are individuals as majority. Insurance companies are the second shareholders followed by financial institutions. PICIC Asset Management Company, which is the wholly-owned subsidiary of the bank, comes next followed by NIB Bank Ltd, foreign investors and joint stock companies. Modarabas, mutual funds, leasing companies, NITL and investment banks and companies have small holdings.
In March 2010, JCR-VIS Credit Rating Company Limited has upgraded the fund performance ranking of PICIC Growth Fund from 'MFR-2 Star' to 'MFR-3 Star' for the one year period ended December 31, 2009.
During FY06, the investment decisions were based purely on fundamentals and entry and exit strategy was driven by market opportunity. Sector weightings were adjusted accordingly throughout the year given changing company and sector fundamentals.
The FY07 rally in the stock market was led by oil and gas exploration sector, followed by the commercial banks and then the fertilizer sector. As a result, these sectors remained the dominant investment avenues for the fund given their strong fundamentals and attractive valuations.
In FY08, the company adopted a different stock selection strategy. The shares that were thought to likely outperform the market were collected in the portfolio.
During FY09, another new strategy was planned. The company tried to improve the portfolio by keeping the high dividend yield stocks and the ones with good potential capital gains. The proportion of Index based and liquid stocks increased during the period. The company also tried to diversify the portfolio instead of keeping the investment in just a few sectors.
Majority of investments were in commercial banks and oil and gas exploration companies. However, there were investments in cement sector, oil refineries, textiles, power generation and fertilizers as well.
During the FY10, the company made its investment decisions based on certain factors such as liquidity and strategic interest. Three developments had a major bearing on the asset allocation as firstly sectors had been reclassified at the bourses, secondly regulatory limits for stock wise and index wise exposure had been raised and thirdly the induction of new IPOs into the market.
During the year, the company chose to invest in sectors and companies, which had low leverage and had inelastic demand. There was a high investment in the oil sector, an average of 20% in PGF and PIF and approximately 40% in Pakistan State Oil (PSO) in the AFS portfolio. The company also reduced its investment in the banking sector and instead diverted it in chemical and power sectors.
Recent results (3Q11)
PGF posted a total income stood at Rs 1,391 million including an unrealised gain of Rs 182 million (2010: unrealised gain of Rs 135 million) as compared to total income of Rs 1,233 million reported for the corresponding period. Realised capital gain during the period stood at Rs 794 million as compared to Rs 809 million in the corresponding period. Unrealised capital gain for the period was Rs 182 million as compared to Rs 134 million in the same period last year. Unrealised loss for 3 months was Rs 362 million because of funds exposure in oil and banks that performed badly for the aforementioned time period. The dividend income during the period stood at Rs 379 million as compared to Rs 195 million in the corresponding period. The stock market despite positive corporate earnings showed mixed trends due to a mixture of international and local dampeners.
The net profit for the period stood at Rs 1,217 million as compared to a net profit of Rs 1,074 million reported for the corresponding period. This translates into earnings per certificate of Rs 4.29 for the period as compared to Rs 3.79 in the corresponding period. The net assets increased from Rs 6,937 million as on June 30, 2010 to Rs 7,905 million as on March 31, 2011 and NAV per certificate increased from Rs 24.47 per certificate as on June 30, 2010 to Rs 27.88 per certificate as on March 31, 2011.
Financial performance (FY04-10)
During the year 2008, the KSE-100 index plummeted throughout the year, showing a downfall of 10.77%, from 13,772 to 12,289. This decline came as a sharp contrast after the growth of 37.87% observed during FY07. Market capitalisation fell by 6.02% from Rs 4.019 trillion to Rs 3.777 trillion in FY08, as compared to an increase of 43.48% during FY07. This all over decline was a result of the volatile political scenario of the country, coupled with macroeconomic developments, which impacted the market fundamentals across the board as the key factors for the Required Rate of Return rose sharply during the year, hence pulling the market prices downward. The market movements portrayed a perfect picture of the socio-politico developments inside the country, which included the unrest in tribal region, Presidential election, judicial activism, emergency, assassination, elections, global as well as domestic energy crisis and the government borrowing from SBP eventually took their toll on the macro economy and rupee lost 15% of its value. In response, SBP tightened the screw on monetary expansion and the stock market discounted all these developments and readjusted itself in a sharp manner, resulting in a decline of 36% in less than three months.
The total Index Points Movement (IPM) during the period under review was 4,514 points as compared to 4,267 points in FY 2007. The average daily volatility stood at 0.44% against 0.59% in FY 2007. Lower volatility is purely reflective of the higher base effect as at the beginning of the period. Performances of the sectors, which contribute almost 73% of the market capitalisation, are Banking (12.13% out-performance), Oil & Gas Exploration (31.24% out-performance) and Fertilizer (57.95% out-performance). The top-3 out-performing sectors versus the KSE-100 Index during this period were Textile Spinning (296.85% out- performance), Leather & Tanneries (142.22% out-performance) and Investment Banks/Cos./Securities (103.93% out-performance). The top-3 under-performing sectors were Textile Weaving (18.72% under-performance), Tobacco (10.04% under-performance), and Technology & Communication (5.11% under-performance).
The economy of the country in FY08, posted real GDP growth of 5.8%, as compared to 7% in FY 2007. Slow down in growth is mainly attributed to the rupee weakness arising from fiscal anomalies and the tight monetary policy. Year 2007-08 was a politically volatile year also as per the reasons discussed already, with their consequences on all aspects of economy of the country.
The attempt by the government to protect local consumers from the rising global crude oil prices through borrowing from SBP led to an abnormal expansion in budget deficit (almost 9% of GDP). However, this attempt proved futile as the global crude oil prices kept their march upwards and all the government policies to keep the impact away from the public failed. Finally the government was forced to reverse this policy. In response to the government borrowing, the SBP accelerated monetary tightening to control surging inflation. As a result the development budget remained unutilized and the budgeted subsidy skyrocketed. Therefore, inflation management choked the growth impetus for the year.
Under these circumstances, circulating around our country, economy and its impact on KSE, the fund was able to outperform the benchmark KSE-100 index by 3.05% during the year under review. The KSE-100 Index declined by 10.77% while on dividend adjusted non-frozen net asset value and total net asset value basis the fund decreased by 7.72% and 4.68% respectively. This has been a highly impressive turnaround for the fund from the situation it was facing during the time period last year six months ie from January to June 2007, when the fund under- performed the KSE-100 index by 18%. This was the result of the policy of the new management, which took over on July 01, 2007, to reorganize and restructure the fund to maximise portfolio returns over the long-term in a manner that is consistent with the investment objectives of the Fund. During FY'08 the investment decisions were based purely on fundamentals and entry and exit strategy was driven strictly in accordance with the market opportunities and conditions.
During FY09, the KSE-100 Index fell by 41.72% from 12,289 to 7,162 as compared to a decline of 10.77% during FY 2008. The market capitalisation during FY09 fell by 43.86% from Rs 3.777 trillion to Rs 2.12 trillion, as compared to a decline of 6.02% during FY08.
During the year, the KSE-100 Index showed extreme instability by reaching a High of 12,221 and a Low of 4,815. Average daily volume stood at 106 million shares as compared to 242 million shares in FY08. The total Index Points Movement (IPM) during the period was 7,406 points as compared to 4,514 points in FY08.
The banking sector (-7% under-performance), Oil & Gas Exploration (8% out-performance) and Fertilizer (8% out- performance) made up to almost 67% of the market capitalization. The top three out-performing sectors versus the KSE-100 Index during this period were Chemicals (26% out-performance), Power Generation & Distribution (25% out-performance) and Oil & Gas Exploration Companies (8% out-performance). The top three under-performing sectors versus the KSE-100 Index during this period were Insurance (23% under-performance), Technology & Communication (13% under- performance) and Textile Spinning (12% under-performance).
The worsening law and order situation in the North West of the country affected the socio-political and macro-environment of the country. On top of it were fiscal and budgetary imbalances, which further deteriorated the condition. Due to all this, the risk premium on the equities jacked up and the value of the equity went down due to the falling liquidity.
The real GDP growth also declined was recorded as 2.1%, as compared to 4.1% in FY08. The internal problems such as the political instability and the deteriorating situation in the country were mainly the reasons for the crisis in the country. However, economic problems, mainly the international oil price shock also led to the worsening of the condition as it led to the rising inflation problem (21.5%), the increasing deficit (4.1% of GDP), the dwindling reserves and the weakening of the rupee by almost 26% against the dollar (PKR78.6/USD from PKR62.6/USD in FY08).
Pakistan had to again seek recourse from the IMF which came in with an assistance pledge of USD7.6bn whilst the total amount pledged by international donors stood at approximately USD15bn.
The discount rate also went up at a high of 15% in order to curb inflation, which consequently tightened liquidity as M2 growth slumped to 6.7% in FY 2009 versus 10.43% in FY 2008.
Coming to FY10, the KSE-100 Index rose by 35.74% from 7,162 to 9,721 as compared to a decline of 41.72% during FY09. The market capitalization during the year rose by 28.85% from Rs 2.12 trillion to Rs 2.73 trillion, as compared to a decline of 43.86% during the last fiscal year.
During the KSE-100 Index remained relatively stable with a high of 10,677 and a low of 7,162 as compared to the extreme volatility witnessed last year. The average daily volume stood at 161 million shares as compared to 106 million shares in FY 2009. The total Index Points Movement (IPM) during the period under review was 3,515 points as compared to 7,406 points in FY 2009.
There was also an inflow of foreign funds into the market as USD 561million poured in.
A few major companies resulted in the positive return in the market. Of particular importance is OGDC which has contributed 52.34% to the total return of the market while the top 6 scrip's including top tier names such as OGDC (52.34%), MCB (5.69%), Unilever (4.88%), Nestle (4.41%), PPL (3.71%) and UBL (3.56%) have combined to give a 74.59% return. The market is at a 50% discount to its regional peers in particular many blue chip stocks in sectors such as OMCs and Banks offer even steeper discounts with higher potential capital gains.
Pakistan real GDP also increased to 4.1% in FY 2010 as compared to 1.2% in FY 2009. Economic indicators have largely improved which has resulted in an improvement in Pakistan's Sovereign Credit rating by S&P to B-/Stable.
The overall situation remains weak despite the improvement in the macroeconomic indicators. Inflation has fallen from 20.77% (July-June FY09) to a lower level of 11.73% (July-June FY10) which is still a relatively higher number. The current account deficit fell from 5.6% of GDP to a more manageable 2.6% of GDP backed by strong remittances growth, falling oil prices and stable export growth. Foreign reserves have also been sufficiently augmented to close at USD16 billion providing some currency stability.
The government's high fiscal spending, coupled with large domestic borrowings continues to be of concern, which has resulted in larger than expected budget deficit (estimated at 6.2% of GDP, well exceeding IMF targets of 5.1%). This excessive spending has been financed mainly through domestic bank borrowings and consequently the private sector remains constrained by the lack of liquidity in the banking system.
The floods, which have hit the country on the outset of fiscal year 2011 on such a huge scale, have further suppressed the recovery. The funding required for emergency aid work as well as infrastructure replenishment will increase the government's borrowing requirements from the banking system. This situation will further exacerbate persistent double-digit inflation.
The State Bank kept a firm grip on interest rates in FY10 and implemented a marginal 50 basis point cut in the Discount Rate in November 2009 to make it 12.5%. In the first Monetary Policy Statement of 2011, the State Bank chose to increase the Discount Rate by 50 basis points to its current level of 13%. The economic landscape remains tenuous, but the expected foreign flows should act as both a stimulus and a support, by enhancing fiscal stability and subsequently economic growth.
During FY10, the total income stood at Rs 769 million including unrealized loss of Rs 480 million (2009: unrealized loss of Rs 673 million) as compared to total loss of Rs 2,177 million during the last fiscal year.
Realised capital gain during the period stood at Rs 904 million as compared to realised capital loss of Rs 2,014 million in the corresponding period. The dividend income during the period stood at Rs 244 million as compared to Rs 442 million in FY10, which is a decline of 44.8%.
The total expenditure during the period was recorded to be Rs 217 million as compared to Rs 166 million as compared to the last fiscal year.
Tax provision for the current year amounted to nil due to tax exemption under Clause 99 of Part I of the Second Schedule of the Income Tax Ordinance, 2001 and Regulation 63 of NBFC & NE Regulations, 2008. The net profit for the period stood at Rs 552 million including unrealized loss of Rs 480 million as compared to a net loss of Rs 2,343 million reported for the corresponding period. This translates into earnings per certificate of Rs 1.95 for the period as compared to loss per certificate of Rs 8.26 in the corresponding period.
The net assets increased from Rs 6,523 million as on June 30, 2009 to Rs 6,937 million as on June 30, 2010 and accordingly the net asset value per certificate increased from Rs 23.01 per certificate as on June 30, 2009 to Rs 24.47 per certificate as on June 30, 2010. The Board of Directors of PICIC Asset Management Company Limited has declared an interim cash dividend of 20% (ie Rs 2.00 per certificate) of PICIC Growth Fund for the year ended June 30, 2010 resulting in total cash payout of Rs 567 million.
The operating performance of the fund improved in 2010 after a decline in performance in fiscal years 2008 and 2009.
The dividend income of the fund has increased consistently over the years but showed a decline of 44.8% in the current fiscal year. The fund has diversified investments with some of them being in active sectors of the economy such as oil and gas development sector, commercial banks and chemicals and fertilizers sector.
The capital gains started declining in the fiscal year 2008 and in 2009 it declined greatly and went into negative. However, the current fiscal year witnessed an improvement in the capital gains and it increased by almost 145% as compared to the FY'09. Due to high capital gains, the total income of the fund was also recorded at a high level in 2010.
The capital gain to total income ratio showed an upward trend after the decline in 2009. This was again because of the increase in the capital gains. The ratio was calculated to be 117.5%, which is a significant increase as compared to the capital loss of 2009.
The dividend income to total income also showed a consistently rising trend until the dip in 2008 that continued through 2009 finally rising in 2010. The percentage went down to almost negative 160% in 2008, rising to negative 20.32% in 2009 and then increasing by 256.2% to 31.73% in 2010. The rise was witnessed after the stock market improved in 2010 and also because the fund changed its strategy and invested in high performance stocks in the country,
The returns from investment of the company peaked 2006. In other years, they were relatively lower and went to negative values in 2008 and 2009.
The profit after tax of the company was more than Rs 551 million in 2010 and this was an increase of 123.55% as the year 2009 recorded a loss after tax of Rs 2343 million.
The return on assets in 2010 was 7.73% as compared to a negative return of 35.4% in the previous year.
The total asset base increased by 7.66% whereas the profit also increased significantly and hence the fund experienced a high ratio of return.
The return to equity ratio depicted a trend similar to the return to assets ratio of the fund due to same reasons as mentioned above. The equity of the fund continued to rise as investors gained confidence in the market and as more foreign investors were attracted to the capital stocks. The company registered a return to equity ratio of 7.95% as compared to a negative return of 35.92% in FY09.
In 2008 there was a decline in assets due to the loss in fair value of investments held by the company and deposits held by the company, which lowered the net value of assets as compared to 2007. Still, the company managed to cut down its liabilities, mainly in the management fees department and payables against purchase of investment. Yet the ROA and ROE ratios are both in negative values due to the overall loss faced by the company. During 2009, the assets declined further whereas in 2010 they increased. However, there was almost a 90% increase in the liabilities in 2010.
The PAT to total income paralleled the other two ratios due to the same reasons. It was recorded at positive 71.3% in 2010. The ratio was negative for 2009, as the total income and the profit after tax both were negative.
The debt management profile of the company showed a fluctuating trend, with attaining a peak in 2006. Overall, the ratios have remained low indicating that the fund has managed its liabilities quite effectively. It also reinforces the fact that the fund is largely equity-based.
The debt to asset ratio indicated a peak in 2006 at 7% since the liabilities of the fund were the highest in 2006. The major portion of the fund's payables comprises of the fee to investment advisor. This portion showed a major increase in 2006. In 2007, the ratio was at 5%. Though the fee to SECP increased in 2007, however, the total assets recorded a far greater increase over the period 2006-2007. Hence, the ratio was lower than in 2006. In 2008, the company managed to cut down its liabilities largely, especially in fees against management and payables against purchase if investments, causing the ratio to go down to 1%, in spite of lower assets as compared to 2007. The ratio went up in the years 2009 and 2010. The debt to asset ratio was computed to be 3%, which is an increase of 76.5% as compared to the last year. The liabilities showed a greater increase of almost 90% as compared to the assets, which increased only by 7.66%. The major increase in the liabilities was the payable against the purchase of securities.
The debt to equity ratio also increased in 2010 to 3%, an increase of 78.63% as compared to 2009. The major change in the equity came through the surplus on revaluation of the AFS investment.
The capital adequacy of the fund shows the fund as equity based fund. Paid-up capital as a portion of equity has been different in different years. Also the equity as a portion of total assets has been hovering from 99% to 95% because the fund is equity-based. In 2010, the percentage of equity to total assets was 97%.
The major portion of the equity goes to the unappropriated profit of the fund, followed by paid-up capital, confirming the fund's objective of growth by retaining a major portion back.
The net assets of the fund have shown a rising trend over the years, most of them being financed by capital through investments in equity. The capital base of the fund has increased slightly for the last 6 years and so did the premium on issue of certificate. In 2008, the net assets fell due to the loss faced in fair value of investments. This was reflected in a loss in the unappropriated profits of the company. In 2009, the net assets declined further largely due to the decrease in the investments. However, in 2010, the situation improved and the net assets increased by 6.35% as compared to 2009. This increase was due to the introduction of receivables against the sale of investments and also a minor increase in the investments itself.
The closing NAV has increased sharply after 2002 after which it hovered between 52 and 47. This shows that fund is able to handle the volatility in the market and hence is able to maintain its NAV at a consistent value. Even in 2008, we see that though the closing NAV decreased, reflecting the low performance of the market, opening NAV increased The number of share certificates in 2008 remained same as in 2007 but the net assets recorded a lower value that made the NAV stand out at 39.8 in 2008 as against 47 in 2007. In 2009, both the opening and closing NAV declined as compared to 2008 being recorded at 39.8 and 23.01 respectively. The decline in the closing NAV was due to the decrease in net assets as mentioned above as the number of certificates issued remained the same. Coming to the year 2010, the closing NAV 24.47 was a bit greater than the opening NAV which was 23.01 because of the slight increase in the net assets on a YoY basis.
The earnings per certificate also maintained a similar value throughout the period under review. It showed a slight dip in 2005 due to lower profitability. It increased in 2006 due to a more than double increase in profits. However, the ratio slightly declined in 2007 as lower capital gains stimulated lower profits. Consequently, in 2008 the ratio again fell due to low markets and volatile situation of our country, from Rs 6.31 to Rs -2.11. The condition worsened in 2009 as the earning per certificate dipped to -8.26 due to the worsening situations of the country and the huge loss that the fund incurred during the year. However, as the circumstances improved in 2010 along with the company's performance and profitability, the earnings also witnessed an increase from -8.26 to 1.95, an increase of 123.61%.
The dividend per share has shown an erratic trend and so have the dividend yield and dividend payout. The dip in both the ratios is attributed to the low DPS in 2005. However, both have shot up again in 2007 on the account of a handsome DPS. In 2008 the DPS fell from Rs 4.25 to Rs 2.5. this resulted in a decline in dividend yield but the payout remained to be high on account of lower unappropriated profits. In 2009, the company didn't pay any dividends because of the loss that it incurred. However, in 2010, the company paid an interim dividend. The DPS was Rs 2 and the dividend yield came out to be 8%.
The assets are allocated with the greatest part going to investments held for trading, then to investments available for sale and then bank balances. In terms of sectoral performance of 2010, there were other sectors of asset distribution as well, but the magnitude of those sectors is very low as compared to the major two sectors.
The graph on the left shows the sector investments as a percentage of the NAV. Oil and Gas retained the highest share of investment followed by banks and the various other sectors with little investments.
Future outlook
The economy and the market performed well in the FY10 as compared to the previous year, which was marked by imbalances and crises. The foreign inflow into the market has also increased but the economy still remains vulnerable to the changing commodity prices.
The long expected implementation of Capital Gains Tax would be a challenge for the market. The problems being faced by the market due to the imposition of CGT has spurred the drive for re-instatement of a margin product. The fact that even in the recovery phase the market, without any leveraged product, has only shown an Average Daily turnover (ADTO) of USD 84 million versus the leveraged driven ADTO of USD 436 million over the period FY04-08 is noteworthy. It demonstrates the impact that leverage has on the functioning of our market and hence its likely reintroduction bodes well for the upcoming year.
The addition of new listings in the market, eight new listings in FY 2010 and further listings expected in FY 11 would be of interest. The results of fiscal indiscipline and its effects on the corporate sector growth and inflation would remain major challenges for the economy. On top of it, the havoc created by the floods will add to more problems. If the foreign aid pledges do not materialize, the fiscal situation can worsen and affect all the sectors.
Based on fundamentals, the Pakistani market is currently trading at 50% discount to its regional peers, given the steep nature of the discount; the market is likely to show stable returns in fiscal year 2011.
June 04, 2011
PICIC Growth Fund is one of the largest close-ended scheme in Pakistan. The principal business of the Fund is to invest in listed equity securities with an objective to generate capital growth. The Fund aims to be the top performer of the mutual fund industry.
Through wealth maximisation of the certificate holders by investing in the best available opportunities, with an emphasis on growth, considering risk parameters and applicable rules and to provide investors lucrative investment opportunities through an investment mix of blue chip shares having the potential of offering healthy dividends and growth opportunity.
Its certificates are listed on all the three stock exchanges of Pakistan. The Fund is being managed by PICIC Asset Management Company Limited which is the investment advisor. PICIC Asset Management Company Limited (PICIC AMC) is a wholly-owned subsidiary of NIB Bank Limited (NIB) and NIB is a subsidiary of Fullerton Financial Holdings Limited which is wholly-owned by Temasek Holdings, the investment arm of the Government of Singapore. Central Depository Company of Pakistan Limited is the Trustee of the Fund.
Its customers, rather shareholders are individuals as majority. Insurance companies are the second shareholders followed by financial institutions. PICIC Asset Management Company, which is the wholly-owned subsidiary of the bank, comes next followed by NIB Bank Ltd, foreign investors and joint stock companies. Modarabas, mutual funds, leasing companies, NITL and investment banks and companies have small holdings.
In March 2010, JCR-VIS Credit Rating Company Limited has upgraded the fund performance ranking of PICIC Growth Fund from 'MFR-2 Star' to 'MFR-3 Star' for the one year period ended December 31, 2009.
During FY06, the investment decisions were based purely on fundamentals and entry and exit strategy was driven by market opportunity. Sector weightings were adjusted accordingly throughout the year given changing company and sector fundamentals.
The FY07 rally in the stock market was led by oil and gas exploration sector, followed by the commercial banks and then the fertilizer sector. As a result, these sectors remained the dominant investment avenues for the fund given their strong fundamentals and attractive valuations.
In FY08, the company adopted a different stock selection strategy. The shares that were thought to likely outperform the market were collected in the portfolio.
During FY09, another new strategy was planned. The company tried to improve the portfolio by keeping the high dividend yield stocks and the ones with good potential capital gains. The proportion of Index based and liquid stocks increased during the period. The company also tried to diversify the portfolio instead of keeping the investment in just a few sectors.
Majority of investments were in commercial banks and oil and gas exploration companies. However, there were investments in cement sector, oil refineries, textiles, power generation and fertilizers as well.
During the FY10, the company made its investment decisions based on certain factors such as liquidity and strategic interest. Three developments had a major bearing on the asset allocation as firstly sectors had been reclassified at the bourses, secondly regulatory limits for stock wise and index wise exposure had been raised and thirdly the induction of new IPOs into the market.
During the year, the company chose to invest in sectors and companies, which had low leverage and had inelastic demand. There was a high investment in the oil sector, an average of 20% in PGF and PIF and approximately 40% in Pakistan State Oil (PSO) in the AFS portfolio. The company also reduced its investment in the banking sector and instead diverted it in chemical and power sectors.
Recent results (3Q11)
PGF posted a total income stood at Rs 1,391 million including an unrealised gain of Rs 182 million (2010: unrealised gain of Rs 135 million) as compared to total income of Rs 1,233 million reported for the corresponding period. Realised capital gain during the period stood at Rs 794 million as compared to Rs 809 million in the corresponding period. Unrealised capital gain for the period was Rs 182 million as compared to Rs 134 million in the same period last year. Unrealised loss for 3 months was Rs 362 million because of funds exposure in oil and banks that performed badly for the aforementioned time period. The dividend income during the period stood at Rs 379 million as compared to Rs 195 million in the corresponding period. The stock market despite positive corporate earnings showed mixed trends due to a mixture of international and local dampeners.
The net profit for the period stood at Rs 1,217 million as compared to a net profit of Rs 1,074 million reported for the corresponding period. This translates into earnings per certificate of Rs 4.29 for the period as compared to Rs 3.79 in the corresponding period. The net assets increased from Rs 6,937 million as on June 30, 2010 to Rs 7,905 million as on March 31, 2011 and NAV per certificate increased from Rs 24.47 per certificate as on June 30, 2010 to Rs 27.88 per certificate as on March 31, 2011.
Financial performance (FY04-10)
During the year 2008, the KSE-100 index plummeted throughout the year, showing a downfall of 10.77%, from 13,772 to 12,289. This decline came as a sharp contrast after the growth of 37.87% observed during FY07. Market capitalisation fell by 6.02% from Rs 4.019 trillion to Rs 3.777 trillion in FY08, as compared to an increase of 43.48% during FY07. This all over decline was a result of the volatile political scenario of the country, coupled with macroeconomic developments, which impacted the market fundamentals across the board as the key factors for the Required Rate of Return rose sharply during the year, hence pulling the market prices downward. The market movements portrayed a perfect picture of the socio-politico developments inside the country, which included the unrest in tribal region, Presidential election, judicial activism, emergency, assassination, elections, global as well as domestic energy crisis and the government borrowing from SBP eventually took their toll on the macro economy and rupee lost 15% of its value. In response, SBP tightened the screw on monetary expansion and the stock market discounted all these developments and readjusted itself in a sharp manner, resulting in a decline of 36% in less than three months.
The total Index Points Movement (IPM) during the period under review was 4,514 points as compared to 4,267 points in FY 2007. The average daily volatility stood at 0.44% against 0.59% in FY 2007. Lower volatility is purely reflective of the higher base effect as at the beginning of the period. Performances of the sectors, which contribute almost 73% of the market capitalisation, are Banking (12.13% out-performance), Oil & Gas Exploration (31.24% out-performance) and Fertilizer (57.95% out-performance). The top-3 out-performing sectors versus the KSE-100 Index during this period were Textile Spinning (296.85% out- performance), Leather & Tanneries (142.22% out-performance) and Investment Banks/Cos./Securities (103.93% out-performance). The top-3 under-performing sectors were Textile Weaving (18.72% under-performance), Tobacco (10.04% under-performance), and Technology & Communication (5.11% under-performance).
The economy of the country in FY08, posted real GDP growth of 5.8%, as compared to 7% in FY 2007. Slow down in growth is mainly attributed to the rupee weakness arising from fiscal anomalies and the tight monetary policy. Year 2007-08 was a politically volatile year also as per the reasons discussed already, with their consequences on all aspects of economy of the country.
The attempt by the government to protect local consumers from the rising global crude oil prices through borrowing from SBP led to an abnormal expansion in budget deficit (almost 9% of GDP). However, this attempt proved futile as the global crude oil prices kept their march upwards and all the government policies to keep the impact away from the public failed. Finally the government was forced to reverse this policy. In response to the government borrowing, the SBP accelerated monetary tightening to control surging inflation. As a result the development budget remained unutilized and the budgeted subsidy skyrocketed. Therefore, inflation management choked the growth impetus for the year.
Under these circumstances, circulating around our country, economy and its impact on KSE, the fund was able to outperform the benchmark KSE-100 index by 3.05% during the year under review. The KSE-100 Index declined by 10.77% while on dividend adjusted non-frozen net asset value and total net asset value basis the fund decreased by 7.72% and 4.68% respectively. This has been a highly impressive turnaround for the fund from the situation it was facing during the time period last year six months ie from January to June 2007, when the fund under- performed the KSE-100 index by 18%. This was the result of the policy of the new management, which took over on July 01, 2007, to reorganize and restructure the fund to maximise portfolio returns over the long-term in a manner that is consistent with the investment objectives of the Fund. During FY'08 the investment decisions were based purely on fundamentals and entry and exit strategy was driven strictly in accordance with the market opportunities and conditions.
During FY09, the KSE-100 Index fell by 41.72% from 12,289 to 7,162 as compared to a decline of 10.77% during FY 2008. The market capitalisation during FY09 fell by 43.86% from Rs 3.777 trillion to Rs 2.12 trillion, as compared to a decline of 6.02% during FY08.
During the year, the KSE-100 Index showed extreme instability by reaching a High of 12,221 and a Low of 4,815. Average daily volume stood at 106 million shares as compared to 242 million shares in FY08. The total Index Points Movement (IPM) during the period was 7,406 points as compared to 4,514 points in FY08.
The banking sector (-7% under-performance), Oil & Gas Exploration (8% out-performance) and Fertilizer (8% out- performance) made up to almost 67% of the market capitalization. The top three out-performing sectors versus the KSE-100 Index during this period were Chemicals (26% out-performance), Power Generation & Distribution (25% out-performance) and Oil & Gas Exploration Companies (8% out-performance). The top three under-performing sectors versus the KSE-100 Index during this period were Insurance (23% under-performance), Technology & Communication (13% under- performance) and Textile Spinning (12% under-performance).
The worsening law and order situation in the North West of the country affected the socio-political and macro-environment of the country. On top of it were fiscal and budgetary imbalances, which further deteriorated the condition. Due to all this, the risk premium on the equities jacked up and the value of the equity went down due to the falling liquidity.
The real GDP growth also declined was recorded as 2.1%, as compared to 4.1% in FY08. The internal problems such as the political instability and the deteriorating situation in the country were mainly the reasons for the crisis in the country. However, economic problems, mainly the international oil price shock also led to the worsening of the condition as it led to the rising inflation problem (21.5%), the increasing deficit (4.1% of GDP), the dwindling reserves and the weakening of the rupee by almost 26% against the dollar (PKR78.6/USD from PKR62.6/USD in FY08).
Pakistan had to again seek recourse from the IMF which came in with an assistance pledge of USD7.6bn whilst the total amount pledged by international donors stood at approximately USD15bn.
The discount rate also went up at a high of 15% in order to curb inflation, which consequently tightened liquidity as M2 growth slumped to 6.7% in FY 2009 versus 10.43% in FY 2008.
Coming to FY10, the KSE-100 Index rose by 35.74% from 7,162 to 9,721 as compared to a decline of 41.72% during FY09. The market capitalization during the year rose by 28.85% from Rs 2.12 trillion to Rs 2.73 trillion, as compared to a decline of 43.86% during the last fiscal year.
During the KSE-100 Index remained relatively stable with a high of 10,677 and a low of 7,162 as compared to the extreme volatility witnessed last year. The average daily volume stood at 161 million shares as compared to 106 million shares in FY 2009. The total Index Points Movement (IPM) during the period under review was 3,515 points as compared to 7,406 points in FY 2009.
There was also an inflow of foreign funds into the market as USD 561million poured in.
A few major companies resulted in the positive return in the market. Of particular importance is OGDC which has contributed 52.34% to the total return of the market while the top 6 scrip's including top tier names such as OGDC (52.34%), MCB (5.69%), Unilever (4.88%), Nestle (4.41%), PPL (3.71%) and UBL (3.56%) have combined to give a 74.59% return. The market is at a 50% discount to its regional peers in particular many blue chip stocks in sectors such as OMCs and Banks offer even steeper discounts with higher potential capital gains.
Pakistan real GDP also increased to 4.1% in FY 2010 as compared to 1.2% in FY 2009. Economic indicators have largely improved which has resulted in an improvement in Pakistan's Sovereign Credit rating by S&P to B-/Stable.
The overall situation remains weak despite the improvement in the macroeconomic indicators. Inflation has fallen from 20.77% (July-June FY09) to a lower level of 11.73% (July-June FY10) which is still a relatively higher number. The current account deficit fell from 5.6% of GDP to a more manageable 2.6% of GDP backed by strong remittances growth, falling oil prices and stable export growth. Foreign reserves have also been sufficiently augmented to close at USD16 billion providing some currency stability.
The government's high fiscal spending, coupled with large domestic borrowings continues to be of concern, which has resulted in larger than expected budget deficit (estimated at 6.2% of GDP, well exceeding IMF targets of 5.1%). This excessive spending has been financed mainly through domestic bank borrowings and consequently the private sector remains constrained by the lack of liquidity in the banking system.
The floods, which have hit the country on the outset of fiscal year 2011 on such a huge scale, have further suppressed the recovery. The funding required for emergency aid work as well as infrastructure replenishment will increase the government's borrowing requirements from the banking system. This situation will further exacerbate persistent double-digit inflation.
The State Bank kept a firm grip on interest rates in FY10 and implemented a marginal 50 basis point cut in the Discount Rate in November 2009 to make it 12.5%. In the first Monetary Policy Statement of 2011, the State Bank chose to increase the Discount Rate by 50 basis points to its current level of 13%. The economic landscape remains tenuous, but the expected foreign flows should act as both a stimulus and a support, by enhancing fiscal stability and subsequently economic growth.
During FY10, the total income stood at Rs 769 million including unrealized loss of Rs 480 million (2009: unrealized loss of Rs 673 million) as compared to total loss of Rs 2,177 million during the last fiscal year.
Realised capital gain during the period stood at Rs 904 million as compared to realised capital loss of Rs 2,014 million in the corresponding period. The dividend income during the period stood at Rs 244 million as compared to Rs 442 million in FY10, which is a decline of 44.8%.
The total expenditure during the period was recorded to be Rs 217 million as compared to Rs 166 million as compared to the last fiscal year.
Tax provision for the current year amounted to nil due to tax exemption under Clause 99 of Part I of the Second Schedule of the Income Tax Ordinance, 2001 and Regulation 63 of NBFC & NE Regulations, 2008. The net profit for the period stood at Rs 552 million including unrealized loss of Rs 480 million as compared to a net loss of Rs 2,343 million reported for the corresponding period. This translates into earnings per certificate of Rs 1.95 for the period as compared to loss per certificate of Rs 8.26 in the corresponding period.
The net assets increased from Rs 6,523 million as on June 30, 2009 to Rs 6,937 million as on June 30, 2010 and accordingly the net asset value per certificate increased from Rs 23.01 per certificate as on June 30, 2009 to Rs 24.47 per certificate as on June 30, 2010. The Board of Directors of PICIC Asset Management Company Limited has declared an interim cash dividend of 20% (ie Rs 2.00 per certificate) of PICIC Growth Fund for the year ended June 30, 2010 resulting in total cash payout of Rs 567 million.
The operating performance of the fund improved in 2010 after a decline in performance in fiscal years 2008 and 2009.
The dividend income of the fund has increased consistently over the years but showed a decline of 44.8% in the current fiscal year. The fund has diversified investments with some of them being in active sectors of the economy such as oil and gas development sector, commercial banks and chemicals and fertilizers sector.
The capital gains started declining in the fiscal year 2008 and in 2009 it declined greatly and went into negative. However, the current fiscal year witnessed an improvement in the capital gains and it increased by almost 145% as compared to the FY'09. Due to high capital gains, the total income of the fund was also recorded at a high level in 2010.
The capital gain to total income ratio showed an upward trend after the decline in 2009. This was again because of the increase in the capital gains. The ratio was calculated to be 117.5%, which is a significant increase as compared to the capital loss of 2009.
The dividend income to total income also showed a consistently rising trend until the dip in 2008 that continued through 2009 finally rising in 2010. The percentage went down to almost negative 160% in 2008, rising to negative 20.32% in 2009 and then increasing by 256.2% to 31.73% in 2010. The rise was witnessed after the stock market improved in 2010 and also because the fund changed its strategy and invested in high performance stocks in the country,
The returns from investment of the company peaked 2006. In other years, they were relatively lower and went to negative values in 2008 and 2009.
The profit after tax of the company was more than Rs 551 million in 2010 and this was an increase of 123.55% as the year 2009 recorded a loss after tax of Rs 2343 million.
The return on assets in 2010 was 7.73% as compared to a negative return of 35.4% in the previous year.
The total asset base increased by 7.66% whereas the profit also increased significantly and hence the fund experienced a high ratio of return.
The return to equity ratio depicted a trend similar to the return to assets ratio of the fund due to same reasons as mentioned above. The equity of the fund continued to rise as investors gained confidence in the market and as more foreign investors were attracted to the capital stocks. The company registered a return to equity ratio of 7.95% as compared to a negative return of 35.92% in FY09.
In 2008 there was a decline in assets due to the loss in fair value of investments held by the company and deposits held by the company, which lowered the net value of assets as compared to 2007. Still, the company managed to cut down its liabilities, mainly in the management fees department and payables against purchase of investment. Yet the ROA and ROE ratios are both in negative values due to the overall loss faced by the company. During 2009, the assets declined further whereas in 2010 they increased. However, there was almost a 90% increase in the liabilities in 2010.
The PAT to total income paralleled the other two ratios due to the same reasons. It was recorded at positive 71.3% in 2010. The ratio was negative for 2009, as the total income and the profit after tax both were negative.
The debt management profile of the company showed a fluctuating trend, with attaining a peak in 2006. Overall, the ratios have remained low indicating that the fund has managed its liabilities quite effectively. It also reinforces the fact that the fund is largely equity-based.
The debt to asset ratio indicated a peak in 2006 at 7% since the liabilities of the fund were the highest in 2006. The major portion of the fund's payables comprises of the fee to investment advisor. This portion showed a major increase in 2006. In 2007, the ratio was at 5%. Though the fee to SECP increased in 2007, however, the total assets recorded a far greater increase over the period 2006-2007. Hence, the ratio was lower than in 2006. In 2008, the company managed to cut down its liabilities largely, especially in fees against management and payables against purchase if investments, causing the ratio to go down to 1%, in spite of lower assets as compared to 2007. The ratio went up in the years 2009 and 2010. The debt to asset ratio was computed to be 3%, which is an increase of 76.5% as compared to the last year. The liabilities showed a greater increase of almost 90% as compared to the assets, which increased only by 7.66%. The major increase in the liabilities was the payable against the purchase of securities.
The debt to equity ratio also increased in 2010 to 3%, an increase of 78.63% as compared to 2009. The major change in the equity came through the surplus on revaluation of the AFS investment.
The capital adequacy of the fund shows the fund as equity based fund. Paid-up capital as a portion of equity has been different in different years. Also the equity as a portion of total assets has been hovering from 99% to 95% because the fund is equity-based. In 2010, the percentage of equity to total assets was 97%.
The major portion of the equity goes to the unappropriated profit of the fund, followed by paid-up capital, confirming the fund's objective of growth by retaining a major portion back.
The net assets of the fund have shown a rising trend over the years, most of them being financed by capital through investments in equity. The capital base of the fund has increased slightly for the last 6 years and so did the premium on issue of certificate. In 2008, the net assets fell due to the loss faced in fair value of investments. This was reflected in a loss in the unappropriated profits of the company. In 2009, the net assets declined further largely due to the decrease in the investments. However, in 2010, the situation improved and the net assets increased by 6.35% as compared to 2009. This increase was due to the introduction of receivables against the sale of investments and also a minor increase in the investments itself.
The closing NAV has increased sharply after 2002 after which it hovered between 52 and 47. This shows that fund is able to handle the volatility in the market and hence is able to maintain its NAV at a consistent value. Even in 2008, we see that though the closing NAV decreased, reflecting the low performance of the market, opening NAV increased The number of share certificates in 2008 remained same as in 2007 but the net assets recorded a lower value that made the NAV stand out at 39.8 in 2008 as against 47 in 2007. In 2009, both the opening and closing NAV declined as compared to 2008 being recorded at 39.8 and 23.01 respectively. The decline in the closing NAV was due to the decrease in net assets as mentioned above as the number of certificates issued remained the same. Coming to the year 2010, the closing NAV 24.47 was a bit greater than the opening NAV which was 23.01 because of the slight increase in the net assets on a YoY basis.
The earnings per certificate also maintained a similar value throughout the period under review. It showed a slight dip in 2005 due to lower profitability. It increased in 2006 due to a more than double increase in profits. However, the ratio slightly declined in 2007 as lower capital gains stimulated lower profits. Consequently, in 2008 the ratio again fell due to low markets and volatile situation of our country, from Rs 6.31 to Rs -2.11. The condition worsened in 2009 as the earning per certificate dipped to -8.26 due to the worsening situations of the country and the huge loss that the fund incurred during the year. However, as the circumstances improved in 2010 along with the company's performance and profitability, the earnings also witnessed an increase from -8.26 to 1.95, an increase of 123.61%.
The dividend per share has shown an erratic trend and so have the dividend yield and dividend payout. The dip in both the ratios is attributed to the low DPS in 2005. However, both have shot up again in 2007 on the account of a handsome DPS. In 2008 the DPS fell from Rs 4.25 to Rs 2.5. this resulted in a decline in dividend yield but the payout remained to be high on account of lower unappropriated profits. In 2009, the company didn't pay any dividends because of the loss that it incurred. However, in 2010, the company paid an interim dividend. The DPS was Rs 2 and the dividend yield came out to be 8%.
The assets are allocated with the greatest part going to investments held for trading, then to investments available for sale and then bank balances. In terms of sectoral performance of 2010, there were other sectors of asset distribution as well, but the magnitude of those sectors is very low as compared to the major two sectors.
The graph on the left shows the sector investments as a percentage of the NAV. Oil and Gas retained the highest share of investment followed by banks and the various other sectors with little investments.
Future outlook
The economy and the market performed well in the FY10 as compared to the previous year, which was marked by imbalances and crises. The foreign inflow into the market has also increased but the economy still remains vulnerable to the changing commodity prices.
The long expected implementation of Capital Gains Tax would be a challenge for the market. The problems being faced by the market due to the imposition of CGT has spurred the drive for re-instatement of a margin product. The fact that even in the recovery phase the market, without any leveraged product, has only shown an Average Daily turnover (ADTO) of USD 84 million versus the leveraged driven ADTO of USD 436 million over the period FY04-08 is noteworthy. It demonstrates the impact that leverage has on the functioning of our market and hence its likely reintroduction bodes well for the upcoming year.
The addition of new listings in the market, eight new listings in FY 2010 and further listings expected in FY 11 would be of interest. The results of fiscal indiscipline and its effects on the corporate sector growth and inflation would remain major challenges for the economy. On top of it, the havoc created by the floods will add to more problems. If the foreign aid pledges do not materialize, the fiscal situation can worsen and affect all the sectors.
Based on fundamentals, the Pakistani market is currently trading at 50% discount to its regional peers, given the steep nature of the discount; the market is likely to show stable returns in fiscal year 2011.
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PICIC GROWTH FUND - FINANCIALS
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STATEMENT OF ASSETS & LIABILITIES 2004 2005 2006 2007 2008 2009 2010
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Net Assets:
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Investment in HFT 2,643,087 2,234,380 7,685,039 7,768,015 5,916,081 3,871,301 3,962,314
Investment in AFS 4,066,101 6,038,966 3,869,359 4,520,672 4,545,273 2,410,152 2,839,842
Other Assets 236,585 994,546 1,175,817 1,904,529 932,365 344,973 331,846
Total Assets 6,945,773 9,267,892 12,730,215 14,193,216 11,393,719 6,626,426 7,134,002
Liabilities -135,856 -220,843 -831,262 -704,283 -109,291 -103,569 -196,762
Net Assets: 6,809,917 9,047,049 11,898,953 13,488,933 11,284,428 6,522,857 6,937,240
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Financed By:
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Capital 1,260,000 1,575,000 2,835,000 2,835,000 2,835,000 2,835,000 2,835,000
Premium on issue of certificate 630,000 630,000 2,992,500 2,992,500 2,992,500 2,992,500 2,992,500
Unappropriated profit 2,575,471 2,524,738 3,622,469 4,561,137 2,332,031 -294,420 -309,727
Surplus on revaluation of AFS Investment 2,344,446 4,317,311 2,448,984 3,100,296 3,124,897 989,777 1,419,467
Total Certificate Holder's Funds 6,809,917 9,047,049 11,898,953 13,488,933 11,284,428 6,522,857 6,937,240
Net Asset Value per Certificate (Rupees) 54.05 57.44 41.97 47.58 39.80 23.01 24.47
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INCOME STATEMENT 2004 2005 2006 2007 2008 2009 2010
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Income:
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Capital gain on Sale of Investments -net 533,508 547,331 4,232,009 882,486 184,399 -2,013,978 903,509
Unrealised appreciation/(Diminution) 56,976 -118,677 -1,193,622 498,733 -1,009,969 -673,200 -480,082
Dividend 358,726 466,403 519,612 598,242 465,982 442,192 244,075
Other Income 4,462 9,139 63,726 147,779 68,340 68,446 101,606
Total Income 953,672 904,196 3,621,725 2,127,240 -291,248 -2,176,540 769,108
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Expenditure:
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Management Fee 136,198 158,929 210,407 245,018 249,134 134,143 151,707
Auditors' Remuneration 262 358 533 624 554 505 563
Other Expenses 14,555 39,642 167,402 82,430 58,045 31,762 53,886
151,015 198,929 378,342 328,072 307,733 166,410 206,156
Profit Before Taxation 802,657 705,267 3,243,383 1,789,168 -598,981 -2,342,950 562,952
Taxation - Prior years - - 3,652 - - - 11,259
Profit After Taxation 802,657 705,267 3,239,731 1,789,168 -598,981 -2,342,950 551,693
Basic Earning per Certificate (Rupees) 5.1 3.56 15.28 6.31 -2.11 -8.26 1.95
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Ratios
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Operating Performance 2004 2005 2006 2007 2008 2009 2010
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Dividend Income 358726 466403 519612 598242 465982 442,192 244,075
Capital Gain 533508 547331 4232009 882486 184399 -2013978 903509
Capital Gain/Total Income 55.94% 60.53% 116.85% 41.49% -63.31% 92.53% 117.47%
Dividend Income/Total Income 37.62% 51.58% 14.35% 28.12% -159.99% -20.32% 31.73%
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Profitability Ratios 2004 2005 2006 2007 2008 2009 2010
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Return on Assets 11.56% 7.61% 25.45% 12.61% -5.26% -35.36% 7.73%
Return on Equity 11.79% 7.80% 27.23% 13.26% -5.31% -35.92% 7.95%
PAT/Total Income 84.16% 78.00% 89.45% 84.11% 205.66% 107.65% 71.73%
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Debt Management Ratios 2004 2005 2006 2007 2008 2009 2010
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Debt/Assets Ratio 0.02 0.02 0.07 0.05 0.01 0.02 0.03
Debt/Equity 0.02 0.02 0.07 0.05 0.01 0.02 0.03
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Capital Adequacy 2004 2005 2006 2007 2008 2009 2010
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Paid-up Capital / Total Equity 0.19 0.17 0.24 0.21 0.25 0.43 0.41
Equity/Total Assets 0.98 0.98 0.93 0.95 0.99 0.98 0.97
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Dividend Ratios 2004 2005 2006 2007 2008 2009 2010
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Dividend Per share 4.50 3.50 1.00 4.25 2.50 - 2.00
Dividend Yield 0.08 0.06 0.02 0.09 0.06 - 0.08
Dividend Payout 22.02 21.83 7.83 26.42 30.39 - 102.77
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Market Value Ratios 2004 2005 2006 2007 2008 2009 2010
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Net Assets 6809917 9047049 11898953 13488933 11284428 6522857 6937240
Certificates issued (in '000s) 126000 157500 283500 283500 283500 283500 283500
Opening NAV 52.20 54.05 57.44 41.97 47.58 39.80 23.01
Closing NAV 54.05 57.44 41.97 47.58 39.80 23.01 24.47
Earnings Per Certificate 5.10 3.56 15.28 6.31 -2.11 -8.26 1.95
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PICIC GROWTH FUND - FINANCIALS
================================================================================
===================================================
STATEMENT OF ASSETS & LIABILITIES 2004 2005 2006 2007 2008 2009 2010
================================================================================
===================================================
Net Assets:
-----------------------------------------------------------------------------------------------------------------------------------
Investment in HFT 2,643,087 2,234,380 7,685,039 7,768,015 5,916,081 3,871,301 3,962,314
Investment in AFS 4,066,101 6,038,966 3,869,359 4,520,672 4,545,273 2,410,152 2,839,842
Other Assets 236,585 994,546 1,175,817 1,904,529 932,365 344,973 331,846
Total Assets 6,945,773 9,267,892 12,730,215 14,193,216 11,393,719 6,626,426 7,134,002
Liabilities -135,856 -220,843 -831,262 -704,283 -109,291 -103,569 -196,762
Net Assets: 6,809,917 9,047,049 11,898,953 13,488,933 11,284,428 6,522,857 6,937,240
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Financed By:
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Capital 1,260,000 1,575,000 2,835,000 2,835,000 2,835,000 2,835,000 2,835,000
Premium on issue of certificate 630,000 630,000 2,992,500 2,992,500 2,992,500 2,992,500 2,992,500
Unappropriated profit 2,575,471 2,524,738 3,622,469 4,561,137 2,332,031 -294,420 -309,727
Surplus on revaluation of AFS Investment 2,344,446 4,317,311 2,448,984 3,100,296 3,124,897 989,777 1,419,467
Total Certificate Holder's Funds 6,809,917 9,047,049 11,898,953 13,488,933 11,284,428 6,522,857 6,937,240
Net Asset Value per Certificate (Rupees) 54.05 57.44 41.97 47.58 39.80 23.01 24.47
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INCOME STATEMENT 2004 2005 2006 2007 2008 2009 2010
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Income:
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Capital gain on Sale of Investments -net 533,508 547,331 4,232,009 882,486 184,399 -2,013,978 903,509
Unrealised appreciation/(Diminution) 56,976 -118,677 -1,193,622 498,733 -1,009,969 -673,200 -480,082
Dividend 358,726 466,403 519,612 598,242 465,982 442,192 244,075
Other Income 4,462 9,139 63,726 147,779 68,340 68,446 101,606
Total Income 953,672 904,196 3,621,725 2,127,240 -291,248 -2,176,540 769,108
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Expenditure:
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Management Fee 136,198 158,929 210,407 245,018 249,134 134,143 151,707
Auditors' Remuneration 262 358 533 624 554 505 563
Other Expenses 14,555 39,642 167,402 82,430 58,045 31,762 53,886
151,015 198,929 378,342 328,072 307,733 166,410 206,156
Profit Before Taxation 802,657 705,267 3,243,383 1,789,168 -598,981 -2,342,950 562,952
Taxation - Prior years - - 3,652 - - - 11,259
Profit After Taxation 802,657 705,267 3,239,731 1,789,168 -598,981 -2,342,950 551,693
Basic Earning per Certificate (Rupees) 5.1 3.56 15.28 6.31 -2.11 -8.26 1.95
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Ratios
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Operating Performance 2004 2005 2006 2007 2008 2009 2010
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Dividend Income 358726 466403 519612 598242 465982 442,192 244,075
Capital Gain 533508 547331 4232009 882486 184399 -2013978 903509
Capital Gain/Total Income 55.94% 60.53% 116.85% 41.49% -63.31% 92.53% 117.47%
Dividend Income/Total Income 37.62% 51.58% 14.35% 28.12% -159.99% -20.32% 31.73%
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Profitability Ratios 2004 2005 2006 2007 2008 2009 2010
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Return on Assets 11.56% 7.61% 25.45% 12.61% -5.26% -35.36% 7.73%
Return on Equity 11.79% 7.80% 27.23% 13.26% -5.31% -35.92% 7.95%
PAT/Total Income 84.16% 78.00% 89.45% 84.11% 205.66% 107.65% 71.73%
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Debt Management Ratios 2004 2005 2006 2007 2008 2009 2010
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Debt/Assets Ratio 0.02 0.02 0.07 0.05 0.01 0.02 0.03
Debt/Equity 0.02 0.02 0.07 0.05 0.01 0.02 0.03
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Capital Adequacy 2004 2005 2006 2007 2008 2009 2010
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Paid-up Capital / Total Equity 0.19 0.17 0.24 0.21 0.25 0.43 0.41
Equity/Total Assets 0.98 0.98 0.93 0.95 0.99 0.98 0.97
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Dividend Ratios 2004 2005 2006 2007 2008 2009 2010
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Dividend Per share 4.50 3.50 1.00 4.25 2.50 - 2.00
Dividend Yield 0.08 0.06 0.02 0.09 0.06 - 0.08
Dividend Payout 22.02 21.83 7.83 26.42 30.39 - 102.77
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Market Value Ratios 2004 2005 2006 2007 2008 2009 2010
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Net Assets 6809917 9047049 11898953 13488933 11284428 6522857 6937240
Certificates issued (in '000s) 126000 157500 283500 283500 283500 283500 283500
Opening NAV 52.20 54.05 57.44 41.97 47.58 39.80 23.01
Closing NAV 54.05 57.44 41.97 47.58 39.80 23.01 24.47
Earnings Per Certificate 5.10 3.56 15.28 6.31 -2.11 -8.26 1.95
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#243
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- News Desk
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- 3,412 posts
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SECOND LIEUTENANT
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Posted 16 February 2012 - 11:52 AM
FINANCIAL RESULT FOR THE HALF YEAR ENDED 31/12/2011
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION (424.078)
PROFIT/LOSS AFTER TAXATION RS. IN MILLION (424.078)
EPS = (1.50) with unrealised 0.55 without unrealised
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION (424.078)
PROFIT/LOSS AFTER TAXATION RS. IN MILLION (424.078)
EPS = (1.50) with unrealised 0.55 without unrealised
Regards
Imran Mughal
#244
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- Member
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- 7,949 posts
- Joined 24-August 08
FIRST LIEUTENANT
- Gender:Male
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Country:
Posted 16 February 2012 - 12:10 PM
Lion Heart, on 16 February 2012 - 11:52 AM, said:
FINANCIAL RESULT FOR THE HALF YEAR ENDED 31/12/2011
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION (424.078)
PROFIT/LOSS AFTER TAXATION RS. IN MILLION (424.078)
EPS = (1.50) with unrealised 0.55 without unrealised
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION (424.078)
PROFIT/LOSS AFTER TAXATION RS. IN MILLION (424.078)
EPS = (1.50) with unrealised 0.55 without unrealised
es ki tu .. loss show karta hay ..
es ka matlab sell kar doun 
chalo jaan chor dita hun es ki .. selling at current price ..
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#245
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- Member
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- 7,949 posts
- Joined 24-August 08
FIRST LIEUTENANT
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Posted 16 February 2012 - 12:11 PM
Sold all PGF at 12.68 .. no more PGF now ...
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#246
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- News Desk
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- 3,412 posts
- Joined 03-November 07
SECOND LIEUTENANT
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Posted 24 April 2012 - 11:47 AM
FINANCIAL RESULT FOR THE NINE MONTHS ENDED 31/03/2012
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 455.216
PROFIT/LOSS AFTER TAXATION RS. IN MILLION 455.216
EPS = 1.61 with unrealized appreciation 1.08 without unrealized appreciation
PROFIT/LOSS BEFORE TAXATION RS. IN MILLION 455.216
PROFIT/LOSS AFTER TAXATION RS. IN MILLION 455.216
EPS = 1.61 with unrealized appreciation 1.08 without unrealized appreciation
Regards
Imran Mughal
