Alfalah GHP Investment Management Limited (AGIML) is the mutual fund company that creates customers value. Alfalah GHP provides investment solutions to cater to the requirements of all customers’ investment needs.
The company was incorporated on October 18, 2004 as an unlisted public limited company and is licensed by SECP (Securities and Exchange Commission of Pakistan) to manage open-ended mutual funds and offer investment advisory services. AGIML is also the member of MUFAP.
The company was organized as joint venture Non-Banking Finance Company by Bank Alfalah Limited and GHP Arbitrium. Recently, GHP Arbitrium Ltd has transferred its shareholding to GHP Beteiligungen AG, the holding company of GHP Arbitrium. The other main shareholder of AGIML is MAB Investments Inc. which is one of the investment firms of H.H. Sheikh Nahayan bin Mubarak Al Nahayan.
At AGIML, the management strives to offer their financiers with the best possible investment solutions by practicing a core set of values. The company’s strong conviction in values like transparency, ethics, unit holders’ interest, sustainable returns and dynamic leadership drives the passion that motivates the management to give the best possible service to all of its customers. At AGIML, product development effort focuses on both the needs of their financiers, also the developments in the available asset classes in order to keep offering innovative solutions.
The management is presently managing multiple funds such as Alfalah GHP Income multiplier Fund, Alfalah GHP Money Market Fund, Alfalah GHP Alpha Fund, Alfalah GHP Capital Preservation Fund, Alfalah GHP Islamic Prosperity Planning Fund, Alfalah GHP Stock Fund, Alfalah GHP Islamic Income Fund, Alfalah GHP Cash Fund, Alfalah GHP Sovereign Fund, Alfalah GHP Value Fund, Alfalah GHP VPS Fund, Alfalah GHP Income Fund and Alfalah GHP Prosperity Planning Fund.
MONEY MARKET REVIEW
During the month of January bond yields declined considerably as a consequence of renewed interest by financial institutions in government securities. The previous T-bills rates were 3-month, 6-month, and 12-month 5.94 percent, 5.98 percent, 5.99 percent, respectively. The consequences of the latest MTB auction of January, 18 ‘2017 explained a downward trend as the cut offs for 3-month, 6-month, and 12-month were slashed to 5.9017 percent, 5.9258 percent and 5.9598 percent respectively.
The target for the auction amounted to Rs 450 billion out of which Rs 519 billion was accepted. The State Bank of Pakistan (SBP) also conducted a PIB auction where it sold Rs39.396 billion worth of long-term bonds, lower than the pre-auction target of Rs50 billion. The bond yields in the auction increases by 0.2104, 0.1988, and 0.1419 bps in 3-year, 5-year and 1-year bonds respectively. SBP sustained its discount rate at 6.25 percent and policy rate at 5.75 percent during the quarter.
During the first quarter, yield curve shifted slightly upwards because of interbank market’s predictions of interest rates bottoming out. Overall CPI trend is predicted to hover almost 4 percent for the first half and is estimated to increase to approximately 4.25 percent in later half of the fiscal year. Any upward shift in global oil rates coupled with currency devaluation could exert upward pressure on the interest rates in the second half of FY2017.
EQUITY MARKET REVIEW
The market remained stagnant during the month of January 2017, growing by 2 percent MoM to end the KSE-100 Index at 48,757 points. It stood the 50,000 points mark during the month, which was unable to sustain because of: profit taking by financiers, settlement of individual customers debit positions (in-house financing) to avoid over exposure in the market, along with strong statements from a White House Official hinting to potentially add Pakistan to Trump’s immigration ban list led to fall in last two trading days of the month eroding 2.41 percent (1,206pts) from the market.
The average daily traded volume and value of KSE All index clocked in at 443mn and 22,682mn, respectively. Strong local liquidity (chiefly mutual funds and individuals) reversed the impacts of strong selling by foreigners and commercial banks.
Total foreign outflow for the outgoing month ended at US$111 million, which brings total selling for 7MFY2017 to US$409 million. The main performing sectors for the month were chiefly refinery and engineering recording an appreciation of 31 percent and 24 percent, respectively.
Internationally, PSX has been ranked 5th best-performing stock exchange with 43.05 percent gain last year 2016. Despite the unrest in Brazil, Brazil Stock Exchange topped the list with a gain of 63.36 percent. Kazakhstan, Peru and Russia stock markets were second, third and fourth respectively. Nigeria’s ratings were worst with -41.40 percent.
It is also said that Karachi 100 Index has been ranked 5th in World’s Equity Indices. From local currency point of view, Pakistan Stock Exchange was in 6th position with 45.25 percent rise last year. Presently, PSX sold 40 percent strategic share to a Chinese consortium that made the highest bid of Rs28 per share for 320 million shares on offer. The value of the transaction is calculated to be Rs8.96 billion ($85 million). The important feature of the contract lies in the fact that it is the first such sale of strategic interest in a bourse in the regional markets. Through the deal, the Chinese bourse has also made its first foray in an acquisition outside China.