BMA EMPRESS CASH FUND (BECF)

DAILY NAV

10.4804

LATEST FMR

October 2018 pdf-icon

FUND OBJECTIVES

The BMA Empress Cash Fund is a professionally managed cash fund, which aims to minimize risk, maximize liquidity and generate a competitive rate of return. This will be achieved by concentrating portfolio allocation in AA rated banks and short duration sovereign rated securities.

FUND RETURNS

YearReturnsBM
FY 2012 11.32 11.02
FY 2013 9.14 8.9
FY 2014 8.47 8.9
FY 2015 8.15 8.2
FY 2016 4.61 5.82
FY 2017 4.58 5.29
FY 2018 4.45 5.35


FUND DETAILS

Fund TypeOpen End
Category Money Market Fund
Inception Date 12-Nov-09
Benchmark 70% 3M PKRV + 30% 3M Bank Rate
Dealing Days Monday-Friday
Cut‐off time 4:00 PM
Pricing Mechanism Forward
Management Fee** 0.00%
Front end Load upto 1%
Back End Load Nil
Fund Stability Rating AA+ (F) (JCR)
Risk Profile Low Risk
Listing PSX
Trustee MCBFSL
Auditor EY Ford Rhodes, Chartered Accountants
Transfer Agent Technology Trade
Legal Advisors KMS Law Associates
Management Quality Rating AM3
Expense Ratio* 0.54%
*This includes 0.25% of SECP Fee & Govt. Levy
**Applicable till 6th Feb 2018, after that 0.25%, of the daily Net Assets will be applicable with effect from 7th Feb 2018.


FUND COMMENTARY

In October‐18, the fund earned an annualized return of 7.92% as against benchmark of 7.49%, outperformed by 43bps. This performance is net of management fee and all other expenses. Standard deviation of the portfolio was 0.02%, reflecting the stable nature of the fund’s income. In the wake of rising interest rates, the Fund is invested in high yield bank deposits and short term government treasury bills while keeping the average portfolio maturity under 60 days, to avoid value erosion.

PORTFOLIO RATING PROFILE

ECONOMIC OUTLOOK

Inflation rate touched four years’ highest level of 7% in October 2018 due to sharp depreciation in rupee against dollar and massive increase in gas prices. CPI for the month of Oct‐18 increased to 7.00%YoY compared to an increase of 5.1%YoY in the previous month. Core inflation rose by 8.20%YoY, from 8.00%YoY increase in the previous month. Sequential 4 months FY19 CPI increased by 5.95% compared to 3.50% SPLY.
According to PBS data, the September‐18 trade deficit was USD 2,703 million compared to USD 2,975 million in August‐18,decreased by 9.16%. During the month of September, exports were USD 1.73 billion against the imports of USD 4.43 billion. The 3 months’ sequential trade deficit for FY19 stood at USD 8.87 billion compared to USD 9.01 billion SPLY. Foreign exchange reserves were at USD14.18 billion in the last week of October, 2018, as reported by the SBP. These were 4.9% lower than previous month where the FX reserves stood at USD14.92 billion. The depletion is being noted in the FX reserves held by the SBP, which was 13.9% lower than previous month, while reserves held by banks were only 1.9% lower,showing relative stability.
During the month of October, the SBP sold T‐bills worth 3,257.89 billion through its monthly auctions. The cutoff rate of 3months paper was increased to 8.79% from 7.75% last month, in alignment with the increase of SBP Policy Rate in September‐18. In addition, SBP rejected all the bids received in its monthly PIB auction due to lackluster participation. Market is awaiting SBP’s Monetary Policy Statement in the month of November and expecting another interest rate hike by the SBP in order to curb the expected spill out inflationary effects of recent devaluation coupled with energy and commodity price increases.

FUND MANAGERS

Disclaimer: This publication is for informational purposes only and nothing herein should be construed as a solicitation, recommendation or an offer to buy or sell any Fund. All investments in mutual funds are subject to market risks. The NAV based prices of units and any dividends/returns thereon are dependant on forces and factors affecting the capital markets. These may go up or down based on market conditions. Past performance is not necessarily indicative of future results.

Have questions? Contact our support for help.