One can imagine the solemn mood prevailing in the boardroom of PICIC asset management yesterday. Its equity funds i.e. PICIC Growth Fund and PICIC Investment Fund saw their fortunes slipping with the start of FY15.
PICIC Growth Fund landed in red, reporting losses to the tune of Rs.726 million in 1QFY15 as opposed to a profit after taxation of Rs.325 million in the corresponding period last year. The primary blow, however, turned out to be its dwindling top line.
Capital gains turning into losses coupled with sliding dividend income and unrealised losses on remeasurement of investments battered funds bottomline during the aforementioned period. Besides, provisioning booked by the fund on account of workers welfare fund (WW) further dragged the bottom line.
As for its portfolio allocation, vagueness on the political front seems to have provoked the fund managers to stay in cash. This is evident as equity exposure as of September 2014 slid to 90 percent from 96 percent in the previous month. For PICIC Investment Fund either, this quarter failed to bring any pleasure. The fund posted a loss of Rs.143 million as opposed to a profit of Rs190 million in the corresponding period last year. Like PICIC Growth Fund, the fund also faced a hit from burgeoning capital losses on sale of investments. Equity exposure as of September 2014 was brought down to 94 percent from 94 percent in the preceding month.
In terms of total return, PICIC Growth Fund generated a negative return of 5.74 percent PICIC Investment Fund generated a negative return of 5.58 percent thus lagging behind the benchmark KSE-100 by a wide margin which gained 0.25 percent on FY basis.
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PICIC Growth Fund- Financial Highlights
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Rs (mn) 1QFY15 1QFY14 chg
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Income (163) 423 -
Operating expenses (100) (91) 10%
Net profit from operating activities (263) 332 -
Provision for Workers Welfare Fund (463) (7) -
Net profit after taxation (726) 325 -
Earnings per certificate (Rs.)
With net realisation on
re-measurement of investments -0.93 1.15 -
Without net realisation on
re-measurement of investments -0.16 1.47 -
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PICIC Investment Fund - Financial Highlights
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Rs (mn) 1QFY15 1QFY14 chg
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Income -98 236 -
Operating expenses 45 42 -7%
Net profit from operating activities -143 194 -
Net profit after taxation -143 190 -
Earnings per certificate (Rs)
With net realisation on
re-measurement of investments -0.51 0.67
Without net realisation on
re-measurement of investments -0.06 0.78
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