Download Allianz Life Assurance Company

Allianz Life Assurance Company
AzLE Fund B - USD Secured Fund
Feb-17
6.5
Characteristics and Objective
6.0
The objective of the fund is to seek long term growth of the capital
invested in a low risk and diversified portfolio of assets mainly
dominated in US Dollars.
5.5
The Fund will invest mainly in fixed income instruments with the aim to
generate above average returns. Investments in fixed income
instruments will be done through:
5.0
4.5
- An active selection of a range of investments including securities,
deposits, government and corporate bonds.
4.0
3.5
Feb-13
The fund will selectively diversify into blue-chip stocks to enhance
returns. Stock selection will be made against a medium-term horizon.
Aug-13
AzLE Funds 5 years
Fund B
32.63%
Feb-14
Aug-14
3 years
ITD*
11.11% 130.92%
IC Value
Oct-01
Feb-17
Fund B
2.50
5.77
Feb-15
2013
1.19%
Aug-15
Feb-16
2014
2015
15.95%
-8.63%
2016
5.08%
Aug-16
YTD
6.00%
Feb-17
MTD
3.97%
Annualized EIR**
Investment Guidelines :
0% - 15%
In equity or equity mutual funds
85% - 100%
In fixed income securities
Investment Allocation
Fund Holdings
5.58%
Equity
% Holdings
S2
0.3%
* Return since inception of fund in Oct'01
Fixed Income
Bonds & CDS
98.2%
** EIR : effective interest rate since Oct' 01
Money Market
T.Deposits, T bills & MMF
1.5%
Fund Manager's Strategy and Outlook
EGX30 attempted to test the 13,000 resistance level where it reached its highest level at
13,228 points before declining to end the month 5.8% down, reading 11,937.67 points on
average daily turnover of LE 1.1 billion approximately. Sell off was mainly triggered by
stronger EGP and stamp duty talks. However, importers demand for USD increases ahead of
Ramadan weakening the pound, from an average of LE15.7 per US$ to LE17.5 pushed the
market higher again which currently reads 12,677 points.
Total
100.00%
Effective Equity exposure = 0.21%
Money Market
T.Deposits < 1 year
1.48%
Post floatation numbers started to come out from listed equities, mainly Q4 FY16 results,
and in general, companies seem to be maneuvering the economic uncertainties resulting
from the diminishing purchasing power. However, it looks to us that consumers are
gradually becoming more accepting of the price increases in light of the overall inflationary
pressures, which lately recorded 28.1% in January.
Equity S2
0.32%
Real estate equities released strong Q4 FY16 results on both the financial and operational
levels. MNHD recorded revenues of EGP940 million, up 164% y-o-y from EGP356 million in
4Q2015 and FY2016 net contracted sales of EGP3.8 billion (+3.3x y-o-y). SODIC also
reported solid FY2016 net contracted sales of EGP5.6 billion, higher 28% y-o-y from EGP4.4
billion in 2015. Its 4Q2016 sales came in at EGP2.4 billion (+64% y-o-y and 69% q-o-q). We
believe that the real estate sector is still underperforming and that the sector still offers an
attractive upside potential.
On the consumer sector side, EDITA released its FY2016 results but with headline net losses
of EGP69.2mn as results were impaired by FX losses of EGP227mn as FC liabilities were
reprised post the EGP floatation in Nov. 2016. Margins were pressured due to the significant
cost escalation during the year that resulted from the implementation of the VAT and the
floatation of the EGP. On the flipside, revenues grew 27.1% y-o-y to EGP821.7 million in
4Q2016 and 12.5% y-o-y driven by broad-based price increases implemented in the quarter
as well as the introduction of new, higher-priced products over the course of the year.
Fixed Income Bonds & CDS > 1
year
98.20%
On the fixed income front, the Monetary Policy Committee (MPC) decided to keep the
overnight deposit rate, overnight lending rate, and the rate of the CBE's main operation
unchanged at 14.75 percent, 15.75 percent, a 15.25 percent, respectively in its meeting held
on February 16, 2017.
At the end of the month, the primary market auction results showed a justified rise in yields
to cope with the secondary market’s hawkish movement. The demand for treasuries
remained high, investors placed their bids near the 20%. However, the auctions highs did
not surpass the psychological support level of 20% keeping the market under that level.
Demand for treasuries is expected to weaken as liquidity available for banks shrunk at the
mid of the month and foreign inflows are also expected to halt after the hefty rally by the
EGP. The EGP gained around 19.8 % since the last four weeks reaching 15.86 for the dollar.
The EGP’s increase gave foreign investors hot money profit on both currency and interest
rate, which may hinder their interest to enter at current levels. The twelve month treasury
bills yield rose 84 bps, reaching 19.91%, the amount bidden increased by 29% reaching a
total of EGP 17.6 billion and the six month yield climbed from 18.83% to 19.83%.
Fund Manager: Allianz Egypt :
Going forward, we continue to view the current economic phase very challenging on the
equity side in the short term as companies are faced by higher cost of inputs, higher cost of
financing. However, on the long term, we believe that interest rates are likely to be cut in late
2017 along with EGP appreciation and that would provide some relief to the short term
inflation expectations and to the companies’ margins.
-Unit Linked funds are managed by Allianz Egypt starting
from 17-Apr-2016 .
-Fund B N.A.V. is USD 7.2 Mn. as at 28-Feb-17.
-Allianz Egypt Total Assets under management EGP 7.27 Bn.
as at 28-Feb-17.
-Fund's Net Asset Value is confirmed by "Fund Data".
- Allianz Egypt