Page 4 - Haradali Annual Report

Chairman’s Statement

Dear Shareholders,

On behalf of the Board of Directors, it is my honour to present to you the 2018 Annual Report of Haradali

Capital Limited.

This year both the equity and xed income markets generally did not perform well domestically and in
Kenya where Haradali Capital has its investments. Our assets under management (AUM) have declined to

TZS 1,523,184,000 from TZS 1,699,922,000/= in the previous year representing a -10.36 % decline. The
decrease was occasioned by a lacklustre performance of the equities in our investment portfolio and the

bearish market stance in the Dar es Salaam and Nairobi Stock Exchanges in the period under review.

In addition the Fixed Income segment of our investment portfolio suered as result of Bank M, which had a
signicant proportion of our xed income portfolio going into Administration (under the bank of Tanzania)

and its Liabilities (Customers Funds) shifted to Azania Bank. From the date Bank M entered administration
all interest payments on Fixed Income Investments where suspended. However, we wish to assure you that

our Capital is safe albeit subject to terms which include extension of the tenor and redemption prole and
limiting the interest accruing thereon.

Furthermore there was an increased rate of redemptions by Class B and Mwanzo Association Investors, all

the factors above combined to reduce the Assets Under Management in the period of January to December
2018.

This year we closed the year with a minute drop in our unit Net Asset Value (NAV) from TZS 190.91 to TZS

190.19 at 31st 2018 as compared to unit Net Asset Value (NAV) at 31st December 2017 this is due to
continuation of a depressed market with both the equity and xed income market generally not performing

well.

However, despite the economic headwinds and adversities encountered, we have registered positive result
in terms of Investment Income at TZS 112,377,000/= and Protability with Income after Tax of

TZS 35,189,000/= respectively for the year 2018.

Although our performance (0% NAV growth) against the Benchmark Average T-Bill rate (6.4%) was not
stellar, we outperformed the DSE (-16% contraction) signicantly.

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