The Art of Investment Faysal AssetManagement. November 2017

Transcription

1 The Art of Investment Faysal AssetManagement November 2017

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3 The Month in Review Economic Review Pakistan has incurred a Current Account Deficit of USD 5.0bn during 4MFY18, up by 122% YoY driven by higher deficit on trading in goods (+41% YoY) and services (+8% YoY) along with slow growth in remittances (+2% YoY). On the other hand, for 4MFY17, inflows under the financial account have remained 36% lower than last year despite higher FDI (+75% YoY) primarily because of lower portfolio investment in debt securities. Last year during Oct 16, Pakistan issued 5year Sukuk worth USD 1.0 billion. Therefore, to cover this gap Pakistan has issued Eurobonds and Sukuks worth USD 2.5bn to bridge the shortfall in its Balance of Payments. With this inflow of USD 2.5 billion, Pakistan s foreign exchange reserves are expected to reach USD 21 billion and the import cover will cross the essential 3 month threshold thereby giving confidence to investors and drive away fears of a major devaluation. We believe Pakistan will be able to bridge its Balance of Payments deficit with the help of issuance of bonds, borrowing from commercial banks, launching of amnesty scheme, increasing Foreign Direct Investment and resumption of Privatization inflows post elections. Money Market Review During the month stock market exhibited slight recovery and witnessed gain of 393pts (1%MoM) by closing at 40,010pts level. In Nov17, reconstitution of stocks in MSCI semiannual review, lingering on political instability and economic concerns made KSE100 index directionless. However market participant remained bullish on small caps as trading volume surged by 15% MoM in Nov17 wherein volume leader were KEL, TRG and ANL. As a result of worst performance of KSE100 index (26%) since its inclusion in MSCI EM index, MSCI in its semiannual review downgraded ENGRO from midcap to small cap index. Furthermore, three stocks PSMC, FEROZ and SHEL also removed from small cap index. During the month, foreign selling of USD34.5mn was observed in fertilizer sector due to Engro on the back of aforemen tioned reasons. During the month, international oil prices increased by 5% MoM to 57.8USD/ton which supported E&P sector and contributed 289pts in index. On flip side, power and OMCs sectors dragged index by 217pts mainly due to Govt revealed its intention to ban furnace oil imports which results to restrict furnace oil based power plants from operation and would also curtail OMCs revenue. Equity Review Market remained short of liquidity during the month of Nov 17 and to accomplish this liquidity shortage SBP conducted 08 OMO Injections where the total participation stood at PKR 6.45trn and total accepted amount was PKR 6.25trn and the weighted average rate of all OMO Injections was 5.76% (which is one bps lower than that of observed in Oct 17). This is 1.50% more participation and 2.87% extra acceptance relative to last month. Central bank conducted two T bill auctions during Nov 17, where in both auctions the cut offs were maintained at current previous levels for 3M 5.991% and 6M %, however for 12M it was once again rejected. The total amount realized was PKR 1,309bn against the target of PKR 1,200bn and total maturities of PKR bn. The state bank once again rejected all bids for longterm investment bonds suppressing the market anticipation of uptick in interest rate. Banks have remained cautious in the auction and therefore submitted bids that were range bound. SBP issued monetary policy in which it maintained its policy rate at 5.75% on the back of broadbased pickup in the industrial output, gains in factors supporting the production of major crops, growth in privatesector credit alongside strong uprise in Tax collection in first quarter of this fiscal year 22% relative to 4.5% observed in similar period last year. Similarly expectation of heavy agriculture growth followed by improved prospects for fertilizer and other related sectors also provides for fortunate results for overall economy.

4 Faysal Money Market Fund (Annualized % p.a Holding Period) FMMF (f) (PACRA) 4.92% 4.72% 5.18% 5.19% 1 year Trailing 7.01% 5.23% Min Subscription Weighted Average Maturity* Total Expense Ratio *Excluding Govt. Securities Deloitte Yousuf Adil, PKR 5,000 70% Three months PKRV rates + 30% three months average deposit rates of three rated scheduled Banks , days 1.31% TER includes 0.29% representing government levy,secp fee and Sindh worker welfare Fund excluding reversal of WWF. Returns (%) FMMF (YTD) 7.14% 5.25% 5.67% 5.34% 8.64% 7.72% FY % 8.44% FY % 8.83% Note : Funds returns computed on Simple annualized basis / NAV to NAV Returns with dividend reinvested. TBills, 72.24% 5.07% 15.17% COI/ Placements with Banks and DFIs, 7.52% 14.84% Commercial Papers, 3.17% TBills, 58.08% 16.57% COI/ Placements with Banks and DFIs, 7.33% October 17 Faysal Money Market Fund (FMMF) seeks to provide stable and competitive returns in line with the money markets exhibiting low volatilty consistent with capital preservation by constructing a liquid portfolio of low risk short term investments yielding competitive returns. TOP PORTFOLIO HOLDINGS (% OF TOTAL ASSETS) Government Securities A + NR (include receivables against sale of Government Securities) 72.24% 0.24% 22.22% 0.23% 5.07% Pak Brunei Investment Company 14Sep % Mr.Razi Ur Rahman Khan Chief Executive Officer Mr.Syed Shahid Iqbal Sr. Fund Specialist Fixed Income Mr.Malik Mansoor Ali Head of Compliance Mr.Mohammad Qasim Manager Risk 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 5.26% 4.61% 5.29% 5.24% 5.25% 22.47% 5.27% 4.31% 5.28% 4.88% 5.31% 4.91% 5.22% 4.84% 5.22% 10.16% 5.19% 4.76% 5.17% 4.98% 5.17% 4.76% 5.16% 5.16% 5.19% 4.72% The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 2,230,473 as at November 30, If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs. 0.12(0.11%). For details investors are advised to read the Note 6.1 of the latest financial statements for the quarter ended September 30, Faysal Money Market Fund yielded a return of 4.72% on a monthly basis whereas the return over the last one year clocked in at 7.01%. During the month, exposure in TBills was increased to 72.24%, while placement with Banks/DFIs stood at 7.52%. Your fund is actively exploring lucrative investment avenues and trading opportunities to generate greater gains.

5 Faysal Savings Growth Fund (Annualized % p.a) Holding Period FSGF (f) (PACRA) 1 year Trailing 4.14% 3.88% Deloitte Yousuf Adil, 5.99% 6.10% 7.75% 6.50% 12.81% 6.61% FY % 9.76% FY % 9.88% Note : Funds returns computed on Simple annualized basis / NAV to NAV Returns with dividend reinvested. Six months KIBOR rates Commercial Paper 2.74% 1.31% Commercial Paper 3.67% 1.27% , TFC/Sukuk, 26.04% MTS 0.08% MTS Weighted Average Maturity* 1.56 Yr 0.77% TER includes 0.37% representing government levy,secp fee and Total Expense Ratio 2.21% Sindh worker welfare Fund excluding reversal of WWF. *Excluding Govt. Securities Investment Objective To generate competitive returns by investing primarily in debt and fixed income instruments having investment grade credit rating. TBills, 3.57% 66.26% TFC/Sukuk, 24.52% TBills, 8.89% 60.88% October 17 Government Securities A + A+ A MTS (Unrated) NR (include receivables against sale of investments) 3.57% 0.10% 4.82% 8.77% 72.84% 5.76% 2.74% 0.08% 1.31% International Brands Ltd. (IBLHL) Sukuk JS Bank Ltd. TFC Bank Of Punjab TFC Jahangir Siddiqui & Company Ltd. TFC Askari Bank Ltd. TFC Dawood Hercules Corporation Ltd. Sukuk Cresent Steel & Allied Products Ltd. CP 25.00% 23.25% 15Nov17 14Dec16 23Dec16 11May17 30Sep14 16Nov17 15Aug % 5.76% 4.68% 3.70% 3.29% 1.40% 2.74% Mr.Razi Ur Rahman Khan Chief Executive Officer Mr.Syed Shahid Iqbal Sr. Fund Specialist Fixed Income Mr.Malik Mansoor Ali Head of Compliance Mr.Mohammad Qasim Manager Risk The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 6,804,573 as at November 30, If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs (0.25%). For details investors are advised to read the Note 7.2 of the latest financial statements for the quarter ended September 30, Disclaimer for NonCompliance: Faysal Asset Allocation Fund holds certain noncompliant investments. Before making any investment decision, investors should review this document and latest Financial Statements. NON COMPLIANCE Name of NonComplaint Investment *Crescent Steel & Allied Products Rating required Investment Grade Existing Rating Required Exposure as a % of Issue size Existing Exposure a % of Issue size Breach 20.00% 15.00% 10.00% 5.00% 0.00% 6.09% 3.19% Type of Instrument Value of Investment before provisioning Provision (If any) Value of Investment after provisioning % of Net Assets % of Total Assets Commercial A2 0%10% 11.12% 1.12% 76,070, % Paper 76,070, % *Name of noncompliant investment company has been updated which was erroneously reported previously. 6.14% 0.80% 6.12% 6.13% 5.81% 6.13% 5.67% 5.03% 5.18% 5.75% 6.14% 4.96% 3.10% 4.86% 6.17% 3.77% 3.88% Faysal Savings Growth Fund generated a return of 4.14% on a year to date basis whereas the return over the last one year clocked in at. As a measure of our consolidation strategy, exposure in Tbills stood at 3.57%, while TFC exposure rose to 26.04% in instruments at higher returns. Your fund maintained holding in MTS to 0.08%, in Commercial Paper at 2.74% and Cash allocations were subsequently increased from to 66.26%. Going forward, the fund will continue to build exposure in lucrative investment avenues and enhance yields with a proactive investment strategy.

6 Faysal Financial Sector Opportunity Fund (f) (PACRA) Moderate (Annualized % p.a) Holding Period 1 year Trailing FFSOF 4.42% 4.37% 5.97% EY Ford Rhodes, 1.75% for investments less than PKR 10 mn Six months KIBOR rates 5.27% 6.10% 7.08% 5.88% 7.41% 8.22% Note : Funds returns computed on Simple annualized basis / NAV to NAV Returns with dividend reinvested. 1.41% Commercial Paper 4.19% 1.07% Weighted Average Maturity* 1.10 Yr Total Expense Ratio 1.88% *Excluding Govt. Securities TER includes 0.24% representing government levy,secp fee and Sindh worker welfare Fund excluding reversal of WWF. TFC 17.15% Cash 81.44% TFC 16.96% Cash 77.78% October 17 Faysal Financial Sector Opportunity Fund (FFSOF) seeks to provide a competitive rate of returns to its investors by investing in money market and debt instruments with major exposure in financial sector instruments. A + NR (include receivables against sale of investments) 5.37% 0.77% 7.13% 85.32% 1.41% Bank Alfalah Ltd. TFC MCB Bank Ltd. TFC Bank Of Punjab TFC Askari Bank Ltd. TFC 20.00% 18.23% 18.00% 20Feb13 19Jun14 23Dec16 30Sep % 4.84% 4.77% 2.68% 16.00% 14.00% 12.00% Mr.Razi Ur Rahman Khan Chief Executive Officer Mr.Syed Shahid Iqbal Sr. Fund Specialist Fixed Income Mr.Malik Mansoor Ali Head of Compliance Mr.Mohammad Qasim Manager Risk 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 6.09% 4.54% 6.14% 4.95% 6.12% 6.13% 4.87% 6.13% 5.17% 4.63% 4.69% 5.13% 6.14% 4.53% 3.24% 4.65% 6.17% 5.2% 4.37% Faysal Financial Sector Opportunity Fund yielded a return of 4.37% on a monthonmonth basis whereas the return over last 12 months clocked in at 5.97%. Cash allocations with banks were increased to 81.44% during the month exposures in financial TFC s stood at 17.15%. Your fund will continue to strategize in accordance with the macroeconomic landscape and market dynamics. Faysal Financial Sector Opportunity Fund yielded a return of 5.17% on a monthonmonth basis whereas the return over last 12 months clocked in at 5.99%. Cash allocations with banks were increased to 77.78% during the month and exposures in financial TFC s and Commercial Paper stood at 16.96% and 4.18% respectively. Your fund will continue to strategize in accordance with the macroeconomic landscape and market dynamics.

7 Faysal Islamic Savings Growth Fund (Annualized % p.a) Holding Period FISGF A+(f) (JCRVIS) 4.07% 5.39% 2.43% 2.57% 1 year Trailing 4.33% 2.58% Deloitte Yousuf Adil, Six months average deposit rates of three A rated scheduled Islamic Banks or Islamic windows of conventional Banks Returns (%) FISGF (YTD) 5.30% 3.11% 5.50% 4.68% 8.22% 6.61% FY % 6.92% FY % 7.30% Note : Funds returns computed on Simple annualized basis / NAV to NAV Returns with dividend reinvested. COM, 18.87%, receivables 1.33% 32.74% COM, 9.01%, receivables 1.05% 39.48% Weighted Average Maturity* Total Expense Ratio *Excluding Govt. Securities , Yr 2.14% TER includes 0.37% representing government levy,secp fee and Sindh worker welfare Fund excluding reversal of WWF. TFCs/ Sukuk 47.06% TFCs/ Sukuk 41.46% Placement with Banks and DFI, 9.01% October 17 Faysal Islamic Savings Growth Fund (FISGF) seeks to provide maximum possible preservation of capital and a reasonable rate of return via investing in Shariah Compliant money market and debt securities having good credit quality rating and liquidity. BYCO Oil Pakistan Ltd. Sukuk International Brands Ltd. Sukuk Dawood Hercules Corporation Ltd. Sukuk KElectric Ltd. Sukuk TPL Trakker Ltd. Sukuk Engro Fertilizer Ltd. Sukuk Meezan Bank Ltd. Sukuk ENGRO Corporation Ltd. Sukuk 18Jan17 15Nov17 16Nov17 19Mar14 13Apr16 9Jul14 22Sep16 10Jul % 9.85% 5.42% 6.24% 4.24% 3.54% 3.43% 1.12% Mr.Razi Ur Rahman Khan Chief Executive Officer Mr.Syed Shahid Iqbal Sr. Fund Specialist Fixed Income Mr.Malik Mansoor Ali Head of Compliance Mr.Mohammad Qasim Manager Risk A + A+ A NR (include receivables against sale of investments) 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2.80% 4.32% 2.82% 3.26% 2.75% 6.85% 2.84% 3.83% 2.83% 4.12% 2.75% 4.58% 2.40% 3.64% 2.37% 4.39% 2.39% 4.36% 2.31% 1.71% 2.34% 4.60% 13.23% 1.12% 31.98% 6.96% 45.37% 0.01% 1.33% 2.51% 4.21% 2.57% 5.39% The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 2,160,190 as at November 30, If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs (0.18%). For details investors are advised to read the Note 7.2 of the latest financial statements for the quarter ended September 30, Faysal Islamic Savings and Growth Fund yielded an annualized return of 5.39% on month in month basis, whereas the return over the last one year clocked in at 4.33%. This is a 282bps outperformance relative to benchmark on a monthly basis. During the month, your fund s exposure towards Islamic Corporate Securities (Sukuk) amounted to 47.06%, exposure in Certificate of Musharika stood at 9.01%. Going forward, your fund will continue to explore Islamic investment avenues in order to provide competitive returns.

8 Faysal Income & Growth Fund FUND INFORMATION Fund Type Category Stability Rating Risk Profile Launch Date Custodian/Trustee Auditor Management Fee Front/Back end Load Min Subscription Pricing Mechanism Dealing Days CutOff Timing AMC Rating NAV per Unit (PKR) Net Assets (PKR mn) Leverage Nil Weighted Average Maturity* 1.67 Yr Total Expense Ratio 2.29% *Excluding Govt. Securities Open Ended Aggressive Fixed Income Scheme A(f) (PACRA) Medium October 10, 2005 CDC Deloitte Yousuf Adil, 1.50% Nil PKR. 5,000 One year KIBOR rates Forward MondayFriday 9:00 am 5:00 pm AM3+(JCRVIS) , TER includes 0.37% representing government levy,secp fee and Sindh worker welfare Fund excluding reversal of WWF. FUND RETURNS (Annualized % p.a) Holding Period 1 year trailing Returns (%) FIGF (YTD) 4.56% 6.40% 9.41% 6.59% 12.14% 9.03% FY % 9.87% FY % 9.92% Note : Funds returns computed on Simple annualized basis / NAV to NAV Returns with dividend reinvested. ASSET ALLOCATION (% OF TOTAL ASSETS) TFC/ Sukuk, 27.40% 2.14% 70.46% TFC/ Sukuk, 28.31% FIGF 4.57% 4.41% 5.31% 1.37% 6.46% 6.47% 6.45% 70.32% Investment Objective Faysal Income & Growth Fund (FIGF) seeks to provide its investors with optimal yields through a diversified portfolio consisting of both longterm fixed instruments as well as short term money market securities. TFCS/SUKUK HOLDINGS (% OF TOTAL ASSETS) JS Bank Ltd. TFC BYCO Oil Pakistan Sukuk Bank of Punjab TFC Ghani Gases Ltd. Sukuk Askari Bank Ltd. TFC 14Dec16 18Jan17 23Dec16 3Feb17 30Sep % 8.77% 5.74% 3.12% 1.76% ASSET QUALITY (% OF TOTAL ASSETS) A + A+ A NR (include receivables against sale of investments) 14.00% 12.00% 12.79% October % 0.34% 0.62% 33.47% 51.53% 3.12% 2.14% 10.00% Mr.Razi Ur Rahman Khan Chief Executive Officer Mr.Syed Shahid Iqbal Sr. Fund Specialist Fixed Income Mr.Malik Mansoor Ali Head of Compliance Mr.Mohammad Qasim Manager Risk 8.00% 6.00% 4.00% 2.00% 0.00% 2.00% 6.40% 3.19% 6.43% 0.11% 6.41% 6.40% 4.59% 6.41% 6.30% 6.47% 3.91% 6.45% 5.82% 6.46% 6.11% 6.46% 5.45% 6.46% 2.55% 6.47% 6.05% 6.47% 4.29% 6.47% 4.41% The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 2,455,839 as at November 30, If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs.0.23 (0.22%). For details investors are advised to read the Note 7.1 of the latest financial statements for the the quarter ended September 30, Faysal Income and Growth Fund yielded an annualized return of 4.57% on a yeartodate basis whereas the return over the last one year clocked in at 5.31%. During the month, cash allocations were increased to 70.46% and exposure in TFCs was reduced to 27.40%. Going forward, your fund will strive to maximize returns in a competitive macroeconomic landscape. MUFAP s recommended format

9 Faysal Asset Allocation Fund (Absolute % p.a) Holding Period 1 year trailing FF 20.46% 1.99% 18.17% 9.00% 0.88% 0.01% Deloitte Yousuf Adil, Returns (%) FF (YTD) 4.67% 20.73% (2.46)% 9.14% % FY % 30.21% FY % 34.43% Note : Funds returns computed on absolute basis / NAV to NAV Returns with dividend reinvested. Receivables 6.62% Receivables 2.73% Net Assets (PKR mn) Cash 19.17% Cash 51.91% Total Expense Ratio 3.54% * Weighted average of 6M KIBOR & percentage invested in Equities TER includes 0.39% representing government levy,secp fee and Sindh worker welfare Fund excluding reversal of WWF. Equities, 74.21% Equities, 45.37% October 17 Investment Objective Faysal Asset Allocation Fund (FF) endeavors to provide investors with an opportunity to earn longterm capital appreciation optimizing through broad mix of asset classes encompassing equity, fixed income & money market instruments. Oil & Gas Exploration Companies Oil & Gas Marketing Companies Engineering Power Generation & Distribution Commercial Banks Nov % 11.75% 8.29% 8.23% 5.98% 26.64% Oct % 7.05% 7.08% 7.08% 1.79% 14.47% A + NR (Include Equity Investments) 0.02% 9.27% 0.55% 9.33% 80.83% Sui Northern Gas Piplines Co. 6.65% Mari Petroleum Company Ltd 6.26% Engro Corporation Ltd 5.45% Hub Power Company Limited 4.96% Mr.Razi Ur Rahman Khan Chief Executive Officer Oil & Gas Development Co. Ltd 3.59% Hascol Petroleum Ltd 2.81% Mr. Saif Hasan Fund Manager (Equity) Honda Atlas Cars (Pakistan) Ltd 2.80% Pakistan Oil Fields Ltd 2.77% Mr.Malik Mansoor Ali Head of Compliance ICI Pakistan Limited 2.48% Mr.Mohammad Qasim Manager Risk United Bank Limited 2.40% Disclaimer for NonCompliance: Faysal Asset Allocation Fund holds certain noncompliant investments. Before making any investment decision, investors should review this document and latest Financial Statements. NON COMPLIANCE Name of NonComplaint Investment Trust Investment Bank Limited* * Fully provided. Rating required Existing Rating Required Exposure as a % of NAV Existing Exposure as a % of NAV Breach Type of Instrument Value of Investment before provisioning Note: The FF scheme holds certain noncompliant investments. Before making any investment decision, investors should review this document and latest financial statements. The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs as at November 30, If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs (0.32%). For details investors are advised to read the Note 7.2 of the latest financial statements for the quarter ended September 30, Provision (If any) Value of Investment after provisioning % of Net Assets BBB Withdrawn 10% TFC 13,137,042 13,137,042 % of Total Assets Faysal Asset Allocation Fund yielded an absolute loss of 1.99% on monthly basis due to persistent volatility at the equity market that has kept funds performance lower. During the month, your fund s equity exposure amounted to 74.21%. Going forward, your fund will devise its portfolio strategy whilst keeping in view the dynamics of different asset classes available.

10 Faysal Balanced Growth Fund (Absolute % p.a) Holding Period 1 year trailing FBGF 14.80% 1.17% 7.98% 7.75% 0.82% 0.04% EY Ford Rhodes, Returns (%) FBGF (YTD) 14.30% 17.32% 7.39% 8.60% 19.83% 12.42% FY % 23.53% FY % 30.70% Note : Funds returns computed on absolute basis / NAV to NAV Returns with dividend reinvested. Net Assets (PKR mn) % 33.10% TFC/Sukuk, 9.36% 2.65% 40.83% Total Expense Ratio 3.67% TER includes 0.44% representing government levy,secp fee and Sindh worker welfare Fund excluding reversal of WWF. Equities 60.89% Equities 47.16% Investment Objective October 17 Faysal Balanced Growth Fund (FBGF) endeavors to provide investors with an opportunity to earn income and longterm capital appreciation by investing in a large pool of funds representing equity / non equity investments in a broad range of sectors and financial instruments. Oil & Gas Marketing Companies Oil & Gas Exploration Companies Power Generation & Distribution Automobile Assemblers Fertizliers Nov % 8.89% 7.01% 6.02% 4.54% 23.11% Oct % 7.62% 7.08% 3.96% 1.94% 18.53% A + NR (Include Equity Investments) 0.01% 8.68% 0.05% 24.37% 66.90% Mr.Razi Ur Rahman Khan Chief Executive Officer Mr. Saif Hasan Fund Manager (Equity) Mr.Malik Mansoor Ali Head of Compliance Mr.Mohammad Qasim Manager Risk Sui Northern Gas Pipelines Co. Hub Power Company Limited Engro Corporation Ltd Indus Motor Company Ltd Mari Petroleum Company Ltd ICI Pakistan Limited HASCOL Petroleum Pakistan Oil Fields Ltd Gadoon Textile Mills Ltd Bank Alfalah 6.62% 5.07% 4.54% 4.31% 4.07% 3.91% 3.01% 2.82% 2.54% 2.20% The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 1,082,489 as at November 30, If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs (0.60%). For details investors are advised to read the Note 8.2 of the latest financial statements for the quarter ended September 30, Faysal Balanced Growth Fund yielded an absolute loss of 1.17% on a month on month basis. During the month, equity exposure rose to 60.89% while exposure in TFCs was removed. Going forward, your fund will devise its portfolio strategy to keep a clear view of the political, economic and corporate stance.

11 Faysal Islamic Asset Allocation Fund FUND INFORMATION Fund Type Category Risk Profile Launch Date Custodian/Trustee Auditor Management Fee Front end Load Back end Load Min Subscription * Pricing Mechanism Dealing Days CutOff Timing AMC Rating NAV per Unit (PKR) Net Assets (PKR mn) Leverage Total Expense Ratio Open Ended Shariah Compliant Asset Allocation Scheme Moderate to High Risk September 9, 2015 CDC EY Ford Rhodes, 2% less than PKR 2 million : 2% PKR 2 million less than PKR 5 million : 1% PKR 5 million and above : 0% Back end 0 % PKR. 5,000 KMI 30 Index/6M Deposit rate for A & above rated Islamic Banks Forward MondayFriday 9:00 am 5:00 pm AM3+(JCRVIS) Nil TER includes 0.51% representing government levy,secp fee and 3.46% Sindh worker welfare Fund. * Weighted Average Daily Return of KMI30 Index & 6M Deposit Rate of A & above rated Islamic Banks or Islamic windows of Scheduled Commercial Banks. FUND RETURNS (Absolute % p.a) Holding Period 1 year trailing FIF 17.50% 1.25% 5.31% Returns (%) FIF (YTD) 23.04% 15.40% (4.02)% 14.45% FY 14 FY 13 Note : Funds returns computed on absolute basis / NAV to NAV Returns with dividend reinvested. ASSET ALLOCATION (% OF TOTAL ASSETS) Receivables 3.97% Equities 48.41% Cash 47.62% Receivables 2.02% Equities 36.67% 7.19% 0.68% 0.40% Cash 61.31% October 17 Investment Objective The objective of Faysal Islamic Asset Allocation Fund (FIF) is to earn competitive riba free return by investing in various Shariah compliant asset classes/instruments based on the market outlook and may easily change allocation to take advantage of directional macro and micro economic trends and undervalued stocks. Oil & Gas Exploration Companies Power Generation & Distribution Oil & Gas Marketing Companies Engineering Refinery Nov % 7.00% 6.94% 6.04% 4.12% 11.61% Oct % 7.21% 6.82% 5.93% 2.85% 6.81% ASSET QUALITY (% OF TOTAL ASSETS) A+ A NR (include receivables against sale of investments) 2.66% 44.93% 0.03% 52.38% Hub Power Company Limited Sui Northern Gas Piplines Co. Mari Petroleum Company Ltd Oil & Gas Development Co. Ltd 7.00% 5.79% 4.45% 4.21% Engro Corporation Ltd 3.13% Mr.Razi Ur Rahman Khan Mr. Saif Hasan Mr.Malik Mansoor Ali Mr.Mohammad Qasim Chief Executive Officer Fund Manager (Equity) Head of Compliance Manager Risk Pakistan Oil Fields Ltd National Refinery Limited Attock Refinery Ltd ICI Pakistan Limited Lucky Cement Ltd 2.22% 2.07% 2.05% 2.04% 2.01% The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 1,493,304 as at November 30, If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs (0.32%). For details investors are advised to read the Note 6.1 of the latest financial statements for the quarter ended September 30, Faysal Islamic Asset Allocation Fund yielded an absolute loss of 1.25% on monthly basis, whereas the last one year loss clocked in at 5.31%. During the month with expectation of recovery in equity market, your fund increased its equity exposure substantially to 48.41%. Going forward, your fund will explore lucrative securities in different Islamic asset classes in order to generate alpha. MUFAP s recommended format

12 Faysal MTS Fund FUND INFORMATION Fund Type Open Ended Category Income Scheme Rating A+ f (PACRA) Risk Profile Moderate Launch Date April 8, 2016 Custodian/Trustee CDC Auditor EY Ford Rhodes, Management Fee 1.00% Less PKR 5mn FEL 1%, Above or equal to Front/Back end Load PKR 5 million, FEL 0% & BEL 0%. Min Subscription PKR. 5,000 Six months KIBOR rates Pricing Mechanism Forward Dealing Days MondayFriday CutOff Timing 9:00 am 5:00 pm AMC Rating AM3+(JCRVIS) NAV per Unit (PKR) Net Assets (PKR mn) Leverage Nil Weighted Average Maturity* 0.13 Yr Total Expense Ratio 2.33% *Excluding Govt. Securities TER includes 0.33% representing government levy,secp fee and Sindh worker welfare Fund. FUND RETURNS (Annualized % p.a) Holding Period 1 year trailing Returns (%) FMTSF (YTD) 6.14% 6.10% 5.96% 5.51% FY 14 FY 13 Note : Funds returns computed on Simple annualized basis / NAV to NAV Returns with dividend reinvested. Margin Trading System (MTS) 62.15% FMTS ASSET ALLOCATION (% OF TOTAL ASSETS) Margin Trading System (MTS) 76.44% Receivables 0.95% Cash 12.38% TBills 10.22% 5.28% 4.65% 5.86% Receivables 1.72% Cash 26.30% TBills 9.83% October 17 ASSET QUALITY (% OF TOTAL ASSETS) Government Securities + MTS (Unrated) NR (include receivables against sale of investments) 10.22% 0.49% 0.78% 11.11% 76.44% 0.95% Investment Objective The objective of Faysal MTS Fund (FMTSF) is to provide competitive returns primarily through investment to MTS market. Mr.Razi Ur Rahman Khan Chief Executive Officer Mr.Syed Shahid Iqbal Sr. Fund Specialist Fixed Income Mr.Malik Mansoor Ali Head of Compliance Mr.Mohammad Qasim Manager Risk 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 6.09% 4.88% 6.14% 5.17% 6.12% 3.89% 6.13% 5.05% 6.13% 5.33% 5.95% 10.89% 6.14% 5.99% 5.72% 6.92% FMTSF 6.17% 4.86% 4.65% Disclaimer for NonCompliance: Faysal Asset Allocation Fund holds certain noncompliant investments. Before making any investment decision, investors should review this document and latest Financial Statements. NON COMPLIANCE Name of noncompliant investment/investment Limit Exposure Limit Range Actual Holding Margin Trading System* 70%90% 68.97% * Minimum 70% will be maintained based on quarterly average investment calculated on daily basis. The Scheme has maintained provisions against Sindh Workers' Welfare Fund liabilty to the tune of Rs. 245,695 as at November 30, If the same were not made the NAV per unit / return of the Scheme would have been higher by Rs (0.08%). For details investors are advised to read the Note 7.1 of the latest financial statements for the quarter ended September 30, Faysal MTS Fund yielded an annualized return of 5.28% on a yeartodate basis, whereas the return over the last one year clocked in at 5.86%. During the month, exposure in Margin Trading System (MTS) and Tbills amounted to 76.44% and 10.22% respectively. Going forward, your fund will explore new avenues in the MTS market to yield higher returns. MUFAP s recommended format

13 The Art of Investment Faysal AssetManagement FY % 9.34% FY % SINCE INCEPTION HISTORICAL RETURNS (ANNUALIZED %) FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY % 10.08% 9.81% 11.07% 10.06% 11.34% 10.00% 11.66% 10.50% 11.74% 10.37% 11.51% 10.20% 11.33% 10.39% 11.10% 10.30% 10.68% 9.81% 10.32% 9.04% 7.70% 9.68% 8.27% 10.20% 8.42% 9.72% 8.14% 9.30% 7.89% 9.12% 7.68% 8.59% 7.24% 8.18% 6.72% 10.42% 9.39% 10.19% 9.76% 11.04% 10.95% 11.02% 11.32% 11.02% 11.72% 11.04% 11.82% 10.70% 11.54% 10.46% 11.32% 10.72% 10.79% 10.42% 10.35% 10.01% 9.96% 11.20% 10.18% 11.09% 10.08% 10.41% 9.49% 9.89% 9.23% 9.64% 8.93% 8.97% 8.32% 8.70% 7.88% 9.12% 8.96% 8.26% 8.59% 7.87% 7.68% 7.21% 7.28% FMTSF Note : Funds returns computed on Simple annualized basis / NAV to NAV Returns with dividend reinvested. 5.96% 5.51% 6.05% 5.80% FY % 34.08% FY % 84.86% SINCE INCEPTION HISTORICAL RETURNS (ABSOLUTE %) FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY % 80.25% 15.79% 50.64% 41.25% 87.36% 55.35% % 48.06% % 76.42% % % % % % % % % % 30.70% 24.07% 57.60% 49.13% 57.57% 66.46% 89.49% % % % % % % % % % Note : Funds returns computed on absolute basis / NAV to NAV Returns with dividend reinvested. 4.02% 14.45% 18.10% 32.10%

14 The Art of Investment Faysal AssetManagement Islamic Savings Growth Fund Multiply your good deeds. Salient Features: 100% Shariah based Islamic Income Fund No front end/back end Load Invest with as little as Rs Flexible Income Frequency Option (refer to Offering Document) No minimum holding period of investment Salaried / NonSalaried Investors can avail tax credit on their investments under section 62 of Income Tax Ordinance 2001

15 The Art of Investment Faysal AssetManagement Be Smart Be Happy Avail Tax Credits Generate Income Save For a Rainy Day Avail Tax Credits Be Smart Be Happy Invest in one or more Funds of Faysal Asset Management mutual funds,simply do the following and be happy :) Salaried People, Submit FAML statement of account to your Pay Roll / HR department, They will immediately stop deducting taxes from your salary till June18 upto available tax credit. NonSalaried/Selfemployed people, Reduce tax payable in your tax return by the available tax credit. Simply show Investment in FAML Funds in your wealth statement. ENJOY YOUR SAVINGS AND BE HAPPY :) The benefits shown in the following tables are calculated as an illustration based on maximum permissible Investments subject to respective income brackets as defined in ITO, Salaried Individuals Self Employed Individuals Monthly Effective Annual Permissible Monthly Effective Annual Permissible Taxable Tax Rate Tax Investment Taxable Tax Rate Tax Investment Income % Amount for Tax Credit Income % Amount for Tax Credit PKR PKR PKR PKR PKR PKR PKR PKR 100, % 59, ,000 11, , % 99, ,000 19, , % 242, ,000 48, , % 324, ,000 64, , % 497, ,000 99, , % 619, , , , % 817, , , , % 959, , , , % 1,147,000 1,200, , , % 1,319,500 1,200, , , % 1,482,000 1,440, , , % 1,739,500 1,440, , , % 1,842,000 1,500, , , % 2,159,500 1,500, , , % 2,202,000 1,500, , , % 2,579,500 1,500, ,050 To avail tax credit, a minimum investment holding period of 2 years from the date of investment is required. As per Section 62 of the Income Tax Ordinance, 2001 an individual investor of open end mutual ( Unit trust schemes) can claim tax credit on investment up to Rs. 1,500,000/ or 20% of individual s taxable income (whichever is lower) on an investment made in Mutual Funds between July 1st and June 30th in each year. To assist you Faysal Mutual Funds Tax Calculator is available on our website ( to calculate tax investible amount and tax credit available. Call Now or Don't Wait Procrastination = Losses = Investors are advised to seek independent professional advise in tax matters. Capital gain tax and withholding tax on dividend and bonus units will be charged according to Income Tax Law, if applicable.

16 Also Available at Branches of Old Bahawalpur Road Branch (133) 129/1, Old Bahawalpur Road, Multan, Phone: Upper Mall ShahraheQuaideAzam, Lahore, Phone: , , Fax: Bilal Road, Civil Lines, Faisalabad, (111) Phone: (92 41) , , Fax: , A, Main Boulevard, Gulberg, Lahore, (148) Phone: / Fax: FakhreAlam Road Cantt, Peshawar, 411 Phone: / , Fax: Farooqabad, Main Mansehra Road, Peshawar, Phone: / Fax: Haider Road, Rawalpindi Cantt, Rawalpindi, 120 Phone: Fax: , Markaz F7, Opposite FG College for Women, F7/2, Islamabad, 332 Phone: Fax: Plot Number 339, Main Bohra Bazar Saddar, Hyderabad,138 Phone: / Fax: (282) Garrison Officers Mess, 12 Tufail Road, Lahore Cantt Lahore, Phone: Fax: Branch (464) Awami Complex, Block No 2, New Garden Town, Lahore, Phone: , Fax: Z Block Lahore, 326 Z, Commercial Area, DHA, Lahore, Phone: /1, BlockH, Commercial Area Phase I, DHA, Lahore Cantt, Lahore, Phone: Fax: ShahraheQuaideAzam, Lahore, Phone: , Fax: (457) 25B2, Gulberg III, Lahore, Phone: , Fax: Cavalry Ground (3421) 97 Commercial Area, Cavalry Ground, Lahore, Phone: Fax: th Road City Shopping Centre, Commercial Market, Satellite Town, Rawalpindi, Phone: Fax: West, Jinnah Avenue Blue Area, Islamabad, Phone: , Fax: (194) Plot 14, F11 Markaz, Islamabad, Phone: Fax: (452) 78W, Roshan Center, Jinnah Avenue, Blue Area,Islamabad, Phone: Fax: (144) 130/1, Main Korangi Road, KM Centre, Phase I, DHA, Karachi, Phone: , Fax: (173) 14C, Khayaban e Tanzeem, Tauheed Commercial, DHA, Phase V, Karachi, Phone: Fax: (118) Quality Heights, K.D.A Scheme # 5, Clifton,Karachi, Phone: Fax: (269) Plot Number DC1, 16A and16b, Block 5, Clifton Centre, Kehkashan, Karachi, Phone: Fax: (441) 19C Bukhari Commercial Lane No 5, Ground, Basement and 1st Floor, Phase VI, DHA, Karachi, Phone: Fax: (330) 16Abdullah Haroon Road, Karachi, Phone: (110) ST 02, Main Shahra e Faisal (FAYSAL HOUSE), Karachi, Phone: , Fax: (342) D4, Block D, North Nazimabad, Karachi, Phone: Fax: (338) Address: 22/C, Lane2, Shahbaz Commercial, Phase V1, DHA, Karachi (175) 14C, Sunset Commercial Street # 2, Phase IV, DHA, Karachi, Phone: Fax: (333) 72A/Z, Block 7/8, AlRiaz Cooperative Housing Society, Karachi Phone: , 021 (165) Plot Number Commercial 7/1, Block 2, Green Belt Residency No.1316, KDA Scheme5 Shop, Kehkashan, Clifton Karachi, Phone: , Fax: (119) B 35,Block 13A Main University Road,Gulshan e Iqbal, Phone: (422) State Life Building. 11, Abdullah Haroon Road Karachi, Phone: Head Office 8th Floor, Tower A, Saima Trade Tower, I.I. Chundrigar Road, KarachiPakistan. U F Karachi T Lahore T Islamabad /23 faysalfunds.com facebook.com/faysalasset twitter.com/faysalasset