Fund Manager Review September 2018

Transcription

1 Fund Manager Report September 2018

2 FIPI Net Individual Companies Banks/DFI Mutual Funds Brokers Insurance NBFC Other Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Trend * 4-Sep 7-Sep Jul-18 Aug-18 2MFY18 2MFY19 Fund Manager Review September 2018 Macroeconomic Overview CPI inflation for Sep-18 clocked in at 5.12% YoY, significantly lower than YoY CPI inflation of 5.84% recorded in Aug- 18. MoM slowdown of 0.06% in CPI index for Sep-18 stemmed from a 0.77% MoM decline in Food inflation, which kept the CPI inflation in check for Sep-18. Decline in food inflation was owing to a decline in poultry, vegetable and fresh fruit prices. Effects of currency devaluation have become apparent on Non-food inflation, which settled at 7.7% YoY. More importantly, NFNE inflation has settled in at an upward trajectory of above 7% for a third straight month and clocked in at 8.0% YoY for Sep-18. YoY CPI inflation - Monthly trend 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Source: PBS Keeping in view the rising NFNE, we expect State Bank of Pakistan (SBP) to continue increasing policy rate in the upcoming MPS announcements, with policy rate expected to reach 10% by end of FY19. PKR/USD during Sep Source: SBP Current Account Deficit (CAD) for Aug- 18 fell significantly to USD 0.6bn, down 72% MoM. This takes 2MFY19 CAD to USD 2.7 bn, translating into 5.3% of GDP as opposed to 4.6% in 2MFY18. Aug-18 exports increased by 4% MoM, whereas, imports decreased by 19% MoM. Workers remittances clocked in at USD 2.04bn up 4.2% YoY. On MoM basis, worker remittances were up 5.6% from USD 1.93bn in Jul-18. Additionally, Net Financial account inflow for the month of Aug-18 clocked in at USD 0.2bn, down by 90% MoM. Current Account Deficit (% of 10.0% GDP) 8.0% 6.0% 4.0% 2.0% 0.0% Source: PBS Fixed Income Review Secondary market yields increased for yet another month during Sep-18 in anticipation of another hike in policy rate in monetary policy meeting due this month which materialized with SBP raising policy rate by 100bps. Average Yields on short term papers increased by 2-27bps during Sep-18. Yields on 3m, 6m and 1yr papers clocked in at 8.21%, 8.26% and 8.62% at the end of Sep-18. Average yields on 3yr and 5yr PIBs settled in at 9.25% and 9.50%, showing MoM increase of 38bps and 29bps, respectively. Average yield on 10yr PIBs increased by 9bps to 10.03%. In the two T-Bill auctions conducted during the month of Sep-18, SBP raised a total of PKR 41bn against a target of PKR 450bn and maturity of PKR 425bn. For the PIB auction held on Sep-5th, 4.26bn were realized where the target was set at PKR 50.00bn against maturity of PKR 23.79bn. Yields are likely to increase further from current levels as a market consensus has developed that SBP is likely to increase policy rate further from current levels in an attempt to ensure macroeconomic stability in the Yield upcoming Curve monetary policy meetings Source: MUFAP 3m 6m 12m 3yr 5yr 10yr Aug-18 Sep-18 Equity Market Review The benchmark KSE-100 index shed 744pts or 1.78% during the month of Sep-18. Bearish performance of the market can be attributed to increase in gas prices for industries and uncertain policies regarding IMF bailout package, circular debt and electricity prices. Market witnessed a short-lived recovery post the budget amendment announcement. Average daily volume for the month of September fell significantly by 27% MoM due to weak investor sennts and low market participation ahead of long weekend on account of Muharram holidays. KSE-100 performance during Sep-18 42,000 41,500 41,000 40,500 40,000 Source: KSE Cements, Engineering and Chemical sector lost the most, while E&P outperformed the market on account of increasing oil prices. Selling by foreigners continued for another month where net outflow was recorded at USD 57.94mn. Major selling was mainly observed in Banks (USD 26.20mn), E&Ps (USD 10.89mn) and Cements (USD 10.32mn). Inflows were only reported in the Fertilizer (USD 1.20mn) and Food sector (USD 0.56mn). On local front, substantial buying was witnessed by Insurance (USD 33.05mn) and Mutual funds (USD 17.35mn) while no local participant emerged as major net Portfolio seller. flows - Sep-18 (USD mn) (57.94) Source: NCCPL KSE (8.69) Volume (0.44) Manufacturing sectors underperformed the market due to increase in gas prices, while Banks failed to outperform due to extensive foreign selling. Auto sector underperformance was due to the decision to uphold the restriction on purchase of new vehicles by nonfilers. KSE-100 index momentum is likely to be decided after clarity on economic policies and the decision to opt for an IMF bailout package by the government. SBP has increased the policy rate by 100bps to 8.5%, which may have positive implications for 70 20

3 Askari Cash Fund (Formerly Askari Sovereign Cash Fund) % 22.30% 77.24% 3.44% 0.82% 0.46% T-Bills Cash Other incl. receivables 30 aug Aug 18 Performance* YTD MoM 365-Days 3-Years 5-Years ACF 6.75% 6.69% 5.84% 6.64% 7.33% NAV (PKR/Unit) Net Assets (PKR mn) 1, Duration (Days) 4 Weighted Average Maturity (Days) 4 Since Inception Return 6.61% 6.89% 5.71% 5.55% 6.73% ACF 9.24% 8.07% 8.86% 5.56% 8.49% 5.23% 8.83% 8.88% 8.35% 5.87% 5.25% 5.36% Portfolio Quality (% of Total Assets) Disclosures AA+, 77.19% N.R., 0.51% AAA, 22.30% 1.05% 0.15% 8.29% AAA AA+ N.R. SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers Welfare Fund s liability to the tune of Rs 2.22 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs /0.17%. In the month of Sep-18, Askari Cash Fund posted a return of 6.75% as compared to its benchmark return of 6.61%. Assets under management of the fund closed the month at PKR 1,310 million as compared to PKR 585 million in previous month. During the month funds were mostly kept in Cash as around 77.24% of fund size were Cash. By month end, duration of the funds stood at 4 day as compared to 40 day in previous month. VP Fund Management Manager Fixed Income The objective of the Fund is to provide the investors with a high level of liquidity along with extremely low credit and price volatility. The Fund shall provide the facility to invest in an underlying portfolio primarily comprising of government securities (Treasury Bills) and other Authorized Investments which shall enable the investor to manage their liquidity efficiently. Money Market Fund 18-Sept-09 70% average 3 month PKRV + 30% Average 3-month deposit rate as selected by MUFAP Monday Friday am Backward Front end load Back end load Fund Stability Rating Risk Profile up to 12% of Gross Earnings subject to a maximum of 1.00% on the average annual net assets. Currently, 0.50% p.a. fee is being charged. Central Depository Company of Pakistan Ltd. (CDC) Deloitte Yousuf Adil Chartered Accountants Faisal Raza Sumaira Shaukat AA+ by JCR-VIS Low

4 PAKOMAN Advantage Asset Allocation Fund Performance (%) 56.13% 50.18% 12.63% 9.40% NAV (PKR/Unit) Net Assets (PKR mn) % 0.63% Since Inception Return** % Top 10 holdings (% of Total Assets) Pakistan Petroleum Ltd. 4.79% Hub Power Co. Ltd. 4.55% Pakistan Oil Field Ltd. 3.86% United Bank Ltd. 3.46% Oil & Gas Development Co Limited 3.43% Habib Bank Limited 3.22% Engro Fertilizer Ltd 3.21% Sui Northern Gas Pipelines Limited 2.56% Nishat Mills Limited 2.44% Engro Corporation 2.01% 30.23% Equity Sector Allocation (% of Total Assets) 12.82% Exploration Banks 9.51% Power Generation and Distribution 6.41% Fertilizers 5.68% Marketing Others 30.32% 4.24% 6.87% Equities Cash* TFCs/Sukuks Others incl. receivables 31 aug Sep 18 YTD MoM 365-Days 3-Years 5-Years POAAF -2.15% -1.92% % 2.86% 20.61% * -1.47% -1.19% -2.49% 9.28% POAAF 31.82% 8.74% 12.62% 7.76% 19.89% % 31.06% 25.49% 12.50% 8.19% 10.21% -9.01% **Absolute Return Top Exposures (As on 31-Aug 2018) 3.72% 12.05% Instrument Price % of Total Assets International Brands Limited (15-Nov-17) % Bank of Punjab Limited TFC II Issue(14-Apr-18) % TPL Corporation Limited TFC (14-Dec-17) % In the Month of Sep-18, Pak Oman Advantage Asset Allocation Fund showed a return of -1.92% against the benchmark return of -1.19%,. During the month, Sector with major exposure were Oil and gas exploration, Banks and power & Generation which closed at the month at 12.82%, 9.51%, and 6.41% respectively. By the month end, equity exposure stood at 50.18% as compare to 56.13% in the previous month. Exposure against TFC closed at 30.32% as compare to 30.23% in the previous month. Remaining funds maintained In Bank accounts ad receivable. Fund Manager - Equities Muneeb Sikander POAAAF shall invent in a diversified portfolio of Securities such as equities, profit bearing securities and other instruments, including securities available for investments outside Pakistan, subject to applicable laws. Asset Allocation 30-Oct-08 WA return of KSE-30 index + WA return of 6M KIBOR on actual proportion. Mon Fri 9:00am / 3:30 pm Front end load 2.50% Back end load 2.00% Fund Ranking Risk Profile Disclosures: 2.00 % p.a. MCB Financial Services Ltd. Deloitte Yousuf Adil Chartered Accountants 3 Star (short term) PACRA / 3 Star (Long term) PACRA Medium SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs million. If the above recognition had not been made, the net asset value per unit/ytd return of the Scheme would be higher by per unit / 1.27%.

5 PAKOMAN Islamic Asset Allocation Fund % 15.64% 64.03% 58.84% 20.74% 21.84% NAV (PKR/Unit) Net Assets (PKR mn) % 0.53% Since Inception Return 61.55% 2.59% 3.68% Cash* Equities TFCs/Sukuks Others incl. receivables 31 aug Sep 2018 Performance YTD MoM 365-Days 3-Years 5-Years POIAAF -1.46% -1.60% % 2.57% 31.50% * -1.53% -1.32% -1.73% 17.38% 44.29% Top 10 holdings (% of Total Assets) POIAAF 20.45% 17.32% 15.61% 10.37% 17.34% % 30.49% 18.21% 13.32% 10.35% 19.31% -5.47% **Absolute Return Pakistan Petroleum Ltd. 6.79% Hub Power Co. Ltd. 5.33% Engro Fertilizer Limited 5.19% Oil & Gas Development Co 4.82% Limited Pakistan Oil Field Ltd. 4.58% Nishat Mills Limited 3.32% Sui Northern Gas Pipelines 2.70% Limited Mari Petroleum 2.66% Engro Corporation 2.42% Thall Limited 1.73% Equity Sector Allocation (% of Assets) Exploration 18.85% Fertilizers 8.07% Power Generation and Distribution Marketing Top Exposures (As on 31-Aug-2018) 6.45% 4.33% Textile Composite 3.78% Others 17.36% Instrument Price % of Total Assets Dawood Hercules Corporation II (01-Mar-18) % International Brands Limited (15-Nov-17) % In the moth of Sep-18, Pak Oman Islamic Asset Allocation Fund posted a return of -1.60% as compared to -1.32% benchmark rate. By the month end, sectors with major exposures were oil ad gas exploration, Fertilizer and Power generation and distribution which closed the month at 18.85%, 8.07% and 6.45% respectively. Equity exposure stood at 58.84% as compare to 64.03% In the previous month. Exposure in Sukuk was 21.84% as compare to 20.74% in the previous month while reaming funds were maintained in Bank accounts ad receivable. Fund Manager - Equities Shariah Advisor Muneeb Sikander The primary objective is to provide investors with high current income and long term capital growth primarily by investing in a diversified portfolio of Shariah compliant investment, instruments, including Shariah compliant securities available for investment outside Pakistan, subject to applicable laws. Shariah Compliant Asset Allocation 30-Oct-08 WA return of KMI-30 index + WA return of deposit rate of 3 A rated Islamic banks on actual proportion. Mr. Najeeb Ahmad Khan Mon Fri 9:00am / 3:30 pm Front end load 2.50% Back end load 2.00% Fund Ranking Risk Profile Disclosures: 2.00% p.a. MCB Financial Services Ltd. A. F. Fergusons & Co. 3 Star (short term) PACRA / 3 Star (Long term) PACRA Medium SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs.1.661million. If the above recognition had not been made, the net asset value per unit/ytd return of the Scheme would be higher by per unit / 0.56%.

6 PAKOMAN Advantage Islamic Income Fund % 29.07% 18.13% 18.05% 50.28% 50.18% 2.58% 2.70% Cash Bank Placements Sukuk Other incl. receivables 31 aug Sep 18 Performance YTD MoM 365-Days 3-Years 5-Years POAIIF 5.90% 7.28% 5.41% 5.37% 4.94% * 2.67% 2.78% 2.53% 3.27% 4.54% NAV (PKR/Unit) Net Assets (PKR mn) Duration (Years) 0.05 Weighted Average Maturity (Years) 1.80 Since Inception Return Portfolio Quality (% of Total Assets) 28.66% POAIIF 7.34% 3.43% 4.77% 4.37% 6.42% 4.98% 6.57% 6.54% 6.55% 4.89% 2.92% 2.45% 18.05% 2.83% 9.20% 27.87% 13.40% Top Exposures (As on 31-Aug-2018) AAA 2.50% 0.34% 5.91% A+ A AA A- N.R. Instrument Price % of Total Assets International Brands Limited (15-Nov-17) % TPL Trakker Limited (13-Apr-16) % Byco Petroleum Sukuk (18-Jan-17) % Dawood Hercules Corp. Ltd II (28-Feb-18) % Dawood Hercules Corp. Ltd I (16-Nov-17)* % *Discretion Applied In the month of Sep-18, Pak Oman Advantage Islamic Income Fund posted a return of 5.90% against its benchmark of 2.78%. Net Asset of the Fund was PKR million as compared to PKR 272 million in the previous month. By the month end, exposure against Sukuk stood at 50.18% as compared to 50.28% in the previous month. Exposure against bank Placement closed at 18.05% as compared to 18.13% in the previous month. Remaining Funds of the fund were invested as cash with Islamic Bank/ Islamic windows of commercial Banks. Fund Manager Fixed Income VP-Fund Management Shariah Advisor The primary Objective is to provide investor(s) with competitive current income and long term capital growth primarily by investing in a diversified portfolio of shariah compliant securities available for investment outside Pakistan subject to applicable laws. Shariah Compliant Income Scheme 30-Oct-08 6 month average deposit rates of 3 A rated scheduled Islamic Banks. Mr. Najeeb Ahmad Khan Mon Fri 9:00am / 3:30 pm Front end load 1.00% Back end load 2.00% Fund Stability Rating Disclosures 1.50% p.a. MCB Financial Services Ltd. A. F. Fergusons & Co. Sumaira Shaukat Faizal Raza A (f) PACRA Low to Medium SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs million. If the above recognition had not been made, the net asset value per unit/ytd return of the Scheme would be higher by per unit/0.33%.

7 PAKOMAN Government Securities Fund % 0.93% 0.75% 70.61% 71.14% 27.76% 27.26% 0.70% 0.85% Cash* T-Bill TFCs Term Deposits Other incl. receivables 31 aug Sep 18 Performance YTD MoM 365-Days 3-Years 5-Years POGSF 3.42% -1.78% 3.86% 5.35% 6.20% * 7.76% 8.04% 6.69% 6.13% 6.69% NAV (PKR/Unit) Net Assets (PKR mn) Duration (Days) Weighted Average Maturity (Years) Portfolio Quality (% of Total Assets) 0.75% 0.85% 10.39% 9.56% POGSF 9.22% 7.08% 8.63% 8.75% 4.28% 4.30% 8.67% 8.67% 8.12% 5.84% 5.64% 6.21% 71.14% 0.08 Days 1.63Years 2.46% 0.29% Since Inception Return 7.48% Top Exposures (As on 31-Aug-2018) AAA AA+ AA- A+ A- N.R. Instrument Price % of Total Assets JS Bank Limited (14-Dec-16) % Jehangir Siddiqui Co. Ltd (18-July-17)* % Bank of Punjab Limited (13-Apr-18) *Discretion Applied % The primary objective of Pak Oman Government Securities Fund (POGSF) is to provide its unit holders competitive returns from portfolio of investment with low credit risk with maximum possible preservation of capital via investing in Government Securities. Income 28-July-11 Average 6M PKRV rates. Mon Fri 9:00am / 3:30 pm Front end load Back end load 2.00% In the month of Sep-18, Pak Oman Government Security Fund posted a return of -1.78% against its benchmark 8.04%. On YTD basis, the fund posted a return of 3.42% as compared to benchmark return of 7.76%. By month end, exposure against treasury bills stood at 71.14% against 70.61% in the previous month. Exposure against Term Finance Certificates TFCs remained at 27.26% while reaming funds were invested in Cash. Manager Fixed Income VP Fund Management Fund Stability Rating Risk Profile of Fund Disclosures 1.10 % p.a. MCB Financial Services Ltd. Deloitte Yousuf Adil Chartered Accountants Sumaira Shaukat Faisal Raza A+ (f) PACRA Low to Medium SWWF (As per Circular 17 of 2012): The scheme has maintained provision against SWWF amounting Rs million. If the above recognition had not been made, the net asset value per unit/ytd return of the Scheme would be higher by per unit / 0.48%.

8 Askari High Yield Scheme % 73.18% 22.33% 22.10% 10.41% 1.34% 3.56% 4.72% TFCs Cash TDR T-Bills O. Receivables 31 aug Sep 18 Performance* YTD MoM 365-Days 3-Years 5-Years AHYS 3.78% 0.73% 5.18% 5.60% 8.46% 8.47% 8.76% 6.97% 6.57% 7.59% AHYS 1.61% 11.63% 12.16% 8.23% 5.34% 5.13% 9.93% 9.83% 8.97% 6.53% 6.33% 6.57% NAV (PKR/Unit) Manager Fixed Income VP Fund Management In the month of Sep-18, Askari High Yield Scheme posted a return of 0.73% as benchmark return of 8.76%. During the Month fund under performed its benchmark because of loss In TFCs held in portfolio. Asset under management closed at PKR 2,169 millions as compared PKR 2,910 in previous month. By month end, exposure against Term Finance Certificate (TFCs) were 73.18% as compared to 62.36% in previous month. Remaining funds were invested as Cash with A and above rated Banks. Sumaira Shaukat Faisal Raza The objective of the Fund is to provide investors an opportunity to make competitive returns from fixed income securities while targeting a portfolio duration of six months. Net Assets (PKR mn) 2, Duration (Years) 0.16 Weighted Average Maturity (Years) 3.42 Aggressive Fixed Income Scheme 16-Mar-06 Since Inception Return Portfolio Quality (% of Total Assets) 3.72% 11.78% 12.04% Instrument 28.75% 9.45% 2.80% 5.87% 25.60% Top Exposures (As on 31-Aug-2018) Price 2.58% 0.35% 6.30% AAA AA A+ A AA+ AA- A- N.R. % of Total Assets Dawood Hercules Corporation Limited - II % International Brands Limited % Bank of Punjab Ltd ( )* % JS Bank Limited - II % Jehangir Siddiqui Company Limited TFC ( % 2017) TPL Corp Limited (Formerly TPL Trakker) % Soneri Bank Ltd TFC ( )* % U-Micro Finance Bank Limited % Dawood Hercules Corporation Limited % JS Bank Limited - I % *Discretion Applied Fund Stability Rating Risk Profile of Fund Average 1 Year KIBOR Mon Fri 9:00am / 4:30 pm Front end load 2.00% Back end load 1.00% Disclosures 1.50 % p.a. Central Depository Company of Pakistan Ltd. (CDC) EY Ford Rhodes Chartered Accountants A by JCR-VIS Medium SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers Welfare Fund s liability to the tune of Rs million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs / 0.59%.

9 Askari Islamic Income Fund % 62.57% 5.06% 2.95% 26.03% 26.79% 8.42% 7.69% Corporate Sukuk Cash Bank Placement Other incl. receivables 31 aug Sep 18 Performance* YTD MoM 365-Days 3-Years 5-Years AIIF 6.57% 9.27% 5.51% 5.12% 5.9% 2.67% 2.78% 2.52% 3.24% 4.62% NAV (PKR/Unit) Net Assets (PKR mn) Duration (Years) 0.07 Weighted Average Maturity (Years) 2.18 Since Inception Return AIIF 8.74% 7.93% 6.52% 5.08% 5.49% 4.79% 6.65% 7.34% 6.41% 4.31% 2.92% 2.45% Portfolio Quality (% of Total Assets) 7.64% 2.62% Top Exposures (As on 31-Aug-2018) 2.78% 0.34% 5.91% Instrument Price % of Total Assets International Brands Limited % TPL Trakker Limited % Dawood Hercules Corporation Limited % Dawood Hercules Corporation Limited II % *Discretion Applied 26.79% 22.61% 40.33% AA A+ A A- N.R. In the month ofsep-18, Askari Islamic Income Fund posted a return of 9.27% as compared to its benchmark of 2.78%. Asset Under management were closed at PKR 211 millions as compared to PKR 217 millions in the previous month. By the month end, exposure against Corporate Sukuk were kept at 62.57% as compared to 60.49% in the previous month. Exposure in TDR stood at 26.79% while remaining funds were invested as Cash with A ad above rated Islamic Banks/ Islamic windows of Commercial Banks. Manager Fixed Income VP Fund Management Shariah Advisor Fund Stability Rating The objective of the Fund is to provide investors a Shariah compliant product with stable halal income. The fund would target on capitalizing available opportunities in the Shariah compliant income generating instruments. The Fund will focus on superior quality portfolio compared with average portfolio quality of Islamic income funds in the industry and enhanced returns over a 3 month horizon. Shariah Compliant Islamic Income 18-Sept-09 Average 6 months Placement (Deposit) rate as selected by MUFAP. Mr. Najeeb Ahmad Khan Monday Friday 9.00 am to 4.30 pm Front end load 1.00% Back end load 1.00% Disclosures 1.10 % p.a. MCB Financial Services Ltd. Deloitte Yousuf Adil Chartered Accountants Sumaira Shaukat Faisal Raza A+ by JCR-VIS Low to Medium SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers Welfare Fund s liability to the tune of Rs million, if the same were not made the NAV per unit/ytd return of Scheme would be higher by Rs / 0.66%.

10 Askari Sovereign Yield Enhancer % 8.94% 75.23% 76.85% 14.40% 13.62% 1.22% 0.59% TFCs T-Bill Cash Other incl. receivables 31 aug Sep 2018 Performance* YTD MoM 365-Days 3-Years 5-Years ASYE 3.61% 0.61% 4.46% 5.44% 7.54% 7.76% 8.04% 6.64% 6.10% 7.03% NAV (PKR/Unit) Net Assets (PKR mn) Duration (Years) 0.05 Weighted Average Maturity (Years) 0.76 Since Inception Return ASYE 10.98% 8.83% 10.74% 9.21% 4.83% 4.53% 8.92% 8.09% 8.33% 5.31% 6.10% 6.21% Portfolio Quality (% of Total Assets) AA-, 22.40% AAA, 76.85% N.R., 0.75% 2.52% 0.34% 7.48% AAA AA- N.R. In the month of Sep-18, Askari Sovereign Yield Enhancer posted a return of 0.61% against a benchmark of 8.04%. On year to date basis fund posted a return of 3.61% as compared to benchmark return of 7.76%. By month end, exposure against Treasury Bills were kept at 76.85% against 75.23% in the previous month. By month end, exposure in Term Finance Certificate stood at 8.94% while remaining fund were invested as Cash with Banks. Manager Fixed Income VP Fund Management The objective of the Fund is to generate relatively higher yield than the conventional bank deposits, from a portfolio constituted of credit worthy sovereign instruments and banking sector fixed income instruments and deposits. Income Scheme 07-July-12 Average 6 month PKRV Mon Fri 9:00am / 4:30 pm Front end load 1.25% Back end load 1.35% p.a. Central Depository Company of Pakistan Ltd. (CDC) Deloitte Yousuf Adil Chartered Accountants Sumaira Shaukat Faisal Raza Top Exposures (As on 31-Aug-2018) Instrument Price % of Total Assets Bank of Punjab Ltd. ( ) % Fund Stability Rating Disclosures A+ by JCR-VIS Low to Medium *Discretion Applied SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers Welfare Fund s liability to the tune of Rs million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs / 1.37%.

11 Askari Asset Allocation Fund % 28.22% 29.29% 24.96% NAV (PKR/Unit) Net Assets (PKR mn) Since Inception Return** Top 10 holdings (% of Assets) Pakistan Oil Field Ltd. 2.69% Nishat Mills Limited 2.21% Habib Bank Limited 2.10% Engro Fertilizer Limited 2.05% Sui Northern Gas Pipelines 2.04% Limited Pakistan Petroleum Ltd. 1.99% Faysal Bank Limited 1.45% Engro Corporation 1.36% K-Electric Limited 1.31% The Searle Company Limited 1.19% 34.74% 33.08% 4.40% 0.57% 23.89% Equity Sector Allocation (% of Assets) Banks 6.58% Exploration 5.01% Fertilizers 3.87% Marketing 9.35% 9.41% Equitiy Cash TFCs/Sukuk Other receivables 31 aug Sep 2018 Performance* YTD MoM 365-Days 3-Years 5-Years AAAF -1.22% -1.36% -9.76% -9.33% 14.42% 0.85% -0.34% -5.22% 3.89% 17.58% AAAF 39.87% 19.31% 15.40% -6.25% 10.49% % 22.73% 18.24% 17.85% 3.84% 10.03% % **Absolute Return Instrument Top Exposures (As on 31-Aug-2018) 3.29% Textile Composite 2.22% Others 7.25% Price % of Total Assets Bank of Punjab Limited (13-Apr-18) % TPL Corp Limited TFC (14-Dec-17) % International Brands Limited (15-Nov-17) % JS Bank Limited (14-Dec-17) % Fund Manager - Equities Muneeb Sikander The objective of the Fund is to provide investors, an investment solution through disciplined and structured investment techniques. The Fund shall target capitalizing on opportunities available in both fixed income and equity markets using in-house research and proprietary investment matrix. Asset Allocation Fund 10-Sept-07 Weighted Average Daily Return of KSE-30 Index and 6 month KIBOR as per amount investment in equities and fixed income investments including cash and cash equivalents respectively. Mon Fri 9:00am / 4:30 pm Front end load 2.50% Back end load 2.50% Disclosures: Fund Ranking Risk Profile In Sep-18, Askari Asset Allocation Fund posted a return of -1.36% as compared to benchmark return of 0.85%. Net Asset of the Funds stood at PKR 181 million as compared to PKR 162 million in the previous month. By the month end, equity exposure was decreased to 28.22% as compared to 30.95% in the previous month. Cash was Maintained at 29.29% of the total fund size. While 33.08% of the assets were invested in debt securities % p.a. Central Depository Company of Pakistan Ltd. (CDC) Deloitte Yousuf Adil Chartered Accountants SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers Welfare Fund s liability to the tune of Rs million, if the same were not made the NAV per unit/ YTD Return of Scheme would be higher by Rs / 0.37%. 1 Year - 2 Star, 3 Year 2 Star, 5 Year - 2 Star by JCR-VIS Medium **Absolute

12 Askari Islamic Asset Allocation Fund September % 68.15% NAV (PKR/Unit) Net Assets (PKR mn) Since Inception Return** 11.52% 14.90% Top 10 holdings (% of Total Assets) Pakistan Petroleum Ltd. 8.47% Hub Power Co. Ltd. 6.84% Engro Fertilizer Limited 6.06% Pakistan Oil Field Ltd. 5.38% Oil & Gas Development Co Limited 4.81% Sui Northern Gas Pipelines Limited 4.22% Engro Corporation 4.13% Nishat Mills Limited 3.50% Mari Petroleum 3.32% K-Electric Limited 2.33% 7.92% 8.49% 6.82% 8.46% Equitiy Cash TFC Others receivables 31 aug Sep % 0.62% 25.92% Equity Sector Allocation (% of Assets) Exploration 21.98% Fertilizers 10.64% Power Generation and Distribution Marketing 9.16% 5.85% Pharmaceuticals 4.98% Others Performance* YTD MoM 365-Days 3-Years 5-Years AIAAF -3.21% -2.64% % -5.41% 7.92% -1.73% -2.80% -7.81% 16.35% 36.74% AIAAF 30.80% 12.53% 12.32% -2.82% 13.08% % 17.21% 12.44% 9.54% 10.03% -5.22% **Absolute Return Instrument Fund Ranking Risk Profile Top Exposures (As on 31-September-2018) 15.53% 1 Year 3 Star, 3 Year 1 Star, 5 Year - 2 Star by JCR-VI Medium Price % of Total Assets International Brands Limited (15-Nov-17) % In the month of Sep18, Askari Islamic Asset Allocation Fund posted a return of -2.64% as against the benchmark return of -2.80%. Net Assets of the fund stood at PKR 113 million as compared to the PKR 116 million in the previous month. During the month equity exposure stood at 68.15% as compared to the 73.74% in the previous month. At the month end, Cash was maintained at 14.90% of the total fund size as compared to the 11.52% of the previous month. Exposure in TFC is kept at 8.49% of total fund size. Fund Manager - Equities Shariah Advisor Muneeb Sikander The objective of the Fund is to provide investors a Shariah compliant investment solution through disciplined and structured investment techniques. The fund shall target capitalizing on opportunities available in both Shariah compliant debt and equity markets using in-house research and proprietary investment matrix. Shariah Compliant Asset Allocation 18-Sept-09 Weighted Average Daily Return of KMI- 30 Index and 6 month average deposit rate of 3 Islamic Banks as per amount invested in equities and fixed income investments including cash & cash equivalents respectively. Mr. Najeeb Ahmad Khan Mon Fri 9:00am / 4:30 pm Front end load 2.50% Back end load 5.00% 2.00% p.a. **Absolute Disclosures: MCB Financial Services Ltd. EY Ford Rhodes Chartered Accountants SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers Welfare Fund s liability to the tune of Rs million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by / 0.34%.

13 Askari Equity Fund % 73.33% 23.51% 16.62% 3.13% 3.16% Equity Cash Others Receivables In the month of Sep-18, Askari Equity Fund posted a return of -3.30% as compared to its benchmark KSE-30 return of -3.16%. Net Assets of the fund stood at PKR 127 million as compared to PKR 122 million in the previous month. By the month end, equity exposure was 73.13% as compared to 80.25% of the previous month. Cash was maintained at 23.51% of the total size of the fund. 31 aug aug 182 Performance* YTD MoM 365-Days 3-Years 5-Years AEF -3.30% -2.30% % -5.65% 22.70% -3.16% -2.80% -7.81% 4.68% 15.28% NAV (PKR/Unit) Net Assets (PKR mn) Since Inception Return** AEF 42.07% 28.73% 17.59% -5.25% 14.80% % 35.95% 25.96% 5.67% 0.37% 12.00% % **Absolute Return Top 10 holdings (% of Total Assets) Pakistan Petroleum Ltd. 5.54% Habib Bank Limited 5.52% Hub Power Co. Ltd. 4.94% Oil & Gas Development Co 4.43% Limited Pakistan Oil Field Ltd. 4.26% Engro Fertilizer Limited 4.03% Bank Al-Falah Limited 3.70% Sui Northern Gas Pipelines 3.62% Limited United Bank Limited 3.59% Nishat Mills Limited 3.33% Fund Ranking Risk Profile of Fund 5.00% 0.65% 8.97% Equity Sector Allocation (% of Assets) Banks 22.25% 16.36% Exploration Fertilizers 7.67% Power Generation and Distribution Marketing 6.81% 5.01% Others 15.24% 1 Year - 2 Star, 3 Year 1 Star, 5 Year 1 Star by JCR-VIS Medium to High Fund Manager - Equities Shariah Advisor Muneeb Sikander The objective of Askari Equity Fund (AEF) is to provide equity investors a vehicle for their long term investment needs, capable of locking in capital appreciation and securing reasonable dividends from listed equity securities. The Fund would seek to replicate benchmark returns and reduce volatility compared with the benchmark through efficient equity allocations, enhancing Risk Adjusted. Equity Fund 30-Mar-12 KSE-30 Index Mr. Najeeb Ahmad Khan Mon Fri 9:00am / 4:30 pm Front end load 2.00% Back end load Disclosures: 2.00 % p.a. Central Depository Company of Pakistan Ltd. (CDC) EY Ford Rhodes Chartered Accountants SWWF (As per Circular 17 of 2012): The Scheme has maintained provisions against Sindh Workers Welfare Fund s liability to the tune of Rs million, if the same were not made the NAV per unit/ytd return of Scheme would be higher by Rs / 0.35%. **Absoulute

14 Non Compliant Exposures / Assets in Askari High Yield Scheme Below are the details of non-compliant exposure/assets in our funds. These non-compliant exposures/assets include non-performing assets which have been classified in line with the applicable SECP circulars and the provisioning policy** (available on our web site) approved by the Board of Directors of Askari Investment Management Limited. Name Of Non Compliant Investment Type of Investment Value of Investment Before Provisioning Provision held if any Value of Investment After Provisioning Suspended Markup % of Net Assets % of Gross Assets Saudi Pak Leasing TFA 15,000,000 15,000, % 0% Trust Investment Bank TFA 129,111, ,718,783 7,393,015 62,730, % 0.23% Pace Pakistan Limited TFC 74,895,000 56,160,600 18,734,400 51,871, % 0.57% Agritech Limited ( ) TFC 59,952,000 59,952,000-39,430,381 0% 0% Agritech Limited ( ) TFC 11,875,000 11,875,000-7,078,801 0% 0% Azgard Nine Limited TFC New Allied Electronics (LG) PPTFC 10,221,613 10,221,613-14,300,909 0% 0% Trust Investment Bank Limited TFC 18,742,500 18,742,500-10,962,447 0% 0% Agritech Limited** Ordinary Shares % 0.13% Dewan Cement Limited TFC 125,000, ,000, ,150,856 0% 0% Security Leasing Company Limited TFC 12,322,907 12,322, % 0% TOTAL 457,120, ,993,403 26,127, ,525, % 0.93% Name Of Non-Compliant Investment Type of Investment Value of Investment Before Provisioning Provision held if any Value of Investment After Provisioning Pak Oman Advantage Asset Allocation Fund International Brands Ltd(15-Nov-17) Sukuk 15,072,810-15,072,810 Pak Oman Government Securities Fund JS Bank Limited (16-Dec-16) TFC 27,100,667-27,100,667 Askari Islamic Income Fund TPL Trakker Limited (13-Apr-16) Sukuk 49,817,479-49,817,479 International Brands Ltd (15-Nov-17) Sukuk 60,291,240-60,291,240 NRSP Micro Finance Bank Limited TDR 60,000,000-60,000,000 Pak Oman Advantage Islamic Income Fund NRSP Micro Finance Bank Limited TDR 50,000,000-50,000,000 Askari High Yield Scheme Dawood Hercules Corp. Ltd (28-Feb-18) Sukuk 317,797, ,797,021 International Brands Ltd (15-Nov-17) Sukuk 271,310, ,310,580 % of Net Assets % of Gross Assets 12.43% 11.87% 10.53% 10.39% 23.60% 22.25% 28.56% 26.92% 28.43% 26.79% 18.30% 18.05% 14.65% 14.14% 12.50% 12.07% **Presents market value of shares