A wholly owned Subsidiary of Army Welfare Trust FUND MANAGER REPORT

Transcription

1 A wholly owned Subsidiary of Army Welfare Trust FUND MANAGER REPORT For the month of NOVEMBER 2018

2 2 of 10 MUFAP s recommended format Key Economic Indicators Economic Indicators Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 External Sector Indicators Overall Balance of Payments USD million 793 (1,433) 1, ,901 (371) n.a 152 1, n.a Current Account Balance USD million (1,436) (1,130) (1,617) (1,241) (1,163) (1,955) (1,934) (1,840) (2,200) (600) (952) (1,218) n.a Exports USD million 2,141 1,993 2,111 2,062 2,728 2,737 2,695 2,457 2,414 2,087 1,788 1,903 n.a Imports USD million 4,482 4,232 4,874 4,317 5,641 5,754 6,033 6,014 6,469 4,466 3,803 4,841 n.a Worker's Remittances USD million 1,577 1,724 1,639 1,450 1,773 1,651 1,771 1,595 1,930 2,037 1,453 2,000 n.a Foreign Direct Investment USD million n.a Foreign Portfolio Investment USD million (43) 2, (56) (1) (18) (51) (54) (42) (87) (56) (84) n.a Forex Reserves USD billion Exchange Rate against PKR USD Period End Inflation Indicators General CPI YoY change 3.97% 4.57% 4.42% 3.80% 3.25% 3.68% 4.19% 5.21% 5.83% 5.84% 5.12% 6.78% 6.50% Food CPI YoY change 2.40% 3.80% 3.70% 2.20% 0.10% -0.20% 1.00% 3.00% 3.50% 3.30% 1.40% 2.70% 1.80% Core (NFNE) YoY change 5.50% 5.50% 5.20% 5.20% 5.80% 7.00% 7.00% 7.10% 7.40% 7.70% 8.00% 8.20% 9.80% Core (Trimmed) YoY change 4.20% 4.70% 4.60% 4.30% 4.10% 5.00% 5.10% 5.40% 5.90% 5.90% 5.80% 6.70% 8.30% Interest Rates SBP Policy Rate Current 5.75% 5.75% 6.00% 6.00% 6.00% 6.00% 6.50% 6.50% 7.50% 7.50% 8.50% 8.50% 10.00% 6 Month KIBOR Closing Rate 6.19% 6.21% 6.43% 6.46% 6.61% 6.51% 6.89% 7.04% 8.02% 8.05% 8.59% 9.59% 9.97% 12 Month KIBOR Closing Rate 6.48% 6.50% 6.74% 6.76% 6.94% 6.94% 7.33% 7.53% 8.45% 8.47% 9.06% 10.30% 10.64% 3 Month T-Bill Yield Closing Rate 5.99% 5.99% 6.11% 6.21% 6.40% 6.24% 6.58% 6.79% 7.65% 7.76% 8.21% 8.76% 9.53% 6 Month T-Bill Yield Closing Rate 6.01% 6.02% 6.21% 6.36% 6.57% 6.35% 6.70% 6.90% 7.82% 7.86% 8.26% 9.32% 9.71% 12 Month T-Bill Yield Closing Rate 6.03% 6.04% 6.29% 6.62% 6.75% 6.64% 6.97% 7.24% 8.13% 8.21% 8.62% 9.83% 10.21% 10 Year PIB Yield Cosing Rate 8.29% 8.39% 8.60% 8.64% 8.86% 8.55% 8.89% 9.03% 9.89% 9.95% 10.05% 11.90% 12.22% n.a.=not Available Benchmark Rates Avenues Rates KIBOR 6M 9.87% Deposit Rates-Islamic 3.01% FPIB 10.41% PKRV 10Y 12.22% PKRV 3M 9.53% PKRV 6M 9.71% KSE % KMI %

3 3 of 10 MUFAP s recommended format Equity Review Equities began to slip once again in November (after huge 10% rebound in KSE100 in the second half of Octoberfrom its lows of 36,274) and finished the month with 2.77% losses at 40, The sluggish activity in market was also due to non-conclusive talks between Pakistan and IMF in Islamabad for a new agreement on standby loan, which are next scheduled to be held in January The market moved in a narrow band during most days of the month due to absence of any positive trigger, while foreign investors remained net sellers with outflows of USD99.95mn (compared to USD86.3 in October 18). The removal of LUCK and UBL from MSCI EM index on November 14 led to majority of foreign outflow in these two stocks. At the same time, Insurance companies remained the largest buyers who absorbed bulk of the foreign selling with net inflows of USD37mn, followed by Individuals inflow of USD26mn. Average Daily Trading Volume of KSE-All declined by 9.35%MoM to 198mn in Nov 18 compared to ADTV of 218mn in the previous month. Sector wise performance showed that decline in international oil prices by 28%MoM has pushed the Refineries, OMCs and E&Ps down by 10.86%MoM, 8.66%MoM and 8.01%MoM respectively in Nov 18. Cement stocks rebounded earlier in the month amid falling coal prices; however, prices retreated later in the month due to expected slowing local demand. Other sectors which declined during the month were Steel, Cable & Electrical, Pharma, Insurance and Power. Chemical and Textile sectors respectively surged by 6.73%MoM and 3.09%MoM in Nov 18 compared to Oct 18. The increase in policy rate to 10% and market expectations of even further monetary tightening has reduced the attractiveness of equity market in the near term, which is presently trading at forward PE of 8.2x. Overall, equities may continue to struggle and we may see the market trade in relatively lower earnings multiples due to combination of high interest rates and slow economic growth. Economic Review Two significant events took place on November 30; first was the sudden sharp fall of 6% in Rupee parity against USD in interbank market to 142 earlier in the day before closing at and second was more than expected 150bps increase in the policy rate by SBP to 10% later in the day. In its monetary policy statement, SBP highlighted increasing rate of inflation, higher fiscal deficit and low foreign exchange reserves as the underlying reasons for increasing interest rates and lowering the Rupee parity. CPI for the month of Nov 18 was 6.5%YoY compared to 6.8%YoY in the previous month, with 5M FY19 CPI at 6.02%. At the same time, core inflation was recorded at 8.3%YoY compared to 8.2% in the previous month. In its latest monetary policy statement, SBP projects headline CPI for FY19 in the range of 6.5%-7.5%. C/A deficit has increased by 34%MoM to USD1.22bn in Oct 18 compared to USD909mn in Sep 18. The rise in C/A deficit was mainly due to 33%MoM surge in trade deficit to USD2.65bn in Oct 18 compared to the previous month level of USD1.99bn. Imports jumped by 24.39%MoM to USD4.72bn (compared to Sept 18 imports of USD3.79bn), while exports increased by 14.55%MoM to USD2.06bn (compared Sept 18 exports of USD1.80bn). Foreign exchange reserves had slipped to USD13.7bn as on Nov 16, 2018 before USD1bn transfer by Saudi Arabia to Pakistan which helped the reserves to move to USD14.5bn as on Nov 23. While Rupee traded in a narrow band of during most of the month only to lose massive 6% (intraday) on last day of the month but managed to close at 136.9, thus losing 3.4% against USD in the month. On fiscal front, budget deficit was recorded at 1.40% in 1QFY19 to PKR542bn when compared to deficit of PKR441bn in 1QFY18. Despite rise in tax revenues by 8%YoY to PKR1.10trn in 1QFY19, budget deficit was mainly noticed due to 12% hike in current expenditures to PKR1.64trn in 1QFY19. If growth in current expenditure is not curtailed then there is high probability of further cut in the development expenditures, given the government target of reducing fiscal deficit in FY19 compared to 6.8% recorded in last fiscal year.

4 4 of 10 MUFAP s recommended format Foreign remittances witnessed 37.65%MoM jump to USD2.0bn in Oct 18 compared to Sept 18. This significant increase in remittances have been recorded from GCC countries, UK, EU, UAE and US by 48%MoM, 47%MoM, 39.57%MoM, 37%MoM and 33.55%MoM respectively. On the Foreign Investment side, FDI has marked an increase of 6.62%MoM to USD161mn in Oct 18 when compared to USD151mn in the previous month of Sept 18. Large Scale Manufacturing Index declined in the 1QFY19 by 1.71%YoY compared to 1QFY18. The sectors that marked growth are Electronics, Steels, Rubber and Paper & Board respectively by 7.76%YoY, 6.12%YoY, 5.07%YoY and 4.20%YoY. The sectors that declined in the 1QFY19 are Petroleum declined by 5.39%YoY, Fertilizer down by 4.78%YoY, Foods down by 4.22%YoY and Pharma down by 3.74%YoY respectively compared to 1QFY18. Money Market Review During the month, money market rates witnessed upward trend ahead of monetary policy announcement, with high expectations of another hike in the policy rate. On November 30, SBP increased the policy rate by 150bps to 10% as against market expectations of 100bps increase. During the month, the yield on 3m paper jumped by 77bps to 9.53% while 10 year yield moved up 46bps to 12.22%. Keeping in view market expectations of increase in the policy rate, activity remained restricted at the short end of the yield curve with very little participation/activity in the bond market. Participation in TB auctions was witnessed in 3M maturity at a cut off yield of 8.8%.

5 5 of 10 MUFAP s recommended format Fund Details PIML - Income Fund s Review During November, PIML-IF delivered an annualized return of 8.14% against its benchmark return of 9.87%. Year to date return of the funds is 11.79%. The fund exposure in TFC/ Sukuks and commercial paper was 23.38% of the net assets as compared to 22.32% in the previous month. Exposure in cash at bank decreased to 58.83% of the net assets, while placement with banks increased to 19.35% compared to 18.54% in previous month. The weighted average time to maturity of the portfolio is at 238 days. Fund Type Category Fund Stability Rating Benchmark Management Co. Rating Inception Date Dealing Days Cut-off Time Pricing Mechanism *Management Fee Load Risk Profile Listing Leverage Trustee Auditor Legal Advisor Open End Income Scheme A+ (f) by PACRA (30th June 2018) Average of 6M KIBOR rates for the period under review. AM3+ by JCR-VIS (15th December 2016) 9th August 2012 Daily (days when Banks are open for business) 4.30 pm Forward 1% 1% (Front-end) 0% (Back-end) Low to Moderate Risk Pakistan Stock Exchange Nil Central Depository Company of Pakistan Ltd. KPMG Taseer Hadi and Co. Mohsin Tayebaly & Co. Imran Rahim Khan Portfolio Allocation (as % of total assets) Nov. 18 Portfolio Allocation (as % of total assets) Fund Objective The objective of the fund is to generate competitive returns by investing in short to long term debt instruments and securities. Fund Statistics Net Assets (PKR mn) 1,034 NAV per Unit (PKR) Weighted Average Maturity (days) 238 Sharpe Ratio* Information Ratio Standard Deviation 0.43% *Annualized Oct. Apr. 18 Portfolio Allocation (as % of T.A.) Nov' 18 Oct' 18 Placement with Banks 18.71% 17.95% TFCs/Sukuks 12.99% 12.45% Commercial Paper 9.61% 9.16% Cash at Bank 57.11% 58.98% Others including receivables (NR) 1.58% 1.46% Fund Performance PIML - IF PIML-IF* PIML-IF** Benchmark*** FYTD 7.40% 7.56% 8.73% CYTD 6.69% 6.70% 7.49% 12M Trailing 6.31% 6.31% 7.29% Since Inception 11.79% 9.21% 7.64% 5- Years Return 11.43% 0.00% 7.18% AAR-Since Inception 10.03% 0.00% 8.61% Last 3 Yrs 7.53% 0.00% 6.44% Oct % 8.49% 9.43% Nov % 8.45% 9.87% *simple Annualized ***Aaverage of reporting period **Morning Star n.a = not applicable Fund returns are calculated NAV with dividends reinvested (excluding sales load). Performance data does not include the cost incurred directly by investor in the form of sales load etc. Credit Quality of Portfolio (as % of T.A.) Nov' 18 OCt' 18 AAA 0.00% 0.00% AA+ 0.18% 2.61% AA 15.54% 14.85% AA- 0.04% 0.14% A+ 2.46% 2.35% A 76.42% 32.56% A- 3.78% 46.03% Other including recievables (NR) 1.58% 1.46% Investment Committee Members Salman H. Sheikh Hamza Saboor Imran Rahim Khan Asif Iqbal M. Saeed Khalid Total Expense Ratio Chief Executive Officer Chief Financial Officer Chief Investment Officer Head of Compliance and Risk Acting Head of Research Total Expense Ratio is 0.68% which Includes 0.12% of Governement Levy and 0.03% SECP Fee calculated as % Average Net Asset Value. SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.12,070,165, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.49% enhancing the YTD return to 7.89% p.a. Top TFCs Holding ( As of T.A) Nov' 18 BAHL AT1 20-Dec Dec-22 Oct' ASPIN Sukuk 30-Nov Nov TPL Sukuk 15-Apr Aug HPL Sukuk 07-Jan Jan Since Inception FY13 FY14 FY15 FY16 FY17 FY18 FY19TD Return % 8.72% 8.81% 12.61% 13.47% 11.35% 11.73% 11.79% Benchmark % 9.46% 9.44% 8.55% 7.39% 7.43% 7.59% 7.64% Period FY13 FY14 FY15 FY16 FY17 FY18 FY19TD Performance 8.72% 8.24% 16.96% 11.71% 4.68% 5.99% 7.40% Benchmark 9.46% 9.46% 8.35% 5.93% 6.10% 6.33% 8.73% Months Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Performance 1.87% 5.73% 6.84% 6.57% 4.50% 6.09% 5.38% 6.39% 6.58% 7.24% 8.18% 8.14% Benchmark 6.21% 6.23% 6.43% 6.50% 6.50% 6.61% 6.98% 7.69% 8.02% 8.23% 9.43% 9.87%

6 6 of 10 MUFAP s recommended format Fund Details PIML - Islamic Equity Fund s Review During Nov 18, IEF has generated negative return of 3.11% compared to KMI-30 negative performance of 4.67%. This negative performance of the fund was mainly attributed by the underperformance of OGDC, INIL, ENGRO, PSO, MUGHAL, MEBL and GLAXO. Stocks which outperformed during the month were NML, SPEL and NRL. We have mainly increased exposure in Banks by further addition of MEBL in our portfolio in Nov 18. Allocation in equities and bank deposits increased by 3.34% and 4.10% respectively to 77.80% and 21.97% in Nov 18. Fund Type Category Benchmark Management Co. Rating Inception Date Dealing Days Cut-off Time Pricing Mechanism Management Fee Load Risk Profile Listing Leverage Trustee Auditor Legal Advisor Open End Islamic Equity Scheme KMI - 30 Index AM3+ by JCR-VIS (15 December 2016) 4th March 2014 Daily (days when Banks are open for business) 4.30 pm Forward 2% p.a. 2% (Front-end) 0% (Back-end) Moderate to High Pakistan Stock Exchange Nil Central Depository Company of Pakistan Ltd. KPMG Taseer Hadi & Co. Mohsin Tayebaly & Co. Portfolio Allocation (as % of total assets) SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.1,582,895, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.67% enhancing the YTD return to -8.70% p.a. Total Expense Ratio Total Expense Ratio is 1.91% which Includes 0.16% of Governement Levy and 0.04% of SECP Fee calculated as % of Average Net Asset Value. Investment Committee Members Salman H. Sheikh Hamza Saboor Asif Iqbal M. Saeed Khalid Chief Executive Officer Chief Financial Officer Chief Investment Officer Head of Compliance and Risk Acting Head of Research Fund Objective The objective of PIML-IEF is to achieve long term capital growth by investing mainly in Shariah Compliant listed equity securities. Fund Statistics Net Assets (PKR mn) NAV per Unit (PKR) Sharpe Ratio Standard Deviation* 17.80% Treynor Ratio Beta 0.89 R - Square** 88.66% Value at Risk 1.85% 3M PKRV yield used as Risk-Free rate *Annualized ** R-Square measures the correlation between the benchmark and the fund Nov 18 Portfolio Allocation (as % of T.A.) Nov. ' 18 Oct. ' 18 Portfolio Allocation (as % of T.A.) Oct. ' 18 Sep. ' 18 Equity Securities 74.10% 70.73% Cash at Bank 21.04% 24.29% Others including recievables (NR) 4.86% 4.98% Fund Performance PIML - IEF PIML-IEF* Benchmark*** FYTD -9.37% 0.43% CYTD -9.68% -0.32% 12M Trailing -9.04% 6.60% Since Inception 16.79% 58.69% AAR-Since Inception 3.25% 11.04% Last 3 Yrs -6.01% 27.87% Oct % 3.62% Nov % -4.67% Fund returns are calculated NAV with dividends reinvested (excluding sales load). Performance data does not include the cost incurred directly by investor in the form of sales load etc. Credit Quality of Portfolio (as % of T.A.) Nov. ' 18 Oct. ' 18 AA+ 4.74% 0.14% AA- 0.01% 0.36% A % 23.69% A 0.10% 0.09% Others including recievables (NR) 78.96% 75.71% Sector Allocation (as % of T.A.) Novt. '18 Oct. '18 Oil and Gas 17.28% 17.59% Fertilizer 14.25% 14.54% Oil & Gas Marketing 11.24% 11.31% Textile Composite 7.16% 6.85% Commercial Banks / Paper and Board 7.04% 4.50% Others 17.13% 15.94% Top 10 Equity Holdings (as % of T.A.) Symbol Novt. '18 Engro Corp. ENGRO 14.25% Oil & Gas Development Co. Ltd. OGDC 13.57% Pakistan State Oil PSO 11.24% Nishat Mills Ltd. NML 7.16% Meezan Bank Ltd. MEBL 7.04% Packages Ltd. PKGS 4.60% International Industries Ltd. INIL 3.87% National Refinery Ltd. NRL 3.71% Glaxo SmithKline Pakistan Ltd. GLAXO 2.72% Mughal Steel MUGHAL 2.66% Since Inception FY14 FY15 FY16 FY17 FY18 FY19TD Return % 4.58% 30.69% 40.23% 64.09% 28.87% 16.79% Benchmark % 10.70% 32.89% 53.52% 82.38% 64.89% 58.69% Period FY14 FY15 FY16 FY17 FY18 FY19TD Performance 4.58% 24.96% 7.30% 17.02% % -9.37% Benchmark 10.70% 20.10% 15.53% 18.80% -9.59% 0.43% Months Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Performance 0.71% 8.74% -2.52% -2.00% 3.16% -6.27% -0.79% 1.19% -2.14% -5.50% -2.18% -3.11% BM 3.62% 8.74% -2.02% 0.05% 5.31% -5.25% -2.63% 1.80% -2.11% -2.24% 3.62% -4.67%

7 7 of 10 MUFAP s recommended format Fund Details PIML - Islamic Income Fund s Review During November, PIML-IIF delivered an annualized return of 6.23% compared to its benchmark return of 3.01%, showing outperformance of 322bps. Year to date return of the fund is 4.61%.The fund exposure in cash at bank increased to 72.00% compared to 48% in the previous month, while exposure in Sukuk reduced to 7.39% (compared to 14.4% in previous month). Exposure in commercial paper was at 7.74% and placement with banks at 11.08% of the net assets. The weighted average time to maturity of the portfolio is at 144 days. Fund Type Category Fund Stability Rating Benchmark Management Co. Rating Inception Date Dealing Days Cut-off Time Pricing Mechanism *Management Fee Load Risk Profile Listing Leverage Trustee Auditor Legal Advisor Open End Islamic Income Scheme A(f) by PACRA (30th June 2018) 6 month average deposit rates of three (3) A rated scheduled Islamic Banks or Islamic windows of Conventional Banks as selected by MUFAP.* AM3+ by JCR-VIS (15 December 2016) 4th March 2014 Daily (days when Banks are open for business) 4.30 pm Forward 0.75% 2% (Front-end) 0% (Back-end) Low to Moderate Risk Pakistan Stock Exchange Nil Central Depository Company of Pakistan Ltd. KPMG Taseer Hadi & Co Mohsin Tayebaly & Co. Imran Rahim Khan Portfolio Allocation (as % of total assets) SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.380,855, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.12% enhancing the YTD return to 5.53% p.a. Total Expense Ratio Nov 18 3% Placement with Banks 8% 11% TFCs/Sukuks 7% Commercial Paper 71% Total Expense Ratio is 1.03% which Includes 0.12% of Governement Levy and 0.03% of SECP Fee calculated as % of Average Net Asset Value. Fund Objective The investment objective of the fund is to generate competitive risk adjusted returns by investing in short, medium and long-term Shariah Compliant Fixed Income Instruments. Fund Statistics Net Assets (PKR mn) 135 NAV per Unit (PKR) Weighted Average Maturity (days) 144 Sharpe Ratio* (13.04) Information Ratio 0.58 Standard Deviation 0.31% *Annualized Cash at Bank Others including receivables (NR) Portfolio Allocation (as % of T.A.) Nov' 18 Oct' 18 Placement with Banks 10.99% 21.28% Sukuks 7.33% 14.19% Cash at Bank 71.42% 39.62% Commercial Paper "CP" 7.68% 14.75% Others including receivables (NR) 2.58% 10.17% Fund Performance PIML - IIF PIML-IIF* PIML-IIF** Benchmark*** FYTD 5.41% 5.49% 2.79% CYTD 4.69% 4.70% 2.62% 12M Trailing 4.62% 4.62% 2.61% Since Inception 4.61% 4.26% 4.23% AAR-Since Inception 6.35% 0.00% 5.35% Last 3 Yrs 5.08% 0.00% 3.06% Oct % 6.18% 2.86% Nov % 6.41% 3.01% *simple Annualized ***Aaverage of reporting period **Morning Star n.a = not applicable Fund returns are calculated NAV with dividends reinvested (excluding sales load). Performance data does not include the cost incurred directly by investor in the form of sales load etc. Credit Quality of Portfolio (as % of T.A.) Nov' 18 Oct' 18 AAA 0.00% 0.02% AA+ 0.03% 4.78% AA 7.68% 14.75% AA- 0.00% 0.07% A % 34.75% A 18.32% 35.46% Other including recievables (NR) 2.58% 10.17% Investment Committee Members Salman H. Sheikh Chief Executive Officer Hamza Saboor Chief Financial Officer Chief Investment Officer M. Saeed Khalid Acting Head of Research Imran Rahim Khan Asif Iqbal Head of Compliance and Risk Top TFCs Holding ( As of T.A) Nov' 18 ASPIN Sukuk 30-Nov Nov Since Inception FY14 FY15 FY16 FY17 FY18 FY19TD Return % 5.46% 5.25% 5.87% 5.60% 5.44% 4.61% Benchmark % 6.49% 6.25% 5.53% 4.77% 4.33% 4.23% Period FY14 FY15 FY16 FY17 FY18 FY19TD Performance 5.46% 5.08% 6.26% 4.37% 4.14% 5.41% Benchmark 6.49% 6.18% 4.59% 3.01% 2.46% 2.79% Months Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Performance 3.66% 3.64% 4.90% 3.51% 2.71% 3.94% 5.21% 4.58% 4.61% 4.97% 6.02% 6.23% Benchmark 2.61% 2.52% 2.50% 2.55% 2.47% 2.58% 2.38% 2.45% 2.54% 2.78% 2.86% 3.01%

8 8 of 10 MUFAP s recommended format PIML - Value Equity Fund s Review During the month of Nov 18, VEF has generated negative return of 2.35% compared to its KSE-100 index negative performance of 2.77%. This negative performance was mainly attributed by OGDC, PSO, BAFL, INIL, ENGRO, OLPL, MUGHAL and PREMA. Stocks which outperformed during the month were NML, MFL, SPEL and GATM. Exposure in equities was kept unchanged at previous month levels with slight reduction in bank deposits at 18.83% in Nov 18. Fund Objective The objective of PIML-Value Equity Fund is to achieve long term capital growth by investing mainly in listed equity securities. Fund Statistics Net Assets (PKR mn) NAV per Unit (PKR) Sharpe Ratio* Standard Deviation* 17.23% Treynor Ratio Beta 0.99 R - Square** 88.84% Value at Risk 1.79% Fund Details Fund Type Category Benchmark Management Co. Rating Inception Date Dealing Days Cut-off Time Pricing Mechanism Management Fee Load Risk Profile Listing Trustee Leverage Auditor Legal Advisor Investment Committee Members Salman H. Sheikh Hamza Saboor Asif Iqbal M. Saeed Khalid Open End Equity Scheme KSE 100 Index AM3+ by JCR-VIS (15 December 2016) 13th March 2015 Daily (days when Banks are open for business) 4.30 pm Forward 2% p.a. 2% (Front-end) 0% (Back-end) Moderate to High Pakistan Stock Exchange Central Depository Company o f Pakistan Ltd. Nil KPMG Taseer Hadi & Co. Mohsin Tayebaly & Co. Chief Executive Officer Chief Financial Officer Chief Investment Officer Head of Compliance and Risk Acting Head of Research Portfolio Allocation (as % of T.A.) Nov. ' 18 Oct. ' 18 Portfolio Allocation (as % of T.A.) Oct ' 18 Sep ' 18 Equity Securities 69.15% 69.47% Cash at Bank 18.18% 24.50% Others including recievables (NR) 12.67% 6.03% Portfolio Allocation (as % of total assets) 18% 13% SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.1,188,745, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.47% enhancing the YTD return to -7.06% p.a. Total Expense Ratio 69% Nov 18 Total Expense Ratio is 1.68% which Includes 0.14% of Governement Levy and 0.04% of SECP Fee calculated as % of Average Net Asset Value. 3M PKRV yield used as Risk-Free rate *Annualized ** R-Square measures the correlation between the benchmark and the fund Equity Securities Cash at Bank Others including recievables (NR) Fund Performance PIML - VEF PIML-VEF* Benchmark*** FYTD -7.53% -3.38% CYTD -7.08% 0.06% 12M Trailing -6.18% 1.21% Since Inception 4.38% 24.29% AAR-Since Inception 1.15% 5.72% Oct % 1.59% Nov % -2.77% Fund returns are calculated NAV with dividends reinvested (excluding sales load). Performance data does not include the cost incurred directly by investor in the form of sales load etc. Credit Quality of Portfolio (as % of T.A.) Nov. ' 18 Oct. ' 18 AAA 0.64% 0.45% AA+ 0.10% 0.88% AA % 21.50% A- 0.00% 0.00% Others including recievables (NR) 82.30% 77.17% Sector Allocation (as % of T.A.) Nov. ' 18 Oct. ' 18 Textile Composite 10.24% 9.85% Commercial Banks 9.44% 9.53% Oil & Gas Marketing /Oil and Gas 9.12% 9.52% Oil and Gas / Oil & Gas Marketing 9.11% 9.24% Fertilizer 7.18% 7.37% Others 24.06% 23.96% Top 10 Equity Holdings (as % of T.A.) Symbol Novt. '18 Pakistan State Oil PSO 9.12% Oil & Gas Development Co. Ltd. OGDC 9.11% Bank Al Falah Ltd. BAFL 8.98% Nishat Mills Ltd. NML 7.90% Engro Corp. ENGRO 7.18% Indus Motor INDU 4.65% Packages Ltd. PKGS 4.47% Matco Food Ltd. MFL 3.19% Orix Leasing Pakistan OLPL 3.12% Glaxo SmithKline Pakistan Ltd. GLAXO 2.43% Since Inception FY15 FY16 FY17 FY18 FY19TD Return % 9.11% 14.55% 40.16% 16.61% 4.38% Benchmark % 4.64% 15.96% 42.91% 31.50% 24.29% Period FY15 FY16 FY17 FY18 FY19TD Performance 9.11% 4.99% 22.36% % -7.53% Benchmark 4.64% 9.84% 23.24% % -3.38% Months Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Performance -1.79% 10.84% -3.57% 4.50% -1.65% -5.51% -3.20% 1.32% -0.47% -4.83% -1.79% -2.35% Benchmark 1.59% 8.84% -1.84% 5.37% -0.16% -5.81% -2.18% 1.91% -2.27% -1.78% 1.59% -2.77%

9 9 of 10 MUFAP s recommended format PIML - Asset Allocation Fund s Review During the month Nov 18, AAF generated negative return of 1.31% compared to its benchmark of 0.63%. This performance was mainly attributed by OGDC, NCL, BAFL, PSO, INIL, OLPL and MUGHAL. Stocks which outperformed during the month were NML, SPEL, MFL and GATM. Exposure in textile sector was increased by adding NCL in the portfolio. Allocation in equities increased by 4.22% to 41.50% while allocation in bank deposits decreased by 8% to 58% in Nov 18. Fund Objective The investment objective of this fund is to earn competitive returns by investing in the various asset classes / instruments based on the market outlook. Fund Statistics Net Assets (PKR mn) NAV per Unit (PKR) Standard Deviation* 10.69% Sharpe Ratio* (0.06) Information Ratio *Annualized Fund Details Fund Type Category Benchmark Management Co. Rating Inception Date Dealing Days Cut-off Time Pricing Mechanism Management Fee Load Risk Profile Listing Leverage Trustee Auditor Legal Advisor Open End Asset Allocation Investment Committee Members Salman H. Sheikh Hamza Saboor Asif Iqbal M. Saeed Khalid Weighted average of 6-month KIBOR and KSE-100 index as per amount invested in equities and fixed income investments including cash & cash equivalent respectively AM3+ by JCR-VIS (15 December 2016) 12th April 2016 Daily (days when Banks are open for business) 4.30 pm Forward 2% p.a. Front end 3% Moderate to High Pakistan Stock Exchange Nil Central Depository Company of Pakistan Ltd. KPMG Taseer Hadi & Co. Mohsin Tayebaly & Co. Chief Executive Officer Chief Financial Officer Chief Investment Officer Head of Compliance and Risk Acting Head of Research Portfolio Allocation (as % of total assets) 59% 1% SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.2,455,550, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.35% enhancing the YTD return to -5.17% p.a. Total Expense Ratio 40% Nov 18 Total Expense Ratio is 1.30% which Includes 0.12% of Governement Levy and 0.04% of SECP Fee calculated as % of Average Net Asset Value. Period FY17 FY18 FY19TD Performance 2.74% % -5.52% Benchmark 13.30% -2.25% -0.73% Equity Securites Cash at Bank Others including recievables (NR) Since Inception FY16 FY17 FY18 FY19TD Return % 2.87% 5.68% -7.15% % Benchmark % 1.43% 17.68% 18.53% 18.48% Portfolio Allocation (as % of T.A.) Nov. ' 18 Oct. ' 18 Equity Securites 40.46% 36.41% Cash at Bank 58.62% 58.60% Others including recievables (NR) 0.92% 4.99% Fund Performance PIML - AAF PIML-AAF Benchmark FYTD -5.52% 0.73% CYTD -5.41% 3.26% 12M Trailing -4.68% 3.73% Since Inception % 18.48% AAR-Since Inception -6.38% 4.09% Oct % 0.97% Nov % -0.63% Fund returns are calculated NAV with dividends reinvested (excluding sales load). Performance data does not include the cost incurred directly by investor in the form of sales load etc. Credit Quality of of Portfolio (as (as % of % T.A.) of T.A.) Nov. Sep. ' 18 Oct. Aug. ' 18 ' AAA 1.90% 1.13% AA 0.08% 0.00% A % 57.51% Others including recievables (NR) 41.40% 41.35% Sector Allocation (as % of T.A.) Nov. '18 Oct. '18 Oil and Gas 9.49% 9.88% Textile Composite 8.85% 8.47% Commercial Banks 4.92% 4.96% Personal Goods (Textile) / Oil & Gas Marketing Co. 3.96% 2.95% Paper and Boards 3.00% 2.93% Others 10.24% 19.60% Top 10 Equity Holdings (as % of T.A.) Symbol Novt. '18 Oil & Gas Development Co. Ltd. OGDC 9.49% Nishat Mills Ltd. NML 7.06% Bank Al Falah Ltd. BAFL 4.91% Nishat (Chunian) Ltd. NCL 3.96% Packages Ltd. PKGS 3.00% Pakistan State Oil PSO 2.93% Synthetic Product Enterprises SPEL 1.95% Orix Lease Pakistan OLPL 1.82% Gul Ahmed Textile GATM 1.79% Matco Food Ltd. MFL 1.41% Months Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Performance 0.78% 8.01% -2.76% 2.23% 0.97% -3.59% -1.94% 0.80% -0.53% -2.82% -2.27% -1.31% Benchmark 0.97% 5.75% -0.90% 3.30% 0.40% -2.07% -1.78% 1.28% -0.85% -0.64% 0.97% -0.63%

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