Fund Manager Review June 2018

Transcription

1 Fund Manager Report June 2018

2 1-Jun 5-Jun 9-Jun 13-Jun 17-Jun 21-Jun 25-Jun 29-Jun FIPI Individuals Companies Banks/DFIs Mutual Funds Brokers Insurance NBFC Other Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Trend * Apr-18 May-18 4-Jun 7-Jun 13-Jun 20-Jun 25-Jun 28-Jun FY17 FY18 Fund Manager Review June 2018 Macroeconomic Overview CPI inflation for June-18 clocked in at 5.21% YoY, 1.02pps higher than YoY CPI inflation of 4.19% recorded in May-18 and up significantly by 0.57% MoM. FY18 CPI inflation averaged 3.93% YoY. Food prices increased 0.8% YoY, likely on account of the month of Ramzan, while Non-food prices were likely driven in part by increase in oil prices during June-18. Core NFNE inflation inched up to 7.1% YoY. YoY CPI inflation - Monthly trend 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% Source: PBS Keeping in view the recent currency devaluation and increase in fuel prices, we anticipate FY19 CPI inflation is likely to approach 7.0% YoY. Our estimates indicate that CPI inflation will likely remain close to 6.0% during 1QFY19. As such, we expect State Bank of Pakistan (SBP) to continue increasing policy rate in the upcoming MPS announcements. We expect that SBP will increase policy rate to 7.5% by Sep-18. PKR/USD during June 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 were up across the board due to increase in policy rate from 6.00% to 6.50% in the last monetary policy announced by the SBP on 25th May Average Yields on short term papers expanded by bps for short term papers during June-18 where Yields on 3m, 6m and 1yr papers closed in at 6.78%, 6.90% and 7.20% at the end of June-18. Average yields on 3yr and 5yr PIBs clocked in at 8.15% and 8.62% showing MoM increase of 29bps and 26bps, respectively. Average yield on 10yr PIBs was up by 32bps to 8.96%. In the two T-Bill auctions conducted during the month of June-18, SBP raised a total of PKR 1,314bn against a target of PKR 550bn and maturity of PKR 161bn. For the PIB auction held during June-18, PKR 4bn worth of PIBs were realized against a target of PKR 50bn and a maturity of PKR 15bn. Yields are likely to increase further during July-18 due to anticipation of hike in policy rate in the upcoming monetary policy Yield meeting. Curve KSE-100 performance during June-18 45,000 44,000 43,000 42,000 41,000 40,000 Source: KSE Sector-wise performance remained diverse during June-18 with Banks, Fertilizers, Refineries, OMCs and Oil and Gas sectors outperforming the broader index while Cement and Autos continued to drag down the index due to uncertainty over price and volume growth. Foreigners continued selling during the month where net outflow was USD 73.98mn. Outflows were mainly observed in Banks (USD 39.9mn) and Cements (USD 18.5mn). Minimal inflows were reported in the Tech (USD 1.9mn) and all other sectors (USD 1.8mn). On the local front, major buying was observed by Insurance (USD 56.86mn) and Companies (USD 36.26mn) while selling was witnessed by Mutual funds (USD 10.26mn) and Individuals (USD 5.33mn). Portfolio 90 flows - June-18 (USD mn) KSE Volume Source: NCCPL Source: SBP Current Account Deficit for May-18 reduced a mere USD 1.93bn, down 1% MoM. This led to 11MFY18 CAD to clock in at 16.0bn, up by 43% YoY translating into 5.5% of GDP. For May- 18, both exports and imports witnessed an uptick of 1% and 4% MoM, respectively. Remittances increased by 7% MoM due to Ramadan season. Additionally, Net Financial account inflows clocked in at PKR 9.6bn for 11MFY18, up by 4% YoY m 6m 12m 3yr 5yr 10yr May-18 Jun-18 Equity Market Review The benchmark KSE-100 index dropped 936pts or 2.18% during the month of June-18. The market continued to remain bearish amid extensive selling from foreigners and cautious behavior witnessed from local investors. Average daily volume increased by 20% due to resumption of general trade timings post Ramadan. Oil and Gas sector outperformance can be attributed to increasing oil prices in the international market while Banks outperformed the broader index despite foreign selling due to increase in interest rates. KSE-100 is likely to continue to be volatile during the coming month, owing to upcoming elections and continued foreign selling, driven by the worsening macro-economic situation.

3 Askari Cash Fund (Formerly Askari Sovereign Cash Fund) % % % 1.68% 1.37% T-Bills Cash Other incl. receivables In the month of June-18, Askari Cash Fund posted a return of 6.75% as compared to its benchmark return of 5.91%. Assets under management of the fund closed the month at PKR 468 million as compared to PKR 314 million in previous month. During the month funds were mostly kept in Cash as around 98.63% of fund size were Cash. By month end, duration of the funds stood at 01 day as compared to 31 day in previous month. 31 May June 2018 Performance* YTD MoM 365-Days 3-Years 5-Years ACF 5.23% 6.75% 5.23% 6.61% 7.36% 5.36% 5.91% 5.36% 5.54% 6.40% VP Fund Management Faisal Raza NAV (PKR/Unit) Net Assets (PKR mn) Duration (Days) 01 Weighted Average Maturity (Days) 01 Since Inception Return ACF 9.24% 8.07% 8.86% 5.56% 8.49% 8.83% 8.88% 8.35% 5.87% 5.25% Portfolio Quality (% of Total Assets) Disclosures N.R., 1.37% AA+, 98.63% AA+ 1.04% 0.29% 9.92% 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 million, if the same were not made the NAV per unit/ YTD return of Scheme would be higher by Rs / 0.44%. 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 up to 12% of Gross Earnings subject to a maximum of 1.00% on the average annual net assets. Currently, 0.35% p.a. fee is being charged. Central Depository Company of Pakistan Ltd. (CDC) Deloitte Yousuf Adil Chartered Accountants Pak Oman Asset Management Ltd. Sumaira Shaukat Fund Stability Rating Risk Profile AA+ by JCR-VIS Low

4 PAKOMAN Advantage Asset Allocation Fund Performance (%) 66.45% 55.27% 2.85% 0.75% NAV (PKR/Unit) Net Assets (PKR mn) % 0.48% Since Inception Return 53.20% Top 10 holdings (% of Total Assets) Hub Power Co. Ltd. 5.11% Oil & Gas Development Co 4.43% Limited DG Khan Cement Co. Ltd. 3.30% Pakistan Petroleum Ltd. 3.10% Habib Bank Limited 3.03% United Bank Ltd. 3.01% Engro Corporation 2.86% MCB Bank Limited 2.25% Mari Petroleum 2.06% K-Electric Ltd. 1.90% 26.43% 29.61% Equity Sector Allocation (% of Total Assets) Banks 12.42% Oil and Gas Exploration Power Generation and Distribution 14.37% 5.14% Equities Cash* TFCs/Sukuks Others incl. receivables 30 May June 2018 YTD MoM 365-Days 3-Years 5-Years POAAF % -1.95% % 3.87% 25.38% * -9.01% -1.27% -9.86% 7.94% 43.20% POAAF 31.82% 8.74% 12.62% 7.76% 19.89% 31.06% 25.49% 12.50% 8.19% 10.21% Top Exposures (As on 30-Apr 2018) 10.65% 7.01% Cements 6.19% Fertilizers 4.22% Others 14.79% 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 June-18, Pak Oman Advantage Asset Allocation Fund showed a return of -1.95% against the benchmark return of -1.27%,. During the month, Sector with major exposure were Banks, Oil and gas exploration, and power & Generation which closed at the month at 12.42%, 10.65%, and 7.01% respectively. By the month end, equity exposure stood at 55.27% as compare to 66.45% in the previous month. Exposure against TFC closed at 29.61% as compare to 26.43% 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% 2.00 % p.a. MCB Financial Services Ltd. Deloitte Yousuf Adil Chartered Accountants JWAFFS Fund Ranking Risk Profile Disclosures: 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 / 1.00%.

5 PAKOMAN Islamic Asset Allocation Fund % 18.64% 64.54% 67.96% 9.73% 14.35% 1.40% 2.92% Cash* Equities TFCs/Sukuks Others incl. receivables 31 May June 2018 Performance YTD MoM 365-Days 3-Years 5-Years In the moth of June-18, Pak Oman Islamic Asset Allocation Fund posted a return of -2.20% as compared to -1.81% benchmark rate. By the month end, sectors with major exposures were oil ad gas exploration, fertilizer and Cements which closed the month at 15.84%, 8.98% and8.41% respectively. Equity exposure stood at 64.54% as compare to 64.74% In the previous month. Exposure in Sukuk was 09.73% as compare to in the previous month while reaming funds were maintained in Bank accounts ad receivable. POIAAF % -2.20% % 4.60% 36.02% * % -5.47% 16.67% 46.99% POIAAF 20.45% 17.32% 15.61% 10.37% 17.34% 30.49% 18.21% 13.32% 10.35% 19.31% NAV (PKR/Unit) Fund Manager - Equities 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. Net Assets (PKR mn) % 0.46% Since Inception Return 72.56% Shariah Advisor Shariah Complaint 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 Ahmed Khan Top 10 holdings (% of Total Assets) Hub Power Co. Ltd. 6.02% Engro Corporation 5.63% Pakistan Petroleum Ltd. 5.59% Oil & Gas Development Co Limited 5.47% DG Khan Cement Co. Ltd. 3.90% Engro Fertilizer Limited 3.35% Mari Petroleum 2.97% Nishat Mills Limited 2.48% Sui Northern Gas Pipelines Limited 2.21% Pakistan Oil Field Ltd. 1.81% Equity Sector Allocation (% of Assets) Oil and Gas Exploration 15.84% Fertilizers 8.98% Cements 8.41% Power Generation and Distribution 7.18% Engineering 4.18% Others 23.37% Mon Fri 9:00am / 3:30 pm Front end load 2.50% Back end load 2.00% 2.00% p.a. MCB Financial Services Ltd. A. F. Fergusons & Co. JWAFFS Top Exposures (As on 30-June-2018) Instrument Price % of Total Assets Fund Ranking Risk Profile Disclosures: 3 Star (short term) PACRA / 3 Star (Long term) PACRA Medium International Brands Limited (15-Nov-17) % 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 / 0.49%.

6 PAKOMAN Advantage Islamic Income Fund % 38.50% 15.76% 3.80% 2.10% 15.73% 15.76% 35.54% 43.70% 2.09% 2.04% Cash Bank Placements Sukuk Other incl. receivables 31 May June 2018 Performance YTD MoM 365-Days 3-Years 5-Years POAIIF 4.98% 6.47% 4.98% 4.95% 4.69% * 2.45% 2.38% 2.45% 3.41% 4.82% NAV (PKR/Unit) Net Assets (PKR mn) Duration (Years) 0.08 Weighted Average Maturity (Years) 1.68 Since Inception Return Portfolio Quality (% of Total Assets) 46.03% POAIIF 7.34% 3.43% 4.77% 4.37% 6.42% 6.57% 6.54% 6.55% 4.89% 2.92% 8.02% 24.29% Top Exposures (As on 31-Mar-2018) 2.00% 0.39% 6.26% AAA AA A+ A A- N.R. Instrument Price % of Total Assets Internation Brands Limited % TPL Trakker Limited % Byco Petroleum Sukuk % Dawood Hercules Corporation Limited - II % Dawood Hercules Corporation Limited % *Discretion Applied In the month of June-18, Pak Oman Advantage Islamic Income Fund posted a return of 6.47% against its benchmark of 2.38%. Net Asset of the Fund was PKR million as compared to PKR 314 million. By the month end, exposure against Sukuk stood at 43.70% as compared to 35.54% in the previous month. Exposure against bank Placement closed at 15.76% as compared to 15.73% 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 Complaint Income Scheme 30-Oct-08 6 month average deposit rates of 3 A rated scheduled Islamic Banks. Mr. Najeeb Ahmed Khan Mon Fri 9:00am / 3:30 pm Front end load 1.00% Back end load 2.00% 1.50% p.a. MCB Financial Services Ltd. A. F. Fergusons & Co. JWAFFS Sumaira Shaukat Faizal Raza Fund Stability Rating Disclosures 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/0.27 Percent.

7 PAKOMAN Government Securities Fund % 0.87% 68.74% 66.53% 24.96% 26.77% 4.50% 4.81% 1.21% 1.01% Cash* T-Bill TFCs Term Deposits Other incl. receivables 31 May June 2018 Performance YTD MoM 365-Days 3-Years 5-Years POGSF 4.30% 1.04% 4.30% 5.46% 6.47% * 6.21% 6.84% 6.21% 5.98% 6.60% POGSF 9.22% 7.08% 8.63% 8.75% 4.28% 8.67% 8.67% 8.12% 5.84% 5.64% NAV (PKR/Unit) In the month of June-18, Pak Oman Government Security Fund posted a return of 1.04% against its benchmark 6.84%. On YTD basis, the fund posted a return of 4.30% as compared to benchmark return of 6.21%. By month end, exposure against treasury bills stood at 66.53% against 68.74% in the previous month. Exposure against term deposit were 4.81% against 4.50% in the previous month. Exposure against Term Finance Certificates TFCs were increased to 26.77% against 24.96% In the previous month while reaming funds were invested in Cash. Manager Fixed Income VP Fund Management Sumaira Shaukat Faisal Raza 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. Net Assets (PKR mn) Duration (Days) 0.09 Days Income Weighted Average Maturity (Years) 1.67 Years 28-July % 0.33% Since Inception Return 7.42% Average 6M PKRV rates. Mon Fri 9:00am / 3:30 pm Portfolio Quality (% of Total Assets) 14.81% 0.87% 1.01% Front end load AAA AA+ AA- Back end load 2.00% 7.41% 9.37% 66.53% A+ A- N.R % p.a. MCB Financial Services Ltd. Deloitte Yousuf Adil Chartered Accountants JWAFFS Top Exposures (As on 31-Mar-2018) Instrument Price % of Total Assets JS Bank Limited (14-Dec-16) % Jehangir Siddiqui Company Limited (18-July-17)* % Bank of Punjab Limited % *Discretion Applied Fund Stability Rating Risk Profile of Fund Disclosures 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 / 0.46%.

8 Askari High Yield Scheme % 61.78% 3.13% 9.20% 61.74% 19.39% 14.69% 13.02% 13.80% 9.77% 2.15% 3.66% TFCs Cash TDR T-Bills O. Receivables 31 May June 2018 Portfolio Quality (% of Total Assets) 34.70% 12.26% 8.26% 7.29% 21.57% Performance* YTD MoM 365-Days 3-Years 5-Years AHYS 5.13% 8.15% 5.13% 6.23% 7.36% 6.57% 6.91% 6.57% 6.47% 6.40% NAV (PKR/Unit) Net Assets (PKR mn) 3, Duration (Years) 0.17 Weighted Average Maturity (Years) 3.13 Since Inception Return Instrument AHYS 1.61% 11.63% 12.16% 8.23% 5.34% 9.93% 9.83% 8.97% 6.53% 6.33% Top Exposures (As on 30-June-2018) Price 2.00% 0.39% 6.15% 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 % Soneri Bank Ltd TFC ( )* % Jehangir Siddiqui Company Limited TFC ( ) % TPL Corp Limited (Formerly TPL Trakker) % Byco Petroleum Ltd ( ) % K-Eectric Ltd - Sukuk (Pre IPO) ( ) % MCB Bank Ltd. TFC ( ) % *Discretion Applied In the month of June-18, Askari High Yield Scheme posted a return of 8.15% as benchmark return of 6.91%. During the Month fund Over performed its benchmark because of gain In TFCs held in portfolio. Asset under management closed at PKR 3,173 millions as compared PKR 3,372 in previous month. By month end, exposure against Term Finance Certificate (TFCs) were 61.74% as compared to 61.78% in previous month. Exposure against Term Deposits were closed at 13.80% of the total fund size. Remaining funds were invested as Cash with A and above rated Banks. Manager Fixed Income VP Fund Management Fund Stability Rating Risk Profile of Fund 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. Aggressive Fixed Income Scheme 16-Mar-06 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 Pak Oman Asset Management Ltd. Sumaira Shaukat Faisal Raza 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 / 0.40%.

9 Askari Islamic Income Fund % 61.99% 36.60% 14.31% 13.51% 18.18% 3.86% 5.52% Corporate Sukuk Cash Bank Placement Other incl. receivables 31 May June 2018 Performance* YTD MoM 365-Days 3-Years 5-Years AIIF 4.79% 3.17% 4.79% 5.09% 5.96% 2.45% 2.38% 2.45% 3.41% 4.82% NAV (PKR/Unit) Net Assets (PKR mn) Duration (Years) 0.11 Weighted Average Maturity (Years) 2.36 Since Inception Return Top Exposures (As on 30-Apr-2018) 1.79% 0.36% 8.40% Instrument Price % of Total Assets International Brands Limited TPL Trakker Limited Dawood Hercules Corporation Limited - II Byco Petroleum Sukuk Dawood Hercules Corporation Limited AIIF 8.74% 7.93% 6.52% 5.08% 5.49% 6.65% 7.34% 6.41% 4.31% 2.92% Portfolio Quality (% of Total Assets) 5.52% 0.66% 18.18% 28.67% *Discretion Applied 12.10% 34.87% AAA AA A+ A A- N.R % % % % % In the month of June-18, Askari Islamic Income Fund posted a return of 3.17% as compared to its benchmark of 2.38%. Asset Under management were closed at PKR 317 millions as compared to PKR 431 millions in the previous month. By the month end, exposure against Corporate Sukuk were kept at 61.99% as compared 46.03% in the previous month. During the month exposure against Term Deposits was kept same at 18.18% as compared to previous month. Around 13.51% of the fund size 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 Complaint Islamic Income 18-Sept-09 Average 6 months Placement (Deposit) rate as selected by MUFAP. Mr. Najeeb Ahmed 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 Pak Oman Asset Management Ltd. 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 / 0.43%.

10 Askari Sovereign Yield Enhancer % 9.24% 75.71% 75.78% 4.47% 4.64% 9.48% 9.44% 1.13% TFCs T-Bill Cash Term Deposits Other incl. receivables 31 May June 2018 Performance* YTD MoM 365-Days 3-Years 5-Years ASYE 4.53% 6.74% 4.53% 6.23% 7.86% 6.21% 6.84% 6.21% 5.98% 6.60% NAV (PKR/Unit) Net Assets (PKR mn) Duration (Years) 0.09 Weighted Average Maturity (Years) 0.87 Since Inception Return ASYE 10.98% 8.83% 10.74% 9.21% 4.83% 8.92% 8.09% 8.33% 5.31% 6.10% 2.00% 0.37% 8.63% In the month of June-18, Askari Sovereign Yield Enhancer posted a return of 6.74% against a benchmark of 6.84%. On year to date basis fund posted a return of 4.53% as compared to benchmark return of 6.21%. By month end, exposure against Treasury Bills were kept at 75.78% against 75.71% in the previous month. During the month Term Finance Certificate were stood at 9.44% as compared to 9.48% in the previous month. 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-June-12 Average 6 month PKRV Mon Fri 9:00am / 4:30 pm Sumaira Shaukat Faisal Raza Portfolio Quality (% of Total Assets) AA-, 9.24% AA+, 0.37% A-, 0.52% N.R., 0.98% A+, % AAA, 75.78% AAA AA+ AA- A+ A- N.R. Front end load 1.25% Back end load 1.35% p.a. Central Depository Company of Pakistan Ltd. (CDC) Deloitte Yousuf Adil Chartered Accountants Pak Oman Asset Management Ltd. Top Exposures (As on 30-June-2018) Instrument Price % of Total Assets Bank of Punjab Ltd. ( )* % Fund Stability Rating A+ by JCR-VIS Low to Medium Disclosures *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 / 1.35%.

11 Askari Asset Allocation Fund % 36.01% % 27.96% 26.77% 21.68% 14.35% 9.04% 1 Equitiy Cash TFCs/Sukuk Other receivables In the month of June-18, Askari Asset Allocation Fund posted a return of % as compared to benchmark return of -2.69%. Net Asset of the Funds stood at PKR 161 million as compared to PKR 152 million in the previous month. By the month end, equity exposure was increased to 27.96% as compared to 27.93% in the previous month. Cash was Maintained at 14.35% of the total fund size. 31 May June 2018 Performance* YTD MoM 365-Days 3-Years 5-Years AAAF % -1.05% % % 16.70% % -2.69% % -1.45% 19.30% NAV (PKR/Unit) Net Assets (PKR mn) Since Inception Return** Top 10 holdings (% of Assets) Pak Elektron Limited 4.53% Fauji Cement Co. Ltd. 2.55% The Bank of Punjab Limited 2.01% Nishat Mills Limited 1.61% Askari Bank Limited 1.56% Sui Southern Gas Company 1.50% Limited K-Electric Limited 1.49% Maple Leaf Cement Company 1.48% Limited DG Khan Cement Co. Ltd. 1.44% Habib Metropolitan Bank Limited 1.24% AAAF 39.87% 19.31% 15.40% -6.25% 10.49% 22.73% 18.24% 17.85% 3.84% 10.03% Instrument 4.00% 0.56% 1.93% Equity Sector Allocation (% of Assets) Banks 5.99% Cements 5.60% Cable and Electric Goods Oil and Gas Marketing Top Exposures (As on 30-June-2018) 4.53% 2.19% Engineering 2.06% Others 7.60% Price % of Total Assets Bank of Punjab Limited % TPL Corp Limited (Formerly TPL Trakker) % International Brands Limited % JS Bank Limited % 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: 2.00 % p.a. Central Depository Company of Pakistan Ltd. (CDC) Deloitte Yousuf Adil Chartered Accountants Pak Oman Asset Management Ltd. 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 / 0.34%. Fund Ranking Risk Profile 1 Year - 2 Star, 3 Year 2 Star, 5 Year - 2 Star by JCR-VIS Medium **Absolute

12 Askari Islamic Asset Allocation Fund % 75.15% % % 8.18% 4.74% 6.87% Equitiy Cash TFC Others receivables 31 May June 2018 In the month of June-18, Askari Islamic Asset Allocation Fund posted a return of -2.48% as against the benchmark return of -1.92%. Net Assets of the fund stood at PKR 117 million as compared to the PKR 152 million in the previous month. During the month equity exposure stood at 80.85% as compared to the 75.15% in the previous month. At the month end, Cash was maintained at 4.11% of the total fund size as compared to the 20.11% of the previous month. New exposure in TFC was made of 8.18% of total fund size. Performance* YTD MoM 365-Days 3-Years 5-Years AIAAF % % 11.89% -5.22% -1.92% -5.22% 16.77% 40.64% NAV (PKR/Unit) Net Assets (PKR mn) Since Inception Return** Top 10 holdings (% of Total Assets) Hub Power Co. Ltd. 8.10% Oil & Gas Development Co Limited 7.51% Pakistan Petroleum Ltd. 7.12% Engro Corporation 6.16% Engro Fertilizer Limited 3.86% Mari Petroleum 3.52% DG Khan Cement Co. Ltd. 3.37% Sui Northern Gas Pipelines Limited 3.28% Nishat Mills Limited 2.59% Pakistan Oil Field Ltd. 2.47% AIAAF 30.80% 12.53% 12.32% -2.82% 13.08% 27.51% 17.21% 12.44% 9.54% 10.03% Instrument 3.88% 0.56% 7.22% Equity Sector Allocation (% of Assets) Oil and Gas Exploration Power Generation and Distribution Fund Ranking Risk Profile Top Exposures (As on 30-June-2018) 20.61% 10.49% Fertilizers 10.02% Cements 9.35% Engineering 5.31% Others 25.06% 1 Year 3 Star, 3 Year 1 Star, 5 Year - 2 Star by JCR-VI Medium Price % of Total Assets International Brands Limited % 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 Complaint 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 Ahmed Khan Mon Fri 9:00am / 4:30 pm Front end load 2.50% Back end load 5.00% Disclosures: 2.00% p.a. MCB Financial Services Ltd. EY Ford Rhodes Chartered Accountants Pak Oman Asset Management Ltd. 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 / 0.27%. **Absolute

13 Askari Equity Fund % 81.37% 9.01% 0.99% 15.12% 2.53% 3.17% Equity Cash T-Bills Others Receivables In the month of June-18, Askari Equity Fund posted a return of -3.12% as compared to its benchmark KSE-30 return of -2.01%. Net Assets of the fund stood at PKR 124 million as compared to PKR 156 millon in the previous month. By the month end, equity exposure was 87.82% as compared to 81.37% of the previous month. Exposure in T-Bills is made at as compare to 15.12% of the total net Assets in the previous month. 31 May June 2018 Performance* YTD MoM 365-Days 3-Years 5-Years AEF % -3.12% % % 29.57% % -2.01% % -3.19% 21.07% NAV (PKR/Unit) Net Assets (PKR mn) Since Inception Return** Top 10 holdings (% of Total Assets) Habib Bank Limited 7.23% Oil & Gas Development Co Limited 6.64% Hub Power Co. Ltd. 5.75% United Bank Limited 4.47% Pakistan Petroleum Ltd. 4.38% DG Khan Cement Co. Ltd. 3.89% Engro Corporation 3.79% Nishat Mills Limited 2.56% MCB Bank Limited 2.54% Sui Northern Gas Pipelines Limited 2.46% AEF 42.07% 28.73% 17.59% -5.25% 14.80% 35.95% 25.96% 5.67% 0.37% 12.00% Fund Ranking Risk Profile of Fund 4.00% 0.53% 10.03% Equity Sector Allocation (% of Assets) Banks 19.62% Oil and Gas 15.70% Exploration Cements 10.20% Power Generation 7.74% and Distribution Fertilizers 6.03% Others 28.53% 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 Ahmed 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 Pak Oman Asset Management Ltd. 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 / 0.29%. **Absoulute

14 Non Compliant Exposures / Assets in Askari High Yield Scheme Below are the details of non-complaint 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% 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% Dewan Cement Limited TFC 125,000, ,000, ,150,856 0% 0% World call Telecom Limited TFC 8,994,598 8,994, Security Leasing Company Limited TFC 12,322,907 12,322, % 0% Total 466,115, ,988,001 26,127, ,525, % 0.93% **Presents market value of shares