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 SEPTEMBER 2018

2 2 of 10 MUFAP s recommended format Key Economic Indicators Economic Indicators 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 External Sector Indicators Overall Balance of Payments USD million (1,433) 1, ,901 (371) n.a 152 n.a Current Account Balance USD million (956) (1,315) (1,436) (1,130) (1,617) (1,241) (1,163) (1,955) (1,934) (1,840) (2,200) (600) n.a Exports USD million 1,744 1,980 2,141 1,993 2,111 2,062 2,728 2,737 2,695 2,457 2,414 2,087 n.a Imports USD million 3,911 4,442 4,482 4,232 4,874 4,317 5,641 5,754 6,033 6,014 6,469 4,466 n.a Worker's Remittances USD million 1,294 1,654 1,577 1,724 1,639 1,450 1,773 1,651 1,771 1,595 1,930 2,037 n.a Foreign Direct Investment USD million n.a Foreign Portfolio Investment USD million (43) 2, (56) (1) (18) (51) (54) (42) (87) n.a Forex Reserves USD billion Exchange Rate against PKR USD Period End Inflation Indicators General CPI YoY change 3.86% 3.80% 3.97% 4.57% 4.42% 3.80% 3.25% 3.68% 4.19% 5.21% 5.83% 5.84% 5.12% Food CPI YoY change 2.40% 2.20% 2.40% 3.80% 3.70% 2.20% 0.10% -0.20% 1.00% 3.00% 3.50% 3.30% 1.40% Core (NFNE) YoY change 5.40% 5.30% 5.50% 5.50% 5.20% 5.20% 5.80% 7.00% 7.00% 7.10% 7.40% 7.70% 8.00% Core (Trimmed) YoY change 4.10% 4.00% 4.20% 4.70% 4.60% 4.30% 4.10% 5.00% 5.10% 5.40% 5.90% 5.90% 5.80% Interest Rates SBP Policy Rate Current 5.75% 5.75% 5.75% 5.75% 6.00% 6.00% 6.00% 6.00% 6.50% 6.50% 7.50% 7.50% 8.50% 6 Month KIBOR Closing Rate 6.16% 6.17% 6.19% 6.21% 6.43% 6.46% 6.61% 6.51% 6.89% 7.04% 8.02% 8.05% 8.59% 12 Month KIBOR Closing Rate 6.47% 6.46% 6.48% 6.50% 6.74% 6.76% 6.94% 6.94% 7.33% 7.53% 8.45% 8.47% 9.06% 3 Month T-Bill Yield Closing Rate 5.98% 5.98% 5.99% 5.99% 6.11% 6.21% 6.40% 6.24% 6.58% 6.79% 7.65% 7.76% 8.21% 6 Month T-Bill Yield Closing Rate 6.01% 6.01% 6.01% 6.02% 6.21% 6.36% 6.57% 6.35% 6.70% 6.90% 7.82% 7.86% 8.26% 12 Month T-Bill Yield Closing Rate 6.03% 6.03% 6.03% 6.04% 6.29% 6.62% 6.75% 6.64% 6.97% 7.24% 8.13% 8.21% 8.62% 10 Year PIB Yield Cosing Rate 8.30% 8.30% 8.29% 8.39% 8.60% 8.64% 8.86% 8.55% 8.89% 9.03% 9.89% 9.95% 10.05% n.a.=not Available Source: SBP, MoF, PBS Benchmark Rates Avenues Rates KIBOR 6M 8.23% TDRs- Islamic 2.78% FPIB- cut off 8.96% PIB 10Y- cut off 10.05% Tbill 3M 8.21% Tbill 6M 8.26% KSE % KMI %

3 3 of 10 MUFAP s recommended format Economic Review SBP increased the policy rate by another 100bps to 8.5% on Sep 29, 2018 in its latest monetary policy announcement. Earlier in July the rate was increased by 100bps, with total increase of 275bps in 2018 from its lows of 5.75%. The central bank has given rather depressing comments on the state of the economy in its monetary policy statement and has termed the increased as necessary consolidation step in the backdrop of expected rise in CPI during fiscal year 2019, increase in international oil prices, and growing pressure on foreign reserves on account of increase in current account deficit. Average CPI in 1QFY19 was recorded at 5.60%compared to 3.4% in 1QFY18, with Sep 2018 CPI at 5.12%. SBP projects that average inflation will fall in the range of in FY19. Based on this inflation forecast of SBP, and provided CPI remained below the target range before next monetary policy review in November, we might not see further increase in the policy rate till at least January Increase in the policy rate will have sharp negative impact on government fiscal side as the 200bps increase since July 2018 will lead to around 300bn (minimum) in additional burden on debt servicing cost for the government in FY19. C/A deficit has increased by 9.85% to USD2.72bn in 2MFY19. In Aug 18 C/A deficit reduced to USD600mn compared to July deficit of USD2.12bn. The significant decline in C/A deficit in Aug 18 was mainly due to the reason of the i) notable decline in trade deficit by 33.67%MoM, ii) remittances surged by 5.54%MoM to USD2.04bn, iii) FDI surged by 25%MoM to USD160mn in comparison to the month earlier levels in Jul 18. The decline in trade deficit was mainly due 5.13%MoM increase in exports to USD2.1bn while imports declined by 19%MoM to USD5.18bn in the month of Aug 18. This significant decline in imports was mainly due toi) decline in oil import bill by 23.51%MoM to USD1.38bn (PKR up by 2.75%MoM to PKR121.99/USD), ii) transportation imports down by 24.43%MoM to USD201.90mn and iii) food imports down by 7%MoM to USD415.72mn in Aug 18 while comparing the month earlier levels of Jul 18. FDI in Aug 18 was recorded at USD160mn showing a MoM rise of 25% when compared to Jul 18 FDI numbers of USD128mn.Further, remittances numbers up by 5.54%MoM to USD2.04bn in Aug 18 when compared to Jul 18. This rise in remittances in Aug 18 was mainly due to rise in remittances by 13%MoM to USD317mn from USA, KSA up by 6.41%MoM to USD466mn and UAE region up by 6.40%MoM to USD461mn when compared to Jul 18 remittances numbers. Large Scale Manufacturing Index rose in the month of Jul 18 by 0.50%YoY when compared to Jul 17. The sectors that recorded increase during Jul1 8 are Steel, Electronic, Automobile and Petroleum that rose by 13.18%YoY, 11.74%YoY, 9.75%YoY and 6.14%YoY respectively when compared to Jul 17 LSM numbers.in its monetary policy review, SBP has highlighted that GDP growth is likely to slow down in FY19 (compared to 5.8% growth in FY18) due to policy rate hike and other consolidation measures such as reduction in fiscal deficit. Equity Market Review KSE-100 index remained under pressured and declined further 1.78% to 40, in Sep 18 with index keeping its head above 40,000 amid further decline in trading volumes and continuous foreign selling amid concerns over country s external account situation. Average daily trade volume shrunk by 27% to 138mn shares while net selling by foreigners was recorded at USD58mn. Insurance companies remained the top buyers with USD33mn inflow in September followed by USD17mn from mutual funds and USD7mn from banks. Large market cap stocks in banking, E&P and cement having large foreign holdings ended the month in negative due to constant selling by them. Expectations of increase in the policy rate helped bank stocks during the month overall. Similarly, increase in international oil prices has helped in attracting buying in oil stocks, while oil marketing under the lead of PSO and refineries lost ground during the month. Textile sector remained in positive on the basis improved earnings prospects on account of rupee weakness and more incentives for exports. In autos, government decision to allow tax non-filers to purchase cars helped the stocks to show a short rebound in prices, however, the sector ended the month in negative overall, led by INDU (also due to foreign selling). Market continues to find no positive triggers as macroeconomic situation of declining foreign reserves and higher current account deficit remain the key reasons for foreign selling. Most significantly, the government has not yet made its mind how it intends to address the deterioration in external account despite giving out many statements for its attempts to secure financing from Saudi Arabia and China while also holding talks with IMF review mission. Market has been holding above 40,000 in recent past as foreign selling has been absorbed by local institutions. Overall, equity market is expected to show subdued and negative performance till there is some clarity on government efforts for securing viable external financing support.

4 4 of 10 MUFAP s recommended format Money Market Review Interest rates moved up during the month ahead of monetary policy announcement scheduled for September 29. SBP raised policy rate by 100bps to 8.50%, a second increase of same magnitude after 100bps increase in July Secondary market yields on Treasury bills up to one year maturity had moved by 50bps ahead of MPS announcement, however, policy rate revision came above market expectations. SBP held two T-Bill auctions in September with a combined target of Rs450 billion against the maturity of Rs billion. Low and lackluster participation was witnessed even in 3 months tenor in both auctions in anticipation of interest rate hike. An amount of Rs26.4 billion and Rs9.7 billion were raised in these two auctions in 3 months at a cut-off yield of 7.75%. In the fixed PIB auction with Rs50 billion target, bids worth Rs8.8 billion for 03 years, 05 years tenor and 10 years were received and only bids amounting Rs4.2 Billion for 5 yr. tenor at cut off yield of 9.25% were accepted.

5 5 of 10 MUFAP s recommended format Fund Details PIML - Income Fund s Review During September, PIML-IF delivered an annualized return of 7.24% against its benchmark return of 8.23%. Year to date return of the funds is 6.76%.It remains one of the top performing funds in its category during the current fiscal year after its top performance in its category in last fiscal year.the fund exposure in TFC/ Sukuks and commercial paper increased to 27.34% of the net assets as compared to 20.76% in the previous month due to decline in fund size by month end. Exposure in cash at bank decreased to 62.21% of the net assets, while placement with banks increased to 11.36% compared to 8.71% in previous month. The weighted average time to maturity of the portfolio is at 287 days. Fund Type Category Fund Stability Rating Benchmark 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. Management Co. Rating AM3+ by JCR-VIS (15th December 2016) Inception Date 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) Sep. 18 Portfolio Allocation (as % of total assets) Fund Objective The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments Fund Statistics Net Assets (PKR mn) 881 NAV per Unit (PKR) Weighted Average Maturity (days) 287 Sharpe Ratio* Information Ratio Standard Deviation 0.42% *Annualized Aug. Apr. 18 Por olio Alloca on (as % of T.A.) Sep' 18 Aug 18 Placement with Banks 10.93% 8.42% TFCs/Sukuks 15.25% 11.74% Commercial Paper 11.07% 8.47% Cash at Bank 61.19% 70.41% Others including receivables (NR) 1.55% 0.97% Fund Performance PIML - IF PIML-IF* PIML-IF** Benchmark*** FYTD 6.76% 6.93% 7.99% CYTD 6.25% 6.30% 6.97% 12M Trailing 5.82% 5.82% 6.83% Since Inception 11.72% 9.23% 7.59% 5- Years Return 11.32% 0.00% 7.17% AAR-Since Inception 10.21% 0.00% 8.73% Last 3 Yrs 7.40% 0.00% 6.23% Aug % 6.78% 8.02% Sep % 7.49% 8.23% *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. Sep' 18 Aug' 18 AAA 0.07% 0.14% AA+ 1.78% 0.70% AA 18.10% 13.88% AA- 0.07% 0.46% A+ 2.84% 2.17% A 35.66% 27.63% A % 54.05% Other including recievables (NR) 1.55% 0.97% Investment Committee Members Salman H. Sheikh Chief Executive Officer Hamza Saboor Chief Financial Officer Chief Investment Officer Imran Rahim Khan Asif Iqbal Head of Compliance and Risk M. Saeed Khalid Acting Head of Research SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.11,679,239, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.33% enhancing the YTD return to 7.09% p.a. Top TFCs Holding ( As of T.A) Sep'18 BAHL AT1 20-Dec Dec ASPIN Sukuk 30-Nov Nov TPL Sukuk 15-Apr Aug HPL Sukuk 07-Jan Jan KElectric CP 29-Aug Mar Total Expense Ratio Total Expense Ratio is 0.40% which Includes 0.06% of Governement Levy and 0.02% SECP Fee calculated as % Average Net Asset Value. Name of Non Compliant Investment Type of Value of Investent Provisioning held Value of Investent Investment Before Provisioning (If any) After Provisioning Limit % of Gross Asset % of Net Asset NRSP Microfinance Bank Ltd. TDR 100,000, ,000,000 10% 10.93% 11.36% K-Electric CP ICP 101,230, ,230,837 10% 11.07% 11.49% Since Inception FY13 FY14 FY15 FY16 FY17 FY18 Return % 8.72% 8.81% 12.61% 13.47% 11.35% 11.72% Benchmark % 9.46% 9.44% 8.55% 7.39% 7.43% 7.59% Period FY13 FY14 FY15 FY16 FY17 FY18 FY19TD Performance 8.72% 8.24% 16.96% 11.71% 4.68% 5.99% 6.76% Benchmark 9.46% 9.46% 8.35% 5.93% 6.10% 6.33% 7.99% Months Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Performance 6.58% 5.43% 1.87% 5.73% 6.84% 6.57% 4.50% 6.09% 5.38% 6.39% 6.58% 7.24% Benchmark 8.02% 6.18% 6.21% 6.23% 6.43% 6.50% 6.50% 6.61% 6.98% 7.69% 8.02% 8.23%

6 6 of 10 MUFAP s recommended format PIML - Islamic Equity Fund s Review During the month of Sept 18 IEF delivered negative return of 3.43% against the benchmark KMI-30 index negative return of 2.24%. Equities remained under pressure in September with foreigners continuing with their selling stance on Pakistani equities due to concerns over weak balance of payment situation and decline in foreign exchange reserves. Major holdings which underperformed September were PSO, LUCK, MUGHAL, ENGRO and PKGS. Outperforming stocks in the portfolio were NML, MEBL, INIL, SEARL and OGDC. No changes were made in the portfolio with exposure to equities at 86.26% of fund size. Fund Objective The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments Fund Statistics Net Assets (PKR mn) NAV per Unit (PKR) Sharpe Ratio Standard Deviation* 17.76% Treynor Ratio Beta 0.92 R - Square** 90.25% 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 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 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 /0.38% enhancing the YTD return to -4.00% p.a. Total Expense Ratio Sep 18 Total Expense Ratio is 1.14% which Includes 0.18% of Governement Levy and 0.02% 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 Por olio Alloca on (as % of T.A.) Sep. ' 18 Aug. ' 18 Equity Securities 82.07% 83.40% Cash at Bank 13.45% 13.04% Others including recievables (NR) 4.48% 3.56% Fund Performance PIML - IEF PIML-IEF* Benchmark*** FYTD -4.38% -2.57% CYTD -4.71% 0.90% 12M Trailing % -8.62% Since Inception 23.23% 60.64% AAR-Since Inception 4.58% 11.76% Last 3 Yrs -1.97% 28.00% Aug % -2.11% Sep % -2.24% 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 Por olio (as % of T.A.) Sep. ' 18 Aug. ' 18 AA+ 0.20% 0.24% AA- 0.01% 0.19% A % 12.51% A 0.10% 0.09% Others including recievables (NR) 86.55% 86.96% Sector Alloca on (as % of T.A.) Sep. ' 18 Aug. ' 18 Cement 13.45% 13.79% Fertilizer 13.22% 13.55% Oil & Gas 12.41% 12.34% Oil & Gas Marketing Co % 11.82% Pharmaceutical 7.13% 7.12% Others 24.57% 24.78% Top 10 Equty Holdings (as % of T.A.) Symbol Sep. ' 18 Engro Corp. ENGRO 13.22% Lucky Cement LUCK 13.10% Pakistan State Oil PSO 10.47% Oil & Gas Development Co. Ltd. OGDC 6.98% Nishat Mills Ltd. NML 6.41% National Refinery Ltd. NRL 5.43% Packages Ltd. PKGS 4.98% International Industries Ltd. INIL 4.91% The Searle Co. Ltd. SEARL 4.30% Glaxo SmithKline Pakistan Ltd. GLAXO 2.83% Since Inception FY14 FY15 FY16 FY17 FY18 Return % 4.58% 30.69% 40.23% 64.09% 23.23% Benchmark % 10.70% 32.89% 53.52% 82.38% 60.64% Period FY14 FY15 FY16 FY17 FY18 FY19TD Performance 4.58% 24.96% 7.30% 17.02% % -4.38% Benchmark 10.70% 20.10% 15.53% 18.80% -9.59% -2.57% Months Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Performance -2.14% 0.42% 0.71% 8.74% -2.52% -2.00% 3.16% -6.27% -0.79% 1.19% -2.14% -3.43% BM -2.11% 1.19% -2.11% 8.74% -2.02% 0.05% 5.31% -5.25% -2.63% 1.80% -2.11% -2.24%

7 7 of 10 MUFAP s recommended format Fund Details PIML - Islamic Income Fund s Review During September, PIML-IIF delivered an annualized return of 5.34% compared to its benchmark return of 2.78%, showing outperformance of256bps.year to date return of the funds is 4.85%.The fund maintained its exposure in cash at bank at 42.59%, Sukuk at 21%& commercial paper 14.40% and placement with banks at 21% of the net assets. The weighted average time to maturity of the portfolio is at 433 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. Portfolio Allocation (as % of total assets) Sep 18 SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.361,942, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.13% enhancing the YTD return to 4.98% p.a. Total Expense Ratio Total Expense Ratio is 0.66% which Includes 0.07% of Governement Levy and 0.02% of SECP Fee calculated as % of Average Net Asset Value. Fund Objective The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments Fund Statistics Net Assets (PKR mn) 72 NAV per Unit (PKR) Weighted Average Maturity (days) 433 Sharpe Ratio* (12.55) Information Ratio 0.59 Standard Deviation 0.26% *Annualized Por olio Alloca on (as % of T.A.) Sep' 18 Aug' 18 Placement with Banks 20.59% 20.49% Sukuks 20.59% 20.49% Cash at Bank 41.88% 42.49% Commercial Paper "CP" 14.16% 14.00% Others including receivables (NR) 2.79% 2.52% Fund Performance PIML - IIF PIML-IIF* PIML-IIF** Benchmark*** FYTD 4.85% 4.94% 2.67% CYTD 4.31% 4.33% 2.54% 12M Trailing 4.20% 4.20% 2.55% Since Inception 4.51% 4.18% 4.27% AAR-Since Inception 6.51% 0.00% 5.53% Last 3 Yrs 4.96% 0.00% 3.16% Aug % 4.71% 2.54% Sep % 5.47% 2.78% *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.) Sep' 18 Aug' 18 AA+ 0.59% 0.58% AA 14.16% 14.00% AA- 0.00% 0.81% A % 41.09% A 41.17% 40.99% Other including recievables (NR) 2.79% 2.53% Imran Rahim Khan 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 Name of Non Compliant Investment Type of Investment Top TFCs/Sukuk/CP Holding ( As of T.A) Sep' 18 ASPIN Sukuk 30-Nov Nov Kelectric ICP 29-Aug-01-Mar Total Asset 72,864,946 Net Asset 71,671,627 Value of Investent Provisioning held Value of Investent Before Provisioning (If any) After Provisioning Limit % of Gross Asset % of Net Asset ASPIN SUKUK SUKUK 15,000,000-15,000,000 15% 20.59% 20.86% NRSP Microfinance Bank Ltd. TDR 15,000,000-15,000,000 15% 20.59% 20.86% Since Inception FY14 FY15 FY16 FY17 FY18 Return % 5.46% 5.25% 5.87% 5.60% 4.51% Benchmark % 6.49% 6.25% 5.53% 4.77% 4.27% Period FY14 FY15 FY16 FY17 FY18 FY19TD Performance 5.46% 5.08% 6.26% 4.37% 4.14% 4.85% Benchmark 6.49% 6.18% 4.59% 3.01% 2.46% 2.67% Months Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Performance 4.61% 3.31% 3.66% 3.64% 4.90% 3.51% 2.71% 3.94% 5.21% 4.58% 4.61% 5.34% Benchmark 2.54% 2.54% 2.61% 2.52% 2.50% 2.55% 2.47% 2.58% 2.38% 2.45% 2.54% 2.78%

8 8 of 10 MUFAP s recommended format Fund Details PIML - Value Equity Fund s Review VEF generated negative return of 4.39% in the month of Sept 18 compared to KSE-100 benchmark negative return of 1.78%. Equities remained under pressure in September with foreigners continuing with their selling stance on Pakistani equities due to concerns over weak balance of payment situation and decline in foreign exchange reserves. Very high underperformance of the fund in the month was on account of significant decline in prices of some of its key holdings such as MFL, PSO, ASL, PKGS, INDU and LUCK. Stocks which managed to outperform during the month were NML, OLPL, INIL, SEARL and GATM. No changes were made in the portfolio with exposure in equities at 76.83% of fund size. 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 Por olio Alloca on (as % of T.A.) Sep. ' 18 Aug. ' 18 Equity Securities 74.13% 75.56% Cash at Bank 20.56% 20.35% Others including recievables (NR) 5.31% 4.09% Portfolio Allocation (as % of total assets) 21% SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.1,207,916, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.27% enhancing the YTD return to -3.31% p.a. Total Expense Ratio Sep. 18 5% Equity Securities 74% Total Expense Ratio is 0.98% which Includes 0.09% of Governement Levy and 0.02% of SECP Fee calculated as % of Average Net Asset Value. Since Inception FY15 FY16 FY17 FY18 Return % 9.11% 14.55% 40.16% 8.84% Benchmark % 4.64% 15.96% 42.91% 25.83% Fund Objective The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments Fund Statistics Net Assets (PKR mn) NAV per Unit (PKR) Sharpe Ratio* Standard Deviation* 17.58% Treynor Ratio -0.1 Beta 1.08 R - Square** 90.55% Value at Risk 1.83% 3M PKRV yield used as Risk-Free rate *Annualized ** R-Square measures the correlation between the benchmark and the fund Cash at Bank Others including recievables (NR) Fund Performance PIML - VEF PIML-VEF* Benchmark*** FYTD -3.58% -2.18% CYTD -3.11% 1.30% 12M Trailing % -3.33% Since Inception 8.84% 25.83% AAR-Since Inception 2.39% 6.36% Aug % -2.27% Sep % -1.78% 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 Por olio (as % of T.A.) Sep. ' 18 Aug. ' 18 AAA 0.73% 17.31% AA+ 0.12% 2.53% AA % 0.24% A- 0.00% 0.00% Others including recievables (NR) 81.80% 79.92% Sector Alloca on (as % of T.A.) Sep. ' 18 Aug. ' 18 Oil & Gas Marketing Co. 9.95% 10.27% Cement 9.93% 10.16% Textile Composite 9.29% 8.65% Fertilizer 6.75% 6.83% Commercial Bank 6.38% 6.37% Others 31.83% 33.29% Top 10 Equty Holdings (as % of T.A.) Symbol Sep. ' 18 Pakistan State Oil PSO 9.95% Nishat Mills Ltd. NML 7.18% Lucky Cement LUCK 7.11% Engro Corp. Ltd. ENGRO 6.75% Bank Al Falah Ltd. BAFL 5.91% Packages Ltd. PKGS 4.90% Indus Motor INDU 4.85% Orix Leasing Pakistan OLPL 3.74% Aisha Steel Mills Ltd. ASL 3.73% International Industries Ltd. INIL 2.98% Name of Non Compliant Type of Value of Investment Provisioning held Value of Investment Limit % of Gross Asset % of Net Asset Investment Investmen Before Provisioning (If any) After Provisioning PSO Equity 11,461,689-11,461,689 10% 9.93% 10.29% Period FY15 FY16 FY17 FY18 FY19TD Performance 9.11% 4.99% 22.36% % -3.58% Benchmark 4.64% 9.84% 23.24% % -2.18% Months Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Performance -0.47% 0.21% -0.47% 10.84% -3.57% 4.50% -1.65% -5.51% -3.20% 1.32% -0.47% -4.39% Benchmark -2.27% 0.99% -2.27% 8.84% -1.84% 5.37% -0.16% -5.81% -2.18% 1.91% -2.27% -1.78%

9 9 of 10 MUFAP s recommended format PIML - Asset Allocation Fund s Review AAF gave a negative return of 2.30% compared to its benchmark negative return of 0.64%. Equities remained under pressure in September with foreigners continuing with their selling stance on Pakistani equities due to concerns over weak balance of payment situation and decline in foreign exchange reserves. Equity segment of the fund which is 49% of the portfolio contributed negatively under the lead of PSO, MUGHAL, ASL, MFL, INDU and LUCK. In equities, NML, OLPL, INIL, SEARL and GATM gave positive contribution in the return. Bank placements were 51% of the fund size by month end. Fund Objective The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments Fund Statistics Net Assets (PKR mn) NAV per Unit (PKR) Standard Deviation* 11.79% Sharpe Ratio* (0.52) Information Ratio -0.1 *Annualized Fund Details Fund Type Category Benchmark Management Co. Rating Management Fee Load Risk Profile Listing Leverage Trustee Auditor Legal Advisor Open End Asset Allocation Investment Committee Members 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) Inception Date 12th April 2016 Dealing Days Daily (days when Banks are open for business) Cut-off Time 4.30 pm Pricing Mechanism Forward Salman H. Sheikh Hamza Saboor Asif Iqbal M. Saeed Khalid 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) SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.2,473,721, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.19% enhancing the YTD return to -1.85% p.a. Total Expense Ratio Sep. 18 Total Expense Ratio is 0.74% which Includes 0.07% of Governement Levy and 0.02% of SECP Fee calculated as % of Average Net Asset Value. Since Inception FY16 FY17 FY18 Return % 2.87% 5.68% -9.05% Benchmark % 1.43% 17.68% 18.36% Period FY17 FY18 FY19TD Performance 2.74% % -2.04% Benchmark 13.30% -2.25% 1.68% Por olio Alloca on (as % of T.A.) Sep. ' 18 Aug. ' 18 Equity Securites 48.18% 48.74% Cash at Bank 47.93% 48.10% Others including recievables (NR) 3.88% 3.15% Fund Performance PIML - AAF PIML-AAF Benchmark FYTD -2.04% 1.68% CYTD -1.94% 2.95% 12M Trailing -5.42% 0.66% Since Inception -9.05% 18.36% AAR-Since Inception -5.33% 5.42% Aug % -0.85% Sep % -0.64% 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 Por olio (as % of T.A.) Sep. ' 18 Aug. ' 18 AAA 0.18% 0.17% AA 0.07% 0.07% AA- 0.00% 0.54% A % 47.31% Others including recievables (NR) 52.03% 51.92% Sector Alloca on (as % of T.A.) Sep. ' 18 Aug. ' 18 TEXTILE COMPOSITE 7.63% 7.09% CEMENT 6.99% 7.12% OIL & GAS MARKETING COMPANIES 5.50% 5.67% ENGINEERING 4.46% 4.97% FERTILIZER 4.01% 4.05% Others 19.60% 19.84% Top 10 Equty Holdings (as % of T.A.) Symbol Sep. ' 18 Nishat Mills Ltd. NML 6.09% Pakistan State Oil PSO 5.50% Lucky Cement. LUCK 5.45% Engro Corp. ENGRO 4.01% Indus Motor INDU 2.76% International Industries Ltd. INIL 2.58% Aisha Steel Mills Ltd. ASL 2.40% The Searle Co. Ltd. SEARL 2.33% Bank Al Falah Ltd. BAFL 2.13% Orix Lease Pakistan OLPL 2.07% Months Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Performance -0.53% 0.59% 0.78% 8.01% -2.76% 2.23% 0.97% -3.59% -1.94% 0.80% -0.53% -2.30% Benchmark -0.85% 0.79% -0.85% 5.75% -0.90% 3.30% 0.40% -2.07% -1.78% 1.28% -0.85% -0.64%

10 A wholly owned Subsidiary of Army Welfare Trust Rawalpindi: 2nd Floor, AWT Plaza, Mall Road : Karachi: 3rd Floor, AWT Plaza, I.I. Chundrigar Road :