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 DECEMBER 2018

2 2 of 10 MUFAP s recommended format Key Economic Indicators Key Economic Indicators Economic Indicators Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 External Sector Indicators Overall Balance of Payments USD million (1,433) 1, ,901 (371) n.a 152 1, n.a Current Account Balance USD million (1,130) (1,617) (1,241) (1,163) (1,955) (1,934) (1,840) (2,200) (600) (952) (1,218) (1,255) n.a Exports USD million 1,993 2,111 2,062 2,728 2,737 2,695 2,457 2,414 2,087 1,788 1,903 1,843 n.a Imports USD million 4,232 4,874 4,317 5,641 5,754 6,033 6,014 6,469 4,466 3,803 4,841 4,626 n.a Worker's Remittances USD million 1,724 1,639 1,450 1,773 1,651 1,771 1,595 1,930 2,037 1,453 2,000 1,609 n.a Foreign Direct Investment USD million n.a Foreign Portfolio Investment USD million 2, (56) (1) (18) (51) (54) (42) (87) (56) (84) (61) n.a Forex Reserves USD billion Exchange Rate against PKR USD Period End Inflation Indicators General CPI YoY change 4.57% 4.42% 3.80% 3.25% 3.68% 4.19% 5.21% 5.83% 5.84% 5.12% 6.78% 6.50% 6.17% Food CPI YoY change 3.80% 3.70% 2.20% 0.10% -0.20% 1.00% 3.00% 3.50% 3.30% 1.40% 2.70% 1.80% 0.90% Core (NFNE) YoY change 5.50% 5.20% 5.20% 5.80% 7.00% 7.00% 7.10% 7.40% 7.70% 8.00% 8.20% 9.80% 8.40% Core (Trimmed) YoY change 4.70% 4.60% 4.30% 4.10% 5.00% 5.10% 5.40% 5.90% 5.90% 5.80% 6.70% 8.30% 6.90% Interest Rates SBP Policy Rate Current 5.75% 6.00% 6.00% 6.00% 6.00% 6.50% 6.50% 7.50% 7.50% 8.50% 8.50% 10.00% 10.00% 6 Month KIBOR Closing Rate 6.21% 6.43% 6.46% 6.61% 6.51% 6.89% 7.04% 8.02% 8.05% 8.59% 9.59% 9.97% 10.80% 12 Month KIBOR Closing Rate 6.50% 6.74% 6.76% 6.94% 6.94% 7.33% 7.53% 8.45% 8.47% 9.06% 10.30% 10.64% 11.35% 3 Month T-Bill Yield Closing Rate 5.99% 6.11% 6.21% 6.40% 6.24% 6.58% 6.79% 7.65% 7.76% 8.21% 8.76% 9.53% 10.30% 6 Month T-Bill Yield Closing Rate 6.02% 6.21% 6.36% 6.57% 6.35% 6.70% 6.90% 7.82% 7.86% 8.26% 9.32% 9.71% 10.58% 12 Month T-Bill Yield Closing Rate 6.04% 6.29% 6.62% 6.75% 6.64% 6.97% 7.24% 8.13% 8.21% 8.62% 9.83% 10.21% 11.18% 10 Year PIB Yield Cosing Rate 8.39% 8.60% 8.64% 8.86% 8.55% 8.89% 9.03% 9.89% 9.95% 10.05% 11.90% 12.22% 13.16% n.a.=not Available Source: SBP, MoF, PBS Benchmark Rates Avenues Rates KIBOR 6M 10.62% Deposit Rates-Islamic 3.20% FPIB 11.28% PKRV 10Y 13.16% PKRV 3M 10.30% PKRV 6M 10.58% KSE % KMI %

3 3 of 10 MUFAP s recommended format Economic Review Pak Rupee witnessed stability in the interbank market, with rates hovering in levels and closing the month at Rupee is down 14% since July (start of this fiscal year), mostly carried out by the central bank through its managed float mechanism done three times in last six months. While the central bank and government has been criticized for these abrupt downward adjustments in the exchange rate, they remain convinced that this depreciation was a much needed step to address the trade imbalance. Interest rates have moved up in December as the policy rate increase of 150bps to 10% on November 30 got reflected in December money market yield curve, with 3month Treasury Bills yield moving up by almost 80bps to 10.3% and 10 year bond yield rising by almost 100bps to 13.2%. At the same time, banks lending rates also increased with 6month KIBOR moving up by 83bps to 10.8%. SBP has published debt profile for the 1QFY19 showing a rise of USD1.39bn external debt liability of the country to USD96.74bn from USD95.34bn in Jun 18 external debt numbers. It was also worth noticing that Debt to GDP has soared to 68.76% in the 1QFY19 from 66.31% in Jun 18. In Nov 18, C/A deficit increased by 3.46%MoM to USD1.25bn, despite a notable decline in Trade Deficit by 10.59%MoM to USD2.38bn. During the month, imports dropped by 9.45%MoM to USD4.28bn compared to USD4.72bn in Oct 18, while exports of the country declined by 8% to USD1.89bn in Nov 18 compared to Oct 18 exports of USD2.06bn. Additionally, remittances fell by 20%MoM to USD1.61bn compared to USD2bn in October. C/A deficit during 5MFY19 has declined by 10.6% to USD6.09bn, and government is now projecting that this deficit will be brought down to around USD12bn compared to previous year s deficit of USD18bn. Inflation for the month of Dec 18 clocked in at 6.17%YoY, showing a MoM decline of 0.41% when comparing the month earlier levels of 6.50%YoY. This MoM decline in CPI was mainly due to decline in perishable food index by 13.78%MoM, food index down by 1.59%MoM and transportation index down by 0.67%MoM respectively. The declining trend in international oil prices (Brent) by 7.56%MoM to USD53.92/bbl. in Dec 18 has helped in reducing local petroleum prices by 2.23%MoM in the month. Large Scale Manufacturing Index (LSM) has increased by 5.33%MoM in the month of Oct 18 when comparing the Sept 18, however, LSM growth in 4MFY19 has declined by 0.65% compared to the corresponding period of last year. Monetary tightening and Rupee depreciation during the year has led to overall slowdown in GDP growth in current fiscal year. Equity Review Stock market fell sharply 8.47% to 37, in Dec 18 as domestic monetary tightening amid slowing economic growth led to increased selling pressure. During 1HFY19, market is down 11.55%. On calendar year basis, KSE100 finished the year down 8.41%; however, market is down 21% from its April 2018 high 47,144. December month saw significant drop in trading volumes by 34% to 131mn average per day compared to 198mn average in November. November end increase of 150bps in the policy rate to 10% by SBP has been the major dampener for equities, with market even expecting further rise in the policy rate as reportedly IMF wants Pakistan to further increase its domestic interest rates before the country goes into IMF funding program. During the month, political noise in the country once again got enraged as National Accountability Bureau (NAB) and FIA started to move against Pakistan People Party leadership (Mr. Asif Ali Zardari in particular), the party ruling the province of Sindh for their alleged involvement in corruption. At the same time, NAB sentenced the former Prime Minister Mr. Nawaz Sharif for 7 years jail in one of the corruption cases against him. Foreigners remained net sellers with USD28.41mn outflow in December, with total outflow of USD404mn in 1HFY19. During the month, local mutual funds were strong sellers in the market with net selling of USD35mn, while individuals, insurance and companies were net buyers. Sectors which witnessed major decline during the month were IT down 14.17%, E&P 12.44%, Steel 12.41%, Refinery 11.62%, Automobile 11%, Cements 10.72% and OMCs 9.98%. Despite rise of 150bps in the DR to 10% by SBP, market heavy weight banking sector also witnessed 8% decline. KSE100 index has now retreated near to its Oct 15, 2018 intraday low of 36,274, which remains a major support level for the market. Going forward in FY19, market is now trading around 7.4x earnings multiple. Stock market recent performance has been primarily impacted by domestic factors such as higher interest rates, weakness of the external accounts and slowing economic growth; however, the turmoil in international equity markets in almost all regions of the world has also led to weakness in the local equity market as foreigners remained net sellers. In January 2019, market will be waiting for development on the IMF front, whether Pakistan is going ahead to get a standby loan arrangement with the fund.

4 4 of 10 MUFAP s recommended format Money Market Review During the month, money market witnessed rising trend as yield curve shifted upward following 150bps increase in the policy rate on Nov 30, Yield on 3month Treasury Bills moved up by almost 80bps to 10.3% and 10 year bond yield increased by almost 100bps to 13.2%. Keeping in view market expectations of further increase in the policy rate, activity remained restricted at the short end of the yield curve with little participation/activity in the bond market. Major participation in TBILL auctions was witnessed in 3 months maturity at a cut off yield of 10.30%. During the month, SBP held two T-Bill auctions with a combined target of Rs.200 billion against the maturity of Rs.44.2 billion. In the fi rst T-Bill auction, an amount of Rs.2,048 billion at a cut-off yield of 10.30% for 3-month and an amount of Rs.100 million at cut-off yield of % for 6-month tenor was accepted by SBP while no bids were received for 12 months tenor. In the second T-Bill auction, an amount of Rs.15 billion was accepted at the same cut-off yield of 10.30% for 3-month tenor. During the month, SBP conducted a fixed rate PIB auction as per its Schedule; bids worth Rs.5.9 billion for 3-year, 1.4 billion for 5-year and 8.6 billion for 10-year tenors were accepted at cut off yield of 12.25%, 12.70% and 13.15% respectively while no bids were received for 20-year tenor. Furthermore, SBP conducted an IJARA auction on deferred payment (Bai Muajjal basis) for 3 year tenor from all Islamic banks and an amount of Rs billion was accepted at a cut off yield of 11.48% against the target amount of Rs.111 billion.

5 5 of 10 MUFAP s recommended format Fund Details PIML - Income Fund s Review During the month of December, PIML-IF delivered an annualized return of 9.24% against its benchmark return of 9.64%. Year to date return of the funds is 7.76%. The fund exposure in TFC/ Sukuks and commercial paper was 22.82% of the net assets as compared to 23.38% in the previous month. Exposure in cash at bank decreased to 55.32% of the net assets, while placement with banks increased to 23.98% compared to 19.35% in previous month. The weighted average time to maturity of the portfolio is at 221 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 (28th December 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) Dec % 1% 17% 10% 14% 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) 1,063 NAV per Unit (PKR) Weighted Average Maturity (days) 221 Sharpe Ratio* Information Ratio Standard Deviation 0.45% *Annualized Placement with Banks TFCs/Sukuks Commercial Paper Cash at Bank Others including receivables (NR) Nov. Apr. 18 Portfolio Allocation (as % of T.A.) Dec' 18 Nov' 18 Placements with Modaraba 6.81% 0.00% Placement with Banks 16.34% 18.71% TFCs/Sukuks 12.63% 12.99% Commercial Paper 9.33% 9.61% Cash at Bank 53.93% 57.11% Others including receivables (NR) 0.96% 1.58% Fund Performance PIML - IF PIML-IF* PIML-IF** Benchmark*** FYTD 7.76% 7.91% 9.06% CYTD 6.95% 6.95% 7.76% 12M Trailing 6.95% 6.95% 7.76% Since Inception 11.84% 9.22% 7.68% 5- Years Return 11.44% 0.00% 7.19% AAR-Since Inception 9.95% 0.00% 8.54% Last 3 Yrs 7.49% 0.00% 6.56% Nov % 8.45% 9.87% Dec % 9.64% 10.62% *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.) Dec' 18 Nov' 18 AAA 0.00% 0.00% AA+ 0.32% 0.18% AA 21.82% 15.54% AA- 0.05% 0.04% A+ 2.41% 2.46% A 21.69% 27.17% A % 53.03% Other including recievables (NR) 0.96% 1.58% 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 0.83% which Includes 0.15% of Governement Levy and 0.04% 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.12,236,766, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.58% enhancing the YTD return to 8.34% p.a. Top TFCs Holding ( As of T.A) Dec' 18 Oct'18 BAHL AT1 20-Dec Dec 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% 11.84% Benchmark % 9.46% 9.44% 8.55% 7.39% 7.43% 7.59% 7.68% Period FY13 FY14 FY15 FY16 FY17 FY18 FY19TD Performance 8.72% 8.24% 16.96% 11.71% 4.68% 5.99% 7.76% Benchmark 9.46% 9.46% 8.35% 5.93% 6.10% 6.33% 9.06% Months Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Performance 5.73% 6.84% 6.57% 4.50% 6.09% 5.38% 6.39% 6.58% 7.24% 8.18% 8.14% 9.24% Benchmark 6.23% 6.43% 6.50% 6.50% 6.61% 6.98% 7.69% 8.02% 8.23% 9.43% 9.87% 9.64%

6 6 of 10 MUFAP s recommended format PIML - Islamic Equity Fund s Review During Dec 18, IEF gave negative return of 7.71% against the KMI-30 negative return of 10.55%. Stock market fell sharply in December as monetary tightening and slowing economic growth led to renewed selling pressure in equities. Major negative contribution in the fund performance came from PSO, OGDC, ENGRO, NML, MUGHAL, GLAXO and MEBL. Top five holdings of the fund are ENGRO, OGDC, PSO, MEBL and NML; almost 54% of the fund size. Total exposure in equity was 75.38% and bank deposits at 23.28%. 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* 17.40% Treynor Ratio Beta 0.85 R - Square** 89.27% Value at Risk 1.81% 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) 25% 3% 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 /0.89% enhancing the YTD return to % p.a. Total Expense Ratio Dec 18 Total Expense Ratio is 2.32% which Includes 0.20% of Governement Levy and 0.05% of SECP Fee calculated as % of Average Net Asset Value. Investment Committee Members Salman H. Sheikh Hamza Saboor Asif Iqbal M. Saeed Khalid 72% Equity Securities Cash at Bank Others including recievables (NR) Chief Executive Officer Chief Financial Officer Chief Investment Officer Head of Compliance and Risk Acting Head of Research Portfolio Allocation (as (as %% of of T.A.) T.A.) Dec. Oct. ' 18 Nov. Sep. '' 18 Equity Securities 72.05% 74.10% Cash at Bank 24.68% 21.04% Others including recievables (NR) 3.27% 4.86% Fund Performance PIML - IEF PIML-IEF* Benchmark*** FYTD % % CYTD % % 12M Trailing % % Since Inception 7.79% 41.95% AAR-Since Inception 1.56% 7.53% Last 3 Yrs % 10.02% Nov % -4.67% Dec % % 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.) Dec. ' 18 Nov. ' 18 AA+ 5.37% 4.74% AA- 0.24% 0.01% A % 16.19% A 0.11% 0.10% Others including recievables (NR) 75.32% 78.96% Sector Allocation (as % of T.A.) Dec. '18 Novt. '18 Oil and Gas 16.93% 17.28% Fertilizer 13.17% 14.25% Oil & Gas Marketing 10.37% 11.24% Commercial Banks / Textile Composite 7.43% 7.16% Textile Composite / Commercial Banks 6.74% 7.04% Others 17.41% 17.13% Top 10 Equity Holdings (as % of T.A.) Symbol Dec. '18 Engro Corp. ENGRO 13.17% Oil & Gas Development Co. Ltd. OGDC 12.95% Pakistan State Oil PSO 10.37% Meezan Bank Ltd. MEBL 7.43% Nishat Mills Ltd. NML 6.74% Packages Ltd. PKGS 5.02% International Industries Ltd. INIL 4.10% National Refinery Ltd. NRL 3.99% Synthetic Product Enterprises SPEL 2.67% Glaxo SmithKline Pakistan Ltd. GLAXO 2.52% Since Inception FY14 FY15 FY16 FY17 FY18 FY19TD Return % 4.58% 30.69% 40.23% 64.09% 28.87% 7.79% Benchmark % 10.70% 32.89% 53.52% 82.38% 64.89% 41.95% Period FY14 FY15 FY16 FY17 FY18 FY19TD Performance 4.58% 24.96% 7.30% 17.02% % % Benchmark 10.70% 20.10% 15.53% 18.80% -9.59% % Months Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Performance 8.74% -2.52% -2.00% 3.16% -6.27% -0.79% 1.19% -2.14% -5.50% -2.18% -3.11% -7.71% BM 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 PIML - Islamic Income Fund s Review During the month of December, PIML-IIF delivered an annualized return of 7.58% compared to its benchmark return of 3.20%, showing outperformance of 438bps. Year to date return of the fund is 5.80%.The fund exposure in cash at bank decreased to 69.24% as compared to 72% in the previous month, while exposure in Sukuk increased to 7.43% compared to 7.39% in previous month. Exposure in commercial paper was at 7.84%, and placement with FI s increased to 14.87% as compared to 11.08% in the previous month. The weighted average time to maturity of the portfolio is at 150 days. Fund Type Open End 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) NAV per Unit (PKR) Weighted Average Maturity (days) 150 Sharpe Ratio* (13.54) Information Ratio 0.61 Standard Deviation 0.33% *Annualized Fund Details 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 Islamic Income Scheme A(f) by PACRA (28th December 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) 69% 8% 1% SWWF Disclosure The scheme has maintained a provision against Sindh Worker's Welfare Fund's liability to the tune of Rs.397,988, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs /0.15% enhancing the YTD return to 5.95% p.a. Total Expense Ratio 15% Dec 18 Total Expense Ratio is 1.15% which Includes 0.14% of Governement Levy and 0.04% of SECP Fee calculated as % of Average Net Asset Value. 7% Placement with Banks TFCs/Sukuks Commercial Paper Cash at Bank Others including receivables (NR) Portfolio Allocation (as % of T.A.) Dec' 18 Nov' 18 Placement with Modaraba 14.73% 10.99% Sukuks 7.37% 7.33% Cash at Bank 68.60% 71.42% Commercial Paper "CP" 7.77% 7.68% Others including receivables (NR) 1.53% 2.58% Fund Performance PIML - IIF PIML-IIF* PIML-IIF** Benchmark*** FYTD 5.80% 5.89% 2.86% CYTD 4.96% 4.96% 2.67% 12M Trailing 4.96% 4.96% 2.67% Since Inception 4.70% 4.32% 4.22% AAR-Since Inception 6.47% 0.00% 5.31% Last 3 Yrs 5.15% 0.00% 3.02% Nov % 6.41% 3.01% Dec % 7.85% 3.20% *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 Dec' 18 Nov' 18 AAA 0.00% 0.00% AA+ 0.50% 0.03% AA 22.50% 7.68% AA- 0.04% 0.00% A % 71.39% A 7.37% 18.32% Other including recievables (NR) 1.53% 2.58% 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 Top TFCs Holding ( As of T.A) Dec' 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% 4.70% Benchmark % 6.49% 6.25% 5.53% 4.77% 4.33% 4.22% Period FY14 FY15 FY16 FY17 FY18 FY19TD Performance 5.46% 5.08% 6.26% 4.37% 4.14% 5.80% Benchmark 6.49% 6.18% 4.59% 3.01% 2.46% 2.86% Months Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Performance 3.64% 4.90% 3.51% 2.71% 3.94% 5.21% 4.58% 4.61% 4.97% 6.02% 6.23% 7.58% Benchmark 2.52% 2.50% 2.55% 2.47% 2.58% 2.38% 2.45% 2.54% 2.78% 2.86% 3.01% 3.20%

8 8 of 10 MUFAP s recommended format PIML - Value Equity Fund s Review During Dec 18, VEF has generated negative return of 8.45% against the KSE-100 negative performance of 8.47%. Stock market fell sharply in December as monetary tightening and slowing economic growth led to renewed selling pressure in equities. Major negative contribution in the fund performance came from BAFL, PSO, NML, OGDC, ENGRO, GLAXO and INDU. Top five holdings of the fund are BAFL, OGDC, PSO, NML and ENGRO; almost 44% of the fund size. We have kept our equity exposure unchanged at 72% of fund size. Exposure in bank deposits was 24.38% of fund size. 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* 16.82% Treynor Ratio 5.18 Beta R - Square** 88.49% Value at Risk 1.75% 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 Open End Equity Scheme KSE 100 Index Investment Committee Members 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. Portfolio Allocation (as (as % of % T.A.) of T.A.) Dec. Oct '' 18 Nov. Sep '' 18 Equity Securities 70.16% 69.15% Cash at Bank 24.92% 18.18% Others including recievables (NR) 4.92% 12.67% Portfolio Allocation (as % of total assets) 25% 5% 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 /0.62% enhancing the YTD return to % p.a. Total Expense Ratio 70% Dec 18 Total Expense Ratio is 2.01% which Includes 0.17% of Governement Levy and 0.05% 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 % % CYTD % -8.41% 12M Trailing % -8.41% Since Inception -4.44% 13.76% AAR-Since Inception -1.18% 3.18% Nov % -2.77% Dec % -8.47% 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.) Dec. ' 18 Nov. ' 18 AAA 5.50% 0.64% AA+ 0.45% 0.10% AA % 16.97% A- 0.00% 0.00% Others including recievables (NR) 76.99% 82.30% Sector Allocation (as % of T.A.) Dec. ' 18 Nov. ' 18 Textile Composite 9.78% 10.24% Oil and Gas / Commercial Banks 8.72% 9.44% Commercial Bankd / Oil & Gas Marketing 8.52% 9.12% Oil & Gas Marketing / Oil and Gas 8.45% 9.11% Fertilizer 7.29% 7.18% Others 27.40% 24.06% Top 10 Equity Holdings (as % of T.A.) Symbol Dec. '18 Oil & Gas Development Co. Ltd. OGDC 8.72% Pakistan State Oil PSO 8.45% Bank Al Falah Ltd. BAFL 8.03% Nishat Mills Ltd. NML 7.47% Engro Corp. ENGRO 7.29% Packages Ltd. PKGS 4.90% Indus Motor INDU 4.84% Matco Food Ltd. MFL 3.28% Orix Leasing Pakistan OLPL 3.16% Nishat (Chunian) Ltd. NCL 2.68% 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 Since Inception FY15 FY16 FY17 FY18 FY19TD Return % 9.11% 14.55% 40.16% 16.61% -4.44% Benchmark % 4.64% 15.96% 42.91% 31.50% 13.76% Period FY15 FY16 FY17 FY18 FY19TD Performance 9.11% 4.99% 22.36% % % Benchmark 4.64% 9.84% 23.24% % % Months Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Performance 10.84% -3.57% 4.50% -1.65% -5.51% -3.20% 1.32% -0.47% -4.83% -1.79% -2.35% -8.45% Benchmark 8.84% -1.84% 5.37% -0.16% -5.81% -2.18% 1.91% -2.27% -1.78% 1.59% -2.77% -8.47%

9 9 of 10 MUFAP s recommended format PIML - Asset Allocation Fund s Review During the month of Dec 18, AAF generated negative return of 4.64% against its negative benchmark negative return of 2.38%. Negative return of the fund came from its equity portfolio, which is 36% of fund size by month end compared to 42% in the previous month. Stock market fell 8.47% in December as monetary tightening and slowing economic growth led to renewed selling pressure in equities. Major negative contribution in the fund performance came from NML, OGDC, BAFL, NCL, PSO, GATM and OLPL. Exposure in bank deposits and placements is 63% of fund size. 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* 10.42% Sharpe Ratio* (0.11) 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) 55% 2% 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 /0.40% enhancing the YTD return to -9.50% p.a. Total Expense Ratio 8% 35% Dec 18 Total Expense Ratio is 1.56% which Includes 0.15% of Governement Levy and 0.05% of SECP Fee calculated as % of Average Net Asset Value. Since Inception FY16 FY17 FY18 FY19TD Return % 2.87% 5.68% -7.15% % Benchmark % 1.43% 17.68% 18.53% 14.38% Period FY17 FY18 FY19TD Performance 2.74% % -9.90% Benchmark 13.30% -2.25% -2.46% Placement with Modaraba Equity Securities Cash at Bank Others including receivables (NR) Portfolio Allocation (as % of T.A.) Dec. ' 18 Nov. ' 18 Placement with Modaraba 7.93% 0% Equity Securities 35.16% 40.46% Cash at Bank 54.74% 58.62% Others including receivables (NR) 2.16% 0.92% Fund Performance PIML - AAF PIML-AAF Benchmark FYTD -9.90% -2.46% CYTD -9.80% -0.45% 12M Trailing -9.80% -0.45% Since Inception % 14.38% AAR-Since Inception -7.94% 3.13% Nov % -0.63% Dec % -2.38% 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.) Dec. ' 18 Nov. ' 18 AAA Credit Quality of Portfolio (as % of T.A.) Sep. 7.56% ' 18 Aug. 1.90% ' 18 AA 8.00% 0.08% A % 56.62% Others including recievables (NR) 37.31% 41.40% Sector Allocation (as % of T.A.) Dec. '18 Nov. '18 Textile / Oil and Gas 7.35% 9.49% Oil and Gas / Textile Composite 6.67% 8.85% Personal Goods / Commercial Banks 5.62% 4.92% Commercial Banks / Personal Goods (Textile) 3.84% 3.96% Paper and Boards 2.86% 3.00% Others 8.82% 10.24% Top 10 Equity Holdings (as % of T.A.) Symbol Dec. '18 Oil & Gas Development Co. Ltd. OGDC 6.67% Nishat Mills Ltd. NML 5.81% Nishat (Chunian) Ltd. NCL 5.62% Bank Al Falah Ltd. BAFL 3.83% Packages Ltd. PKGS 2.86% Pakistan State Oil PSO 2.36% Synthetic Product Enterprises SPEL 1.75% Orix Lease Pakistan OLPL 1.60% Gul Ahmed Textile GATM 1.54% Matco Food Ltd. MFL 1.27% Months Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Performance 8.01% -2.76% 2.23% 0.97% -3.59% -1.94% 0.80% -0.53% -2.82% -2.27% -1.31% -4.64% Benchmark 5.75% -0.90% 3.30% 0.40% -2.07% -1.78% 1.28% -0.85% -0.64% 0.97% -0.63% -2.38%

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