From the CEO s desk. Economic Snapshot. Equity Market Review. Money Market Review. Key Economic Indicators

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2 s Report - March 2014 From the s desk The period under review started off well with good news for investors!!! Primus has successfully launched the PIML-INCOME FUND, which right from the day of its inception has outperformed its benchmark by magnanimous 17.65% posting a return of 27.33%. We invite you to visit us or contact our account executives to benefit from this low risk and high returning fund. On the equity front, markets were an investor s nirvana until very recently. Market in late last year and this year spent most of its time in the sweet spot of investing where risk taking is rewarded. Structurally, rising stars tend to offer the best risk adjusted return potential. We focus on identifying those rising stars and, conversely, avoiding falling angels We find a number of rising stars, especially in the cyclical sectors that are benefitting from the improved economic environment, such as the automotive, construction material and oil sector. The current environment of improving growth and disappointing inflation keeps central bank engaged and is supportive for risk assets. Is the sky falling in the bond market? Many, before the last monetary policy, thought so, and after a period of cloudiness, fears returned. With rising inflation it seems that fears will again be unfound. On the international front, The US economy is shifting into a fast gear, but interest rates remain low, part of the reason is that while economic growth is accelerating, there is still little evidence of inflation. Price levels have been relatively stable in recent inflation readings and wages aren t really growing. This means the Federal Reserve is under no real pressure to raise interest rates any time soon. European economies, core and peripheries alike, continue to improve. Although the recovery is moving in the right direction, eurozone growth remains significantly below the US and the UK. While both the US Federal Reserve and the Bank of England are contemplating the beginning of a rate hiking cycle in 2015, the European Central Bank (ECB) is moving in the opposite direction. Ukraine remains in the spot light, with Russians giving full support to Putin to handle the situation with severity. USA is stuck in this situation because sanctions on Russia would create problems for Europe as Russia is the major supplier of gas to Europe. The only choice left for Europe would be Iran, whose gas pipelines are already spread till Turkey!!!! We believe it s our responsibility to help investors of all sizes, to succeed in the New World of Investing. We were built to provide the global market insight, breadth of capabilities, unbiased investment advice and deep risk management expertise these times require. Investing with PRIMUS gives you access to every asset class and investment style, as well as extensive market intelligence and risk analysis, to help build the dynamic, diverse portfolios flexible with the changing times. When you invest with PRIMUS, you invest with confidence. We believe in a disciplined and methodical approach to investing. It is the foundation of everything we do and the best way to create long term value for investors. PRIMUS is one of the top mutual fund companies in Pakistan whose strength and credibility have made it one of the most respected financial institutions. We will do our best to reflect all this in positioning the savings and investments you have entrusted to us to manage. We will be emphasizing the importance of economic growth and work very hard to identify opportunities that remain attractive. We will seek to navigate this environment for you by maintaining a higher degree of operational agility and a solid dose of resilience. Thank you for the trust you have placed in us. We value your confidence, and will continue to work diligently to meet your expectations. If you have any query regarding any of your PRIMUS funds investments please contact your account manager at We also invite you to visit our website to learn more about our fund, views and thought leadership. Regards, Economic Snapshot The past month remained very happening as some major events remained in the limelight throughout the month. To begin with, the Eurobond issued by Pakistan was oversubscribed by four times with total amount of USD 2bn, secondly the long awaited 3G/4G spectrum auction was successfully carried out by the government with total proceeds of USD 1.1bn, where Zong won both 3G and 4G licenses and Mobilink, Ufone and Telenor won only 3G license, while Warid did not participate in the auction. Financial advisors for the government s divestment in OGDC, PPL and UBL were appointed during the month and announcement of increase in Pakistan s weight in MSCI FM to 8.9% from previous 4.4% also played its role in boosting investor s confidence. Macroeconomic indicators also performed well during the month as forex reserves increased by 16% to USD 11.74bn as compared to reserves of USD 10.07bn in the month of March, which provided support to stabilize domestic currency. Large scale manufacturing also showed a growth of 5.1% during 8MFY14, higher than government s full year target of 4%. Fiscal deficit for the 9MFY14 declined to 3.1% of GDP (PKR 815bn) as compared to 4.6% (PKR 1046bn) in the corresponding period, while current account deficit widened to 1.2% (USD 2.1bn) of GDP as compared to 0.7% (USD 1.2bn) in the corresponding period. However, CPI inflation for the month of April surprised the investors as it was recorded at 9.18% against last month s inflation of 8.5%, leading to average FYTD inflation of 8.67%. 2.1% rise in food inflation and 9.8% rise in education expense led to MoM uptick of 1.7% in CPI inflation. Though macroeconomic indicators are performing well, hike in inflation may lead to status quo in upcoming monetary policy, whereas announcements related to budget for FY15 will set the direction for economy and capital markets going forward. Money Market Review SBP conducted two T-Bill auctions during the month. Target of the first auction (2 April) was PKR 125 billion against which SBP accepted PKR 44 billion (maturities PKR 94 billion). Cut off for the 3-month, 6-month and 1 year were %, %, 9.99% respectively. Target for the second auction (16 April) was PKR 500 billion against which SBP accepted PKR 300 billion (maturities PKR 644 billion). Cut off for the 3-month and 6-month and 1 year were %, % and 9.99% respectively. SBP also conducted a PIB auction on 23 April with a target of PKR 100 billion and accepted amount was 450 billion. Cut off for 3,5 and 10 years PIBs came at 12.09%, % and % respectively. Equity Market Review The equity market continued its rally in the month of April and earned a return of 6.5% after 5.3% hike in March. The major trigger for the market this month was announcement of increase in Pakistan s weight in MSCI Frontier markets to 8.9% from 4.4%, which led to strong market participation by foreigners as net FIPI inflow surged to USD 92mn, highest monthly inflow during this fiscal year. Trading volumes of the index spiked up by 35% MoM as daily average trading volumes were recorded at 206mn shares as compared to 153.4mn shares during the previous month. The index reached its all time high level of 29,458 points during the month, but dropped by 1.9% from that level and closed at 28,913 points largely due to institutional profit taking. Other important developments during the month, which kept the investors participation elevated, were successful issuance of Eurobonds worth USD 2bn, auction of 3G/4G spectrum license carried out by GOP and appointment of financial advisors for secondary offering of OGDC, PPL AND UBL. Sector wise performance shows that the top performing sectors during the month were Autos (13.8%, on margin improvement owing to strong PKR against other curriences), Banks (12.1%, heavy participation in high yield PIBs), Non life insurance (11.7%), Cements (7.2% on strong local demand) and electricity (5.4%). On the other hand, underperformers were Telecoms (-6.9%, on consideration of ICH structure and ASR rates), Textiles (-0.7%, on stronger PKR). In the months ahead, we expect market to remain volatile as announcements related to policy rate and budgetary measure may move the market in both directions. Key Economic Indicators Apr-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 External Sector Indicators Overall Balance of Payments USD million (327) (351) (529) 211 (261) 916 1,049 n.a Current Account Balance USD million (354) (96) (584) 173 (473) 164 (156) n.a Exports USD million 2,186 2,068 1,844 2, ,074 2,152 n.a Imports USD million 3,429 3,616 3,177 3, ,136 3,382 n.a Worker's Remittances USD million 1, ,130 1,385 1,246 1,210 1,337 n.a Foreign Direct Investment USD million n.a Foreign Portfolio Investment USD million (73.0) n.a Forex Reserves USD billion Exchange Rate against PKR USD Month Avg Inflation Indicators General CPI YoY change 5.8% 9.1% 10.9% 9.2% 7.9% 7.9% 8.5% 9.2% Food CPI YoY change 5.5% 9.8% 13.0% 9.3% 7.2% 7.6% 9.3% 9.9% Core (NFNE) YoY change 8.7% 8.4% 8.50% 8.2% 8.0% 7.8% 7.6% 8.5% Core (Trimmed) YoY change 7.6% 9.0% 9.20% 8.7% 8.2% 8.1% 8.1% 9.0% Monetary Growth Broad Money (M2) YoY growth 14.1% 14.2% 14.2% 14.4% 13.1% 12.9% 11.9% 12.7% GoP's Borrowing from SBP YoY growth 20.3% 83.6% 78.0% 69.1% 77.1% 64.2% 35.1% 32.2% Pvt. Sector Credit YoY growth 3.7% % 1.9% 3.8% 4.4% 4.0% 5.3% Interest Rates SBP Policy Rate Current 9.50% 9.50% Month KIBOR Month Avg. 9.58% 9.55% 10.08% 10.15% 10.19% 10.13% 10.18% 10.20% 12 Month KIBOR Month Avg. 9.91% 10.02% 10.43% 10.48% 10.47% 10.43% 10.47% 10.45% 3 Month T-Bill Yield Month Avg. 9.40% 9.32% 9.86% 10.12% 9.97% 9.95% 10.01% 9.97% 6 Month T-Bill Yield Month Avg. 9.43% 9.46% 9.97% 10.15% 9.99% 9.97% % 12 Month T-Bill Yield Month Avg. 9.51% 9.77% 10.09% 10.22% 10.01% 9.99% Year PIB Yield Month Avg % 12.85% 13.08% 12.75% 12.81% 12.80% 12.81% 12.81% n.a.=not Available Source: SBP, MoF, PBS

3 Daily Reserve Fund s Report - April 2014 s Review PDRF generated an annualized return of 8.96% versus the benchmark return of 8.74% for the month of April, an outperformance of 22bps. Also, the fund recorded YTD return of 8.81% compared to its benchmark return of 8.42% (an outperformance of 39bps). During April, we increased the weighted average time to maturity of the portfolio from 26 days to 54 days by increasing our exposure towards slightly longer duration government securities. We positioned 50% T-bill portfolio in order to take full advantage of yield curve movement which attributed in decent mark-to-market gains. Further, the placement with DFIs and Banks constituted 34% and 13% of net assets respectively, at attractive rates. Thus, the fund was able to generate competitive returns for the month. Going forward, we tend to maintain exposure in longer duration maturities and take advantage of any movement in the yield curve. The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments M. Ali Kazmi Weighted Average Maturity (days) Sharpe Ratio * Information Ratio Standard Deviation * * Annualized Money Market AA+ by PACRA 50% 3 months PKRV + 3 months average deposit rate of AA & above rated Banks 1st January % 0% (Front-end) 0% (Back-end) Low Risk Islamabad Stock Exchange Deloitte Pakistan Chief Investment Officer 5, % 0.41% 2.56% s DFIs Banks 2.56% 33.82% 13.43% 49.78% 0.41% Credit Quality of Portfolio (as % of total assets) AAA (Government Securities) 49.78% AAA 12.47% AA % AA 15.45% NR ( ) 0.41% *Simple Annualized **Morning Star Banks 13.43% 0.39% Banks 9.54% 0.74% ***Average of reporting period n.a = not applicable DFIs 33.82% 49.78% DFIs 39.73% 49.61% 0.74% 39.73% 9.54% 49.61% 0.39% 49.61% 0.06% 29.20% 20.75% 0.39% PDRF PDRF* PDRF** *** FYTD FYTD Since Inception 9.47% 9.34% 8.26% 8.81% 8.42% 8.98% 9.36% 8.65% 8.96% 9.34% 8.74% - - * Please note that WWF liability for PRIMUS Daily Reserve Fund till the close of financial year ended June 30, 2013 since inception will be borne by the management company * The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs.7,705,943, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.18% enhancing the YTD return to 9% p.a 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% PDRF Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

4 PIML Income Fund (PIML-IF) (formerly; PRIMUS Cash Fund PCF) s Report - April 2014 s Review PIML Income Fund generated an outstanding return of 27.33% against the benchmark return of 9.68% for the month of April (massive outperformance of 17.65%). FYTD return of the fund also improved significantly by 2.09% MoM to close at 9.85%. This outperformance was primarily attributed to (i) the major shift in asset mix where the funds scheme was changed to income scheme from money market category, (ii) building-up of PIB inventory and (iii) hefty mark-to-market gains in PIBs. The portfolio duration of the fund enhanced from 29 days in March to 764 days in April, on the back of increased exposure towards medium to long term government bonds, while taking advantage of the attractive yields offered by the PIBs. At month end, government securities constituted 90% (T-bills 24.31% & PIBs 65.71% of net asset) compared to 91% T-bills holding in March. The fund size grew considerably by 60% during the month to close at PKR billion. Going forward, we tend to maintain high duration portfolio in anticipation of additional gains from government securities, translating into competitive returns. The objective of the fund is to generate consistent returns with minimal risk by investing primarily in Government Securities, cash and near cash instruments M. Ali Kazmi Weighted Average Maturity (days) Sharpe Ratio * Information Ratio Standard Deviation * * Annualized Income Scheme Rating in process 70% 6 month Kibor & 30% average of 6 month deposit rate of 3 banks rated AA- and above 17th April % 0% (Front-end) 0% (Back-end) Low Risk Karachi Stock Exchange M.Yousuf Adil Saleem & Co. Chartered Accountants Chief Investment Officer 4, % The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs. 8,182,737, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.23% enhancing the YTD return to 10.08% p.a Banks DFIs 3.95% 5.54% 8.81% PIBs 0.76% 63.98% 1.41% 23.66% 2.11% 89.70% 0.08% Credit Quality of Portfolio (as % of total assets) AAA (Government Securities) 87.64% 89.70% AAA 4.70% 0.34% AA+ 5.54% 8.82% AA 1.06% NR ( ) 2.11% 0.08% PIML IF PIML IF* PIML IF** *** FYTD FYTD Since Inception 9.64% 9.33% 9.50% 9.85% 9.50% 7.98% 8.27% 9.97% 27.33% 31.03% 9.68% *Simple Annualized **Morning Star 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% DFIs 5.54% Banks 3.95% 2.11% 0.76% T- Bills 23.66% Banks 8.81% 0.08% 1.41% ***Average of reporting period n.a = not applicable PCF PIBs 63.98% 89.70% Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14

5 Strategic Multi Asset Fund s Report - April 2014 s Review The Fund generated a return of 0.69%, compared to its benchmark return of 3.97% for the month of April. The underperformance of the Fund is primarily due to the underperformance of the Construction & Material sector due to the sentiment in the market regarding the expansion plans of some cement players, threatening the pricing ability and profitability of the entire sector. The volatility in the KSE100 remained high and the index increased by 6.5% due to stronger Macroeconomic developments including 1) Higher than expected Eurobond issue, 2) Higher Reserve buildup 3) 3G Auction, 4) Increased net FIPI inflow of USD91.9 million due to change in index methodology of the MSCI FM100 thereby increasing the weight of Pakistan from 4.4% to 8.9%. With the rebalancing of our portfolio and expectations of increased construction activity in the country we are hopeful to generate higher returns going forward. The objective of PIML-SMAF, an open-end balanced scheme, is offering retail and institutional clients a product that aims to maximize return and minimize risk. For this purpose, a balanced portfolio is created that has an optimal mix of equity, debt securities and commodity % 9.29% Equity Securities 52.72% Balanced Fund N/A 23rd August % p.a. 2% (Front-end) 0% (Back-end) Moderate to High Karachi Stock Exchange Deloitte Pakistan M. Samir Malik, CFA M. Ali Kazmi Chief Investment Officer M. Samir Malik, CFA Head of Equity Sharpe Ratio ^^ Standard Deviation *^^ 9.39% Treynor Ratio^^ Beta^^ R-Square**^^^ 45.93% Value at Risk 0.98% 3M PKRV yield used as Risk Free rate. ^^ The look back period is 169 working days (Since inception). * Annualized. **^R Square measures the correlation between the benchmark and the fund KSE 100 index, 3 month PKRV and Daily Closing Pakistan Rupee Spot Gold Prices at the Pakistan Mercantile Exchange Limited (PMEX) based on the weighted average exposure of the scheme to eqquity, debt and gold future contracts during the period under review The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs. 173,949. 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 9.02% p.a Equity Securities 52.72% 21.33% PIB 16.66% Others Including Receiveables 9.29% Since Inception 8.87% 15.85%** 2.86% 3.66%** 0.69% 3.97%** *Absolute Returns **Weighted Average Returns PIB 16.66% PSMAF* Sector Allocation (as % of Assets) 55.26% 15.51% 16.70% 12.53% Credit Quality of Portfolio (as % of total assets) AAA (Government Securities) 16.66% 16.70% AAA 5.24% 0.04% AA & Above AA- 0.09% 15.99% 5.29% 10.18% NR (includes equity investments) 62.01% 67.79% 6.00% PSMAF 5.00% 4.00% 3.00% 2.00% 1.00% -1.00% -2.00% -3.00% -4.00% PSMAF FYTD FYTD 8.87% 15.85% Construction and Materials (Cement) 17.96% 21.17% Oil and Gas 9.94% 7.09% Electricity 8.33% 9.20% Commercial Banks 6.15% 3.88% Non Life Insurance 3.16% 3.90% Personal Goods (Textile) 2.06% 5.81% Chemicals 1.87% 2.55% Pharma and Bio Tech 1.46% 0.41% Fixed Line Telecommunication 1.19% 1.26% Automobile and Parts 0.59% 52.72% 55.26% Top 10 Equity Holdings (as % of T.A.) Apr '14 1 Pakistan State Oil Co. PSO 8.03% 2 D.G. Khan Cement Co. DGKC 6.89% 3 Nishat Chunian Power NCPL 4.25% 4 Kot Addu Power Co. KAPCO 4.08% 5 Fauji Cement Co. FCCL 3.61% 6 Adamjee Insurance Co. AICL 3.16% 7 Lucky Cement LUCK 2.93% 8 Maple Leaf Cement Factory MLCF 2.89% 9 National Bank of Pakistan NBP 2.83% 10 Bank Alfalah BAFL 2.01%

6 Islamic Equity Fund s Report - April 2014 s Review The Fund generated a return of 0.87%, compared to its benchmark return of 3.30% for the month of April. We cautiously increased our exposure to Shariah compliant equity investments and ended the month with exposure of 74.13% in equities, up from 18.73% of net assets, respectively. This gradual increase has been the primary factor contributing to our underperformance for the outgoing month. We have tilted our portfolio in favor of Oil & Gas and Construction & Material sectors and are hopeful that the said sectors will outperform thereby assisting the Fund to meet its benchmark requirements going forward. The objective of PIML-IEF is to achieve long term capital growth by investing mainly in Shariah Compliant listed equity securities. 7.90% Equity Securities 71.21% 20.90% Islamic Equity Scheme N/A KMI - 30 Index 4th March % p.a. 2% (Front-end) 0% (Back-end) Moderate to High In Process KPMG Taseer Hadi & Co. M. Samir Malik, CFA M. Ali Kazmi Chief Investment Officer M. Samir Malik, CFA Head of Equity Sharpe Ratio ^^ Standard Deviation *^^ 5.82% Treynor Ratio^^ Beta^^ R-Square**^^^ 54.74% Value at Risk 0.61% 3M PKRV yield used as Risk Free rate. ^^ The look back period is 43 working days (Since inception). * Annualized. **^R Square measures the correlation between the benchmark and the fund The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs. 33,483. if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.03% enhancing the YTD return to 1.83% p.a Shariah Compliant Govt. Securities Equity Securities 71.21% 20.90% 17.94% 74.58% Others Including Receiveables 7.90% 7.48% Credit Quality of Portfolio (as % of total assets) AAA AA NR (includes equity investments) PIEF* Since Inception 1.80% 7.0%** 0.92% 3.5%** 0.87% 3.3%** *Absolute Returns n.a=not applicable 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% March Sector Allocation (as % of Assets) April 1.76% 19.14% 79.10% PIEF 0.73% 73.85% 25.42% PIEF FYTD FYTD 1.80% 7.0% Oil and Gas 33.12% 3.60% Construction and Materials (Cement) 26.65% 12.88% Personal Goods (Textile) 3.54% Automobile and Parts 3.22% Fixed Line Telecommunication 2.24% 0.48% Pharma and Bio Tech 1.55% 0.31% Electricity 0.89% Chemicals 0.68% 71.21% 17.94% Top 10 Equity Holdings (as % of T.A.) Apr '14 1 Pakistan State Oil Co. PSO 12.43% 2 Lucky Cement LUCK 11.98% 3 Pakistan Petroleum PPL 7.10% 4 Pakistan Oilfields POL 6.97% 5 Oil & Gas Development Co. OGDC 6.62% 6 D.G. Khan Cement Co. DGKC 5.39% 7 Maple Leaf Cement Factory MLCF 4.00% 8 Nishat Mills NML 3.54% 9 Fauji Cement Co. FCCL 3.07% 10 Pak Suzuki Motor Co. PSMC 2.59%

7 Islamic Money Market Fund s Report - April 2014 s Review PIML Islamic Money Market Fund posted an annualized return of 6.39% versus the benchmark return of 6.69% for the month of April. The fund recorded YTD return of 8.81% compared to its benchmark return of 6.60%. We intend to allocate the portfolio optimally; however, the fund is well placed with liquidity to cash in any opportunities that may arise in Shariah complaint securities/instruments. The weighted average time to maturity of the portfolio is 01 day. The objective of PIML-IMMF is to seek high liquidity, competitive return and maximum possible preservation of the capital for investors by investing in low risk Shariah Compliant securities. M. Ali Kazmi Weighted Average Maturity (days) Sharpe Ratio * Information Ratio Standard Deviation * * Annualized Islamic Money Market Scheme N/A 3 month deposit rate of three AA and above rated Islamic Banks 4th March % 2% (Front-end) 2% (Back-end) Low Risk in process KPMG Taseer Hadi & Co Chief Investment Officer % Sukuk GOP Ijara Sukuk - Govt. Backed 96.19% 3.81% 98.96% 1.04% PIMMF PIMMF* PIMMF** *** FYTD FYTD Since Inception 8.81% 9.14% 6.60% 8.81% 6.60% 11.34% 11.95% 6.51% 6.39% 6.58% 6.69% *Simple Annualized **Morning Star 3.81% Others Including (NR) 1.04% ***Average of reporting period n.a = not applicable 96.19% 98.96% Credit Quality of Portfolio (as % of total assets) AAA (Government Securities) AAA 0.01% AA+ AA 96.17% 98.96% NR ( ) 3.81% 1.04% The scheme has maintained provision against Worker s Welfare Fund s liability to the tune of Rs. 162,700, if the same were not made the NAV per unit/year to date (YTD) return of the scheme would be higher by Rs / 0.86% enhancing the YTD return to 9.67% p.a 12.00% % 6.00% 4.00% IMMF 2.00%

8 Contact Details Sonam Peswani Nadeem A. Khan Shafiq ur Rehman Bhatti Head of Marketing, SMAs & Investor Services Manager Investor Services Regional Head Corporate Sales Asif Ahmed Siddiqui Regional Head Corporate Sales